PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
NYSE:PBR.A - New York Stock Exchange, Inc. - US71654V1017 - ADR - Currency: USD
PBR.A gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR.A is still in line with the averages on profitability rating, there are 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
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.
In the past 5 years PBR.A always reported a positive cash flow from operatings.
1.2 Ratios
PBR.A has a Return On Assets (3.25%) which is in line with its industry peers.
With a Return On Equity value of 10.00%, PBR.A perfoms like the industry average, outperforming 57.28% of the companies in the same industry.
The Return On Invested Capital of PBR.A (11.24%) is better than 79.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PBR.A is significantly below the industry average of 25.87%.
The last Return On Invested Capital (11.24%) for PBR.A is well below the 3 year average (16.80%), which needs to be investigated, but indicates that PBR.A had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 10% | ||
| ROIC | 11.24% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)16.8%
ROIC(5y)14.21%
1.3 Margins
PBR.A's Profit Margin of 7.46% is in line compared to the rest of the industry. PBR.A outperforms 50.70% of its industry peers.
PBR.A's Profit Margin has declined in the last couple of years.
The Operating Margin of PBR.A (30.83%) is better than 69.48% of its industry peers.
PBR.A's Operating Margin has improved in the last couple of years.
PBR.A has a Gross Margin (45.22%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PBR.A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.83% | ||
| PM (TTM) | 7.46% | ||
| GM | 45.22% |
OM growth 3Y-6.07%
OM growth 5Y4.6%
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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PBR.A has been reduced compared to 1 year ago.
Compared to 5 years ago, PBR.A has less shares outstanding
PBR.A has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that PBR.A is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.25, PBR.A is in line with its industry, outperforming 50.23% of the companies in the same industry.
The Debt to FCF ratio of PBR.A is 3.01, which is a good value as it means it would take PBR.A, 3.01 years of fcf income to pay off all of its debts.
PBR.A's Debt to FCF ratio of 3.01 is fine compared to the rest of the industry. PBR.A outperforms 79.34% of its industry peers.
PBR.A has a Debt/Equity ratio of 0.83. This is a neutral value indicating PBR.A is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.83, PBR.A is not doing good in the industry: 66.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.79
WACC14.24%
2.3 Liquidity
A Current Ratio of 0.69 indicates that PBR.A may have some problems paying its short term obligations.
PBR.A has a worse Current ratio (0.69) than 74.65% of its industry peers.
PBR.A has a Quick Ratio of 0.69. 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 Quick ratio, with a value of 0.48, PBR.A is doing worse than 82.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 |
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 -6.90%.
The Earnings Per Share has been growing by 16.66% on average over the past years. This is quite good.
PBR.A shows a decrease in Revenue. In the last year, the revenue decreased by -4.13%.
Measured over the past years, PBR.A shows a quite strong growth in Revenue. The Revenue has been growing by 10.18% on average per year.
EPS 1Y (TTM)-6.9%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%90.2%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%1.59%
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 2.33% yearly.
PBR.A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.13% yearly.
EPS Next Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y2.33%
Revenue Next Year-5.48%
Revenue Next 2Y-2.48%
Revenue Next 3Y0.33%
Revenue Next 5Y0.13%
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
PBR.A is valuated cheaply with a Price/Earnings ratio of 3.62.
PBR.A's Price/Earnings ratio is rather cheap when compared to the industry. PBR.A is cheaper than 93.90% of the companies in the same industry.
PBR.A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
PBR.A is valuated cheaply with a Price/Forward Earnings ratio of 3.88.
PBR.A's Price/Forward Earnings ratio is rather cheap when compared to the industry. PBR.A is cheaper than 95.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, PBR.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.62 | ||
| Fwd PE | 3.88 |
4.2 Price Multiples
PBR.A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PBR.A is cheaper than 84.98% of the companies in the same industry.
92.96% 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 | 3.26 | ||
| EV/EBITDA | 3.23 |
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.
The decent profitability rating of PBR.A may justify a higher PE ratio.
