BPBP p.l.c.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.7×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BP?
BP p.l.c. earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 6.5 points above what the capital costs: growth creates value
- Operating margin
- 8.5%
Operating margin · Oil & Gas Integrated median 14% · 12 months to Q2 2025
- Cash conversion
- 1.70×
Cash conversion · 2.84× a year ago · operating cash flow covers the operating profit after tax
| Year | Operating margin |
|---|---|
| FY2020 | −20% |
| FY2021 | 11% |
| FY2022 | 7.2% |
| FY2023 | 13% |
| FY2024 | 5.8% |
| FY2025 | 6.6% |
Details›
- Operating margin12 months to Q2 2025
- 8.5%
- Net margin12 months to Q2 2025
- 2.3%
- Revenue, trailing twelve months
- $193.8B
- Net income, trailing twelve months
- $4.45B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Oil & Gas Integrated
Ranks #8 of 11 by RyuScore