Ecopetrol SA

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EC : NYSE : Basic Materials
$9.14 | %
Today's Range: 9.05 - 9.18
Avg. Daily Volume: 1067000.0
04/28/17 - 4:01 PM ET

Financial Analysis


ECOPETROL SA's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ECOPETROL SA has weak liquidity. Currently, the Quick Ratio is 0.84 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 11.46% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)3988.543684.42
EBITDA ($mil)1409.41822.05
EBIT ($mil)843.01281.53
Net Income ($mil)43.67-2027.73


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2830.572477.45
Total Assets ($mil)40577.3339288.69
Total Debt ($mil)17468.2716919.7
Equity ($mil)14608.913105.72


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin40.9335.42
EBITDA Margin35.3322.31
Operating Margin21.147.64
Sales Turnover0.390.42
Return on Assets1.28-3.22
Return on Equity3.58-9.67
Debt Q4 FY16 Q4 FY15
Current Ratio1.471.15
Debt/Capital0.540.56
Interest Expense234.49208.59
Interest Coverage3.61.35


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)2055.842055.84
Div / share0.00.0
EPS0.02-0.99
Book value / share7.116.37
Institutional Own % n/a n/a
Avg Daily Volume1045385.0935424.0

Valuation


SELL. The current P/E ratio indicates a significant discount compared to an average of 145.46 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 1.35 indicates a significant discount versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 38.31. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of 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 38.40 Peers 145.46   EC 4.09 Peers 11.69

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

EC is trading at a significant discount to its peers.

 

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 7.50 Peers 26.05   EC 0.15 Peers 0.64

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.

 

Discount. 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.

EC trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EC 1.35 Peers 38.31   EC 140.32 Peers 41.17

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.

 

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

EC is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EC 1.24 Peers 2.53   EC -3.59 Peers -9.44

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

EC has a sales growth rate that significantly exceeds its peers.

 

 

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