Ecopetrol SA

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EC : NYSE : Basic Materials
$8.65 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 896,900
09/29/16 - 4:02 PM ET

Financial Analysis


ECOPETROL SA's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. ECOPETROL SA has weak liquidity. Currently, the Quick Ratio is 0.92 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 19.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)3986.725399.45
EBITDA ($mil)0.02076.81
EBIT ($mil)1135.391447.96
Net Income ($mil)266.04586.46


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)3301.093619.39
Total Assets ($mil)40839.9749181.31
Total Debt ($mil)17974.8617921.55
Equity ($mil)14974.5118487.29


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin44.3444.19
EBITDA Margin0.038.46
Operating Margin0.026.82
Sales Turnover0.340.42
Return on Assets-6.241.24
Return on Equity-17.023.31
Debt Q2 FY16 Q2 FY15
Current Ratio1.531.29
Debt/Capital0.550.49
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)2055.842055.84
Div / share0.01.04
EPS0.130.29
Book value / share7.288.99
Institutional Own % n/a n/a
Avg Daily Volume907918.01282457.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.18 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 15.56. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, ECOPETROL SA proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EC NM Peers 80.60   EC 5.32 Peers 10.97

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

EC's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

EC is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EC 10.01 Peers 49.84   EC NA Peers 3.87

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

EC is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EC 1.18 Peers 15.56   EC -513.33 Peers -227.20

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

EC is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, EC is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EC 1.28 Peers 2.58   EC -32.11 Peers -26.14

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

EC is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

EC significantly trails its peers on the basis of sales growth

 

 

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