Ecopetrol S.A. cash flow to debt ratio of 23.19% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Ecopetrol S.A.'s free cash flow has decreased -50.24% from $32.54T last year to $16.19T, signaling decreasing performance

Ecopetrol S.A.'s debt to equity ratio is 1.36, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Ecopetrol S.A.'s debt has decreased relative to shareholder equity from 1.43 last year to 1.36 today, signaling strengthened financials

Ecopetrol S.A. has a net debt to EBITDA ratio of 2.46x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Ecopetrol S.A.'s interest coverage ratio of 3.87 indicates that earnings with good margin can cover interest payments on company debt

Ecopetrol S.A.'s profit margin has decreased (-27.75%) in the last year from 10.38% to 7.50%, signaling decreasing performance

Ecopetrol S.A.'s short-term assets of $53.39T exceed its short-term liabilities of $34.48T

Ecopetrol S.A.'s return on assets of 3.03% is lower than the 5.00% threshold, indicating inefficient asset utilization

Ecopetrol S.A.'s return on equity of 10.79%, is lower than 15.00%, indicating bad performance

Ecopetrol S.A.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Ecopetrol S.A. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Ecopetrol S.A. has positive free cash flow, indicating the company generates cash after capital expenditures

Ecopetrol S.A. has a free cash flow yield of 53.52K%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Ecopetrol S.A.'s yearly earnings has decreased -39.34% since last year from $13.84T to $8.40T, signaling decreasing performance

Ecopetrol S.A.'s yearly revenue has decreased -16.39% since last year from $133.33T to $111.48T, signaling decreasing performance

ROIC 6.98% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Ecopetrol S.A.'s 3-year revenue CAGR of -11.27% is negative, indicating declining revenue over the past 3 years

Ecopetrol S.A. had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance

Ecopetrol S.A. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Ecopetrol S.A. is undervalued relative to its fair value price of 91.96K based on Discounted Cash Flow model

Ecopetrol S.A. has an earnings yield of 28.85K%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Ecopetrol S.A. is undervalued relative to its fair value price of 85.91K based on EBITDA multiple model

Ecopetrol S.A. has an EV/EBITDA ratio of 4.86x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Ecopetrol S.A. is undervalued relative to its fair value price of 273.16K based on Earnings Fair Value model

Ecopetrol S.A. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Ecopetrol S.A. has a price-to-book ratio of 1.30x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Ecopetrol S.A. has a price-to-sales ratio of 0.89x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue