PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
NYSE:PBR.A - New York Stock Exchange, Inc. - US71654V1017 - ADR - Currency: USD
Taking everything into account, PBR.A scores 5 out of 10 in our fundamental rating. PBR.A was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of PBR.A while its profitability can be described as average. PBR.A is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PBR.A had positive earnings in the past year.
In the past year PBR.A had a positive cash flow from operations.
In the past 5 years PBR.A has always been profitable.
Each year in the past 5 years PBR.A had a positive operating cash flow.
1.2 Ratios
PBR.A has a Return On Assets (3.25%) which is in line with its industry peers.
PBR.A has a Return On Equity (10.00%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 11.25%, PBR.A belongs to the top of the industry, outperforming 81.99% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PBR.A is significantly below the industry average of 23.70%.
The 3 year average ROIC (16.79%) for PBR.A is well above the current ROIC(11.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 10% | ||
| ROIC | 11.25% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)16.79%
ROIC(5y)14.2%
1.3 Margins
The Profit Margin of PBR.A (7.46%) is comparable to the rest of the industry.
PBR.A's Profit Margin has declined in the last couple of years.
PBR.A has a Operating Margin of 30.85%. This is in the better half of the industry: PBR.A outperforms 71.09% of its industry peers.
PBR.A's Operating Margin has improved in the last couple of years.
The Gross Margin of PBR.A (45.22%) is comparable to the rest of the industry.
PBR.A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.85% | ||
| PM (TTM) | 7.46% | ||
| GM | 45.22% |
OM growth 3Y-6.15%
OM growth 5Y4.54%
PM growth 3Y-31.85%
PM growth 5Y-10.9%
GM growth 3Y0.92%
GM growth 5Y5.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PBR.A is creating value.
Compared to 1 year ago, PBR.A has less shares outstanding
PBR.A has less shares outstanding than it did 5 years ago.
PBR.A has a worse debt/assets ratio than last year.
2.2 Solvency
PBR.A has an Altman-Z score of 1.26. This is a bad value and indicates that PBR.A is not financially healthy and even has some risk of bankruptcy.
PBR.A has a Altman-Z score (1.26) which is comparable to the rest of the industry.
The Debt to FCF ratio of PBR.A is 3.01, which is a good value as it means it would take PBR.A, 3.01 years of fcf income to pay off all of its debts.
PBR.A's Debt to FCF ratio of 3.01 is fine compared to the rest of the industry. PBR.A outperforms 78.67% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that PBR.A is somewhat dependend on debt financing.
PBR.A has a Debt to Equity ratio of 0.83. This is in the lower half of the industry: PBR.A underperforms 64.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.72
WACC6.55%
2.3 Liquidity
A Current Ratio of 0.69 indicates that PBR.A may have some problems paying its short term obligations.
The Current ratio of PBR.A (0.69) is worse than 76.78% of its industry peers.
A Quick Ratio of 0.48 indicates that PBR.A may have some problems paying its short term obligations.
PBR.A's Quick ratio of 0.48 is on the low side compared to the rest of the industry. PBR.A is outperformed by 83.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
PBR.A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.25%.
Measured over the past years, PBR.A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.66% on average per year.
PBR.A shows a small growth in Revenue. In the last year, the Revenue has grown by 1.14%.
PBR.A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.18% yearly.
EPS 1Y (TTM)-25.25%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-1.95%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%4.74%
3.2 Future
PBR.A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.00% yearly.
Based on estimates for the next years, PBR.A will show a decrease in Revenue. The Revenue will decrease by -3.95% on average per year.
EPS Next Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y1%
Revenue Next Year-5.48%
Revenue Next 2Y-2.48%
Revenue Next 3Y0.33%
Revenue Next 5Y-3.95%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 4.65 indicates a rather cheap valuation of PBR.A.
Based on the Price/Earnings ratio, PBR.A is valued cheaply inside the industry as 91.00% of the companies are valued more expensively.
PBR.A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 4.00, the valuation of PBR.A can be described as very cheap.
PBR.A's Price/Forward Earnings ratio is rather cheap when compared to the industry. PBR.A is cheaper than 95.26% of the companies in the same industry.
PBR.A is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.65 | ||
| Fwd PE | 4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBR.A is valued cheaply inside the industry as 86.26% of the companies are valued more expensively.
91.94% of the companies in the same industry are more expensive than PBR.A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.36 | ||
| EV/EBITDA | 3.28 |
4.3 Compensation for Growth
PBR.A's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PBR.A may justify a higher PE ratio.
