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Ecopetrol

DB:ECHA
Snowflake Description

Solid track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ECHA
DB
COP76,477B
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Ecopetrol S.A. operates as an integrated oil and gas company. The last earnings update was 33 days ago. More info.


Add to Portfolio Compare Print
  • Ecopetrol has significant price volatility in the past 3 months.
ECHA Share Price and Events
7 Day Returns
26.7%
DB:ECHA
18.1%
DE Oil and Gas
7.3%
DE Market
1 Year Returns
-57.2%
DB:ECHA
21.9%
DE Oil and Gas
-17.7%
DE Market
ECHA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ecopetrol (ECHA) 26.7% -50.9% -53.6% -57.2% -4.9% -41.6%
DE Oil and Gas 18.1% -15.9% -28.7% 21.9% -25.6% 137.4%
DE Market 7.3% -17.9% -25.8% -17.7% -25.6% -29%
1 Year Return vs Industry and Market
  • ECHA underperformed the Oil and Gas industry which returned 21.9% over the past year.
  • ECHA underperformed the Market in Germany which returned -17.7% over the past year.
Price Volatility
ECHA
Industry
5yr Volatility vs Market
Related Companies

ECHA Value

 Is Ecopetrol undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ecopetrol to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ecopetrol.

DB:ECHA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:ECHA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 7.9%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.808 (1 + (1- 33%) (50%))
1.053
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.053 * 7.85%)
7.87%

Discounted Cash Flow Calculation for DB:ECHA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ecopetrol is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:ECHA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (COP, Millions) Source Present Value
Discounted (@ 7.87%)
2020 11,956,997.63 Analyst x4 11,084,216.31
2021 10,167,193.38 Analyst x4 8,737,089.47
2022 9,780,878.35 Analyst x2 7,791,595.65
2023 9,525,320.53 Est @ -2.61% 7,034,139.83
2024 9,339,959.54 Est @ -1.95% 6,393,802.88
2025 9,201,804.06 Est @ -1.48% 5,839,424.92
2026 9,095,759.61 Est @ -1.15% 5,350,802.50
2027 9,011,741.92 Est @ -0.92% 4,914,411.78
2028 8,942,929.06 Est @ -0.76% 4,520,905.53
2029 8,884,664.63 Est @ -0.65% 4,163,605.14
Present value of next 10 years cash flows COP65,829,994.00
DB:ECHA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= COP8,884,664.63 × (1 + -0.39%) ÷ (7.87% – -0.39%)
COP107,089,988.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= COP107,089,988.80 ÷ (1 + 7.87%)10
COP50,185,397.64
DB:ECHA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= COP65,829,994.00 + COP50,185,397.64
COP116,015,391.64
Equity Value per Share
(COP)
= Total value / Shares Outstanding
= COP116,015,391.64 / 41,116.69
COP2821.61
DB:ECHA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:ECHA represents 0.00455x of BVC:ECOPETROL
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00455x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (COP) x Listing Adjustment Factor
= COP 2,821.61 x 0.00455
€12.83
Value per share (EUR) From above. €12.83
Current discount Discount to share price of €8.30
= -1 x (€8.30 - €12.83) / €12.83
35.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ecopetrol is available for.
Intrinsic value
35%
Share price is €8.3 vs Future cash flow value of €12.83
Current Discount Checks
For Ecopetrol to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ecopetrol's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ecopetrol's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ecopetrol's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ecopetrol's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:ECHA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in COP COP322.28
BVC:ECOPETROL Share Price ** BVC (2020-03-30) in COP COP1825
Europe Oil and Gas Industry PE Ratio Median Figure of 105 Publicly-Listed Oil and Gas Companies 5.67x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ecopetrol.

