PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
NYSE:PBR.A - New York Stock Exchange, Inc. - US71654V1017 - ADR - Currency: USD
Overall PBR.A gets a fundamental rating of 5 out of 10. We evaluated PBR.A against 212 industry peers in the Oil, Gas & Consumable Fuels industry. PBR.A has an excellent profitability rating, but there are concerns on its financial health. PBR.A has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
PBR.A had positive earnings in the past year.
In the past year PBR.A had a positive cash flow from operations.
Of the past 5 years PBR.A 4 years were profitable.
Of the past 5 years PBR.A 4 years had a positive operating cash flow.
1.2 Ratios
PBR.A has a Return On Assets of 7.86%. This is in the better half of the industry: PBR.A outperforms 74.65% of its industry peers.
Looking at the Return On Equity, with a value of 21.51%, PBR.A belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
PBR.A has a better Return On Invested Capital (13.65%) than 86.39% of its industry peers.
PBR.A had an Average Return On Invested Capital over the past 3 years of 17.83%. This is significantly below the industry average of 25.74%.
The 3 year average ROIC (17.83%) for PBR.A is well above the current ROIC(13.65%). The reason for the recent decline needs to be investigated.
| 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.A's Profit Margin of 16.81% is fine compared to the rest of the industry. PBR.A outperforms 67.61% of its industry peers.
PBR.A's Profit Margin has improved in the last couple of years.
PBR.A has a better Operating Margin (34.98%) than 74.18% of its industry peers.
PBR.A's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 46.86%, PBR.A perfoms like the industry average, outperforming 51.64% of the companies in the same industry.
PBR.A'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PBR.A is creating some value.
There is no outstanding debt for PBR.A. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
PBR.A has an Altman-Z score of 1.53. This is a bad value and indicates that PBR.A is not financially healthy and even has some risk of bankruptcy.
PBR.A has a Altman-Z score of 1.53. This is comparable to the rest of the industry: PBR.A outperforms 57.28% of its industry peers.
The Debt to FCF ratio of PBR.A is 2.11, which is a good value as it means it would take PBR.A, 2.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.11, PBR.A belongs to the top of the industry, outperforming 82.63% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that PBR.A is somewhat dependend on debt financing.
PBR.A's Debt to Equity ratio of 0.66 is on the low side compared to the rest of the industry. PBR.A is outperformed by 61.97% of its industry peers.
Even though the debt/equity ratio score it not favorable for PBR.A, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.92
WACC14.85%
2.3 Liquidity
PBR.A has a Current Ratio of 0.94. This is a bad value and indicates that PBR.A is not financially healthy enough and could expect problems in meeting its short term obligations.
PBR.A has a Current ratio of 0.94. This is in the lower half of the industry: PBR.A underperforms 61.03% of its industry peers.
PBR.A has a Quick Ratio of 0.94. This is a bad value and indicates that PBR.A is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.71, PBR.A is not doing good in the industry: 67.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
PBR.A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.43%.
Measured over the past years, PBR.A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.66% on average per year.
EPS 1Y (TTM)-32.43%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-56.37%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.68%
3.2 Future
The Earnings Per Share is expected to grow by 2.33% on average over the next years.
The Revenue is expected to grow by 0.13% on average over the next years.
EPS Next Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y2.33%
Revenue Next Year-3.56%
Revenue Next 2Y-1.28%
Revenue Next 3Y1.36%
Revenue Next 5Y0.13%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.43 indicates a rather cheap valuation of PBR.A.
89.20% of the companies in the same industry are more expensive than PBR.A, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.22, PBR.A is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.78, the valuation of PBR.A can be described as very cheap.
Based on the Price/Forward Earnings ratio, PBR.A is valued cheaper than 95.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, PBR.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.43 | ||
| Fwd PE | 3.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBR.A is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
PBR.A's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PBR.A is cheaper than 95.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.8 | ||
| EV/EBITDA | 2.42 |
4.3 Compensation for Growth
PBR.A's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PBR.A may justify a higher PE ratio.
PEG (NY)0.26
PEG (5Y)0.27
EPS Next 2Y7.68%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.88%, PBR.A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.34, PBR.A pays a bit more dividend than its industry peers.
