PETROLEO BRASIL-SP PREF ADR (PBR.A) Stock Fundamental Analysis
NYSE:PBR.A - New York Stock Exchange, Inc. - US71654V1017 - ADR - Currency: USD
Taking everything into account, PBR.A scores 5 out of 10 in our fundamental rating. PBR.A was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. PBR.A scores excellent on profitability, but 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.
In the past year PBR.A had a positive cash flow from operations.
PBR.A had positive earnings in each of the past 5 years.
Each year in the past 5 years PBR.A had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.59%, PBR.A is doing good in the industry, outperforming 70.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.38%, PBR.A belongs to the top of the industry, outperforming 82.78% of the companies in the same industry.
PBR.A has a better Return On Invested Capital (10.06%) than 78.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PBR.A is significantly below the industry average of 23.53%.
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
Looking at the Profit Margin, with a value of 15.69%, PBR.A is in the better half of the industry, outperforming 65.07% of the companies in the same industry.
In the last couple of years the Profit Margin of PBR.A has declined.
Looking at the Operating Margin, with a value of 29.39%, PBR.A is in the better half of the industry, outperforming 69.86% of the companies in the same industry.
PBR.A's Operating Margin has improved in the last couple of years.
PBR.A has a Gross Margin of 43.62%. This is comparable to the rest of the industry: PBR.A outperforms 53.11% 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.
PBR.A has less shares outstanding than it did 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 1.24. This is a bad value and indicates that PBR.A is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.24, PBR.A perfoms like the industry average, outperforming 49.28% of the companies in the same industry.
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 74.16% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that PBR.A is somewhat dependend on debt financing.
PBR.A has a worse Debt to Equity ratio (0.77) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.24 |
ROIC/WACC1.59
WACC6.31%
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.
PBR.A has a worse Current ratio (0.76) 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.
The Quick ratio of PBR.A (0.51) is worse than 83.25% 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.
PBR.A shows a decrease in Revenue. In the last year, the revenue decreased by -1.19%.
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)-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 1.45% yearly.
PBR.A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.71% yearly.
EPS Next Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y1.45%
Revenue Next Year-6.93%
Revenue Next 2Y-2.83%
Revenue Next 3Y-0.29%
Revenue Next 5Y-0.71%
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.
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 4.00 indicates a rather cheap valuation of PBR.A.
Compared to the rest of the industry, the Price/Earnings ratio of PBR.A indicates a rather cheap valuation: PBR.A is cheaper than 95.69% of the companies listed 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 26.86.
PBR.A is valuated cheaply with a Price/Forward Earnings ratio of 3.73.
Based on the Price/Forward Earnings ratio, PBR.A is valued cheaply inside the industry as 95.22% of the companies are valued more expensively.
PBR.A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4 | ||
| Fwd PE | 3.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBR.A is valued cheaply inside the industry as 87.08% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PBR.A is valued cheaper than 93.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.7 | ||
| EV/EBITDA | 3.17 |
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)0.24
EPS Next 2Y7.68%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
PBR.A has a Yearly Dividend Yield of 4.46%, which is a nice return.
PBR.A's Dividend Yield is a higher than the industry average which is at 6.31.
Compared to an average S&P500 Dividend Yield of 2.36, PBR.A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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.
PBR.A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP92.83%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
11.01
+0.1 (+0.92%)
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 Cap70.95B
Analysts78.95
Price Target15.13 (37.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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)0.46%
PT rev (3m)-1.49%
EPS NQ rev (1m)12.06%
EPS NQ rev (3m)-18.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-10.53%
Revenue NY rev (1m)-1.53%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4 | ||
| Fwd PE | 3.73 | ||
| P/S | 0.79 | ||
| P/FCF | 3.7 | ||
| P/OCF | 1.92 | ||
| P/B | 0.97 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 3.17 |
EPS(TTM)2.75
EY24.98%
EPS(NY)2.95
Fwd EY26.81%
FCF(TTM)2.98
FCFY27.02%
OCF(TTM)5.72
OCFY51.96%
SpS13.95
BVpS11.3
TBVpS10.92
PEG (NY)0.23
PEG (5Y)0.24
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 | 1.24 |
F-Score3
WACC6.31%
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 Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y1.45%
Revenue 1Y (TTM)-1.19%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-2.56%
Revenue Next Year-6.93%
Revenue Next 2Y-2.83%
Revenue Next 3Y-0.29%
Revenue Next 5Y-0.71%
EBIT growth 1Y-19%
EBIT growth 3Y-3.58%
EBIT growth 5Y15.19%
EBIT Next Year33.4%
EBIT Next 3Y13.68%
EBIT Next 5Y9.07%
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%