PEG (NY)0.27
PEG (5Y)0.28
EPS Next 2Y7.68%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
PBR.A has a Yearly Dividend Yield of 4.49%, which is a nice return.
Compared to an average industry Dividend Yield of 6.51, PBR.A pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, PBR.A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
5.2 History
On average, the dividend of PBR.A grows each year by 68.55%, which is quite nice.
PBR.A has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)68.55%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
274.01% of the earnings are spent on dividend by PBR.A. This is not a sustainable payout ratio.
The dividend of PBR.A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP274.01%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
11.91
+0.06 (+0.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.09%
Inst Owner Change-1.51%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap76.75B
Analysts78.95
Price Target15.06 (26.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Yearly Dividend2.87
Dividend Growth(5Y)68.55%
DP274.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.11%
Min EPS beat(2)-18.26%
Max EPS beat(2)14.05%
EPS beat(4)1
Avg EPS beat(4)-17.06%
Min EPS beat(4)-45.32%
Max EPS beat(4)14.05%
EPS beat(8)3
Avg EPS beat(8)-3.25%
EPS beat(12)6
Avg EPS beat(12)0.64%
EPS beat(16)7
Avg EPS beat(16)0.03%
Revenue beat(2)1
Avg Revenue beat(2)-3.62%
Min Revenue beat(2)-7.91%
Max Revenue beat(2)0.67%
Revenue beat(4)1
Avg Revenue beat(4)-6.22%
Min Revenue beat(4)-9.49%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-4.96%
Revenue beat(12)3
Avg Revenue beat(12)-3.17%
Revenue beat(16)4
Avg Revenue beat(16)-3.05%
PT rev (1m)-1.93%
PT rev (3m)-8.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.68%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.65 | ||
| Fwd PE | 4 | ||
| P/S | 0.85 | ||
| P/FCF | 3.36 | ||
| P/OCF | 2.04 | ||
| P/B | 1.14 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 3.28 |
EPS(TTM)2.56
EY21.49%
EPS(NY)2.98
Fwd EY25.02%
FCF(TTM)3.55
FCFY29.79%
OCF(TTM)5.83
OCFY48.95%
SpS14.02
BVpS10.46
TBVpS10.06
PEG (NY)0.27
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 10% | ||
| ROCE | 16.28% | ||
| ROIC | 11.25% | ||
| ROICexc | 11.84% | ||
| ROICexgc | 12.03% | ||
| OM | 30.85% | ||
| PM (TTM) | 7.46% | ||
| GM | 45.22% | ||
| FCFM | 25.3% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)16.79%
ROIC(5y)14.2%
ROICexc(3y)18.06%
ROICexc(5y)15.29%
ROICexgc(3y)18.4%
ROICexgc(5y)15.72%
ROCE(3y)24.31%
ROCE(5y)20.56%
ROICexcg growth 3Y-7.85%
ROICexcg growth 5Y10.24%
ROICexc growth 3Y-7.66%
ROICexc growth 5Y12.26%
OM growth 3Y-6.15%
OM growth 5Y4.54%
PM growth 3Y-31.85%
PM growth 5Y-10.9%
GM growth 3Y0.92%
GM growth 5Y5.33%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 119.13% | ||
| Cap/Sales | 16.27% | ||
| Interest Coverage | 14.74 | ||
| Cash Conversion | 93.4% | ||
| Profit Quality | 339.24% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.26 |
F-Score4
WACC6.55%
ROIC/WACC1.72
Cap/Depr(3y)94.35%
Cap/Depr(5y)77.72%
Cap/Sales(3y)11.93%
Cap/Sales(5y)10.87%
Profit Quality(3y)191.06%
Profit Quality(5y)478.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-25.25%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-1.95%
EPS Next Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y1%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%4.74%
Revenue Next Year-5.48%
Revenue Next 2Y-2.48%
Revenue Next 3Y0.33%
Revenue Next 5Y-3.95%
EBIT growth 1Y-24.33%
EBIT growth 3Y-3.58%
EBIT growth 5Y15.19%
EBIT Next Year33.4%
EBIT Next 3Y13.68%
EBIT Next 5Y9.5%
FCF growth 1Y-20.08%
FCF growth 3Y-9.76%
FCF growth 5Y12.88%
OCF growth 1Y-5.41%
OCF growth 3Y0.15%
OCF growth 5Y14.93%