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. PBR.A has an excellent profitability rating, but there are concerns on its financial health. PBR.A has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year PBR.A was profitable.
In the past year PBR.A had a positive cash flow from operations.
PBR.A had positive earnings in each of the past 5 years.
PBR.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PBR.A's Return On Assets of 7.86% is fine compared to the rest of the industry. PBR.A outperforms 67.16% of its industry peers.
The Return On Equity of PBR.A (21.51%) is better than 77.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.65%, PBR.A belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
PBR.A had an Average Return On Invested Capital over the past 3 years of 17.83%. This is significantly below the industry average of 28.75%.
The last Return On Invested Capital (13.65%) for PBR.A is well below the 3 year average (17.83%), which needs to be investigated, but indicates that PBR.A had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.86% | ||
| ROE | 21.51% | ||
| ROIC | 13.65% |
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
With a Profit Margin value of 16.81%, PBR.A perfoms like the industry average, outperforming 59.31% of the companies in the same industry.
In the last couple of years the Profit Margin of PBR.A has grown nicely.
Looking at the Operating Margin, with a value of 34.98%, PBR.A is in the better half of the industry, outperforming 71.57% of the companies in the same industry.
PBR.A's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 46.86%, PBR.A is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of PBR.A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.98% | ||
| PM (TTM) | 16.81% | ||
| GM | 46.86% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PBR.A is creating some value.
Compared to 1 year ago, PBR.A has less shares outstanding
Compared to 5 years ago, PBR.A has less shares outstanding
Compared to 1 year ago, PBR.A has a worse debt to assets ratio.
2.2 Solvency
PBR.A has an Altman-Z score of 1.62. This is a bad value and indicates that PBR.A is not financially healthy and even has some risk of bankruptcy.
PBR.A's Altman-Z score of 1.62 is in line compared to the rest of the industry. PBR.A outperforms 51.47% of its industry peers.
The Debt to FCF ratio of PBR.A is 2.11, which is a good value as it means it would take PBR.A, 2.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PBR.A (2.11) is better than 75.00% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that PBR.A is somewhat dependend on debt financing.
PBR.A's Debt to Equity ratio of 0.66 is on the low side compared to the rest of the industry. PBR.A is outperformed by 63.24% of its industry peers.
Even though the debt/equity ratio score it not favorable for PBR.A, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.14
WACC11.96%
2.3 Liquidity
A Current Ratio of 0.94 indicates that PBR.A may have some problems paying its short term obligations.
PBR.A has a Current ratio of 0.94. This is in the lower half of the industry: PBR.A underperforms 67.16% of its industry peers.
PBR.A has a Quick Ratio of 0.94. 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.
With a Quick ratio value of 0.71, PBR.A is not doing good in the industry: 68.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for PBR.A have decreased strongly by -16.59% in the last year.
The Earnings Per Share has been growing by 33.46% on average over the past years. This is a very strong growth
PBR.A shows a decrease in Revenue. In the last year, the revenue decreased by -6.06%.
The Revenue has been growing by 10.54% on average over the past years. This is quite good.
EPS 1Y (TTM)-16.59%
EPS 3Y104.16%
EPS 5Y33.46%
EPS Q2Q%22.01%
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y23.46%
Revenue growth 5Y10.54%
Sales Q2Q%3.81%
3.2 Future
Based on estimates for the next years, PBR.A will show a decrease in Earnings Per Share. The EPS will decrease by -4.46% on average per year.
PBR.A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.89% yearly.
EPS Next Y-35.54%
EPS Next 2Y-8.97%
EPS Next 3Y-4.46%
EPS Next 5YN/A
Revenue Next Year-0.32%
Revenue Next 2Y0.18%
Revenue Next 3Y1.11%
Revenue Next 5Y-7.89%
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
With a Price/Earnings ratio of 4.37, the valuation of PBR.A can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PBR.A indicates a rather cheap valuation: PBR.A is cheaper than 89.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PBR.A to the average of the S&P500 Index (29.63), we can say PBR.A is valued rather cheaply.
A Price/Forward Earnings ratio of 4.47 indicates a rather cheap valuation of PBR.A.
Based on the Price/Forward Earnings ratio, PBR.A is valued cheaply inside the industry as 92.65% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. PBR.A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.37 | ||
| Fwd PE | 4.47 |
4.2 Price Multiples
PBR.A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PBR.A is cheaper than 88.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PBR.A is valued cheaply inside the industry as 92.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.47 | ||
| EV/EBITDA | 2.83 |
4.3 Compensation for Growth
PBR.A has a very decent profitability rating, which may justify a higher PE ratio.
PBR.A's earnings are expected to decrease with -4.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.13
EPS Next 2Y-8.97%
EPS Next 3Y-4.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.45%, PBR.A is a good candidate for dividend investing.
