Ecopetrol SA

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EC : NYSE : Basic Materials
$8.83 up 0.13 | 1.5%
Today's Range: 8.75 - 8.81
Avg. Daily Volume: 1206300.0
06/22/17 - 10:57 AM ET

Financial Analysis


Even though it increased sales and net income significantly, the company was unable to grow at a faster pace than its industry competitors. ECOPETROL SA has weak liquidity. Currently, the Quick Ratio is 0.71 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 5.06% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)4626.373493.47
EBITDA ($mil)0.01053.51
EBIT ($mil)0.0482.74
Net Income ($mil)306.56120.82


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2825.092949.4
Total Assets ($mil)41692.3140566.61
Total Debt ($mil)17442.2117706.04
Equity ($mil)15152.3814421.54


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin0.044.64
EBITDA Margin0.030.15
Operating Margin0.013.82
Sales Turnover0.420.38
Return on Assets2.4-5.49
Return on Equity6.62-15.45
Debt Q1 FY17 Q1 FY16
Current Ratio1.491.26
Debt/Capital0.540.55
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)2055.842055.84
Div / share0.00.0
EPS0.150.06
Book value / share7.377.01
Institutional Own % n/a n/a
Avg Daily Volume1186936.0948352.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 51.24 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 25.73. For additional comparison, its price-to-book ratio of 1.24 indicates a significant discount versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 81.35. 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 19.04 Peers 51.24   EC 3.71 Peers 14.91

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 7.09 Peers 23.97   EC 0.15 Peers 0.57

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 1.24 Peers 81.35   EC 144.44 Peers 98.97

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 1.08 Peers 2.16   EC 13.56 Peers 6.96

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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