PETROLEO BRASILEIRO-SPON ADR (NYSE:PBR) can be considered a quality stock. Here's why.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PETROLEO BRASILEIRO-SPON ADR (NYSE:PBR) is suited for quality investing. Investors should of course do their own research, but we spotted PETROLEO BRASILEIRO-SPON ADR showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:PBR Holds Appeal for Quality Investors.

• Over the past 5 years, PETROLEO BRASILEIRO-SPON ADR has experienced impressive revenue growth, with 17.72% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• PETROLEO BRASILEIRO-SPON ADR demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 18.41% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• PETROLEO BRASILEIRO-SPON ADR maintains a healthy Debt/Free Cash Flow Ratio of 1.86, 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.
• The Profit Quality (5-year) of PETROLEO BRASILEIRO-SPON ADR stands at 460.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• 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.

Fundamental Analysis Observations

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.

We assign a fundamental rating of 5 out of 10 to PBR. PBR was compared to 217 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR has a great profitability rating, there are some minor concerns on its financial health. PBR has a bad growth rate and is valued cheaply. PBR also has an excellent dividend rating.

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

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.