DB:ECHA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BVC:ECOPETROL Share Price ÷ EPS (both in COP)

= 1825 ÷ 322.28

5.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ecopetrol is good value based on earnings compared to the Europe Oil and Gas industry average.
  • Ecopetrol is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Ecopetrol's expected growth come at a high price?
Raw Data
DB:ECHA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
-5.6%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 65 Publicly-Listed Oil and Gas Companies 0.17x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

DB:ECHA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.66x ÷ -5.6%

-1.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ecopetrol earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ecopetrol's assets?
Raw Data
DB:ECHA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in COP COP1,372.00
BVC:ECOPETROL Share Price * BVC (2020-03-30) in COP COP1825
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 0.94x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.43x
DB:ECHA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BVC:ECOPETROL Share Price ÷ Book Value per Share (both in COP)

= 1825 ÷ 1,372.00

1.33x

* Primary Listing of Ecopetrol.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ecopetrol is overvalued based on assets compared to the DE Oil and Gas industry average.
X
Value checks
We assess Ecopetrol's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Ecopetrol has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ECHA Future Performance

 How is Ecopetrol expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-5.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ecopetrol expected to grow at an attractive rate?
  • Ecopetrol's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Ecopetrol's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Ecopetrol's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:ECHA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:ECHA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts -5.6%
DB:ECHA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 2.7%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:ECHA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in COP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:ECHA Future Estimates Data
Date (Data in COP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 76,370,781 26,515,750 11,749,579 6
2021-12-31 71,035,409 26,998,958 10,653,424 12
2020-12-31 64,597,172 24,680,382 7,552,002 12
2020-03-30
DB:ECHA Past Financials Data
Date (Data in COP Millions) Revenue Cash Flow Net Income *
2019-12-31 70,847,000 27,712,000 13,251,000
2019-09-30 71,363,719 24,748,435 11,715,063
2019-06-30 71,225,401 23,992,859 11,478,917
2019-03-31 69,903,880 22,630,662 11,511,117
2018-12-31 68,603,872 22,469,194 11,381,386
2018-09-30 65,612,682 24,221,209 12,893,711
2018-06-30 61,061,530 20,336,229 11,122,142
2018-03-31 57,225,397 17,191,879 8,907,493
2017-12-31 55,954,228 16,973,626 7,178,539
2017-09-30 53,913,411 14,439,264 4,263,238
2017-06-30 52,771,901 15,606,894 3,488,707
2017-03-31 51,372,401 14,884,713 2,971,137

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ecopetrol's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Ecopetrol's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:ECHA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Ecopetrol Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ECHA Future Estimates Data
Date (Data in COP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 304.32 377.77 230.87 2.00
2021-12-31 277.30 380.91 178.21 5.00
2020-12-31 188.77 241.53 136.02 2.00
2020-03-30
DB:ECHA Past Financials Data
Date (Data in COP Millions) EPS *
2019-12-31 322.28
2019-09-30 284.91
2019-06-30 279.20
2019-03-31 279.90
2018-12-31 276.81
2018-09-30 313.55
2018-06-30 270.45
2018-03-31 216.76
2017-12-31 174.59
2017-09-30 103.77
2017-06-30 85.06
2017-03-31 72.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ecopetrol is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ecopetrol's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ecopetrol has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ECHA Past Performance

