BP (BP) AI Stock Analysis

• Market Cap: $88.97B
• Dividend Yield: 5.57%
• Average Volume (3M): 6.27M
• Price to Earnings (P/E): 146.4
• Beta (1Y): 0.33
• Revenue Growth: -7.40%
• EPS Growth: -90.89%
• Country: US
• Employees: 100,500
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.90
• Shares Outstanding: 2,618,249,000
• 10 Day Avg. Volume: 6,348,254
• 30 Day Avg. Volume: 6,269,501
• PEG Ratio: -2.18
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 6.73
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 4.60
• Enterprise Value/Ebitda: 4.82
• 1Y Price Target: $40.72
• Price Target Upside: 17.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 59 Neutral
• Price Target: $36.00 ▲(4.23% Upside)

BP's overall stock score reflects a mix of financial challenges and strategic strengths. The company's high leverage and negative profitability metrics weigh on the score, but strong operational performance and strategic initiatives, as highlighted in the earnings call, provide a positive counterbalance. The high P/E ratio suggests valuation concerns, but the attractive dividend yield offers some compensation for investors.

Positive Factors

Exploration Success

The discovery in Brazil is BP's largest in 25 years, enhancing its upstream portfolio and potential production capacity, which is crucial for long-term growth.

Operational Reliability

High operational reliability in upstream and downstream segments ensures consistent production and cost efficiency, supporting long-term profitability.

Cost Reduction

Significant cost reductions enhance BP's financial flexibility and competitiveness, enabling reinvestment in growth areas and improving margins.

Negative Factors

High Debt Levels

High leverage can strain BP's cash flow and limit its ability to invest in new projects, posing a risk to long-term financial stability.

Declining Revenue Growth

A declining revenue growth rate indicates challenges in maintaining market share and competitiveness, potentially impacting future earnings.

Negative Profitability

Negative profitability suggests BP is struggling to convert revenue into profit, which could hinder its ability to sustain operations and invest in growth.

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 key streams. The upstream sector, which involves exploration and production, contributes significantly to its earnings by selling crude oil and natural gas. The downstream sector includes refining operations and the sale of refined products such as gasoline and diesel, which also provide substantial revenue. Additionally, BP engages in trading activities, capitalizing on fluctuations in energy prices. The company has established partnerships and joint ventures with other oil and gas firms, enhancing its operational capabilities and market reach. Furthermore, BP's investments in renewable energy and low-carbon technologies are expected to create new revenue opportunities as global energy markets evolve.

BP Financial Statement Overview

Summary

BP's financial performance is mixed, with challenges in revenue growth and profitability. The company has high leverage and negative returns on equity, raising concerns about financial stability. While operational margins are moderate, the decline in free cash flow growth suggests potential liquidity issues.

Income Statement

BP's income statement shows mixed results. The TTM data reveals a decline in revenue growth rate by 6.4%, indicating challenges in maintaining top-line growth. Gross profit margin stands at 15.43%, which is relatively stable but lower than previous years. The net profit margin is slightly negative at -0.64%, reflecting profitability issues. EBIT and EBITDA margins are moderate at 5.45% and 14.42%, respectively, showing operational efficiency but also highlighting the need for improved cost management.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 1.22, suggesting significant leverage. Return on equity is negative at -1.92%, pointing to challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the high leverage and negative ROE suggest potential risks. However, the company maintains a substantial asset base, which provides some stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 15.51%, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.30, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.41, reflecting some ability to convert earnings into cash, but overall cash flow performance is underwhelming.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.09B	189.19B	208.35B	241.39B	157.74B	105.94B
Gross Profit	30.26B	30.24B	64.06B	55.10B	22.86B	10.18B
EBITDA	28.87B	27.98B	43.50B	59.47B	32.55B	14.54B
Net Income	582.28M	381.00M	15.24B	-1.36B	7.57B	-20.73B
Balance Sheet
Total Assets	284.74B	282.23B	280.29B	288.12B	287.27B	267.65B
Cash, Cash Equivalents and Short-Term Investments	35.31B	34.52B	28.59B	29.77B	30.96B	29.53B
Total Debt	74.98B	71.55B	63.08B	55.49B	69.79B	81.93B
Total Liabilities	204.96B	203.91B	194.80B	205.13B	196.83B	182.09B
Stockholders Equity	59.24B	59.25B	70.28B	67.55B	75.46B	71.25B
Cash Flow
Free Cash Flow	8.61B	12.00B	17.75B	28.86B	12.72B	-144.00M
Operating Cash Flow	23.37B	27.30B	32.04B	40.93B	23.61B	12.16B
Investing Cash Flow	-11.26B	-13.25B	-14.87B	-13.71B	-5.69B	-7.86B
Financing Cash Flow	-11.97B	-7.30B	-13.36B	-28.02B	-18.08B	3.96B

BP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 34.54 is above the 20-day moving average (MA) of 34.00, above the 50-day MA of 34.32, and above the 200-day MA of 31.43, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 88.38 is Negative, 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
XOM	79 Outperform	$491.94B	16.36	11.68%	3.43%	-3.79%	-15.46%
CVX	73 Outperform	$320.54B	20.21	8.97%	4.35%	-5.02%	-23.13%
PBR	73 Outperform	$73.91B	5.58	19.48%	14.20%	-13.68%	-13.96%
SHEL	73 Outperform	$218.53B	16.85	7.47%	3.74%	-5.75%	-20.18%
TTE	71 Outperform	$135.20B	10.91	10.96%	5.91%	-10.73%	-36.76%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BP	59 Neutral	$88.97B	146.36	0.95%	5.57%	-7.40%	-90.89%

BP Corporate Events

BP’s Third Quarter 2025 Trading Statement Highlights Mixed Performance

On October 14, 2025, BP released its third quarter trading statement, highlighting expectations for higher upstream production compared to the previous quarter, driven by increased gas production in bpx energy and the gas & low carbon energy segment. The company anticipates broadly flat realizations in oil production and operations, with a slight increase in exploration write-offs. In the customers & products segment, BP expects stronger refining margins but notes the impact of environmental compliance costs and an unplanned outage. The company also foresees post-tax adjusting items related to asset impairments and a stable net debt level, despite higher income taxes and bond redemptions. These developments indicate a mixed performance with potential implications for BP’s financial stability and market positioning.

