PETROLEO BRASILEIRO-SPON ADR (PBR)
US71654V4086 - ADR
We assign a fundamental rating of 5 out of 10 to PBR. PBR was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR belongs to the best of the industry regarding profitability, there are concerns on its financial health. PBR is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PBR had positive earnings in the past year.
In the past year PBR had a positive cash flow from operations.
PBR had positive earnings in each of the past 5 years.
In the past 5 years PBR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.86%, PBR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of 21.51%, PBR is doing good in the industry, outperforming 75.49% of the companies in the same industry.
PBR has a better Return On Invested Capital (13.65%) than 81.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PBR is significantly below the industry average of 29.02%.
The last Return On Invested Capital (13.65%) for PBR is well below the 3 year average (17.83%), which needs to be investigated, but indicates that PBR 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 perfoms like the industry average, outperforming 57.35% of the companies in the same industry.
In the last couple of years the Profit Margin of PBR has grown nicely.
PBR has a better Operating Margin (34.98%) than 70.10% of its industry peers.
PBR's Operating Margin has improved in the last couple of years.
PBR has a Gross Margin (46.86%) which is comparable to the rest of the industry.
PBR'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 is still creating some value.
Compared to 1 year ago, PBR has less shares outstanding
Compared to 5 years ago, PBR has less shares outstanding
PBR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that PBR is in the distress zone and has some risk of bankruptcy.
PBR has a Altman-Z score (1.63) which is in line with its industry peers.
PBR has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as PBR would need 2.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.11, PBR is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
PBR has a Debt/Equity ratio of 0.66. This is a neutral value indicating PBR is somewhat dependend on debt financing.
PBR has a Debt to Equity ratio of 0.66. This is in the lower half of the industry: PBR underperforms 64.22% of its industry peers.
Although PBR 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 | 1.63 |
ROIC/WACC1.17
WACC11.65%
2.3 Liquidity
PBR has a Current Ratio of 0.94. This is a bad value and indicates that PBR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PBR (0.94) is worse than 66.18% of its industry peers.
PBR has a Quick Ratio of 0.94. This is a bad value and indicates that PBR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PBR (0.71) is worse than 68.14% 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 have decreased strongly by -16.65% in the last year.
PBR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.46% yearly.
PBR shows a decrease in Revenue. In the last year, the revenue decreased by -6.06%.
Measured over the past years, PBR shows a quite strong growth in Revenue. The Revenue has been growing by 10.54% on average per year.
EPS 1Y (TTM)-16.65%
EPS 3Y104.16%
EPS 5Y33.46%
EPS Q2Q%21.92%
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 will show a decrease in Earnings Per Share. The EPS will decrease by -5.00% on average per year.
PBR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.89% yearly.
EPS Next Y-37.43%
EPS Next 2Y-10.98%
EPS Next 3Y-5%
EPS Next 5YN/A
Revenue Next Year-3.9%
Revenue Next 2Y-2.48%
Revenue Next 3Y-0.09%
Revenue Next 5Y-7.89%
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
A Price/Earnings ratio of 4.53 indicates a rather cheap valuation of PBR.
Based on the Price/Earnings ratio, PBR is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PBR to the average of the S&P500 Index (27.73), we can say PBR is valued rather cheaply.
The Price/Forward Earnings ratio is 4.84, which indicates a rather cheap valuation of PBR.
87.25% of the companies in the same industry are more expensive than PBR, based on the Price/Forward Earnings ratio.
PBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.53 | ||
| Fwd PE | 4.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBR is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
PBR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PBR is cheaper than 90.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.59 | ||
| EV/EBITDA | 2.88 |
4.3 Compensation for Growth
The decent profitability rating of PBR may justify a higher PE ratio.
PBR's earnings are expected to decrease with -5.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-10.98%
EPS Next 3Y-5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.22%, PBR is a good candidate for dividend investing.
PBR's Dividend Yield is a higher than the industry average which is at 7.08.
Compared to an average S&P500 Dividend Yield of 2.34, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.22% |
5.2 History
The dividend of PBR is nicely growing with an annual growth rate of 110.80%!
PBR 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 pays out 105.18% of its income as dividend. This is not a sustainable payout ratio.
PBR'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-10.98%
EPS Next 3Y-5%
PETROLEO BRASILEIRO-SPON ADR
NYSE:PBR (12/20/2024, 8:04:00 PM)
After market: 13.1195 +0.08 (+0.61%)13.04
+0.09 (+0.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.8%
Inst Owner Change2.63%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap84.03B
Analysts82.22
Price Target17.38 (33.28%)
Short Float %0.54%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.22% |
Dividend Growth(5Y)110.8%
DP105.18%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-1.95%
PT rev (3m)-0.97%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-3.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.77%
Revenue NQ rev (1m)3.08%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.53 | ||
| Fwd PE | 4.84 | ||
| P/S | 1.01 | ||
| P/FCF | 3.59 | ||
| P/OCF | 2.39 | ||
| P/B | 1.3 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 2.88 |
EPS(TTM)2.88
EY22.09%
EPS(NY)2.69
Fwd EY20.66%
FCF(TTM)3.63
FCFY27.85%
OCF(TTM)5.46
OCFY41.89%
SpS12.86
BVpS10.05
TBVpS9.69
PEG (NY)N/A
PEG (5Y)0.14
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 | 1.63 |
F-Score6
WACC11.65%
ROIC/WACC1.17
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)-16.65%
EPS 3Y104.16%
EPS 5Y33.46%
EPS Q2Q%21.92%
EPS Next Y-37.43%
EPS Next 2Y-10.98%
EPS Next 3Y-5%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y23.46%
Revenue growth 5Y10.54%
Sales Q2Q%3.81%
Revenue Next Year-3.9%
Revenue Next 2Y-2.48%
Revenue Next 3Y-0.09%
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%