Ecopetrol S.A. (NYSE:EC), a major player in the oil and gas industry, is primarily engaged in the exploration, production, and distribution of oil and gas products. As a state-owned company in Colombia, it competes with other global energy giants. The company is set to release its quarterly earnings on February 26, 2025, with analysts estimating an EPS of $0.40 and projected revenue of $6.47 billion.
Ecopetrol plans to release its financial results for the fourth quarter and full year of 2024 on March 4, 2025. The following day, senior management will host a virtual conference call to discuss these results. This event will be accessible in both Spanish and English, allowing participants to engage directly with the company's leadership.
The company's financial metrics suggest potential undervaluation. With a P/E ratio of 6, investors pay $6 for every $1 of earnings, indicating a potentially attractive investment. The low price-to-sales ratio of 0.033 further supports this, suggesting the stock may be undervalued relative to its sales.
Ecopetrol's enterprise value to sales ratio is 0.82, indicating that the company's total valuation is less than its annual sales. This could imply that the market is undervaluing the company's overall worth. Additionally, the enterprise value to operating cash flow ratio of 2.46 shows that the company's valuation is just over twice its operating cash flow.
The company maintains a strong earnings yield of 16.66%, offering a relatively high return on investment. However, with a debt-to-equity ratio of 1.49, Ecopetrol relies significantly on debt in its capital structure. Despite this, the current ratio of 1.68 indicates that the company has sufficient liquidity to cover its short-term liabilities.