  How has Ecopetrol performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ecopetrol's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ecopetrol has delivered over 20% year on year earnings growth in the past 5 years.
  • Ecopetrol's 1-year earnings growth is less than its 5-year average (16.4% vs 51.1%)
  • Ecopetrol's earnings growth has exceeded the Europe Oil and Gas industry average in the past year (16.4% vs -4.1%).
Earnings and Revenue History
Ecopetrol's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ecopetrol Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ECHA Past Revenue, Cash Flow and Net Income Data
Date (Data in COP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 70,847,000.00 13,251,000.00 4,027,000.00
2019-09-30 71,363,719.00 11,715,063.00 3,605,403.00
2019-06-30 71,225,401.00 11,478,917.00 4,311,350.00
2019-03-31 69,903,880.00 11,511,117.00 4,028,539.00
2018-12-31 68,603,872.00 11,381,386.00 4,033,521.00
2018-09-30 65,612,682.00 12,893,711.00 4,448,610.00
2018-06-30 61,061,530.00 11,122,142.00 3,906,003.00
2018-03-31 57,225,397.00 8,907,493.00 4,135,777.00
2017-12-31 55,954,228.00 7,178,539.00 3,881,130.00
2017-09-30 53,913,411.00 4,263,238.00 3,516,303.00
2017-06-30 52,771,901.00 3,488,707.00 3,315,777.00
2017-03-31 51,372,401.00 2,971,137.00 3,452,873.00
2016-12-31 48,485,561.00 2,447,881.00 3,577,538.00
2016-09-30 47,452,780.00 -8,136,037.00 4,453,200.00
2016-06-30 48,272,338.00 -7,711,086.00 3,806,421.00
2016-03-31 50,531,019.00 -6,991,295.00 4,721,929.00
2015-12-31 52,347,271.00 -7,193,859.00 4,473,911.00
2015-09-30 53,568,565.00 -848,791.00 4,557,899.00
2015-06-30 56,562,251.00 37,875.00 5,808,927.00
2015-03-31 60,301,419.00 1,318,446.00 5,572,911.00
2014-12-31 65,971,888.00 5,046,517.00 5,999,508.00
2014-09-30 69,677,397.00 10,642,516.00 5,788,485.00
2014-06-30 71,808,076.00 12,962,935.00 5,117,205.00
2014-03-31 71,654,411.00 13,582,979.00 4,757,094.00
2013-12-31 70,428,715.00 13,106,503.00 5,288,037.00
2013-09-30 70,226,670.00 14,300,707.00 4,192,884.00
2013-06-30 68,656,135.00 13,667,074.00 4,588,670.00
2013-03-31 67,569,707.00 13,916,630.00 4,899,883.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ecopetrol has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Ecopetrol used its assets more efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.
  • Ecopetrol has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ecopetrol's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ecopetrol has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ECHA Health

 How is Ecopetrol's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ecopetrol's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ecopetrol is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ecopetrol's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ecopetrol's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ecopetrol Company Filings, last reported 2 months ago.

DB:ECHA Past Debt and Equity Data
Date (Data in COP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 60,344,000.00 38,239,000.00 8,700,000.00
2019-09-30 61,363,623.00 39,101,759.00 11,513,241.00
2019-06-30 56,934,297.00 36,213,949.00 8,882,036.00
2019-03-31 52,667,243.00 36,475,435.00 13,934,614.00
2018-12-31 57,107,780.00 38,062,645.00 11,632,842.00
2018-09-30 55,169,875.00 39,890,732.00 14,683,967.00
2018-06-30 52,237,740.00 41,328,873.00 12,600,110.00
2018-03-31 47,830,828.00 40,959,049.00 12,283,050.00
2017-12-31 48,215,699.00 43,547,835.00 10,913,763.00
2017-09-30 47,902,341.00 44,610,390.00 10,602,133.00
2017-06-30 46,978,413.00 46,113,294.00 8,187,471.00
2017-03-31 45,416,401.00 50,411,207.00 15,225,416.00
2016-12-31 43,560,501.00 52,222,027.00 13,777,614.00
2016-09-30 46,706,090.00 51,969,805.00 12,575,551.00
2016-06-30 46,300,932.00 53,433,477.00 9,813,477.00
2016-03-31 45,006,990.00 53,139,364.00 8,851,740.00
2015-12-31 43,100,963.00 53,223,338.00 7,793,165.00
2015-09-30 51,104,232.00 52,903,757.00 9,306,584.00
2015-06-30 49,137,627.00 45,976,272.00 9,285,236.00
2015-03-31 46,879,945.00 42,725,917.00 13,488,768.00
2014-12-31 48,534,228.00 35,041,628.00 10,017,621.00
2014-09-30 72,839,867.00 30,745,774.00 13,688,686.00
2014-06-30 71,520,604.00 27,047,142.00 13,625,505.00
2014-03-31 67,784,199.00 22,838,776.00 10,842,157.00
2013-12-31 75,692,951.00 22,198,551.00 10,434,402.00
2013-09-30 67,593,183.00 21,910,190.00 15,791,554.00
2013-06-30 62,984,742.00 15,282,766.00 8,440,596.00
2013-03-31 59,270,503.00 14,330,800.00 8,165,099.00
  • Ecopetrol's level of debt (61.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (72.4% vs 61.2% today).
  • Debt is well covered by operating cash flow (75%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.5x coverage).
X
Financial health checks
We assess Ecopetrol's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ecopetrol has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ECHA Dividends

