Is PETROLEO BRASILEIRO-SPON ADR (NYSE:PBR) a Strong Candidate for Quality Investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PETROLEO BRASILEIRO-SPON ADR (NYSE:PBR) is suited for quality investing. Investors should of course do their own research, but we spotted PETROLEO BRASILEIRO-SPON ADR showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:PBR Holds Appeal for Quality Investors.

• PETROLEO BRASILEIRO-SPON ADR has shown strong performance in revenue growth over the past 5 years, with a 17.72% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• PETROLEO BRASILEIRO-SPON ADR demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 25.07% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• PETROLEO BRASILEIRO-SPON ADR demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.31, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 460.0%, PETROLEO BRASILEIRO-SPON ADR showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• PETROLEO BRASILEIRO-SPON ADR has experienced impressive EBIT growth over the past 5 years, with 49.34% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, PETROLEO BRASILEIRO-SPON ADR showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to PBR. PBR was compared to 218 industry peers in the Oil, Gas & Consumable Fuels industry. PBR has an excellent profitability rating, but there are some minor concerns on its financial health. PBR may be a bit undervalued, certainly considering the very reasonable score on growth This makes PBR very considerable for value investing!

Our latest full fundamental report of PBR contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.