PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
USA - NYSE:PBR.A - US71654V1017 - ADR
11.67 USD
+0.01 (+0.09%)
11.69 USD
+0.02 (+0.17%)
PBR.A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR.A has a great profitability rating, there are quite some concerns on its financial health. PBR.A is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PBR.A had positive earnings in the past year.
PBR.A had a positive operating cash flow in the past year.
Each year in the past 5 years PBR.A has been profitable.
PBR.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.59%, PBR.A is doing good in the industry, outperforming 72.38% of the companies in the same industry.
With an excellent Return On Equity value of 19.38%, PBR.A belongs to the best of the industry, outperforming 83.81% of the companies in the same industry.
PBR.A's Return On Invested Capital of 10.06% is fine compared to the rest of the industry. PBR.A outperforms 80.00% of its industry peers.
PBR.A had an Average Return On Invested Capital over the past 3 years of 17.44%. This is below the industry average of 21.90%.
The 3 year average ROIC (17.44%) for PBR.A is well above the current ROIC(10.06%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 19.38% | ||
| ROIC | 10.06% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)17.44%
ROIC(5y)14.59%
1.3 Margins
PBR.A has a Profit Margin of 15.69%. This is in the better half of the industry: PBR.A outperforms 66.19% of its industry peers.
PBR.A's Profit Margin has declined in the last couple of years.
The Operating Margin of PBR.A (29.39%) is better than 71.43% of its industry peers.
In the last couple of years the Operating Margin of PBR.A has grown nicely.
PBR.A has a Gross Margin (43.62%) which is comparable to the rest of the industry.
PBR.A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.39% | ||
| PM (TTM) | 15.69% | ||
| GM | 43.62% |
OM growth 3Y-6.15%
OM growth 5Y4.54%
PM growth 3Y-31.85%
PM growth 5Y-10.9%
GM growth 3Y0.92%
GM growth 5Y5.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PBR.A is creating value.
Compared to 1 year ago, PBR.A has less shares outstanding
Compared to 5 years ago, PBR.A has less shares outstanding
The debt/assets ratio for PBR.A is higher compared to a year ago.
2.2 Solvency
PBR.A has an Altman-Z score of 1.26. This is a bad value and indicates that PBR.A is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, PBR.A is in line with its industry, outperforming 50.00% of the companies in the same industry.
PBR.A has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as PBR.A would need 3.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.53, PBR.A is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that PBR.A is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, PBR.A is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.54
WACC6.52%
2.3 Liquidity
PBR.A has a Current Ratio of 0.76. 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.
The Current ratio of PBR.A (0.76) is worse than 72.38% of its industry peers.
A Quick Ratio of 0.51 indicates that PBR.A may have some problems paying its short term obligations.
PBR.A's Quick ratio of 0.51 is on the low side compared to the rest of the industry. PBR.A is outperformed by 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
PBR.A shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.97%.
PBR.A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.66% yearly.
The Revenue has decreased by -1.19% in the past year.
PBR.A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.18% yearly.
EPS 1Y (TTM)-8.97%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%49.75%
Revenue 1Y (TTM)-1.19%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-2.56%
3.2 Future
PBR.A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.60% yearly.
PBR.A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.56% yearly.
EPS Next Y18.27%
EPS Next 2Y-0.82%
EPS Next 3Y3.66%
EPS Next 5Y1.6%
Revenue Next Year-5.39%
Revenue Next 2Y-2.79%
Revenue Next 3Y-0.59%
Revenue Next 5Y-0.56%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue 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 4.17 indicates a rather cheap valuation of PBR.A.
Based on the Price/Earnings ratio, PBR.A is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
PBR.A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 4.59, which indicates a rather cheap valuation of PBR.A.
Based on the Price/Forward Earnings ratio, PBR.A is valued cheaply inside the industry as 94.29% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, PBR.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.17 | ||
| Fwd PE | 4.59 |
4.2 Price Multiples
88.57% of the companies in the same industry are more expensive than PBR.A, based on the Enterprise Value to EBITDA ratio.
94.76% of the companies in the same industry are more expensive than PBR.A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.86 | ||
| EV/EBITDA | 3.25 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PBR.A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.23
PEG (5Y)0.25
EPS Next 2Y-0.82%
EPS Next 3Y3.66%
5. Dividend
5.1 Amount
PBR.A has a Yearly Dividend Yield of 4.26%, which is a nice return.
PBR.A's Dividend Yield is a higher than the industry average which is at 6.18.