 What is Ecopetrol's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
14.74%
Current annual income from Ecopetrol dividends. Estimated to be 12.52% next year.
If you bought €2,000 of Ecopetrol shares you are expected to receive €295 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ecopetrol's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • Ecopetrol's dividend is above the markets top 25% of dividend payers in Germany (4.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:ECHA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 9.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 1%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:ECHA Future Dividends Estimate Data
Date (Data in COP) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 210.41 3.00
2020-12-31 246.56 3.00
2020-03-30
DB:ECHA Past Annualized Dividends Data
Date (Data in COP) Dividend per share (annual) Avg. Yield (%)
2019-12-16 269.000 9.589
2019-02-27 169.000 5.583
2018-04-20 89.000 2.821
2018-03-01 89.000 3.325
2018-02-28 89.000 3.567
2017-03-06 23.000 1.473
2016-11-28 0.000 0.000
2016-11-15 0.000 0.000
2016-10-18 0.000 0.000
2016-08-30 0.000 0.000
2016-08-17 0.000 0.000
2016-06-08 0.000 0.000
2016-05-04 0.000 0.000
2016-04-29 0.000 0.000
2016-03-08 0.000 0.000
2016-03-02 0.000 0.000
2015-03-27 133.000 9.425
2014-03-26 260.000 9.581
2013-08-09 291.000 7.342
2013-04-29 291.000 7.020
2013-03-01 291.000 6.101
2012-03-23 263.000 4.923
2011-08-08 145.000 3.432
2011-07-15 145.000 3.919
2011-03-14 145.000 3.787
2011-03-01 145.000 3.652
2011-02-25 145.000 3.654
2010-12-09 91.000 2.291
2010-08-09 91.000 2.375
2010-03-01 91.000 3.276
2009-11-27 91.000 3.670
2009-05-14 115.000 4.420

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Ecopetrol's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Ecopetrol's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ecopetrol afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ecopetrol has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ECHA Management

 What is the CEO of Ecopetrol's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Felipe Bayón Pardo
AGE 53
TENURE AS CEO 2.5 years
CEO Bio

Mr. Felipe Bayón Pardo has been the Chief Executive Officer of Ecopetrol SA since September 15, 2017 and served as its Executive Vice President and Chief Operating Officer from February 15, 2016 to September 15, 2017. He served as the Chief Executive Officer of Pan American Energy LLC until 2010. He has over 26 years of experience in the oil and gas industry. During the past 20 years, he has worked with British Petroleum (BP), as Senior Vice President of BP America and Head of Deep Water Response Group. From 2005 to 2010, he was BP's Regional President for the Southern Cone in South America, overseeing Pan American Energy. Until 2005, he worked at BP's head office as Chief of Staff to the Upstream Chief Executive Officer and as Director of the BP Exploration and Production Executive Office. He began his career in 1995 in BP Colombia, as a Project Engineer, where he held various positions until becoming Vice-President of Operations in Colombia. Prior to this, he worked for Shell. He graduated with a degree in Mechanical Engineering from the University of Los Andes in 1989.

