BP p.l.c. (BP) AI Stock Analysis

• Market Cap: £53.58B
• Dividend Yield: 6.73%
• Average Volume (3M): 57.11M
• Price to Earnings (P/E): 183.4
• Beta (1Y): 0.97
• Revenue Growth: -12.44%
• EPS Growth: -98.02%
• Country: UK
• Employees: 100,500
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.06
• Shares Outstanding: 16,035,228,000
• 10 Day Avg. Volume: 59,650,743
• 30 Day Avg. Volume: 57,112,669
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.45
• Price to Cash Flow (P/CF): 5.80
• P/FCF Ratio: 10.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £478.13
• Price Target Upside: 33.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

BP's overall stock score of 63 reflects a mixed financial performance with strong cash flow but declining profitability. The technical analysis indicates bearish trends, while the high P/E ratio raises valuation concerns despite a solid dividend yield. The earnings call provided a balanced outlook with strategic progress and shareholder returns, mitigating some operational challenges.

Positive Factors

Activist Investor Involvement

Activist investor Elliott has acquired a significant stake in BP, which is expected to lead to positive changes in the company's strategy and operations.

Operational Efficiency

BP achieved a significant structural cost reduction, aligning with targets for further efficiencies.

Strategic Changes

BP announced a complete strategic reset, expected to shift focus towards oil and gas, potentially creating a growth story.

Negative Factors

Comparative Performance

BP remains a less attractive proposition compared to peers like Shell and TotalEnergies.

Financial Performance

BP's net income was approximately 7.2% below consensus due to higher interest and minority charges.

Strategy and Guidance

Disappointment from BP’s strategy reset may add momentum to activist calls for more radical changes.

BP p.l.c. Business Overview & Revenue Model

Company Description

BP p.l.c. (BP) is a global energy company headquartered in London, United Kingdom. It operates across multiple sectors, including exploration and production, refining, distribution and marketing, petrochemicals, power generation, and trading. BP is one of the world's largest integrated oil and gas companies, offering a range of products such as fuels, lubricants, and petrochemical products. It is also increasingly investing in renewable energy sources like wind, solar, and biofuels as part of its transition towards a more sustainable energy future.

How the Company Makes Money

BP makes money primarily through the exploration, extraction, and sale of oil and natural gas. Its upstream operations involve locating and developing oil and gas resources, which generate revenue through the sale of crude oil, natural gas, and natural gas liquids. In its downstream operations, BP refines crude oil into petroleum products such as gasoline, diesel, and jet fuel, which are sold to consumers and businesses. BP also operates a substantial trading division that buys and sells energy commodities, contributing to its earnings. Moreover, BP's growing investments in renewable energy and low-carbon technologies are aimed at diversifying its revenue streams and capitalizing on the global shift towards sustainable energy solutions. Strategic partnerships and joint ventures with other energy companies and investments in technology further enhance BP's ability to generate revenue.

BP p.l.c. Financial Statement Overview

Summary

BP faced a challenging financial year marked by declining revenues and profitability. While the income statement shows reduced margins and growth, the balance sheet reflects a stable financial position with moderate leverage. The cash flow statement indicates strong operating cash flows, suggesting liquidity and operational efficiency. Overall, BP's financial health is mixed, with strengths in cash flow and stability, but concerns regarding profitability and revenue growth.

Income Statement

BP's income statement reveals a challenging year with a decline in total revenue from $208.4 billion to $189.2 billion, resulting in a negative revenue growth rate of -9.2%. The gross profit margin decreased from 30.7% to 16.0%, and the net profit margin fell significantly from 7.3% to 0.2%. EBITDA margin also saw a decline to 15.3% from 20.9%. These figures indicate pressure on profitability despite a strong EBITDA margin, reflective of industry headwinds.

Balance Sheet

BP's balance sheet demonstrates financial stability with a debt-to-equity ratio of 1.21, showing a manageable level of leverage. The equity ratio stands at 21.0%, which suggests a moderate level of equity financing. However, the return on equity (ROE) dropped significantly to 0.6% from 21.7%, indicating a sharp decline in profitability relative to shareholder equity.

Cash Flow

BP's cash flow performance remains robust with an operating cash flow of $27.3 billion. The free cash flow to net income ratio is notably high, reflecting effective cash generation despite low net income. The free cash flow has declined from previous years, but the company still maintains a healthy cash generation capability, providing some resilience against income statement pressures.

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
0.00	46.98B	44.76B	15.09B	-346.00M
	EBITDA
28.85B	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
39.37B	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
32.34B	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 p.l.c. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 358.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP, the sentiment is Negative. The current price of 358.95 is below the 20-day moving average (MA) of 387.73, below the 50-day MA of 417.73, and below the 200-day MA of 405.56, indicating a bearish trend. The MACD of -21.70 indicates Positive momentum. The RSI at 37.46 is Neutral, neither overbought nor oversold. The STOCH value of 61.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BP.

BP p.l.c. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTE	75 Outperform	€102.09B	7.68	13.29%	6.17%	-10.73%	-23.13%
BP	63 Neutral	£53.58B	183.44	0.61%	6.73%	-12.44%	-98.02%
TLW	61 Neutral	£192.09M	4.19		―	-11.70%	―
HBR	56 Neutral	£2.72B	21.62	-2.87%	12.93%	29.33%	―
Sector *	55 Neutral	$7.05B	3.40	-6.09%	6.09%	-0.43%	-51.04%
CNE	48 Neutral	£135.25M	17.20	-3.25%	―	-28.38%	90.60%