PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:PBR.A • US71654V1017
14.08 USD
-0.28 (-1.95%)
Last: Feb 2, 2026, 10:41 AM
Taking everything into account, PBR.A scores 5 out of 10 in our fundamental rating. PBR.A was compared to 207 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 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.
- PBR.A had positive earnings in each of the past 5 years.
- 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 74.40% of its industry peers.
- PBR.A's Return On Equity of 19.38% is amongst the best of the industry. PBR.A outperforms 87.44% 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 84.06% of the companies in the same industry.
- PBR.A had an Average Return On Invested Capital over the past 3 years of 17.44%. This is below the industry average of 21.94%.
- 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
- The Profit Margin of PBR.A (15.69%) is better than 68.60% of its industry peers.
- PBR.A's Profit Margin has declined in the last couple of years.
- PBR.A has a better Operating Margin (29.39%) than 72.95% of its industry peers.
- PBR.A's Operating Margin has improved in the last couple of years.
- PBR.A's Gross Margin of 43.62% is in line compared to the rest of the industry. PBR.A outperforms 52.66% of its industry peers.
- 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
- PBR.A has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for PBR.A has been reduced compared to 1 year ago.
- 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 1.32. This is a bad value and indicates that PBR.A is not financially healthy and even has some risk of bankruptcy.
- PBR.A's Altman-Z score of 1.32 is in line compared to the rest of the industry. PBR.A outperforms 51.21% of 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 72.95% of its industry peers.
- A Debt/Equity ratio of 0.77 indicates that PBR.A is somewhat dependend on debt financing.
- PBR.A's Debt to Equity ratio of 0.77 is on the low side compared to the rest of the industry. PBR.A is outperformed by 65.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.32 |
ROIC/WACC1.43
WACC7.03%
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.
- Looking at the Current ratio, with a value of 0.76, PBR.A is doing worse than 70.53% 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.
- With a Quick ratio value of 0.51, PBR.A is not doing good in the industry: 82.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- PBR.A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.37%.
- 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.
- PBR.A shows a decrease in Revenue. In the last year, the revenue decreased by -4.13%.
- The Revenue has been growing by 10.18% on average over the past years. This is quite good.
EPS 1Y (TTM)-17.37%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-12.39%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-1.28%
3.2 Future
- The Earnings Per Share is expected to grow by 1.60% on average over the next years.
- PBR.A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.22% yearly.
EPS Next Y29.91%
EPS Next 2Y-6.45%
EPS Next 3Y0.07%
EPS Next 5Y1.6%
Revenue Next Year-1.45%
Revenue Next 2Y-1.74%
Revenue Next 3Y0.09%
Revenue Next 5Y-0.22%
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.
- 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 5.08, the valuation of PBR.A can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of PBR.A indicates a rather cheap valuation: PBR.A is cheaper than 93.72% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, PBR.A is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 6.02, 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 94.69% of the companies listed in the same industry.
- PBR.A is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.08 | ||
| Fwd PE | 6.02 |
4.2 Price Multiples
- 87.44% of the companies in the same industry are more expensive than PBR.A, based on the Enterprise Value to EBITDA ratio.
- 94.69% 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 | 4.51 | ||
| EV/EBITDA | 3.6 |
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)0.17
PEG (5Y)0.31
EPS Next 2Y-6.45%
EPS Next 3Y0.07%
5. Dividend
5.1 Amount
- PBR.A has a Yearly Dividend Yield of 3.21%.
- PBR.A's Dividend Yield is comparable with the industry average which is at 3.64.
- Compared to an average S&P500 Dividend Yield of 1.83, PBR.A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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-6.45%
EPS Next 3Y0.07%
PETROLEO BRASIL-SP PREF ADR / PBR.A FAQ
What is the ChartMill fundamental rating of PETROLEO BRASIL-SP PREF ADR (PBR.A) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PBR.A.
What is the valuation status of PETROLEO BRASIL-SP PREF ADR (PBR.A) stock?
ChartMill assigns a valuation rating of 9 / 10 to PETROLEO BRASIL-SP PREF ADR (PBR.A). This can be considered as Undervalued.
How profitable is PETROLEO BRASIL-SP PREF ADR (PBR.A) stock?
PETROLEO BRASIL-SP PREF ADR (PBR.A) has a profitability rating of 7 / 10.
What are the PE and PB ratios of PETROLEO BRASIL-SP PREF ADR (PBR.A) stock?
The Price/Earnings (PE) ratio for PETROLEO BRASIL-SP PREF ADR (PBR.A) is 5.08 and the Price/Book (PB) ratio is 1.19.
Can you provide the expected EPS growth for PBR.A stock?
The Earnings per Share (EPS) of PETROLEO BRASIL-SP PREF ADR (PBR.A) is expected to grow by 29.91% in the next year.