PBR.A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
5.2 History
On average, the dividend of PBR.A grows each year by 110.80%, which is quite nice.
PBR.A has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)110.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PBR.A pays out 105.18% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PBR.A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP105.18%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
10.9
+0.25 (+2.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.68%
Inst Owner Change1.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap70.24B
Analysts83.53
Price Target15.98 (46.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
Yearly Dividend2.65
Dividend Growth(5Y)110.8%
DP105.18%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.64%
Min EPS beat(2)-45.32%
Max EPS beat(2)14.05%
EPS beat(4)2
Avg EPS beat(4)-6.04%
Min EPS beat(4)-45.32%
Max EPS beat(4)25.81%
EPS beat(8)4
Avg EPS beat(8)-0.34%
EPS beat(12)6
Avg EPS beat(12)0.3%
EPS beat(16)8
Avg EPS beat(16)64.54%
Revenue beat(2)1
Avg Revenue beat(2)-3.74%
Min Revenue beat(2)-8.16%
Max Revenue beat(2)0.67%
Revenue beat(4)1
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-9.49%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-4.28%
Revenue beat(12)3
Avg Revenue beat(12)-2.72%
Revenue beat(16)4
Avg Revenue beat(16)-2.56%
PT rev (1m)-2.91%
PT rev (3m)1.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.43 | ||
| Fwd PE | 3.78 | ||
| P/S | 0.79 | ||
| P/FCF | 2.8 | ||
| P/OCF | 1.86 | ||
| P/B | 1.01 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 2.42 |
EPS(TTM)2.46
EY22.57%
EPS(NY)2.88
Fwd EY26.46%
FCF(TTM)3.9
FCFY35.75%
OCF(TTM)5.86
OCFY53.78%
SpS13.8
BVpS10.78
TBVpS10.4
PEG (NY)0.26
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.86% | ||
| ROE | 21.51% | ||
| ROCE | 19.61% | ||
| ROIC | 13.65% | ||
| ROICexc | 14.94% | ||
| ROICexgc | 15.2% | ||
| OM | 34.98% | ||
| PM (TTM) | 16.81% | ||
| GM | 46.86% | ||
| FCFM | 28.24% |
ROA(3y)14.03%
ROA(5y)9.43%
ROE(3y)37.41%
ROE(5y)25.62%
ROIC(3y)17.83%
ROIC(5y)13.33%
ROICexc(3y)19.28%
ROICexc(5y)14.36%
ROICexgc(3y)19.68%
ROICexgc(5y)14.91%
ROCE(3y)25.61%
ROCE(5y)19.14%
ROICexcg growth 3Y29.17%
ROICexcg growth 5Y17.97%
ROICexc growth 3Y32.91%
ROICexc growth 5Y17.9%
OM growth 3Y8.77%
OM growth 5Y9.7%
PM growth 3Y110.41%
PM growth 5Y23.98%
GM growth 3Y8.88%
GM growth 5Y8.21%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 106.23% | ||
| Cap/Sales | 14.24% | ||
| Interest Coverage | 17.63 | ||
| Cash Conversion | 87.8% | ||
| Profit Quality | 168.01% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.53 |
F-Score6
WACC14.85%
ROIC/WACC0.92
Cap/Depr(3y)72.68%
Cap/Depr(5y)65.52%
Cap/Sales(3y)9.02%
Cap/Sales(5y)9.87%
Profit Quality(3y)130.79%
Profit Quality(5y)444.63%
High Growth Momentum
Growth
EPS 1Y (TTM)-32.43%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-56.37%
EPS Next Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y2.33%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.68%
Revenue Next Year-3.56%
Revenue Next 2Y-1.28%
Revenue Next 3Y1.36%
Revenue Next 5Y0.13%
EBIT growth 1Y-18.36%
EBIT growth 3Y34.29%
EBIT growth 5Y21.26%
EBIT Next Year19.51%
EBIT Next 3Y8.68%
EBIT Next 5Y5.93%
FCF growth 1Y-28.45%
FCF growth 3Y9.57%
FCF growth 5Y24.34%
OCF growth 1Y-10.53%
OCF growth 3Y13.35%
OCF growth 5Y17.61%