NYSE:BP
$53.87
(2/9 12:57PM)
+2.7%
| Open | $52.92 |
Mkt Cap | $163.7 Billion |
| High | $54 |
52Wk High | $62.38 |
| Low | $52.67 |
52Wk Low | $33.70 |
| Volume | 5.5 Million |
Avg Vol 10D | 8.4 Million |
Ockham's Rating/Recommendation Summary
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BP Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, BP the high and low end of the Price to Sales per share ratios are 0.87x and 0.60x respectively.
Notice that BP's current Price to Sales per share ratio is 0.69x, which is below its historical average only slightly. So, while not a huge positive for our analysis, we do feel it is worth noting that BP does look a bit undervalued on a Price to Sales basis, all other factors being equal. However, if the Price to Sales ratio drops further, Ockham Research is likely to become more bullish on this stock.
BP Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. BP is above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for BP to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 8.78 and a 5.87 low over the same period.
Given this range of ratios per share, BP at its current price of $53.18 and a Price to Cash Earnings ratio of 7.97 is 8% above its average historical Price to Cash Earnings ratio. Obviously this makes us more hesitant about BP because cash earnings would need to rise to improve the valuation. Likewise, a decline in Price to Cash Earnings to below the average of 7.32 would significantly improve our outlook for BP given the current profit levels.
BP Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for BP to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for BP is $3.36 producing a current dividend yield of 6.32%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from BP against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from BP over previous years was 9.97% while the lowest dividend yield was 2.59%. Management at BP has encouraged us with a current dividend yield of 0.64% above the historical median.
Stay Current on BP's News on Zero Hedge
BP PLC - Shs American Deposit.Receipt Repr.6 Shares is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Zero Hedge.
The Motley Fool CAPS data suggests that investors believe BP PLC - Shs American Deposit.Receipt Repr.6 Shares will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BP. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BP has been less covered in the news compared to the rest of our universe of stocks.
“… to move away from its controversial tar sands investments in Canada, while the Co-op's investment arm will today unveil plans to oppose BP's involvement in this area. …”
Zero Hedge Discussed Dividends and BP
Dividends are a management decision and can be seen as a signal of strength or weakness depending on the latest news. RazorWire captured a discussion of BP's dividends recently on Zero Hedge.
The Motley Fool CAPS data suggests that investors believe BP PLC - Shs American Deposit.Receipt Repr.6 Shares will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BP has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BP.
“… BP also gave a downbeat assessment of future trading opportunities. Capita believes dividend payments from UK companies should recover with the economy over the next year, ... …”
See More News on BP from Zero Hedge
The latest news on Zero Hedge in regards to BP came through on RazorWire recently.
The Motley Fool CAPS data suggests that investors believe BP PLC - Shs American Deposit.Receipt Repr.6 Shares will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BP. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BP has been less covered in the news compared to the rest of our universe of stocks.
“… We look for an entry level of 80 BP to get into this trade. This trade works well in the scenario that markets start to believe the rest of Europe will have to support other ... …”
See Who is Talking About News from BP on Mad Money
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to BP PLC - Shs American Deposit.Receipt Repr.6 Shares.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, BP PLC - Shs American Deposit.Receipt Repr.6 Shares has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on BP because it trades within the price range that we would expect given current market conditions and fundamentals.
“… Verizon's phios is doing just fine BP and so is directv. People are signing up and paying for cable in record numbers despite a belief on wall street the internet is going to ... …”
BP's Dividends Mentioned by WSJ Marketbeat
For income investors, dividend news is obviously important. BP's dividends were discussed recently on WSJ Marketbeat.
The Ockham valuation currently has a Fairly Valued stance on BP because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, BP PLC - Shs American Deposit.Receipt Repr.6 Shares has actually sunk a bit in comparison to the others.
“… Its 2 year yield is up 23 BP today. The 5-year CDS appears to be at record levels. We can’t help but note that phenomenon seems to be reminiscent of the way the market reacted ... …”
The Call: Discussion of BP's Earnings
Any suprise in earnings can cause a major swing in stock prices, so we are always on the lookout for the freshest news available for earnings reports or expectations.
BP PLC - Shs American Deposit.Receipt Repr.6 Shares receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; BP has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… BP. Stock $1. 10 was the earnings versus 1. 51. They missed in a big way and margins are the problem when it comes to refining. The stock is off by 4%. …”
BP's Earnings Were Talked About on The Call
In our methodology at Ockham we weight earnings performance heavily, so we always pay attention to earnings news coming from legitimate sources like The Call.
The Ockham valuation currently has a Fairly Valued stance on BP because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, BP PLC - Shs American Deposit.Receipt Repr.6 Shares has actually sunk a bit in comparison to the others.
“… Horton and BP out with pretty good earnings and we'll go out with numbers and earnings central. You're watching cnbc first in. …”
Did You See BP's CEO Hayward on Squawk On The Street?
Keeping up with a CEO is one way that we try to better understand the direction of a company, and there was talk about BP management on Squawk On The Street.
The Ockham valuation currently has a Fairly Valued stance on BP because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, BP PLC - Shs American Deposit.Receipt Repr.6 Shares has actually sunk a bit in comparison to the others.
“… oil's over $75 a barrel and BP ceo hayward saying he believes over the next two years oil will trade between $60 and $90 range. Pretty big range. …”
The Amount of News Coverage on BP PLC - Shs American Deposit.Receipt Repr.6 Shares Places It in the Top Five Most Active Stocks
The newswires are burning up right now on BP PLC - Shs American Deposit.Receipt Repr.6 Shares, so check our RazorWire or turn on your TV to see why it is so active in the news.
The Ockham valuation currently has a Fairly Valued stance on BP because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, BP PLC - Shs American Deposit.Receipt Repr.6 Shares has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… BP shares bid lower on a lower than expected earnings report. But BP still brought in more than $4 billion last quarter. Dr horton with a big first quarter profit. …”
Emerging Markets and BP Covered on Squawk On The Street
BP PLC - Shs American Deposit.Receipt Repr.6 Shares and an emerging market growth strategy were discussed recently on BP.
BP PLC - Shs American Deposit.Receipt Repr.6 Shares receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; BP has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… BP? > > yeah. BP not -- the refining margins are -- > > horrendous across the board and see BP open lower. They had earnings lower than expected. …”