PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PBR.A - US71654V1017 - ADR
11.89 USD
-0.14 (-1.16%)
11.94 USD
+0.05 (+0.42%)
PBR.A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 209 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 cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PBR.A had positive earnings in the past year.
PBR.A had a positive operating cash flow in the past year.
Each year in the past 5 years PBR.A has been profitable.
PBR.A had a positive operating cash flow in each of the past 5 years.
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 75.12% of its industry peers.
Looking at the Return On Equity, with a value of 19.38%, PBR.A belongs to the top of the industry, outperforming 86.60% of the companies in the same industry.
PBR.A has a Return On Invested Capital of 10.06%. This is amongst the best in the industry. PBR.A outperforms 82.78% of its industry peers.
PBR.A had an Average Return On Invested Capital over the past 3 years of 17.44%. This is below the industry average of 21.49%.
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 66.99% of the companies in the same industry.
PBR.A's Profit Margin has declined in the last couple of years.
PBR.A's Operating Margin of 29.39% is fine compared to the rest of the industry. PBR.A outperforms 72.25% 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 53.11% 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.
Compared to 5 years ago, PBR.A has less shares outstanding
PBR.A has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that PBR.A is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.26, PBR.A perfoms like the industry average, outperforming 49.76% of the companies in the same 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.
PBR.A has a Debt to FCF ratio of 3.53. This is in the better half of the industry: PBR.A outperforms 73.68% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that PBR.A is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, PBR.A is doing worse than 66.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.53
WACC6.58%
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.
Looking at the Current ratio, with a value of 0.76, PBR.A is doing worse than 70.33% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that PBR.A may have some problems paying its short term obligations.
The Quick ratio of PBR.A (0.51) is worse than 83.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
PBR.A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.37%.
The Earnings Per Share has been growing by 16.66% on average over the past years. This is quite good.
PBR.A shows a decrease in Revenue. In the last year, the revenue decreased by -4.13%.
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)-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.
PBR.A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.71% yearly.
EPS Next Y20.31%
EPS Next 2Y-0.71%
EPS Next 3Y1.98%
EPS Next 5Y1.6%
Revenue Next Year-2.04%
Revenue Next 2Y-0.97%
Revenue Next 3Y0.38%
Revenue Next 5Y-3.71%
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
Based on the Price/Earnings ratio of 4.39, the valuation of PBR.A can be described as very cheap.
Based on the Price/Earnings ratio, PBR.A is valued cheaply inside the industry as 95.69% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. PBR.A is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 4.61, the valuation of PBR.A can be described as very cheap.
Based on the Price/Forward Earnings ratio, PBR.A is valued cheaply inside the industry as 95.69% of the companies are valued more expensively.
PBR.A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.39 | ||
| Fwd PE | 4.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBR.A is valued cheaply inside the industry as 87.56% of the companies are valued more expensively.
94.74% 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 | 3.89 | ||
| EV/EBITDA | 3.27 |
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.
The decent profitability rating of PBR.A may justify a higher PE ratio.
PEG (NY)0.22
PEG (5Y)0.26
EPS Next 2Y-0.71%
EPS Next 3Y1.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.80%, PBR.A has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.93, PBR.A has a dividend in line with its industry peers.
PBR.A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
5.2 History
The dividend of PBR.A is nicely growing with an annual growth rate of 68.55%!
PBR.A has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)68.55%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PBR.A pays out 92.83% of its income as dividend. 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-0.71%
EPS Next 3Y1.98%
11.89
-0.14 (-1.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners40.69%
Inst Owner Change-2.56%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap76.62B
Revenue(TTM)490.83B
Net Income(TTM)77.37B
Analysts78.95
Price Target14.85 (24.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend2.91
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)-2.41%
PT rev (3m)-0.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)2.55%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.35%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)4.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.39 | ||
| Fwd PE | 4.61 | ||
| P/S | 0.83 | ||
| P/FCF | 3.89 | ||
| P/OCF | 2.02 | ||
| P/B | 1.02 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 3.27 |
EPS(TTM)2.71
EY22.79%
EPS(NY)2.58
Fwd EY21.68%
FCF(TTM)3.06
FCFY25.7%
OCF(TTM)5.88
OCFY49.41%
SpS14.33
BVpS11.6
TBVpS11.22
PEG (NY)0.22
PEG (5Y)0.26
Graham Number26.6
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
WACC6.58%
ROIC/WACC1.53
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 Y20.31%
EPS Next 2Y-0.71%
EPS Next 3Y1.98%
EPS Next 5Y1.6%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-1.28%
Revenue Next Year-2.04%
Revenue Next 2Y-0.97%
Revenue Next 3Y0.38%
Revenue Next 5Y-3.71%
EBIT growth 1Y-19%
EBIT growth 3Y-3.58%
EBIT growth 5Y15.19%
EBIT Next Year33.4%
EBIT Next 3Y12.07%
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 4.39 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.