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The BP share price is a dirt-cheap FTSE 100 stock I’d buy for my ISA today

While there may be a number of FTSE 100 shares that seem to offer good value for money at the present time, BP (LSE: BP) could be one of the more appealing long-term opportunities.

The oil and gas company appears to offer a mix of growth, income and value investing potential that could mean it’s able to generate improving total returns. Alongside another attractive FTSE 350 share that reported results on Wednesday, it could be worth buying within a Stocks and Shares ISA.

Improving performance

The stock in question is manufacturer of automotive fluid storage TI Fluid Systems (LSE: TIFS). 2018 results showed it’s been able to successfully execute its hybrid electric vehicle and electric vehicle strategies, which have created organic growth opportunities. Revenues may have only increased by 2%, but a rise in profit for the year of 22% to €140.1m suggests that it’s delivering on its potential.

The company continues to work on new design and engineering thermal management and pressurised tank opportunities. It appears to be well-placed to benefit from rising demand for electric vehicles, which could produce a tailwind over the coming years.

With TI Fluid Systems trading on a price-to-earnings (P/E) ratio of 4.7, it appears to offer good value for money. Its bottom line is expected to rise by 8% in the current year, which suggests it may deliver improving share price performance over the long run. A dividend yield of 4.4% from a payout that is covered 4.8 times by profit suggests it may also have income investing potential.

Value opportunity

BP may also deliver strong dividend growth over the long run. The company has experienced a challenging decade. Its shares were hit, as was the wider FTSE 100, by the financial crisis. It then experienced a severe decline following the major Gulf of Mexico oil spill in 2010. This has put it under significant financial pressure ever since, with the oil price weakness from 2014 onwards only compounding its misery.

Now, though, the company has reported improving performance in recent quarters. This suggests it has the capacity to deliver net profit growth as well as a rising dividend. In fact, in the current year it’s forecast to post a rise in earnings of 11%, while a dividend yield of 5.6% indicates it could offer income investing potential.

Certainly, there’s scope for a pullback in the oil price. It’s made gains in recent weeks following a challenging period in the final quarter of 2018. However, it remains an uncertain period for the wider industry, and this situation could continue to develop over the long run. Therefore, while BP may always be a volatile stock, its P/E ratio of 11.7 indicates it offers a margin of safety, as well as growth and dividend investing prospects when compared to the wider FTSE 100.

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Peter Stephens owns shares of BP. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.