BP p.l.c. Common Stock (BP)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Mr. Market asks $48.53 for BP. FairStock's calculations put the P/E at 23.11, P/B at 8.59, and the Graham Number at $13.36, giving a margin of safety of -263.25%. That is not a Graham bargain. Yet the cash-flow picture is more interesting: trailing free cash flow is $16.1B, a 13.6% FCF yield on the $119.0B market cap. EV/EBITDA is 3.87 and PEG is 0.17. The dividend yield is 4.52% and beta is -0.22. Those are not the marks of an obviously overpriced asset, but they sit beside weak returns: ROE 8.87%, ROCE 5.04%, and debt-to-equity 0.95. The Altman Z-Score of 0.77 signals financial fragility, while Piotroski is 6/9. BP's integrated model, covering gas and low carbon, oil production, and customers and products, offers diversification, but commodity swings and capital intensity limit a durable moat. In the second quarter of 2026 (the period labeled 2026-Q2), revenue was $69.1B and net income was $3.9B, a 5.66% margin. That is real profit, but not fat. The 52-week range of $32.72 to $48.74 shows the shares sit near their high. FairStock's Lynch category is none, because only 0 years of filed results are available and the rule needs 3. I would want a wider gap between price and intrinsic value, a stronger balance sheet, and more consistent returns on capital before calling this a classic value opportunity. The low beta and high FCF yield may draw contrarians, but Graham would demand a margin of safety the current price does not provide.

In plain English: BP is a large energy company that produces oil and gas, sells fuels and other products, and has some lower-carbon businesses. The latest reported quarter showed it made billions in profit, and the business generates a lot of cash, but it also carries a lot of debt and earns only modest returns on the money it uses. At the recent price, the shares look expensive compared with the company's book value and accounting earnings, even though cash flow looks strong.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer