Ecopetrol Sa Adr Stock Return On Equity
| EC Stock | USD 8.37 0.18 2.20% |
Ecopetrol SA ADR fundamentals help investors to digest information that contributes to Ecopetrol's financial success or failures. It also enables traders to predict the movement of Ecopetrol Stock. The fundamental analysis module provides a way to measure Ecopetrol's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Ecopetrol stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.25 | 0.14 |
Ecopetrol | Return On Equity |
Ecopetrol SA ADR Company Return On Equity Analysis
Ecopetrol's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Ecopetrol Return On Equity | 0.21 |
Most of Ecopetrol's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Ecopetrol SA ADR is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Ecopetrol Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Ecopetrol is extremely important. It helps to project a fair market value of Ecopetrol Stock properly, considering its historical fundamentals such as Return On Equity. Since Ecopetrol's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Ecopetrol's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Ecopetrol's interrelated accounts and indicators.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Ecopetrol Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Ecopetrol SA ADR has a Return On Equity of 0.205. This is 110.35% lower than that of the Oil, Gas & Consumable Fuels sector and 94.84% lower than that of the Energy industry. The return on equity for all United States stocks is 166.13% lower than that of the firm.
Ecopetrol Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Ecopetrol's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Ecopetrol could also be used in its relative valuation, which is a method of valuing Ecopetrol by comparing valuation metrics of similar companies.Ecopetrol is currently under evaluation in return on equity category among its peers.
Ecopetrol Current Valuation Drivers
We derive many important indicators used in calculating different scores of Ecopetrol from analyzing Ecopetrol's financial statements. These drivers represent accounts that assess Ecopetrol's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Ecopetrol's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 134.8T | 90.6T | 107.7T | 104.4T | 93.9T | 84.1T | |
| Enterprise Value | 165.9T | 132.3T | 188.2T | 204.1T | 183.7T | 108.6T |
Ecopetrol ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Ecopetrol's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Ecopetrol's managers, analysts, and investors.Environmental | Governance | Social |
Ecopetrol Fundamentals
| Return On Equity | 0.21 | ||||
| Return On Asset | 0.079 | ||||
| Profit Margin | 0.11 % | ||||
| Operating Margin | 0.27 % | ||||
| Current Valuation | 39.09 B | ||||
| Shares Outstanding | 2.06 B | ||||
| Shares Owned By Institutions | 1.36 % | ||||
| Number Of Shares Shorted | 14.23 M | ||||
| Price To Earning | 4.84 X | ||||
| Price To Book | 1.07 X | ||||
| Price To Sales | 0.0001 X | ||||
| Revenue | 123.12 T | ||||
| Gross Profit | 81.43 T | ||||
| EBITDA | 59.83 T | ||||
| Net Income | 19.06 T | ||||
| Cash And Equivalents | 15.4 T | ||||
| Cash Per Share | 2.43 X | ||||
| Total Debt | 105.82 T | ||||
| Debt To Equity | 1.04 % | ||||
| Current Ratio | 1.46 X | ||||
| Book Value Per Share | 1,907 X | ||||
| Cash Flow From Operations | 19.8 T | ||||
| Short Ratio | 5.77 X | ||||
| Earnings Per Share | 1.89 X | ||||
| Price To Earnings To Growth | 0.30 X | ||||
| Target Price | 9.63 | ||||
| Beta | 0.69 | ||||
| Market Capitalization | 16.84 B | ||||
| Total Asset | 282.28 T | ||||
| Retained Earnings | 20.6 T | ||||
| Working Capital | 25.05 T | ||||
| Current Asset | 19.87 T | ||||
| Current Liabilities | 17.43 T | ||||
| Annual Yield | 0.37 % | ||||
| Five Year Return | 4.85 % | ||||
| Net Asset | 282.28 T |
About Ecopetrol Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Ecopetrol SA ADR's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ecopetrol using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ecopetrol SA ADR based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Is Oil, Gas & Consumable Fuels space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ecopetrol. If investors know Ecopetrol will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ecopetrol listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.28) | Earnings Share 1.89 | Revenue Per Share 32.4 K | Quarterly Revenue Growth (0.01) | Return On Assets 0.079 |
The market value of Ecopetrol SA ADR is measured differently than its book value, which is the value of Ecopetrol that is recorded on the company's balance sheet. Investors also form their own opinion of Ecopetrol's value that differs from its market value or its book value, called intrinsic value, which is Ecopetrol's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ecopetrol's market value can be influenced by many factors that don't directly affect Ecopetrol's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ecopetrol's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ecopetrol is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ecopetrol's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.