PETROLEO BRASIL-SP PREF ADR (NYSE:PBR.A) can be considered a quality stock. Here's why.

In this article we will dive into PETROLEO BRASIL-SP PREF ADR (NYSE:PBR.A) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PETROLEO BRASIL-SP PREF ADR showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:PBR.A highlighted

• The 5-year revenue growth of PETROLEO BRASIL-SP PREF ADR has been remarkable, with 17.72% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a notable ROIC excluding cash and goodwill at 18.41%, PETROLEO BRASIL-SP PREF ADR demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 1.86, PETROLEO BRASIL-SP PREF ADR exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 460.0%, PETROLEO BRASIL-SP PREF ADR showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• PETROLEO BRASIL-SP PREF ADR has demonstrated consistent growth in EBIT over the past 5 years, with a strong 49.34%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• PETROLEO BRASIL-SP PREF ADR demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

PBR.A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 216 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR.A has a great profitability rating, there are some minor concerns on its financial health. PBR.A scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

Our latest full fundamental report of PBR.A contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.