Is Ecopetrol Stock a Good Investment?

Ecopetrol Investment Advice

To provide specific investment advice or recommendations on Ecopetrol SA ADR stock, we recommend investors consider the following general factors when evaluating Ecopetrol SA ADR. This will help you to make an informed decision on whether to include Ecopetrol in one of your diversified portfolios:

Examine Ecopetrol's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Ecopetrol's leadership team and their track record. Good management can help Ecopetrol navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Oil, Gas & Consumable Fuels space and any emerging trends that could impact Ecopetrol's business and its evolving consumer preferences.
Compare Ecopetrol's performance and market position to its competitors. Analyze how Ecopetrol is positioned in terms of product offerings, innovation, and market share.
Check if Ecopetrol pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Ecopetrol's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Ecopetrol SA ADR stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ecopetrol SA ADR is a good investment.

Sell

Buy

Cautious Hold

We provide trade advice to complement the prevailing expert consensus on Ecopetrol SA ADR. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Ecopetrol is not overpriced, please confirm all Ecopetrol SA ADR fundamentals, including its number of shares shorted, revenue, cash and equivalents, as well as the relationship between the price to book and ebitda . Given that Ecopetrol SA ADR has a price to book of 1.05 X, we urge you to verify Ecopetrol SA ADR market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Not too volatile	Details
Hype Condition	Over hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Very Low	Details
Economic Sensitivity	Slowly supersedes the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Hold	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine Ecopetrol Stock

Researching Ecopetrol's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company has price-to-book (P/B) ratio of 1.05. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ecopetrol SA ADR has Price/Earnings To Growth (PEG) ratio of 0.3. The entity last dividend was issued on the 25th of June 2024.

To determine if Ecopetrol is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ecopetrol's research are outlined below:

	Ecopetrol SA ADR generated a negative expected return over the last 90 days
	Ecopetrol SA ADR has a strong financial position based on the latest SEC filings
	Latest headline from investing.com: Ecopetrol reports regulatory filing for November 2024

Ecopetrol Quarterly Liabilities And Stockholders Equity

286.31 Trillion

Ecopetrol uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ecopetrol SA ADR. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ecopetrol's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	3rd of April 2024 Upcoming Quarterly Report	View
	8th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	3rd of April 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Ecopetrol's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Ecopetrol's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2020-08-04	2020-06-30	0.02	0.003	-0.017	85
2017-08-08	2017-06-30	0.19	0.22	0.03	15
2015-05-12	2015-03-31	0.08	0.03	-0.05	62
2023-08-08	2023-06-30	0.51	0.45	-0.06	11
2020-10-27	2020-09-30	0.17	0.11	-0.06	35
2019-11-12	2019-09-30	0.5	0.44	-0.06	12
2017-11-07	2017-09-30	0.23	0.16	-0.07	30
2019-05-07	2019-03-31	0.35	0.43	0.08	22

Know Ecopetrol's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Ecopetrol is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ecopetrol SA ADR backward and forwards among themselves. Ecopetrol's institutional investor refers to the entity that pools money to purchase Ecopetrol's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Charles Schwab Investment Management Inc	2024-09-30	425.1 K
Wells Fargo & Co	2024-06-30	374 K
American Century Companies Inc	2024-09-30	316.4 K
State Street Corp	2024-06-30	314.2 K
Balyasny Asset Management Llc	2024-09-30	294.5 K
Capital Wealth Planning, Llc	2024-09-30	239.9 K
Penserra Capital Management, Llc	2024-06-30	222.7 K
Citadel Advisors Llc	2024-09-30	222.3 K
Bank Of America Corp	2024-06-30	218.9 K
Gqg Partners Llc	2024-09-30	12.3 M
Vanguard Group Inc	2024-09-30	3.1 M

Note, although Ecopetrol's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Ecopetrol's market capitalization trends

The company currently falls under 'Large-Cap' category with a market capitalization of 16.87 B.

Market Cap

84.09 Trillion

Ecopetrol's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.07	0.10
Return On Capital Employed	0.18	0.20
Return On Assets	0.07	0.10
Return On Equity	0.25	0.14

The company has Net Profit Margin (PM) of 0.11 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.27 %, which signifies that for every $100 of sales, it has a net operating income of $0.27.

Determining Ecopetrol's profitability involves analyzing its financial statements and using various financial metrics to determine if Ecopetrol is a good buy. For example, gross profit margin measures Ecopetrol's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ecopetrol's profitability and make more informed investment decisions.

Please note, the presentation of Ecopetrol's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ecopetrol's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Ecopetrol's management manipulating its earnings.

Evaluate Ecopetrol's management efficiency

Ecopetrol SA ADR has Return on Asset (ROA) of 0.079 % which means that for every $100 of assets, it generated a profit of $0.079. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.205 %, which means that it produced $0.205 on every 100 dollars invested by current stockholders. Ecopetrol's management efficiency ratios could be used to measure how well Ecopetrol manages its routine affairs as well as how well it operates its assets and liabilities. At present, Ecopetrol's Return On Capital Employed is projected to slightly decrease based on the last few years of reporting. The current year's Return On Assets is expected to grow to 0.1, whereas Return On Equity is forecasted to decline to 0.14. At present, Ecopetrol's Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 20.8 T, whereas Non Current Assets Total are forecasted to decline to about 111 T.

