BP looks like a real growth company, with earnings per share growing at a cracking pace and the company reinvesting most of its profits in the business. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. BP has a low and conservative payout ratio of just 18% of its income after tax. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It paid out 16% of its free cash flow as dividends last year, which is conservatively low. In 2023, it’s harder to get excited about the modest returns on renewable energy, however, given the sharp upturn we’ve seen in the prices of oil and refined products.
Reuben Gregg Brewer has no position in any of the stocks mentioned.
BP Stock Verdict
Previously, the company had lost roughly 45 percent of its share price value in New York between May 23, 2008, and October 10, 2008 — that fall came during the global financial crisis. The Deepwater Horizon spill, considered the worst of oil spill in US history, released an estimated 3.19 million barrels of oil into the Gulf Coast over the course of 87 days before the leaking pipe was finally capped. For a smooth transition to cleaner energy, “you need to invest in today’s energy system,” which is still primarily based on oil and gas, he said. In addition, you get to sell shares well above the average analyst target price. Analyst’s current target prices are near $36 per share, so your other share lots could rise in value to that target as they continue to vest.
WallStreetZen was created to help everyday investors perform more in-depth fundamental analysis in less time. Bp is a oil & gas integrated company located in United Kingdom, which is part of the Energy sector, and is traded under the ticker BP on the NYSE exchange. We think that the revenue growth of 65% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth. During the last year BP saw its earnings per share (EPS) drop below zero.
- BP shares are in an interesting position relative to the energy industry here.
- This generally suggests the dividend is sustainable, as long as earnings don’t drop precipitously.
- Now that you’ve picked the right brokerage, the next step is to fill out some personal details so you can invest in BP today.
- BP’s financials for Q did offer investors some hope, as the company eked out a US$86 million profit after a US$16.8 billion loss in the second quarter.
- BP’s cash flow covered its CapEx, dividends and stock buybacks which the company aggressively pursued throughout FY 2022.
While the company’s valuation is no doubt appealing, he rightfully points out there are question marks around how BP is deploying its capital. Just between 2022 and 2024, BP is projected to earn roughly $21 per share in profit. Writes about the intersection of corporate oil and climate policy. Has reported on politics, economics, migration, nuclear diplomacy and business from Cairo, Vienna and elsewhere. BP also said it expects to pay $1 billion under a UK windfall tax on the oil and gas sector between May 2022 and April 2023. BP had reported a $6.25 billion profit in the first quarter of 2022, on its way to a record $28 billion annual figure.
Despite shrinking by US$4.1b in the past week, BP (LON:BP.) shareholders are still up 44% over 1 year
It’s packed with all of the company’s key stats and salient decision making information. Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis https://forexbox.info/ and how a stocks stacks up to its peers. An industry with a larger percentage of Zacks Rank #1’s and #2’s will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4’s and #5’s.
A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its annual earnings. In general, a lower number or multiple is usually considered better that a higher one. Value investors will typically look for stocks with P/E ratios under 20, while growth investors and momentum investors are often willing to pay much more. Aside from using absolute numbers, however, you can also find value by comparing the P/E ratio to its relevant industry and its peers. One of the reasons why some investors prefer the P/CF ratio over the P/E ratio is because the net income of the cash flow portion rightly adds depreciation and amortization back in since these are not cash expenditures. In contrast, the net income that goes into the earnings portion of the P/E ratio does not add these in, thus artificially reducing the income and skewing the P/E ratio.
Shell’s renewables boss to leave after CEO strategy shift
Before Reuters, Ron reported on equity markets in New York in the aftermath of the 2008 financial crisis after covering conflict and diplomacy in the Middle East for AFP out of Israel. On Sept. 24, BP’s share price sank to its lowest level since October 1995 to close at 2.32 pence on the London Stock Exchange, the primary market for the company’s ordinary shares. European stocks and U.S. equities were also under pressure during the session by fresh concerns over the pace of the U.S. economic recovery and a sharp uptick in COVID-19 cases in Europe. BP executives spent three days in mid-September explaining how the oil major will make itself over by expanding into renewable energy without sacrificing value on returns.
The detailed multi-page Analyst report does an even deeper dive on the company’s vital statistics. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. Bp stock last closed at $35.29, up 0.92% from the previous day, and has increased 24.48% in one year. It has overperformed other stocks in the Oil & Gas Integrated industry by 0.3 percentage points. Bp stock is currently +39.13% from its 52-week low of $25.37, and -14.72% from its 52-week high of $41.38. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
BP rises Friday, still underperforms market
Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation metric used to measure a company’s value and is helpful in comparing one stock to another. The VGM score is based on the trading styles of Growth, VAlue, and Momentum. The Growth Scorecard evaluates sales and earnings growth along with other important growth measures. This includes measuring aspects of the Income Statement, Statement of Cash Flows, the Balance Sheet, and more.
It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. The company’s upcoming dividend is US$0.066 a share, following on from the last 12 months, when the company distributed a total of US$0.27 per share to shareholders.
BP’s Q2 Earnings Exceed Expectations; Declares Dividend Hike & Buybacks
BP PLC announced on Wednesday that it has bought a majority stake in US-based forest carbon offsets company Finite Carbon, as the oil giant has set out a goal to become a net zero company by 2050. In its latest annual energy outlook, published on Jan. 30, the company said it sees the share of fossil fuels as a primary energy source falling from 80% in 2019 to between 55% and 20% by 2050. The share of renewables in primary energy, meanwhile, was projected to grow from 10% to between 35% and 65% over the same time period. The extraordinary scale of the earnings has renewed criticism of the oil and gas industry and sparked calls for higher taxes.
According to a statement to investors from BP’s Looney late last year, this refers to “secure, affordable and lower carbon energy.” John Moore, senior investment manager at RBC Brewin Dolphin, said BP’s record results underpinned the dividend increase https://forexhistory.info/ and additional share buybacks. For the fourth quarter, BP posted net profit of $4.8 billion, narrowly beating analyst expectations of $4.7 billion. But, it’s made even more meaningful when looking at the longer-term 4 week percent change.