Compared to an average S&P500 Dividend Yield of 2.38, PBR.A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of PBR.A is nicely growing with an annual growth rate of 68.55%!
PBR.A has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)68.55%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
92.83% of the earnings are spent on dividend by PBR.A. 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.
DP92.83%
EPS Next 2Y-0.82%
EPS Next 3Y3.66%
11.67
+0.01 (+0.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.09%
Inst Owner Change-7.37%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap75.21B
Analysts78.95
Price Target15.08 (29.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend2.88
Dividend Growth(5Y)68.55%
DP92.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.5%
Min EPS beat(2)-25.5%
Max EPS beat(2)10.49%
EPS beat(4)2
Avg EPS beat(4)-4.81%
Min EPS beat(4)-25.5%
Max EPS beat(4)14.05%
EPS beat(8)3
Avg EPS beat(8)-8.25%
EPS beat(12)5
Avg EPS beat(12)-3.16%
EPS beat(16)7
Avg EPS beat(16)-3.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.51%
Min Revenue beat(2)-4.3%
Max Revenue beat(2)-0.71%
Revenue beat(4)1
Avg Revenue beat(4)-3.06%
Min Revenue beat(4)-7.91%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-4.93%
Revenue beat(12)2
Avg Revenue beat(12)-3.68%
Revenue beat(16)3
Avg Revenue beat(16)-2.89%
PT rev (1m)-0.33%
PT rev (3m)1.66%
EPS NQ rev (1m)-13.9%
EPS NQ rev (3m)-29.99%
EPS NY rev (1m)1.04%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)4.88%
Revenue NQ rev (3m)-6.16%
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.17 | ||
| Fwd PE | 4.59 | ||
| P/S | 0.82 | ||
| P/FCF | 3.86 | ||
| P/OCF | 2.01 | ||
| P/B | 1.02 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 3.25 |
EPS(TTM)2.8
EY23.99%
EPS(NY)2.54
Fwd EY21.8%
FCF(TTM)3.02
FCFY25.9%
OCF(TTM)5.81
OCFY49.79%
SpS14.17
BVpS11.48
TBVpS11.09
PEG (NY)0.23
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 19.38% | ||
| ROCE | 14.56% | ||
| ROIC | 10.06% | ||
| ROICexc | 10.61% | ||
| ROICexgc | 10.76% | ||
| OM | 29.39% | ||
| PM (TTM) | 15.69% | ||
| GM | 43.62% | ||
| FCFM | 21.32% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)17.44%
ROIC(5y)14.59%
ROICexc(3y)18.75%
ROICexc(5y)15.7%
ROICexgc(3y)19.11%
ROICexgc(5y)16.14%
ROCE(3y)25.25%
ROCE(5y)21.12%
ROICexcg growth 3Y-7.85%
ROICexcg growth 5Y10.24%
ROICexc growth 3Y-7.66%
ROICexc growth 5Y12.26%
OM growth 3Y-6.15%
OM growth 5Y4.54%
PM growth 3Y-31.85%
PM growth 5Y-10.9%
GM growth 3Y0.92%
GM growth 5Y5.33%
F-Score3
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 131.19% | ||
| Cap/Sales | 19.67% | ||
| Interest Coverage | 14.18 | ||
| Cash Conversion | 92.35% | ||
| Profit Quality | 135.88% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.26 |
F-Score3
WACC6.52%
ROIC/WACC1.54
Cap/Depr(3y)94.35%
Cap/Depr(5y)77.72%
Cap/Sales(3y)11.93%
Cap/Sales(5y)10.87%
Profit Quality(3y)191.06%
Profit Quality(5y)478.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.97%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%49.75%
EPS Next Y18.27%
EPS Next 2Y-0.82%
EPS Next 3Y3.66%
EPS Next 5Y1.6%
Revenue 1Y (TTM)-1.19%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-2.56%
Revenue Next Year-5.39%
Revenue Next 2Y-2.79%
Revenue Next 3Y-0.59%
Revenue Next 5Y-0.56%
EBIT growth 1Y-19%
EBIT growth 3Y-3.58%
EBIT growth 5Y15.19%
EBIT Next Year33.4%
EBIT Next 3Y13.68%
EBIT Next 5Y9.24%
FCF growth 1Y-40.39%
FCF growth 3Y-9.76%
FCF growth 5Y12.88%
OCF growth 1Y-12.98%
OCF growth 3Y0.15%
OCF growth 5Y14.93%