BP (BP) AI Stock Analysis

• Market Cap: $74.02B
• Dividend Yield: 6.54%
• Average Volume (3M): 12.47M
• Price to Earnings (P/E): 186.2
• Beta (1Y): 0.40
• Revenue Growth: -7.70%
• EPS Growth: -113.83%
• Country: US
• Employees: 100,500
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.53
• Shares Outstanding: 2,657,244,400
• 10 Day Avg. Volume: 13,141,719
• 30 Day Avg. Volume: 12,467,076
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.88
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.26
• Price Target Upside: -1.15% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

BP's overall stock score reflects a mixed financial performance with recent losses impacting income stability, balanced by strong operational efficiency and cash management. Technical analysis suggests a bearish trend, and valuation is constrained by financial performance, though the high dividend yield adds some appeal. The earnings call provided positive operational insights, but challenges in trading and increased debt remain concerns.

Positive Factors

Activist Shareholder Influence

Elliott Investment Management has built a significant stake in BP's shares, implying potential upside.

Debt Management

BP's net debt has decreased, even with the inclusion of acquired debt from a recent acquisition.

Strategic Planning

BP's focus on cost efficiencies, performance improvements, and returns is aimed at growing shareholder value through strategic plans and metrics.

Negative Factors

Capital Allocation

BP is seen as the most likely candidate in its peer group to reduce distributions.

Investor Concerns

The 2-week delay to BP's planned strategy update is causing concern among investors, possibly due to a CEO medical issue.

Stock Performance

The stock has been the weakest performer in the peer group due to relatively high leverage and reliance on divestments.

BP Business Overview & Revenue Model

Company Description

BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil. In addition, the company involved in convenience and retail fuel, EV charging, Castrol lubricant, aviation, B2B, and midstream businesses; refining and oil trading; and bioenergy business. The company was founded in 1908 and is headquartered in London, the United Kingdom.

How the Company Makes Money

BP generates revenue primarily through its upstream and downstream operations. The upstream segment involves the exploration, development, and production of oil and natural gas, which are sold to various markets. The downstream segment includes refining crude oil, manufacturing petrochemicals, and marketing oil products. BP operates a network of retail service stations worldwide and engages in trading activities in the energy markets. The company also invests in renewable energy projects and technologies, although these currently contribute a smaller portion of its overall revenue. Key factors influencing BP's earnings include global oil prices, production volumes, and refining margins, alongside strategic partnerships and joint ventures that expand its market reach and enhance operational efficiency.

BP Financial Statement Overview

Summary

BP shows a mixed financial picture with challenges in income stability due to recent losses, yet maintains a strong operational framework and cash flow resilience. The balance sheet remains stable, with manageable leverage and a strong asset base. While recent revenue declines and net losses are concerns, BP's operational efficiency and cash management provide a foundation for potential recovery and growth.

Income Statement

BP's income statement shows a mixed performance with a negative net income in TTM (Trailing-Twelve-Months) due to a loss of $1.195 billion. The gross profit margin stands at approximately 15.42% for TTM, which is moderate for the industry. EBIT and EBITDA margins are solid at 8.40% and 14.11%, respectively, indicating operational efficiency despite revenue fluctuations. However, revenue has declined from the previous year, impacting overall profitability.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of approximately 1.22, indicating reasonable leverage. The equity ratio is about 20.69%, showcasing a balanced capital structure. Return on equity is negative due to the net loss, which is a concern. Overall, BP maintains a robust asset base and financial stability despite recent challenges.

Cash Flow

BP's cash flow statement indicates strong cash generation capabilities with an operating cash flow to net income ratio of approximately -21.02, due to negative net income. Free cash flow is positive at $10.192 billion in TTM, although it has decreased from the previous year. Despite fluctuations, BP demonstrates solid cash management, which is crucial for sustaining operations and investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
189.19B	208.35B	241.39B	157.74B	105.94B
	Gross Profit
30.24B	64.06B	55.10B	22.86B	10.18B
	EBIT
13.62B	46.98B	44.76B	15.09B	-346.00M
	EBITDA
27.98B	43.50B	59.47B	32.55B	14.54B
	Net Income Common Stockholders
381.00M	15.24B	-1.36B	7.57B	-20.73B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.52B	28.59B	29.77B	30.96B	29.53B
	Total Assets
282.23B	280.29B	288.12B	287.27B	267.65B
	Total Debt
71.55B	63.08B	55.49B	69.79B	81.93B
	Net Debt
37.19B	35.33B	26.30B	39.11B	52.73B
	Total Liabilities
203.91B	194.80B	205.13B	196.83B	182.09B
	Stockholders Equity
59.25B	70.28B	67.55B	75.46B	71.25B
Cash Flow		Free Cash Flow
12.00B	17.75B	28.86B	12.72B	-144.00M
	Operating Cash Flow
27.30B	32.04B	40.93B	23.61B	12.16B
	Investing Cash Flow
-13.25B	-14.87B	-13.71B	-5.69B	-7.86B
	Financing Cash Flow
-7.30B	-13.36B	-28.02B	-18.08B	3.96B

BP Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BP, the sentiment is Neutral. The current price of 28.59 is above the 20-day moving average (MA) of 28.08, below the 50-day MA of 30.68, and below the 200-day MA of 30.87, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 46.89 is Neutral, neither overbought nor oversold. The STOCH value of 53.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BP.

BP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTE	78 Outperform	$121.49B	9.42	11.75%	4.84%	-9.86%	-32.59%
CVX	75 Outperform	$236.86B	15.53	10.11%	4.87%	-1.12%	-19.71%
SHEL	72 Outperform	$196.47B	15.27	7.40%	4.27%	-2.62%	-20.13%
XOM	71 Outperform	$451.26B	13.66	14.18%	3.71%	2.36%	-7.18%
PBR	66 Neutral	$70.05B	10.64	10.52%	16.25%	-10.81%	-70.65%
BP	62 Neutral	$74.02B	186.20	-1.87%	6.54%	-7.70%	-113.83%
Sector *	56 Neutral	$6.93B	3.23	-4.86%	5.94%	0.12%	-48.32%