PETROLEO BRASILEIRO-SPON ADR (PBR)
US71654V4086 - ADR
Taking everything into account, PBR scores 5 out of 10 in our fundamental rating. PBR was compared to 204 industry peers in the Oil, Gas & Consumable Fuels industry. PBR has an excellent profitability rating, but there are concerns on its financial health. PBR has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year PBR was profitable.
PBR had a positive operating cash flow in the past year.
PBR had positive earnings in each of the past 5 years.
PBR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PBR's Return On Assets of 7.86% is fine compared to the rest of the industry. PBR outperforms 67.00% of its industry peers.
PBR's Return On Equity of 21.51% is fine compared to the rest of the industry. PBR outperforms 73.40% of its industry peers.
PBR has a Return On Invested Capital of 13.65%. This is in the better half of the industry: PBR outperforms 79.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PBR is below the industry average of 22.54%.
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
PBR's Profit Margin of 16.81% is in line compared to the rest of the industry. PBR outperforms 56.65% of its industry peers.
In the last couple of years the Profit Margin of PBR has grown nicely.
PBR has a Operating Margin of 34.98%. This is in the better half of the industry: PBR outperforms 69.95% of its industry peers.
PBR's Operating Margin has improved in the last couple of years.
PBR has a Gross Margin of 46.86%. This is comparable to the rest of the industry: PBR outperforms 50.25% of its industry peers.
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
PBR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PBR has less shares outstanding than it did 1 year ago.
PBR has less shares outstanding than it did 5 years ago.
PBR has a worse debt/assets ratio than last year.
2.2 Solvency
PBR has an Altman-Z score of 1.65. This is a bad value and indicates that PBR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PBR (1.65) is comparable to the rest of the 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 73.89% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that PBR is somewhat dependend on debt financing.
The Debt to Equity ratio of PBR (0.66) is worse than 63.05% 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 | 1.65 |
ROIC/WACC1.15
WACC11.92%
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.
PBR has a worse Current ratio (0.94) than 66.01% 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.
PBR's Quick ratio of 0.71 is on the low side compared to the rest of the industry. PBR is outperformed by 68.97% 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 has grown by an nice 9.47% over the past year.
Measured over the past years, PBR shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.46% on average per year.
Looking at the last year, PBR shows a decrease in Revenue. The Revenue has decreased by -6.06% in the last 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)9.47%
EPS 3Y104.16%
EPS 5Y33.46%
EPS Q2Q%153.03%
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y23.46%
Revenue growth 5Y10.54%
Sales Q2Q%6.51%
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.
The Revenue is expected to decrease by -7.89% on average over the next years.
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
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 3.56, the valuation of PBR can be described as very cheap.
Based on the Price/Earnings ratio, PBR is valued cheaper than 96.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of PBR to the average of the S&P500 Index (28.96), we can say PBR is valued rather cheaply.
The Price/Forward Earnings ratio is 4.99, which indicates a rather cheap valuation of PBR.
Based on the Price/Forward Earnings ratio, PBR is valued cheaper than 89.66% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, PBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.56 | ||
| Fwd PE | 4.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBR is valued cheaper than 88.18% of the companies in the same industry.
90.15% of the companies in the same industry are more expensive than PBR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.7 | ||
| EV/EBITDA | 2.97 |
4.3 Compensation for Growth
The decent profitability rating of PBR may justify a higher PE ratio.
A cheap valuation may be justified as PBR's earnings are expected to decrease with -5.00% in the coming years.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-10.98%
EPS Next 3Y-5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.94%, PBR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.45, PBR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.94% |
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.
PBR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)110.8%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
105.18% of the earnings are spent on dividend by PBR. 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 (11/21/2024, 8:04:00 PM)
After market: 14.4 +0.25 (+1.77%)14.15
-0.13 (-0.91%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap91.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.56 | ||
| Fwd PE | 4.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.86% | ||
| ROE | 21.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.98% | ||
| PM (TTM) | 16.81% | ||
| GM | 46.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.47%
EPS 3Y104.16%
EPS 5Y
EPS Q2Q%
EPS Next Y-37.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.06%
Revenue growth 3Y23.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y