Ecopetrol S.A. (EC): a likely value trap?

Avoid — cheap because it's a heavily indebted, politically-controlled state oil company with a CEO facing legal charges and falling earnings.

⚠ TRAP Fundamentals58/100

Down 74% from its all-time high of $63.66 — now $16.69

Why EC dropped

Ecopetrol's stock has been dead since 2012 due to being majority-owned and controlled by the Colombian government, which extracts huge dividends regardless of the company's needs; recently Moody's downgraded its credit rating, earnings fell nearly 40% in 2025 on lower oil prices, and its CEO is now facing legal charges over campaign spending violations alongside a law-firm investor investigation.

Fwd P/E 9.7Op margin 0.0%Rev growth 35.5%Debt/equity 95.7%Analyst upside -16.7%

How this scored 58/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 10.2%

✅ Generates cash Free cash flow $12150.2B

✅ Not drowning in debt Debt/equity 95.7% (limit 200%)

✅ Can pay its bills Current ratio 1.5 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 8/25

Operating margin 0.0% 0/9

Net profit margin 10.2% 4/8

Return on equity 15.9% 4/8

Growth Is it getting bigger, or dying? 17/25

Revenue growth 35.5% 9/9

Earnings growth 234.5% 8/8

Expected profit change -20.3% 0/8

Value Is it cheap right now? 17/25

Forward P/E 9.7 9/10

PEG ratio 0.8 7/8

Analyst target upside -16.7% 0/7

Balance sheet Will it survive? 16/25

Debt / equity 95.7% 6/10

Current ratio 1.5 3/8

Free cash flow $12150.2B 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-24. Research only — not financial advice.