BP (BP) AI Stock Analysis

• Market Cap: $81.96B
• Dividend Yield: 5.98%
• Average Volume (3M): 9.83M
• Price to Earnings (P/E): 186.2
• Beta (1Y): 0.31
• Revenue Growth: -7.91%
• EPS Growth: -113.62%
• Country: US
• Employees: 100,500
• Sector: Energy
• Sector Strength: 57
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.90
• Shares Outstanding: 2,635,613,500
• 10 Day Avg. Volume: 7,725,985
• 30 Day Avg. Volume: 9,829,500
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 5.11
• Enterprise Value/Ebitda: 5.58
• 1Y Price Target: $32.50
• Price Target Upside: 0.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 71 Outperform
• Price Target: $35.00 ▲(7.73%Upside)

BP's overall stock score reflects strong operational execution and positive earnings call sentiment, offset by valuation concerns and financial performance challenges due to recent losses. The technical analysis supports a bullish trend, while the dividend yield remains a strong attraction for investors.

Positive Factors

Activism

Activism has been a positive force, sharpening BP's focus on leverage and divestments, and catalyzing Board changes.

Shareholder Returns

BP expects to consistently return 30-40% of adjusted cash flow from operations to shareholders, comparable to peers.

Valuation Upside

There is valuation uplift potential if a breakup is pursued, reflecting 43% upside from the current share price.

Negative Factors

Financial Performance

BP's valuation isn't cheap, with NTM earnings estimates falling more than the sector, leading to a higher relative PE re-rating compared to its peers.

Leverage

BP has the highest leverage in the sector, and current macro conditions put its plan to reduce net debt at risk, potentially leading to suspended buybacks.

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 through multiple streams across the energy sector. The primary revenue source is the exploration and production of oil and natural gas, where BP discovers, extracts, and sells crude oil and natural gas. The refining and marketing segment contributes significantly, involving the processing of crude oil into refined products such as gasoline, diesel, and lubricants, which are then marketed and sold. BP's trading arm actively trades crude oil, refined products, natural gas, power, and currencies, leveraging market fluctuations. Additionally, BP has been expanding its presence in renewable energy, including solar and wind power, aiming to diversify its portfolio and revenue streams as part of its energy transition strategy. Strategic partnerships and joint ventures, such as those with technology providers and other energy firms, further enhance BP's capabilities and market reach.

BP Financial Statement Overview

Summary

BP's financial performance is mixed, with strong operational efficiency and cash flow resilience countered by recent revenue declines and net losses. The balance sheet is stable with manageable leverage, but the negative net income and declining profits are concerns.

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
EBITDA	27.98B	43.50B	59.47B	32.55B	14.54B
Net Income	381.00M	15.24B	-1.36B	7.57B	-20.73B
Balance Sheet
Total Assets	282.23B	280.29B	288.12B	287.27B	267.65B
Cash, Cash Equivalents and Short-Term Investments	34.52B	28.59B	29.77B	30.96B	29.53B
Total Debt	71.55B	63.08B	55.49B	69.79B	81.93B
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: Positive
• Last Price: 32.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BP, the sentiment is Positive. The current price of 32.49 is above the 20-day moving average (MA) of 32.14, above the 50-day MA of 30.92, and above the 200-day MA of 30.14, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 35.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BP.

BP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PBR	81 Outperform	$78.28B	9.65	11.25%	14.02%	-10.84%	-61.73%
SHEL	80 Outperform	$210.36B	14.09	7.40%	3.90%	―	―
CVX	76 Outperform	$309.98B	19.54	8.97%	4.41%	-4.98%	-23.13%
TTE	76 Outperform	$131.90B	10.40	10.96%	5.97%	-10.73%	-36.76%
XOM	74 Outperform	$472.51B	15.53	11.68%	3.58%	-3.63%	-15.40%
BP	71 Outperform	$81.96B	186.20	-1.84%	5.98%	-7.91%	-113.62%
Sector *	56 Neutral	C$4.11B	-0.36	-1.17%	6.55%	5.54%	-67.49%