CEO Compensation
  • Insufficient data for Felipe to compare compensation growth.
  • Insufficient data for Felipe to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Ecopetrol management team in years:

2.7
Average Tenure
54
Average Age
  • The tenure for the Ecopetrol management team is about average.
Management Team

Felipe Bayón Pardo

TITLE
Chief Executive Officer
AGE
53
TENURE
2.5 yrs

Jaime Caballero Uribe

TITLE
Corporate VP of Finance & CFO
TENURE
1.6 yrs

Alberto Consuegra Granger

TITLE
COO & Executive VP
AGE
59
TENURE
1 yrs

Hoyos Catalina Escobar

TITLE
Head of Corporate Finance & Investor Relations and Head of Capital Markets

María Juliana Albán Durán

TITLE
Vice President of Compliance & Compliance Officer
AGE
44
TENURE
4.7 yrs

Fernán Ignacio Bejarano Arias

TITLE
Vice-President of Legal Affairs & General Counsel
AGE
63
TENURE
4 yrs

Pedro Fernando Manrique Gutierrez

TITLE
Vice President of Commercial & Marketing
AGE
54
TENURE
2.9 yrs

Alejandro Arango López

TITLE
Vice President of Human Resources
AGE
59
TENURE
5.4 yrs

Ingrid Lorena Dumez

TITLE
Head the Ethics and Compliance Office
AGE
51

Jorge Arturo Calvache Archila

TITLE
Vice President of Exploration
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure and age of the Ecopetrol board of directors in years:

1
Average Tenure
63.5
Average Age
  • The average tenure for the Ecopetrol board of directors is less than 3 years, this suggests a new board.
Board of Directors

Luis Guillermo Echeverri Vélez

TITLE
President of the Board of Directors
TENURE
0.9 yrs

Carlos Gustavo Cano Sanz

TITLE
Vice President of the Board of Directors
AGE
72
TENURE
0.9 yrs

Esteban Piedrahita Uribe

TITLE
Independent Director
TENURE
1 yrs

Hernando Ramírez Plazas

TITLE
Independent Director
AGE
65
TENURE
2 yrs

Orlando Ayala Lozano

TITLE
Independent Director
AGE
62
TENURE
1 yrs

Juan Emilio Posada Echeverri

TITLE
Independent Director
TENURE
1 yrs

Sergio Restrepo Isaza

TITLE
Independent Director
AGE
58
TENURE
1 yrs

Luis Santiago Perdomo Maldonado

TITLE
Independent Director
TENURE
1 yrs

German Quintero

TITLE
Independent Director
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Ecopetrol's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ecopetrol has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ECHA News

Simply Wall St News

ECHA Company Info

Description

Ecopetrol S.A. operates as an integrated oil and gas company. The company operates through three segments: Exploration and Production; Transport and Logistics; and Refining, Petrochemical, and Biofuels. It produces crude oil and gas; and engages in the extraction, collection, treatment, storage, commercialization, and pumping. The company has 9,071 kilometers of transportation pipeline systems. It also transports and distributes hydrocarbons, derivatives, and products. In addition, the company produces and markets polypropylene resin, compounds, and masterbatches; and offers refined and petrochemical products, as well as industrial service sales to customers. Ecopetrol S.A. has strategic partnership with Occidental Petroleum Corporation. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was founded in 1948 and is based in Bogotá, Colombia.

Details
Name: Ecopetrol S.A.
ECHA
Exchange: DB
Founded: 1948
COP17,034,994,605
41,116,694,690
Website: http://www.ecopetrol.com.co
Address: Ecopetrol S.A.
Carrera 13 No. 36 - 24,
Bogotá,
Colombia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BVC ECOPETROL Ordinary Nominative Shares Bolsa de Valores de Colombia CO COP 27. Dec 2007
NYSE EC SPON ADR EA REPR 20 ORD COP250 New York Stock Exchange US USD 18. Sep 2008
DB ECHA SPON ADR EA REPR 20 ORD COP250 Deutsche Boerse AG DE EUR 18. Sep 2008
BMV EC N SPON ADR EA REPR 20 ORD COP250 Bolsa Mexicana de Valores MX MXN 18. Sep 2008
Number of employees
Current staff
Staff numbers
12,228
Ecopetrol employees.
Industry
Integrated Oil and Gas
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 22:08
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/24
Last earnings filing: 2020/02/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.