BP plc (BP.B) AI Stock Analysis

• Market Cap: £76.68B
• Dividend Yield: 5.42%
• Average Volume (3M): 3.57K
• Price to Earnings (P/E): 634.9
• Beta (1Y): 0.15
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 100,500
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): N/A
• Shares Outstanding: 5,473,414
• 10 Day Avg. Volume: 5,154
• 30 Day Avg. Volume: 3,567
• PEG Ratio: -7.44
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 3.10
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: 173.00 p ▲(2.37% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by weakened profitability (near break-even net margin) and higher leverage despite resilient cash flow. Technicals are supportive with price above key moving averages and positive MACD, while valuation benefits from a high dividend yield but lacks a P/E for fuller context. Earnings-call commentary was constructive on operations, cash-flow growth ambitions, and divestment progress, partially offset by trading softness and arbitration uncertainty.

Positive Factors

Cash generation

Consistently strong operating cash flow and positive free cash flow provide durable funding for dividends, capex and portfolio reshaping. This cash generation underpins the company's ability to invest in high-return projects and support deleveraging and the energy-transition pipeline over the next 2–6 months.

Operational reliability & production

High plant and refining availability with rising upstream volumes points to sustainable production base and lower downtime. Reliable operations reduce unit costs, support stable deliverability on projects and help maintain revenue and margins through the commodity cycle, improving medium-term cash conversion.

Strategic execution and divestments

Clear progress on divestments plus disciplined organic CapEx guidance (<$14B) demonstrates portfolio reshaping and capital allocation discipline. Realizing proceeds and redeploying capital supports balance-sheet repair and funds transition investments, a structural positive for long-term resilience.

Negative Factors

Weak profitability

A near-zero net margin indicates earnings have little cushion versus costs and volatility, making profitability fragile. Despite positive EBITDA/gross margins, compressed net income increases sensitivity to commodity swings and non-operating items, limiting sustainable retained earnings and ROE recovery.

Rising leverage

Higher leverage and a smaller equity base reduce financial flexibility and raise refinancing risk. Elevated debt levels constrain the company's ability to fund large transition investments or absorb shocks without drawing on divestments or cutting returns, increasing medium-term balance-sheet vulnerability.

Trading & legal uncertainty

Underperformance in the trading business and an unresolved arbitration (damages phase/timing unclear) introduce structural earnings volatility and contingent liabilities. These factors can suppress realized profits and complicate planning for cash deployment and debt reduction over the coming months.

BP plc 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. Further, it engages in power and storage, digital transformation, carbon management, and bio and low carbon related products, as well as energy and environmental commodities and mobility businesses. 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 exploration and production of oil and natural gas, where it earns from selling crude oil and gas to markets worldwide. The refining segment produces fuels and petrochemicals, contributing significantly to its earnings through the sale of gasoline, diesel, and other refined products. Additionally, BP's retail operations involve selling fuel at service stations and convenience stores, which further adds to revenue. The company is also developing a portfolio in renewable energy, which is expected to grow and contribute to future earnings. Significant partnerships with other energy companies and investments in technology for energy efficiency and renewable projects are important factors that enhance BP's financial performance.

BP plc Financial Statement Overview

Summary

Revenue rebounded strongly in 2025, and cash generation remains a relative strength with solid operating cash flow and positive free cash flow. However, profitability has weakened materially versus 2023 with net margin near break-even, and leverage has risen (higher debt-to-equity alongside a shrinking equity base), limiting the financial strength score.

Income Statement

Revenue rebounded strongly in 2025 (annual revenue growth of 0.887) after declines in 2023–2024, but profitability has weakened materially versus 2023. Net profit margin fell to near break-even in 2025 (0.00029) from a strong 2023 level (0.073), and margins have been volatile (including a loss in 2022 and a severe downturn in 2020). While gross and EBITDA margins in 2025 (0.177 and 0.164) are positive, the sharp compression in net income suggests earnings are currently fragile for the scale of the business.

Balance Sheet

Leverage has risen: debt-to-equity increased to 1.37 in 2025 from 0.90 in 2023, indicating a heavier reliance on debt. Equity also declined from 70.3B (2023) to 53.1B (2025), reducing balance-sheet cushion. Total assets are broadly stable (~278.5B in 2025), but returns on equity have fallen sharply from 2023’s strong level (0.217) to very low in 2024 (0.006), consistent with the earnings slowdown.

Cash Flow

Cash generation remains a relative strength: operating cash flow stayed solid at 24.5B in 2025 and free cash flow was 11.3B, with strong free cash flow growth in 2025 (5.632) following a decline in 2024. However, cash conversion vs. accounting earnings looks mixed: free cash flow is modest relative to net income in the data provided (free cash flow to net income of 0.46 in 2025), and operating cash flow coverage is consistently below 1 (0.304 in 2025), pointing to periods where cash flow does not fully cover the referenced obligation/earnings measure.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	189.34B	189.19B	208.35B	241.39B	157.74B
Gross Profit	33.53B	30.24B	64.06B	55.10B	22.86B
EBITDA	31.07B	27.98B	43.50B	59.47B	32.55B
Net Income	55.00M	381.00M	15.24B	-1.36B	7.57B
Balance Sheet
Total Assets	278.53B	282.23B	280.29B	288.12B	287.27B
Cash, Cash Equivalents and Short-Term Investments	36.71B	34.52B	28.59B	29.77B	30.96B
Total Debt	72.53B	71.55B	63.08B	55.49B	69.79B
Total Liabilities	204.53B	203.91B	194.80B	205.13B	196.83B
Stockholders Equity	53.05B	59.25B	70.28B	67.55B	75.46B
Cash Flow
Free Cash Flow	11.27B	12.00B	17.75B	28.86B	12.72B
Operating Cash Flow	24.49B	27.30B	32.04B	40.93B	23.61B
Investing Cash Flow	-11.50B	-13.25B	-14.87B	-13.71B	-5.69B
Financing Cash Flow	-15.88B	-7.30B	-13.36B	-28.02B	-18.08B

BP plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP.B, the sentiment is Positive. The current price of 169 is above the 20-day moving average (MA) of 164.60, above the 50-day MA of 164.04, and above the 200-day MA of 161.65, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 15.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BP.B.

BP plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHEL	73 Outperform	£176.52B	11.92	8.25%	4.00%	-9.21%	-2.61%
ENOG	73 Outperform	£1.64B	5.30	17.24%	10.99%	-2.66%	0.11%
SEPL	70 Outperform	£2.71B	13.86	12.03%	5.64%	159.13%	143.76%
HBR	69 Neutral	£5.26B	-24.34	-11.32%	8.77%	123.03%	-330.89%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BP.B	60 Neutral	£76.68B	634.90	―	5.42%	―	―
ITH	54 Neutral	£4.10B	11.13	-4.67%	14.05%	63.10%	-161.03%