PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
NYSE:PBR.A - New York Stock Exchange, Inc. - US71654V1017 - ADR
PBR.A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 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.
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 has a Return On Assets of 7.86%. This is in the better half of the industry: PBR.A outperforms 67.96% of its industry peers.
PBR.A has a better Return On Equity (21.51%) than 76.70% 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 81.07% 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 28.71%.
The 3 year average ROIC (17.83%) for PBR.A is well above the current ROIC(13.65%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 16.81%, PBR.A is in line with its industry, outperforming 59.22% of the companies in the same industry.
In the last couple of years the Profit Margin of PBR.A has grown nicely.
PBR.A has a better Operating Margin (34.98%) than 71.84% of its industry peers.
In the last couple of years the Operating Margin of PBR.A has grown nicely.
PBR.A has a Gross Margin (46.86%) which 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PBR.A is still creating some value.
Compared to 1 year ago, PBR.A has less shares outstanding
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 1.61. 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 1.61 is in line compared to the rest of the industry. PBR.A outperforms 49.51% 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.
With a decent Debt to FCF ratio value of 2.11, PBR.A is doing good in the industry, outperforming 75.24% of the companies in the same industry.
PBR.A has a Debt/Equity ratio of 0.66. This is a neutral value indicating 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 63.59% of its industry peers.
Although PBR.A does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 1.61 |
ROIC/WACC1.16
WACC11.72%
2.3 Liquidity
A Current Ratio of 0.94 indicates that PBR.A may have some problems paying its short term obligations.
PBR.A's Current ratio of 0.94 is on the low side compared to the rest of the industry. PBR.A is outperformed by 66.99% of its industry peers.
A Quick Ratio of 0.71 indicates that PBR.A may have some problems paying its short term obligations.
PBR.A's Quick ratio of 0.71 is on the low side compared to the rest of the industry. PBR.A is outperformed by 68.93% of its industry peers.
| 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.
PBR.A shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.46% yearly.
Looking at the last year, PBR.A shows a decrease in Revenue. The Revenue has decreased by -6.06% in the last year.
PBR.A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.54% yearly.
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
PBR.A is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.98% yearly.
The Revenue is expected to decrease by -7.89% on average over the next years.
EPS Next Y-37.38%
EPS Next 2Y-10.95%
EPS Next 3Y-4.98%
EPS Next 5YN/A
Revenue Next Year-0.75%
Revenue Next 2Y0.45%
Revenue Next 3Y1.67%
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.
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
With a Price/Earnings ratio of 4.29, 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 92.23% of the companies are valued more expensively.
PBR.A is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
PBR.A is valuated cheaply with a Price/Forward Earnings ratio of 4.58.
90.78% of the companies in the same industry are more expensive than PBR.A, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, PBR.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 4.58 |
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 92.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PBR.A is valued cheaper than 93.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.4 | ||
| EV/EBITDA | 2.76 |
4.3 Compensation for Growth
PBR.A has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PBR.A's earnings are expected to decrease with -4.98% in the coming years.
PEG (NY)N/A
PEG (5Y)0.13
EPS Next 2Y-10.95%
EPS Next 3Y-4.98%
5. Dividend
5.1 Amount
PBR.A has a Yearly Dividend Yield of 7.56%, which is a nice return.
Compared to an average industry Dividend Yield of 6.39, PBR.A pays a better dividend. On top of this PBR.A pays more dividend than 81.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, PBR.A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.56% |
5.2 History
The dividend of PBR.A is nicely growing with an annual growth rate of 110.80%!
PBR.A has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)110.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
105.18% of the earnings are spent on dividend by PBR.A. This is not a sustainable payout ratio.
The Dividend Rate of PBR.A has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP105.18%
EPS Next 2Y-10.95%
EPS Next 3Y-4.98%
PETROLEO BRASIL-SP PREF ADR
NYSE:PBR.A (1/21/2025, 8:04:00 PM)
After market: 12.4 +0.04 (+0.32%)12.36
+0.11 (+0.9%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.8%
Inst Owner Change0.15%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap79.65B
Analysts82.22
Price Target15.52 (25.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.56% |
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)-2.21%
PT rev (3m)-8.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)3.28%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 4.58 | ||
| P/S | 0.96 | ||
| P/FCF | 3.4 | ||
| P/OCF | 2.26 | ||
| P/B | 1.23 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 2.76 |
EPS(TTM)2.88
EY23.3%
EPS(NY)2.7
Fwd EY21.81%
FCF(TTM)3.63
FCFY29.4%
OCF(TTM)5.47
OCFY44.22%
SpS12.87
BVpS10.05
TBVpS9.7
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 | 1.61 |
F-Score6
WACC11.72%
ROIC/WACC1.16
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-37.38%
EPS Next 2Y-10.95%
EPS Next 3Y-4.98%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y23.46%
Revenue growth 5Y10.54%
Sales Q2Q%3.81%
Revenue Next Year-0.75%
Revenue Next 2Y0.45%
Revenue Next 3Y1.67%
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%