News Image

Reasonable Growth, Debt Levels, and a High ROIC Make PETROLEO BRASILEIRO-SPON ADR (NYSE:PBR) Appealing to Quality Investors.

By Mill Chart

Last update: Apr 23, 2024

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.

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 exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 18.41% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a Debt/Free Cash Flow Ratio of 1.86, PETROLEO BRASILEIRO-SPON 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.
  • PETROLEO BRASILEIRO-SPON ADR exhibits impressive Profit Quality (5-year) with a 460.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • PETROLEO BRASILEIRO-SPON ADR has experienced impressive EBIT growth over the past 5 years, with 49.34% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • PETROLEO BRASILEIRO-SPON ADR has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

PBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 214 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 is cheap, but on the other hand it scores bad on growth. Finally PBR also has an excellent dividend rating.

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.

Keep in mind

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.