	Last Reported	Projected for Next Year
Book Value Per Share	2.4 K	2.3 K
Tangible Book Value Per Share	2 K	1.9 K
Enterprise Value Over EBITDA	33.28	34.95
Price Book Value Ratio	25.07	26.32
Enterprise Value Multiple	33.28	34.95
Price Fair Value	25.07	26.32
Enterprise Value	183.7 T	108.6 T

Ecopetrol showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.

Dividend Yield

0.3702

Forward Dividend Yield

0.3702

Forward Dividend Rate

Beta

0.69

Basic technical analysis of Ecopetrol Stock

As of the 28th of November, Ecopetrol shows the Standard Deviation of 1.87, mean deviation of 1.39, and Variance of 3.49. Ecopetrol SA ADR technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.

Ecopetrol's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ecopetrol insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ecopetrol's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ecopetrol insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Perry Barry W over two months ago Disposition of 185808 shares by Perry Barry W of Ecopetrol at 28.95 subject to Rule 16b-3
		Wolynic Edward T over two months ago Disposition of 18091 shares by Wolynic Edward T of Ecopetrol at .0 subject to Rule 16b-3
		Napier James V over two months ago Disposition of 3000 shares by Napier James V of Ecopetrol at 17.81 subject to Rule 16b-3
		Wolynic Edward T over six months ago Disposition of 15208 shares by Wolynic Edward T of Ecopetrol at 28.64 subject to Rule 16b-3
		Napier James V over six months ago Acquisition by Napier James V of tradable shares of Ecopetrol at 40.02 subject to Rule 16b-3

Ecopetrol's Outstanding Corporate Bonds

Ecopetrol issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ecopetrol SA ADR uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ecopetrol bonds can be classified according to their maturity, which is the date when Ecopetrol SA ADR has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MPLX LP 52 Corp Bond US55336VAL45	View
	ECOPETROL S A Corp Bond US279158AE95	View
	Ecopetrol SA 4125 Corp Bond US279158AK55	View
	ECOPETROL S A Corp Bond US279158AJ82	View
	ECOPETROL S A Corp Bond US279158AL39	View
	Ecopetrol SA 4625 Corp Bond US279158AP43	View

View All Ecopetrol Corporate Bonds

Understand Ecopetrol's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Ecopetrol's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.15)
	Market Risk Adjusted Performance	(1.27)
	Mean Deviation	1.39
	Coefficient Of Variation	(485.34)
	Standard Deviation	1.87
	Variance	3.49
	Information Ratio	(0.28)
	Jensen Alpha	(0.43)
	Total Risk Alpha	(0.69)
	Treynor Ratio	(1.28)
	Maximum Drawdown	8.46
	Value At Risk	(3.86)
	Potential Upside	2.46
	Skewness	(0.18)
	Kurtosis	1.31

	Risk Adjusted Performance	(0.15)
	Market Risk Adjusted Performance	(1.27)
	Mean Deviation	1.39
	Coefficient Of Variation	(485.34)
	Standard Deviation	1.87
	Variance	3.49
	Information Ratio	(0.28)
	Jensen Alpha	(0.43)
	Total Risk Alpha	(0.69)
	Treynor Ratio	(1.28)
	Maximum Drawdown	8.46
	Value At Risk	(3.86)
	Potential Upside	2.46
	Skewness	(0.18)
	Kurtosis	1.31

Consider Ecopetrol's intraday indicators

Ecopetrol intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ecopetrol stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	26148.09
	Daily Balance Of Power	0.4
	Rate Of Daily Change	1.01
	Day Median Price	8.04
	Day Typical Price	8.04
	Price Action Indicator	0.035
	Period Momentum Indicator	0.06

Ecopetrol Corporate Filings

6K	22nd of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
	21st of November 2024 Other Reports	View Verify
	24th of October 2024 Certification of the accuracy of the financial statements and disclosures	View Verify
	18th of October 2024 Prospectus used primarily for registering securities for public sale.	View Verify

Ecopetrol time-series forecasting models is one of many Ecopetrol's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Ecopetrol's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Ecopetrol Stock media impact

Far too much social signal, news, headlines, and media speculation about Ecopetrol that are available to investors today. That information is available publicly through Ecopetrol media outlets and privately through word of mouth or via Ecopetrol internal channels. However, regardless of the origin, that massive amount of Ecopetrol data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Ecopetrol news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ecopetrol relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ecopetrol's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ecopetrol alpha.

Ecopetrol Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Ecopetrol can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Ecopetrol SA ADR Historical Investor Sentiment

Investor biases related to Ecopetrol's public news can be used to forecast risks associated with an investment in Ecopetrol. The trend in average sentiment can be used to explain how an investor holding Ecopetrol can time the market purely based on public headlines and social activities around Ecopetrol SA ADR. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Ecopetrol's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Ecopetrol and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Ecopetrol news discussions. The higher the estimate score, the more favorable the investor's outlook on Ecopetrol.