BP PLC (GB:BP.B)
LSE:BP.B
Top Page
BP plc
(LSE:BP.B)
Select Model
Select Model
Rating:45Neutral
Price Target:
158.00 p
▼(-6.51% Downside)
Action:ReiteratedDate:03/12/26
The score is driven down primarily by fragile recent profitability (near break-even net margin) and higher leverage despite solid cash generation. Technicals also detract due to oversold readings and negative momentum, and valuation is a major headwind given the extremely high P/E even with a strong dividend yield.
Positive Factors
Cash generation
BP's sizable operating cash flow and double-digit free cash flow in 2025 provide durable internal funding for dividends, maintenance capex, and transition investments. Consistent FCF at this scale helps absorb cyclical earnings swings and supports strategic optionality over months to years.
Negative Factors
Profitability deterioration
A collapse to near‑zero net margin signals fragile underlying earnings and reduced ability to absorb shocks. Persistently low net profitability undermines ROE and long‑term retained earnings, constraining organic growth and increasing reliance on non‑operating moves to sustain payouts.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
BP's sizable operating cash flow and double-digit free cash flow in 2025 provide durable internal funding for dividends, maintenance capex, and transition investments. Consistent FCF at this scale helps absorb cyclical earnings swings and supports strategic optionality over months to years.
Read all positive factors
BP plc (BP.B) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£82.78B
Dividend Yield5.42%
Average Volume (3M)3.57K
Price to Earnings (P/E)634.9
Beta (1Y)0.16
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees100,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)N/A
Shares Outstanding5,473,414
10 Day Avg. Volume5,154
30 Day Avg. Volume3,567
Financial Highlights & Ratios
PEG Ratio-7.44
Price to Book (P/B)0.66
Price to Sales (P/S)0.18
P/FCF Ratio3.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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; tradi...
How the Company Makes Money
BP makes money primarily by producing, trading, refining, and selling hydrocarbons and related products, alongside earnings from its retail and low-carbon activities. Major revenue and earnings streams include: (1) Upstream (oil and gas production...
BP plc Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with BP showing strong operational and financial performance, increased production, successful exploration, and strategic progress in divestments. However, challenges like weaker trading performance and unresolved arbitration cases were noted.Positive Updates
Strong Operational and Financial Performance
BP reported underlying pretax earnings of $5.3 billion and underlying net income of $2.2 billion for the third quarter. Operating cash flow was $7.8 billion, supporting a growth target for adjusted free cash flow growth of 20% CAGR from 2025 to 2027.
Negative Updates
Weak Trading Performance
BP reported weaker trading performance in the third quarter although trading was in line with the previous year for the first nine months.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Operational and Financial Performance
BP reported underlying pretax earnings of $5.3 billion and underlying net income of $2.2 billion for the third quarter. Operating cash flow was $7.8 billion, supporting a growth target for adjusted free cash flow growth of 20% CAGR from 2025 to 2027.
Read all positive updates
Company Guidance
During BP's Third Quarter 2025 Results Call, Murray Auchincloss highlighted the company's strong operational performance and strategic progress. BP reported underlying pretax earnings of $5.3 billion and underlying net income of $2.2 billion, with operating cash flow reaching $7.8 billion for the quarter. This positions BP well on track to achieve its adjusted free cash flow growth target of 20% CAGR from 2025 to 2027. Upstream production increased by about 3% quarter-on-quarter, supported by plant reliability of around 97%, and refining availability also reached nearly 97%, marking the best quarter in 20 years. The company has started six new major oil and gas projects in 2025, four of which were ahead of schedule, and has made 12 exploration discoveries this year. BP is making progress towards its $20 billion divestment proceeds target, having upgraded its proceeds guidance to around $5 billion. The company remains disciplined in capital investment, with organic CapEx expected to stay below $14 billion, and is focused on reducing costs, growing cash flow and returns, and strengthening the balance sheet to enhance shareholder value.BP plc Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
63
Positive
| 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
Negative
169.00
Price Trends
163.52
Negative
162.11
Negative
161.96
Negative
Market Momentum
-1.13
Positive
31.38
Neutral
27.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP.B, the sentiment is Negative. The current price of 169 is above the 20-day moving average (MA) of 162.65, above the 50-day MA of 163.52, and above the 200-day MA of 161.96, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 31.38 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BP.B.
BP plc Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £188.72B | 11.92 | 8.25% | 4.00% | -9.21% | -2.61% | |
70 Outperform | £2.78B | 13.86 | 8.95% | 5.64% | 159.13% | 143.76% | |
70 Outperform | £4.04B | -42.84 | -4.67% | 14.05% | 63.10% | -161.03% | |
69 Neutral | £5.15B | -24.34 | -4.05% | 8.77% | 123.03% | -330.89% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | £1.55B | -8.35 | -65.81% | 10.99% | -2.66% | 0.11% | |
45 Neutral | £82.78B | 634.90 | 0.10% | 5.42% | ― | ― |
* Energy Sector Average
GB:BP.B
BP plc
160.00
12.60
8.55%
GB:HBR
Harbour Energy
282.80
102.59
56.93%
GB:SHEL
Shell (UK)
3,354.50
696.16
26.19%
GB:SEPL
SEPLAT Petroleum Development
463.00
300.98
185.76%
GB:ENOG
Energean
842.00
56.53
7.20%
GB:ITH
Ithaca Energy PLC
244.00
119.38
95.79%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.