PBR.A's Dividend Yield is a higher than the industry average which is at 6.75.
Compared to an average S&P500 Dividend Yield of 2.29, PBR.A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.45% |
5.2 History
On average, the dividend of PBR.A grows each year by 110.80%, 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)110.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PBR.A pays out 105.18% of its income as dividend. This is not a sustainable payout ratio.
PBR.A's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP105.18%
EPS Next 2Y-8.97%
EPS Next 3Y-4.46%
13.43
-0.11 (-0.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.8%
Inst Owner Change-5.66%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap86.55B
Analysts82.35
Price Target15.8 (17.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.45% |
Yearly Dividend7.52
Dividend Growth(5Y)110.8%
DP105.18%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.64%
Min EPS beat(2)-45.32%
Max EPS beat(2)14.05%
EPS beat(4)2
Avg EPS beat(4)-6.04%
Min EPS beat(4)-45.32%
Max EPS beat(4)25.81%
EPS beat(8)4
Avg EPS beat(8)-0.34%
EPS beat(12)6
Avg EPS beat(12)0.3%
EPS beat(16)8
Avg EPS beat(16)64.54%
Revenue beat(2)1
Avg Revenue beat(2)-3.74%
Min Revenue beat(2)-8.16%
Max Revenue beat(2)0.67%
Revenue beat(4)1
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-9.49%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-4.28%
Revenue beat(12)3
Avg Revenue beat(12)-2.72%
Revenue beat(16)4
Avg Revenue beat(16)-2.56%
PT rev (1m)1.78%
PT rev (3m)-1.96%
EPS NQ rev (1m)-5.76%
EPS NQ rev (3m)-9.02%
EPS NY rev (1m)2.95%
EPS NY rev (3m)2.95%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.37 | ||
| Fwd PE | 4.47 | ||
| P/S | 0.98 | ||
| P/FCF | 3.47 | ||
| P/OCF | 2.3 | ||
| P/B | 1.25 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 2.83 |
EPS(TTM)3.07
EY22.86%
EPS(NY)3
Fwd EY22.36%
FCF(TTM)3.87
FCFY28.84%
OCF(TTM)5.83
OCFY43.38%
SpS13.72
BVpS10.72
TBVpS10.34
PEG (NY)N/A
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.86% | ||
| ROE | 21.51% | ||
| ROCE | 19.61% | ||
| ROIC | 13.65% | ||
| ROICexc | 14.94% | ||
| ROICexgc | 15.2% | ||
| OM | 34.98% | ||
| PM (TTM) | 16.81% | ||
| GM | 46.86% | ||
| FCFM | 28.24% |
ROA(3y)14.03%
ROA(5y)9.43%
ROE(3y)37.41%
ROE(5y)25.62%
ROIC(3y)17.83%
ROIC(5y)13.33%
ROICexc(3y)19.28%
ROICexc(5y)14.36%
ROICexgc(3y)19.68%
ROICexgc(5y)14.91%
ROCE(3y)25.61%
ROCE(5y)19.14%
ROICexcg growth 3Y29.17%
ROICexcg growth 5Y17.97%
ROICexc growth 3Y32.91%
ROICexc growth 5Y17.9%
OM growth 3Y8.77%
OM growth 5Y9.7%
PM growth 3Y110.41%
PM growth 5Y23.98%
GM growth 3Y8.88%
GM growth 5Y8.21%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 106.23% | ||
| Cap/Sales | 14.24% | ||
| Interest Coverage | 17.63 | ||
| Cash Conversion | 87.8% | ||
| Profit Quality | 168.01% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.62 |
F-Score6
WACC11.96%
ROIC/WACC1.14
Cap/Depr(3y)72.68%
Cap/Depr(5y)65.52%
Cap/Sales(3y)9.02%
Cap/Sales(5y)9.87%
Profit Quality(3y)130.79%
Profit Quality(5y)444.63%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.59%
EPS 3Y104.16%
EPS 5Y33.46%
EPS Q2Q%22.01%
EPS Next Y-35.54%
EPS Next 2Y-8.97%
EPS Next 3Y-4.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y23.46%
Revenue growth 5Y10.54%
Sales Q2Q%3.81%
Revenue Next Year-0.32%
Revenue Next 2Y0.18%
Revenue Next 3Y1.11%
Revenue Next 5Y-7.89%
EBIT growth 1Y-18.36%
EBIT growth 3Y34.29%
EBIT growth 5Y21.26%
EBIT Next Year18.58%
EBIT Next 3Y9.98%
EBIT Next 5Y3.22%
FCF growth 1Y-28.45%
FCF growth 3Y9.57%
FCF growth 5Y24.34%
OCF growth 1Y-10.53%
OCF growth 3Y13.35%
OCF growth 5Y17.61%