PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
USA - NYSE:PBR.A - US71654V1017 - ADR
11.05 USD
-0.02 (-0.18%)
11.09 USD
+0.04 (+0.36%)
We assign a fundamental rating of 5 out of 10 to PBR.A. PBR.A was compared to 209 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 has a bad growth rate and is valued cheaply.
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
Looking at the Return On Assets, with a value of 6.59%, PBR.A is in the better half of the industry, outperforming 75.12% of the companies in the same industry.
PBR.A's Return On Equity of 19.38% is amongst the best of the industry. PBR.A outperforms 83.73% of its industry peers.
The Return On Invested Capital of PBR.A (10.06%) is better than 81.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PBR.A is below the industry average of 21.72%.
The last Return On Invested Capital (10.06%) for PBR.A is well below the 3 year average (17.44%), 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 | 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's Profit Margin of 15.69% is fine compared to the rest of the industry. PBR.A outperforms 66.51% of its industry peers.
In the last couple of years the Profit Margin of PBR.A has declined.
PBR.A has a Operating Margin of 29.39%. This is in the better half of the industry: PBR.A outperforms 70.81% of its industry peers.
PBR.A's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 43.62%, PBR.A is in line with its industry, outperforming 53.11% of the companies in the same 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PBR.A is creating value.
PBR.A has less shares outstanding than it did 1 year ago.
PBR.A has less shares outstanding than it did 5 years ago.
PBR.A has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that PBR.A is in the distress zone and has some risk of bankruptcy.
PBR.A has a Altman-Z score of 1.24. This is comparable to the rest of the industry: PBR.A outperforms 47.37% 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 has a Debt to FCF ratio of 3.53. This is in the better half of the industry: PBR.A outperforms 72.73% of its industry peers.
PBR.A has a Debt/Equity ratio of 0.77. This is a neutral value indicating 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 65.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.24 |
ROIC/WACC1.59
WACC6.32%
2.3 Liquidity
A Current Ratio of 0.76 indicates that PBR.A may have some problems paying its short term obligations.
The Current ratio of PBR.A (0.76) is worse than 71.29% 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 has a Quick ratio of 0.51. This is amonst the worse of the industry: PBR.A underperforms 84.21% 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%.
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.
The Revenue has been growing by 10.18% on average over the past years. This is quite good.
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
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 -0.09% 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.
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
Based on the Price/Earnings ratio of 3.95, the valuation of PBR.A can be described as very cheap.
PBR.A's Price/Earnings ratio is rather cheap when compared to the industry. PBR.A is cheaper than 97.13% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.10. PBR.A is valued rather cheaply when compared to this.
PBR.A is valuated cheaply with a Price/Forward Earnings ratio of 4.44.
95.69% of the companies in the same industry are more expensive than PBR.A, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PBR.A to the average of the S&P500 Index (22.52), we can say PBR.A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.95 | ||
| Fwd PE | 4.44 |
4.2 Price Multiples
88.52% of the companies in the same industry are more expensive than PBR.A, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PBR.A is valued cheaply inside the industry as 95.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.64 | ||
| EV/EBITDA | 3.15 |
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)0.23
PEG (5Y)0.24
EPS Next 2Y-2.04%
EPS Next 3Y2.65%
5. Dividend
5.1 Amount
PBR.A has a Yearly Dividend Yield of 6.15%, which is a nice return.
Compared to an average industry Dividend Yield of 6.26, PBR.A pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, PBR.A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
5.2 History
The dividend of PBR.A is nicely growing with an annual growth rate of 68.55%!
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
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%
11.05
-0.02 (-0.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners40.69%
Inst Owner Change0.91%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap71.21B
Revenue(TTM)493.12B
Net Income(TTM)77.37B
Analysts78.95
Price Target14.75 (33.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
Yearly Dividend2.89
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)-2.16%
PT rev (3m)-2.26%
EPS NQ rev (1m)7.08%
EPS NQ rev (3m)6.94%
EPS NY rev (1m)0%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)5.47%
Revenue NQ rev (3m)13.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.95 | ||
| Fwd PE | 4.44 | ||
| P/S | 0.78 | ||
| P/FCF | 3.64 | ||
| P/OCF | 1.9 | ||
| P/B | 0.96 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 3.15 |
EPS(TTM)2.8
EY25.34%
EPS(NY)2.49
Fwd EY22.53%
FCF(TTM)3.03
FCFY27.44%
OCF(TTM)5.83
OCFY52.76%
SpS14.22
BVpS11.51
TBVpS11.13
PEG (NY)0.23
PEG (5Y)0.24
Graham Number26.93
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%
ROICexgc growth 3Y-7.85%
ROICexgc 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 | 1.24 |
F-Score3
WACC6.32%
ROIC/WACC1.59
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%
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.
Can you provide the valuation status for PETROLEO BRASIL-SP PREF ADR?
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 3.95 and the Price/Book (PB) ratio is 0.96.
What is the financial health of PETROLEO BRASIL-SP PREF ADR (PBR.A) stock?
The financial health rating of PETROLEO BRASIL-SP PREF ADR (PBR.A) is 3 / 10.