PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PBR.A - US71654V1017 - ADR
11.29 USD
+0.15 (+1.35%)
11.31 USD
+0.02 (+0.18%)
Taking everything into account, PBR.A scores 5 out of 10 in our fundamental rating. PBR.A was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR.A belongs to the best of the industry regarding profitability, there are concerns on its financial health. 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.
Each year in the past 5 years PBR.A has 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 of 6.59%. This is in the better half of the industry: PBR.A outperforms 75.71% of its industry peers.
PBR.A has a better Return On Equity (19.38%) than 87.62% of its industry peers.
PBR.A has a better Return On Invested Capital (10.06%) than 83.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PBR.A is below the industry average of 21.09%.
The 3 year average ROIC (17.44%) for PBR.A is well above the current ROIC(10.06%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 19.38% | ||
| ROIC | 10.06% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)17.44%
ROIC(5y)14.59%
1.3 Margins
Looking at the Profit Margin, with a value of 15.69%, PBR.A is in the better half of the industry, outperforming 68.10% of the companies in the same industry.
PBR.A's Profit Margin has declined in the last couple of years.
PBR.A has a Operating Margin of 29.39%. This is in the better half of the industry: PBR.A outperforms 72.38% of its industry peers.
In the last couple of years the Operating Margin of PBR.A has grown nicely.
PBR.A's Gross Margin of 43.62% is in line compared to the rest of the industry. PBR.A outperforms 52.86% of its industry peers.
PBR.A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.39% | ||
| PM (TTM) | 15.69% | ||
| GM | 43.62% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PBR.A is creating value.
The number of shares outstanding for PBR.A has been reduced compared to 1 year ago.
PBR.A has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PBR.A is higher compared to a year ago.
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.
The Altman-Z score of PBR.A (1.26) is comparable to the rest of the industry.
The Debt to FCF ratio of PBR.A is 3.53, which is a good value as it means it would take PBR.A, 3.53 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.53, PBR.A is doing good in the industry, outperforming 73.33% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that PBR.A is somewhat dependend on debt financing.
PBR.A has a worse Debt to Equity ratio (0.77) than 66.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.57
WACC6.4%
2.3 Liquidity
PBR.A has a Current Ratio of 0.76. This is a bad value and indicates that PBR.A is not financially healthy enough and could expect problems in meeting its short term obligations.
PBR.A has a Current ratio of 0.76. This is in the lower half of the industry: PBR.A underperforms 70.00% of its industry peers.
PBR.A has a Quick Ratio of 0.76. This is a bad value and indicates that PBR.A is not financially healthy enough and could expect problems in meeting its short term obligations.
PBR.A has a Quick ratio of 0.51. This is amonst the worse of the industry: PBR.A underperforms 81.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for PBR.A have decreased strongly by -17.37% in the last year.
The Earnings Per Share has been growing by 16.66% on average over the past years. This is quite good.
The Revenue has decreased by -4.13% in the past year.
The Revenue has been growing by 10.18% on average over the past years. This is quite good.
EPS 1Y (TTM)-17.37%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-12.39%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-1.28%
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 1.60% yearly.
The Revenue is expected to decrease by -3.71% on average over the next years.
EPS Next Y24.05%
EPS Next 2Y-2.67%
EPS Next 3Y0.26%
EPS Next 5Y1.6%
Revenue Next Year-1.86%
Revenue Next 2Y-1.47%
Revenue Next 3Y0.03%
Revenue Next 5Y-3.71%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PBR.A is valuated cheaply with a Price/Earnings ratio of 4.36.
Compared to the rest of the industry, the Price/Earnings ratio of PBR.A indicates a rather cheap valuation: PBR.A is cheaper than 94.76% of the companies listed in the same industry.
PBR.A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.50.
With a Price/Forward Earnings ratio of 4.77, the valuation of PBR.A can be described as very cheap.
Based on the Price/Forward Earnings ratio, PBR.A is valued cheaper than 96.67% of the companies in the same industry.
PBR.A is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.36 | ||
| Fwd PE | 4.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PBR.A indicates a rather cheap valuation: PBR.A is cheaper than 88.10% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PBR.A indicates a rather cheap valuation: PBR.A is cheaper than 94.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.87 | ||
| EV/EBITDA | 3.25 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PBR.A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.18
PEG (5Y)0.26
EPS Next 2Y-2.67%
EPS Next 3Y0.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.90%, PBR.A has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.95, PBR.A has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, PBR.A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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
92.83% of the earnings are spent on dividend by PBR.A. This is not a sustainable payout ratio.
