PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
USA - NYSE:PBR.A - US71654V1017 - ADR
11.61 USD
-0.02 (-0.17%)
11.69 USD
+0.08 (+0.69%)
We assign a fundamental rating of 5 out of 10 to PBR.A. PBR.A was compared to 211 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 cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PBR.A was profitable.
PBR.A had a positive operating cash flow in the past year.
In the past 5 years PBR.A has always been profitable.
In the past 5 years PBR.A always reported a positive cash flow from operatings.
1.2 Ratios
PBR.A's Return On Assets of 6.59% is fine compared to the rest of the industry. PBR.A outperforms 73.93% of its industry peers.
PBR.A's Return On Equity of 19.38% is amongst the best of the industry. PBR.A outperforms 83.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.06%, PBR.A belongs to the top of the industry, outperforming 80.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PBR.A is below the industry average of 21.71%.
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
Looking at the Profit Margin, with a value of 15.69%, PBR.A is in the better half of the industry, outperforming 66.82% of the companies in the same industry.
In the last couple of years the Profit Margin of PBR.A has declined.
The Operating Margin of PBR.A (29.39%) is better than 71.56% of its industry peers.
In the last couple of years the Operating Margin of PBR.A has grown nicely.
The Gross Margin of PBR.A (43.62%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PBR.A has grown nicely.
| 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
PBR.A has less shares outstanding than it did 5 years ago.
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 1.25. 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 (1.25) which is in line with its industry peers.
The Debt to FCF ratio of PBR.A is 3.53, which is a good value as it means it would take PBR.A, 3.53 years of fcf income to pay off all of its debts.
PBR.A's Debt to FCF ratio of 3.53 is fine compared to the rest of the industry. PBR.A outperforms 73.93% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that PBR.A is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, PBR.A is doing worse than 64.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.55
WACC6.5%
2.3 Liquidity
A Current Ratio of 0.76 indicates that PBR.A may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, PBR.A is doing worse than 72.99% of the companies in the same industry.
PBR.A has a Quick 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.
PBR.A has a worse Quick ratio (0.51) than 83.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for PBR.A have decreased by -8.97% in the last year.
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.
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
Based on estimates for the next years, PBR.A will show a small growth in Earnings Per Share. The EPS will grow by 1.60% on average per year.
PBR.A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.09% yearly.
EPS Next Y17.32%
EPS Next 2Y-2.04%
EPS Next 3Y2.65%
EPS Next 5Y1.6%
Revenue Next Year-3.62%
Revenue Next 2Y-1.69%
Revenue Next 3Y0.29%
Revenue Next 5Y-0.09%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.10, the valuation of PBR.A can be described as very cheap.
Based on the Price/Earnings ratio, PBR.A is valued cheaper than 97.16% of the companies in the same industry.
PBR.A is valuated cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.63, the valuation of PBR.A can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PBR.A indicates a rather cheap valuation: PBR.A is cheaper than 95.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, PBR.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.1 | ||
| Fwd PE | 4.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PBR.A indicates a rather cheap valuation: PBR.A is cheaper than 88.63% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PBR.A is valued cheaply inside the industry as 94.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.8 | ||
| EV/EBITDA | 3.22 |
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.
PBR.A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.24
PEG (5Y)0.25
EPS Next 2Y-2.04%
EPS Next 3Y2.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, PBR.A is a good candidate for dividend investing.
PBR.A's Dividend Yield is a higher than the industry average which is at 6.08.
Compared to an average S&P500 Dividend Yield of 2.41, PBR.A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
5.2 History
On average, the dividend of PBR.A grows each year by 68.55%, 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)68.55%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PBR.A pays out 92.83% 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.
DP92.83%
EPS Next 2Y-2.04%
EPS Next 3Y2.65%
11.61
-0.02 (-0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners40.69%
Inst Owner Change-7.37%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap74.82B
Analysts78.95
Price Target15.21 (31.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Yearly Dividend2.91
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)2.07%
PT rev (3m)1.03%
EPS NQ rev (1m)-7.97%
EPS NQ rev (3m)-3.71%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)5.34%
Revenue NY rev (1m)2.94%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.1 | ||
| Fwd PE | 4.63 | ||
| P/S | 0.81 | ||
| P/FCF | 3.8 | ||
| P/OCF | 1.98 | ||
| P/B | 1 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 3.22 |
EPS(TTM)2.83
EY24.38%
EPS(NY)2.51
Fwd EY21.61%
FCF(TTM)3.05
FCFY26.31%
OCF(TTM)5.87
OCFY50.59%
SpS14.33
BVpS11.6
TBVpS11.21
PEG (NY)0.24
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 | 1.25 |
F-Score3
WACC6.5%
ROIC/WACC1.55
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 Y17.32%
EPS Next 2Y-2.04%
EPS Next 3Y2.65%
EPS Next 5Y1.6%
Revenue 1Y (TTM)-1.19%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-2.56%
Revenue Next Year-3.62%
Revenue Next 2Y-1.69%
Revenue Next 3Y0.29%
Revenue Next 5Y-0.09%
EBIT growth 1Y-19%
EBIT growth 3Y-3.58%
EBIT growth 5Y15.19%
EBIT Next Year33.4%
EBIT Next 3Y12.07%
EBIT Next 5Y9.61%
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%