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PETROLEO BRASILEIRO-SPON ADR (PBR) Stock Fundamental Analysis

NYSE:PBR - New York Stock Exchange, Inc. - US71654V4086 - ADR

13.81  +0.09 (+0.66%)

After market: 13.7301 -0.08 (-0.58%)

Fundamental Rating

5

Overall PBR gets a fundamental rating of 5 out of 10. We evaluated PBR against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR has a great profitability rating, there are quite some concerns on its financial health. PBR is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

PBR had positive earnings in the past year.
PBR had a positive operating cash flow in the past year.
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.
PBR Yearly Net Income VS EBIT VS OCF VS FCFPBR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100B 200B

1.2 Ratios

PBR has a Return On Assets of 7.86%. This is in the better half of the industry: PBR outperforms 67.48% of its industry peers.
PBR has a better Return On Equity (21.51%) than 76.21% of its industry peers.
The Return On Invested Capital of PBR (13.65%) is better than 80.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PBR is significantly below the industry average of 28.71%.
The 3 year average ROIC (17.83%) for PBR is well above the current ROIC(13.65%). The reason for the recent decline needs to be investigated.
Industry RankSector 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%
PBR Yearly ROA, ROE, ROICPBR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40

1.3 Margins

With a Profit Margin value of 16.81%, PBR perfoms like the industry average, outperforming 58.74% of the companies in the same industry.
PBR's Profit Margin has improved in the last couple of years.
The Operating Margin of PBR (34.98%) is better than 71.36% of its industry peers.
In the last couple of years the Operating Margin of PBR has grown nicely.
PBR has a Gross Margin of 46.86%. This is comparable to the rest of the industry: PBR outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of PBR has grown nicely.
Industry RankSector 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%
PBR Yearly Profit, Operating, Gross MarginsPBR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30 40

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PBR is creating some value.
Compared to 1 year ago, PBR has less shares outstanding
Compared to 5 years ago, PBR has less shares outstanding
Compared to 1 year ago, PBR has a worse debt to assets ratio.
PBR Yearly Shares OutstandingPBR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B
PBR Yearly Total Debt VS Total AssetsPBR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200B 400B 600B 800B 1T

2.2 Solvency

Based on the Altman-Z score of 1.66, we must say that PBR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.66, PBR is in line with its industry, outperforming 50.97% of the companies in the same industry.
The Debt to FCF ratio of PBR is 2.11, which is a good value as it means it would take PBR, 2.11 years of fcf income to pay off all of its debts.
PBR's Debt to FCF ratio of 2.11 is fine compared to the rest of the industry. PBR outperforms 74.76% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that 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 64.08% of its industry peers.
Even though the debt/equity ratio score it not favorable for PBR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 2.11
Altman-Z 1.66
ROIC/WACC1.14
WACC11.99%
PBR Yearly LT Debt VS Equity VS FCFPBR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100B 200B 300B 400B

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 67.48% of its industry peers.
A Quick Ratio of 0.71 indicates that PBR may have some problems paying its short term obligations.
PBR has a Quick ratio of 0.71. This is in the lower half of the industry: PBR underperforms 69.42% of its industry peers.
Industry RankSector Rank
Current Ratio 0.94
Quick Ratio 0.71
PBR Yearly Current Assets VS Current LiabilitesPBR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50B 100B 150B

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3

3. Growth

3.1 Past

The earnings per share for PBR have decreased strongly by -16.59% 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.
The Revenue has decreased by -6.06% in the past year.
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)-16.59%
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 is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.98% yearly.
Based on estimates for the next years, PBR will show a decrease in Revenue. The Revenue will decrease by -7.89% on average per year.
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

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.
PBR Yearly Revenue VS EstimatesPBR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200B 400B 600B
PBR Yearly EPS VS EstimatesPBR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 10 20

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8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 4.78 indicates a rather cheap valuation of PBR.
PBR's Price/Earnings ratio is rather cheap when compared to the industry. PBR is cheaper than 89.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of PBR to the average of the S&P500 Index (28.29), we can say PBR is valued rather cheaply.
The Price/Forward Earnings ratio is 5.10, which indicates a rather cheap valuation of PBR.
Based on the Price/Forward Earnings ratio, PBR is valued cheaply inside the industry as 88.83% of the companies are valued more expensively.
PBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 4.78
Fwd PE 5.1
PBR Price Earnings VS Forward Price EarningsPBR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

PBR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PBR is cheaper than 87.86% of the companies in the same industry.
90.78% of the companies in the same industry are more expensive than PBR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 3.79
EV/EBITDA 3
PBR Per share dataPBR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

PBR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PBR's earnings are expected to decrease with -4.98% in the coming years.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-10.95%
EPS Next 3Y-4.98%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.75%, PBR is a good candidate for dividend investing.
PBR's Dividend Yield is a higher than the industry average which is at 6.39.
Compared to an average S&P500 Dividend Yield of 2.28, PBR pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.75%

5.2 History

On average, the dividend of PBR grows each year by 110.80%, which is quite nice.
PBR 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
PBR Yearly Dividends per sharePBR Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 1 2 3 4 5

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-10.95%
EPS Next 3Y-4.98%
PBR Yearly Income VS Free CF VS DividendPBR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50B 100B 150B 200B
PBR Dividend Payout.PBR Dividend Payout, showing the Payout Ratio.PBR Dividend Payout.PayoutRetained Earnings

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PETROLEO BRASILEIRO-SPON ADR

NYSE:PBR (1/21/2025, 8:19:33 PM)

After market: 13.7301 -0.08 (-0.58%)

13.81

+0.09 (+0.66%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)N/A N/A
Inst Owners35.8%
Inst Owner Change0.02%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap89.00B
Analysts82.22
Price Target16.7 (20.93%)
Short Float %1.4%
Short Ratio2.07
Dividend
Industry RankSector Rank
Dividend Yield 6.75%
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)-3.93%
PT rev (3m)-10.27%
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 RankSector Rank
PE 4.78
Fwd PE 5.1
P/S 1.07
P/FCF 3.79
P/OCF 2.52
P/B 1.37
P/tB 1.42
EV/EBITDA 3
EPS(TTM)2.89
EY20.93%
EPS(NY)2.71
Fwd EY19.6%
FCF(TTM)3.65
FCFY26.42%
OCF(TTM)5.49
OCFY39.73%
SpS12.92
BVpS10.09
TBVpS9.74
PEG (NY)N/A
PEG (5Y)0.14
Profitability
Industry RankSector 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 RankSector 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 1.66
F-Score6
WACC11.99%
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-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%