Ecopetrol SA

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EC : NYSE : Energy Minerals
$17.11 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1534400.0
02/21/18 - 4:02 PM ET

Financial Analysis


ECOPETROL SA's gross profit margin for the third quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. ECOPETROL SA has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 Q3 FY17 Q3 FY16
Net Sales ($mil)4807.624497.72
EBITDA ($mil)1951.221648.94
EBIT ($mil)1148.91878.87
Net Income ($mil)363.9692.93


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)3610.034376.29
Total Assets ($mil)39589.4142150.27
Total Debt ($mil)15189.8418085.49
Equity ($mil)15715.8515661.93


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin50.4945.38
EBITDA Margin40.5836.66
Operating Margin23.919.54
Sales Turnover0.450.37
Return on Assets3.6-6.09
Return on Equity9.07-16.39
Debt Q3 FY17 Q3 FY16
Current Ratio1.371.48
Debt/Capital0.490.54
Interest Expense240.21308.45
Interest Coverage4.782.85


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)2055.842055.84
Div / share0.00.0
EPS0.180.04
Book value / share7.647.62
Institutional Own % n/a n/a
Avg Daily Volume1616271.01026518.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 274.94 for the Oil, Gas & Consumable Fuels industry and a value on par with the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 2.30 indicates a discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 5.16. The price-to-sales ratio is 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 25.45 Peers 274.94   EC 7.60 Peers 8.95

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 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 13.91 Peers 46.08   EC 0.24 Peers 0.60

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 2.30 Peers 5.16   EC 155.20 Peers 488.23

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 2.03 Peers 2.06   EC 13.11 Peers 30.08

Average. 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 valuation on par with 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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