BP Completes Share Buyback Program in September 2025

In September 2025, BP p.l.c. executed a series of share buybacks as part of a program announced in August 2025, purchasing millions of its ordinary shares on the London Stock Exchange and Cboe (UK). These transactions, conducted with the authority granted by shareholders at the 2025 Annual General Meeting, are intended to strengthen BP’s financial position by reducing the number of shares in circulation, potentially increasing the value of remaining shares and demonstrating confidence in the company’s future prospects.

BP Announces Total Voting Rights and Share Capital as of September 2025

On October 1, 2025, BP p.l.c. announced its total voting rights and share capital as of September 30, 2025. The company reported an issued share capital of 15,767,494,382 ordinary shares and 12,706,252 preference shares, with a total of 15,772,576,882 voting rights. This information is crucial for shareholders to determine their interest in BP under the FCA’s Disclosure Guidance and Transparency Rules.

BP Announces Second Quarter 2025 Dividend Payment

On August 5, 2025, BP p.l.c. announced an interim dividend for the second quarter of 2025, amounting to US$0.0832 per ordinary share, to be paid on September 19, 2025. The dividend will be distributed in sterling for ordinary shares and in US dollars for ADS holders, with no scrip dividend alternative offered. This decision reflects BP’s ongoing commitment to providing returns to its shareholders while maintaining financial stability.

BP Announces Total Voting Rights and Share Capital as of August 31, 2025

On September 1, 2025, BP p.l.c. announced its total voting rights and share capital as of August 31, 2025. The company’s issued share capital comprised over 15.7 billion ordinary shares and approximately 12.7 million preference shares, with a total of 15,793,712,360 voting rights. This information is crucial for shareholders to determine their interests under the FCA’s Disclosure Guidance and Transparency Rules. The announcement underscores BP’s commitment to transparency and regulatory compliance, impacting shareholder decision-making and market perceptions.

BP Announces Share Buyback Program and New Board Appointment

BP p.l.c. announced a series of transactions involving the repurchase of its own shares throughout August 2025, as part of a buyback program aimed at reducing the company’s issued share capital. The program, which commenced on August 1, 2025, involves a maximum allocation of $750 million and is set to continue until October 31, 2025. Additionally, BP declared the appointment of Hina Nagarajan as a non-executive director to the board of East African Breweries PLC, effective August 4, 2025, and disclosed transactions by persons discharging managerial responsibilities.

BP Releases Form 6-K Report for First Half of 2025

BP p.l.c. has released its Form 6-K report for the period ending June 30, 2025, detailing its financial condition and results of operations for the first half of the year. The report includes management’s discussion and analysis, consolidated financial statements, and notes on principal risks and uncertainties. This comprehensive disclosure is crucial for stakeholders to assess BP’s operational performance and financial health, providing insights into the company’s strategic direction and market positioning.

BP Reports Strong Q2 2025 Performance with Increased Profits and Strategic Advancements

BP reported strong operational and strategic performance for the second quarter of 2025, with an underlying replacement cost profit of $2.4 billion, up from $1.4 billion in the previous quarter. The company achieved significant milestones, including five major project start-ups and ten exploration discoveries, and announced a $750 million share buyback alongside a 4% increase in dividends. BP’s focus on structural cost reductions and divestments, such as selling its Netherlands integrated mobility business and US onshore wind business, underscores its commitment to enhancing shareholder value and improving operational efficiency.

BP Unveils Major Oil Discovery Offshore Brazil

On August 4, 2025, BP announced a significant oil and gas discovery at the Bumerangue exploration well in the deepwater offshore Brazil, marking its largest find in 25 years. The well, located in the Santos Basin, revealed a substantial hydrocarbon column in a high-quality pre-salt carbonate reservoir. This discovery underscores BP’s commitment to expanding its upstream operations and highlights Brazil’s strategic importance in its portfolio. The company plans further appraisal activities to assess the block’s potential, which could enhance its production hub ambitions in the region.

BP Announces Total Voting Rights as of July 2025

As of July 31, 2025, BP p.l.c. reported its issued share capital comprising 15,813,680,678 ordinary shares and 12,706,252 preference shares, with a total of 15,818,763,178 voting rights. This announcement, made in accordance with the FCA’s Disclosure Guidance and Transparency Rules, informs shareholders about the voting rights structure, which is essential for determining their interest or changes in interest in the company.

BP Executes Significant Share Buybacks in July 2025

BP p.l.c. announced a series of share buybacks throughout July 2025, as part of its ongoing buyback program initiated in February 2025. These transactions, conducted on the London Stock Exchange and Cboe (UK), involved purchasing millions of ordinary shares to be transferred into Treasury, reflecting BP’s strategy to enhance shareholder value. The buybacks highlight BP’s commitment to returning capital to shareholders and may impact the company’s stock liquidity and market perception.