Is PETROLEO BRASILEIRO-SPON ADR (NYSE:PBR) suited for quality investing?

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

What matters for quality investors.

• PETROLEO BRASILEIRO-SPON ADR has shown strong performance in revenue growth over the past 5 years, with a 17.72% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 25.07%, PETROLEO BRASILEIRO-SPON ADR showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• PETROLEO BRASILEIRO-SPON ADR maintains a healthy Debt/Free Cash Flow Ratio of 1.31, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 460.0%, PETROLEO BRASILEIRO-SPON ADR highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• PETROLEO BRASILEIRO-SPON ADR has consistently achieved strong EBIT growth over the past 5 years, with a 49.34% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of PETROLEO BRASILEIRO-SPON ADR has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

PBR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 217 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PBR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes PBR very considerable for value investing!

For an up to date full fundamental analysis you can check the fundamental report of PBR

More quality stocks can be found 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.