PEG (NY)0.21
PEG (5Y)0.22
EPS Next 2Y7.68%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.57%, PBR.A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.84, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
5.2 History
On average, the dividend of PBR.A grows each year by 68.55%, which is quite nice.
PBR.A has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)68.55%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
274.01% of the earnings are spent on dividend by PBR.A. This is not a sustainable payout ratio.
PBR.A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP274.01%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
11.08
+0.01 (+0.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.68%
Inst Owner Change-1.47%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap71.40B
Analysts83.53
Price Target15.36 (38.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Yearly Dividend2.71
Dividend Growth(5Y)68.55%
DP274.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.11%
Min EPS beat(2)-18.26%
Max EPS beat(2)14.05%
EPS beat(4)1
Avg EPS beat(4)-17.06%
Min EPS beat(4)-45.32%
Max EPS beat(4)14.05%
EPS beat(8)3
Avg EPS beat(8)-3.25%
EPS beat(12)6
Avg EPS beat(12)0.64%
EPS beat(16)7
Avg EPS beat(16)0.03%
Revenue beat(2)1
Avg Revenue beat(2)-3.62%
Min Revenue beat(2)-7.91%
Max Revenue beat(2)0.67%
Revenue beat(4)1
Avg Revenue beat(4)-6.22%
Min Revenue beat(4)-9.49%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-4.96%
Revenue beat(12)3
Avg Revenue beat(12)-3.17%
Revenue beat(16)4
Avg Revenue beat(16)-3.05%
PT rev (1m)-4.77%
PT rev (3m)-2.77%
EPS NQ rev (1m)8.95%
EPS NQ rev (3m)16.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.55%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-2.1%
Revenue NY rev (1m)-5.68%
Revenue NY rev (3m)-6.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.62 | ||
| Fwd PE | 3.88 | ||
| P/S | 0.82 | ||
| P/FCF | 3.26 | ||
| P/OCF | 1.98 | ||
| P/B | 1.1 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 3.23 |
EPS(TTM)3.06
EY27.62%
EPS(NY)2.86
Fwd EY25.8%
FCF(TTM)3.4
FCFY30.72%
OCF(TTM)5.59
OCFY50.47%
SpS13.45
BVpS10.03
TBVpS9.65
PEG (NY)0.21
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 10% | ||
| ROCE | 16.27% | ||
| ROIC | 11.24% | ||
| ROICexc | 11.83% | ||
| ROICexgc | 12.02% | ||
| OM | 30.83% | ||
| PM (TTM) | 7.46% | ||
| GM | 45.22% | ||
| FCFM | 25.3% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)16.8%
ROIC(5y)14.21%
ROICexc(3y)18.07%
ROICexc(5y)15.29%
ROICexgc(3y)18.41%
ROICexgc(5y)15.73%
ROCE(3y)24.33%
ROCE(5y)20.57%
ROICexcg growth 3Y-7.76%
ROICexcg growth 5Y10.3%
ROICexc growth 3Y-7.58%
ROICexc growth 5Y12.32%
OM growth 3Y-6.07%
OM growth 5Y4.6%
PM growth 3Y-31.85%
PM growth 5Y-10.9%
GM growth 3Y0.92%
GM growth 5Y5.33%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 119.13% | ||
| Cap/Sales | 16.27% | ||
| Interest Coverage | 14.72 | ||
| Cash Conversion | 93.45% | ||
| Profit Quality | 339.24% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.25 |
F-Score4
WACC14.24%
ROIC/WACC0.79
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)-6.9%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%90.2%
EPS Next Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y2.33%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%1.59%
Revenue Next Year-5.48%
Revenue Next 2Y-2.48%
Revenue Next 3Y0.33%
Revenue Next 5Y0.13%
EBIT growth 1Y-24.39%
EBIT growth 3Y-3.5%
EBIT growth 5Y15.25%
EBIT Next Year46.61%
EBIT Next 3Y15.99%
EBIT Next 5Y9.5%
FCF growth 1Y-20.08%
FCF growth 3Y-9.76%
FCF growth 5Y12.88%
OCF growth 1Y-5.41%
OCF growth 3Y0.15%
OCF growth 5Y14.93%