PBR.A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP92.83%
EPS Next 2Y-2.67%
EPS Next 3Y0.26%
11.29
+0.15 (+1.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners40.63%
Inst Owner Change-2.56%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap72.76B
Revenue(TTM)490.83B
Net Income(TTM)77.37B
Analysts78.95
Price Target14.69 (30.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend2.81
Dividend Growth(5Y)68.55%
DP92.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.5%
Min EPS beat(2)-25.5%
Max EPS beat(2)10.49%
EPS beat(4)2
Avg EPS beat(4)-4.81%
Min EPS beat(4)-25.5%
Max EPS beat(4)14.05%
EPS beat(8)3
Avg EPS beat(8)-8.25%
EPS beat(12)5
Avg EPS beat(12)-3.16%
EPS beat(16)7
Avg EPS beat(16)-3.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.51%
Min Revenue beat(2)-4.3%
Max Revenue beat(2)-0.71%
Revenue beat(4)1
Avg Revenue beat(4)-3.06%
Min Revenue beat(4)-7.91%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-4.93%
Revenue beat(12)2
Avg Revenue beat(12)-3.68%
Revenue beat(16)3
Avg Revenue beat(16)-2.89%
PT rev (1m)-0.74%
PT rev (3m)-2.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.87%
EPS NY rev (1m)3.1%
EPS NY rev (3m)4.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.96%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.36 | ||
| Fwd PE | 4.77 | ||
| P/S | 0.82 | ||
| P/FCF | 3.87 | ||
| P/OCF | 2.01 | ||
| P/B | 1.02 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 3.25 |
EPS(TTM)2.59
EY22.94%
EPS(NY)2.37
Fwd EY20.96%
FCF(TTM)2.92
FCFY25.86%
OCF(TTM)5.61
OCFY49.73%
SpS13.7
BVpS11.09
TBVpS10.72
PEG (NY)0.18
PEG (5Y)0.26
Graham Number25.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 19.38% | ||
| ROCE | 14.56% | ||
| ROIC | 10.06% | ||
| ROICexc | 10.61% | ||
| ROICexgc | 10.76% | ||
| OM | 29.39% | ||
| PM (TTM) | 15.69% | ||
| GM | 43.62% | ||
| FCFM | 21.32% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)17.44%
ROIC(5y)14.59%
ROICexc(3y)18.75%
ROICexc(5y)15.7%
ROICexgc(3y)19.11%
ROICexgc(5y)16.14%
ROCE(3y)25.25%
ROCE(5y)21.12%
ROICexgc growth 3Y-7.85%
ROICexgc 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-Score3
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 131.19% | ||
| Cap/Sales | 19.67% | ||
| Interest Coverage | 14.18 | ||
| Cash Conversion | 92.35% | ||
| Profit Quality | 135.88% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.26 |
F-Score3
WACC6.4%
ROIC/WACC1.57
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)-17.37%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-12.39%
EPS Next Y24.05%
EPS Next 2Y-2.67%
EPS Next 3Y0.26%
EPS Next 5Y1.6%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-1.28%
Revenue Next Year-1.86%
Revenue Next 2Y-1.47%
Revenue Next 3Y0.03%
Revenue Next 5Y-3.71%
EBIT growth 1Y-19%
EBIT growth 3Y-3.58%
EBIT growth 5Y15.19%
EBIT Next Year36.32%
EBIT Next 3Y11.47%
EBIT Next 5Y9.5%
FCF growth 1Y-40.39%
FCF growth 3Y-9.76%
FCF growth 5Y12.88%
OCF growth 1Y-12.98%
OCF growth 3Y0.15%
OCF growth 5Y14.93%
PETROLEO BRASIL-SP PREF ADR / PBR.A FAQ
What is the ChartMill fundamental rating of PETROLEO BRASIL-SP PREF ADR (PBR.A) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PBR.A.
Can you provide the valuation status for PETROLEO BRASIL-SP PREF ADR?
ChartMill assigns a valuation rating of 9 / 10 to PETROLEO BRASIL-SP PREF ADR (PBR.A). This can be considered as Undervalued.
How profitable is PETROLEO BRASIL-SP PREF ADR (PBR.A) stock?
PETROLEO BRASIL-SP PREF ADR (PBR.A) has a profitability rating of 7 / 10.
What are the PE and PB ratios of PETROLEO BRASIL-SP PREF ADR (PBR.A) stock?
The Price/Earnings (PE) ratio for PETROLEO BRASIL-SP PREF ADR (PBR.A) is 4.36 and the Price/Book (PB) ratio is 1.02.
What is the financial health of PETROLEO BRASIL-SP PREF ADR (PBR.A) stock?
The financial health rating of PETROLEO BRASIL-SP PREF ADR (PBR.A) is 3 / 10.