PETROLEO BRASILEIRO-SPON ADR (PBR)
US71654V4086 - ADR
PBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PBR is cheap, but on the other hand it scores bad on growth. Finally PBR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PBR was profitable.
In the past year PBR had a positive cash flow from operations.
Each year in the past 5 years PBR has been profitable.
PBR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PBR (11.86%) is better than 76.06% of its industry peers.
PBR's Return On Equity of 32.75% is amongst the best of the industry. PBR outperforms 82.63% of its industry peers.
The Return On Invested Capital of PBR (15.61%) is better than 81.22% of its industry peers.
PBR had an Average Return On Invested Capital over the past 3 years of 17.83%. This is significantly below the industry average of 43.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.86% | ||
| ROE | 32.75% | ||
| ROIC | 15.61% |
ROA(3y)14.03%
ROA(5y)9.43%
ROE(3y)37.41%
ROE(5y)25.62%
ROIC(3y)17.83%
ROIC(5y)13.33%
1.3 Margins
PBR has a Profit Margin of 24.34%. This is in the better half of the industry: PBR outperforms 68.08% of its industry peers.
In the last couple of years the Profit Margin of PBR has grown nicely.
The Operating Margin of PBR (38.84%) is better than 74.65% of its industry peers.
In the last couple of years the Operating Margin of PBR has grown nicely.
The Gross Margin of PBR (48.11%) is comparable to the rest of the industry.
PBR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.84% | ||
| PM (TTM) | 24.34% | ||
| GM | 48.11% |
OM growth 3Y8.77%
OM growth 5Y9.7%
PM growth 3Y110.41%
PM growth 5Y23.98%
GM growth 3Y8.88%
GM growth 5Y8.21%
2. Health
2.1 Basic Checks
PBR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PBR has less shares outstanding
The number of shares outstanding for PBR has been reduced compared to 5 years ago.
The debt/assets ratio for PBR is higher compared to a year ago.
2.2 Solvency
PBR has an Altman-Z score of 1.76. This is a bad value and indicates that PBR is not financially healthy and even has some risk of bankruptcy.
PBR's Altman-Z score of 1.76 is in line compared to the rest of the industry. PBR outperforms 52.58% of its industry peers.
The Debt to FCF ratio of PBR is 1.95, which is an excellent value as it means it would take PBR, only 1.95 years of fcf income to pay off all of its debts.
PBR's Debt to FCF ratio of 1.95 is fine compared to the rest of the industry. PBR outperforms 74.65% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that PBR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, PBR is not doing good in the industry: 61.50% of the companies in the same industry are doing better.
Although PBR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 1.76 |
ROIC/WACC1.56
WACC10.04%
2.3 Liquidity
A Current Ratio of 0.96 indicates that PBR may have some problems paying its short term obligations.
PBR has a worse Current ratio (0.96) than 65.26% of its industry peers.
PBR has a Quick Ratio of 0.96. This is a bad value and indicates that PBR is not financially healthy enough and could expect problems in meeting its short term obligations.
PBR's Quick ratio of 0.73 is on the low side compared to the rest of the industry. PBR is outperformed by 70.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
PBR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.33%.
The Earnings Per Share has been growing by 33.46% on average over the past years. This is a very strong growth
Looking at the last year, PBR shows a very negative growth in Revenue. The Revenue has decreased by -20.16% in the last year.
The Revenue has been growing by 10.54% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.33%
EPS 3Y104.16%
EPS 5Y33.46%
EPS growth Q2Q33.84%
Revenue 1Y (TTM)-20.16%
Revenue growth 3Y23.46%
Revenue growth 5Y10.54%
Revenue growth Q2Q-11.86%
3.2 Future
The Earnings Per Share is expected to decrease by -6.95% on average over the next years.
PBR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.89% yearly.
EPS Next Y-12.25%
EPS Next 2Y-11.36%
EPS Next 3Y-6.95%
EPS Next 5YN/A
Revenue Next Year-2%
Revenue Next 2Y-2.62%
Revenue Next 3Y-0.59%
Revenue Next 5Y-7.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PBR is valuated cheaply with a Price/Earnings ratio of 3.39.
97.65% of the companies in the same industry are more expensive than PBR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PBR to the average of the S&P500 Index (28.60), we can say PBR is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.73, the valuation of PBR can be described as very cheap.
Based on the Price/Forward Earnings ratio, PBR is valued cheaply inside the industry as 93.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, PBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.39 | ||
| Fwd PE | 4.73 |
4.2 Price Multiples
PBR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PBR is cheaper than 93.43% of the companies in the same industry.
94.84% of the companies in the same industry are more expensive than PBR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.2 | ||
| EV/EBITDA | 2.68 |
4.3 Compensation for Growth
The decent profitability rating of PBR may justify a higher PE ratio.
A cheap valuation may be justified as PBR's earnings are expected to decrease with -6.95% in the coming years.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-11.36%
EPS Next 3Y-6.95%
5. Dividend
5.1 Amount
PBR has a Yearly Dividend Yield of 9.02%, which is a nice return.
PBR's Dividend Yield is rather good when compared to the industry average which is at 5.80. PBR pays more dividend than 85.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.02% |
5.2 History
On average, the dividend of PBR grows each year by 110.80%, which is quite nice.
PBR has paid a dividend for at least 10 years, which is a reliable track record.
PBR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)110.8%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
PBR pays out 78.59% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of PBR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP78.59%
EPS Next 2Y-11.36%
EPS Next 3Y-6.95%
PETROLEO BRASILEIRO-SPON ADR
NYSE:PBR (5/17/2024, 7:18:51 PM)
After market: 15.06 +0.04 (+0.27%)15.02
-0.21 (-1.38%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap96.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.39 | ||
| Fwd PE | 4.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.86% | ||
| ROE | 32.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.84% | ||
| PM (TTM) | 24.34% | ||
| GM | 48.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-14.33%
EPS 3Y104.16%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.16%
Revenue growth 3Y23.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y