PETROLEO BRASILEIRO-SPON ADR (PBR) Stock Fundamental Analysis
NYSE:PBR - New York Stock Exchange, Inc. - US71654V4086 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to PBR. PBR was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of PBR while its profitability can be described as average. PBR is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PBR was profitable.
In the past year PBR had a positive cash flow from operations.
In the past 5 years PBR has always been profitable.
Each year in the past 5 years PBR had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.25%, PBR perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
PBR has a Return On Equity (10.00%) which is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 11.25%, PBR belongs to the best of the industry, outperforming 81.22% of the companies in the same industry.
PBR had an Average Return On Invested Capital over the past 3 years of 16.79%. This is significantly below the industry average of 23.55%.
The 3 year average ROIC (16.79%) for PBR is well above the current ROIC(11.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 10% | ||
| ROIC | 11.25% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)16.79%
ROIC(5y)14.2%
1.3 Margins
PBR has a Profit Margin (7.46%) which is comparable to the rest of the industry.
PBR's Profit Margin has declined in the last couple of years.
PBR has a Operating Margin of 30.85%. This is in the better half of the industry: PBR outperforms 70.42% of its industry peers.
In the last couple of years the Operating Margin of PBR has grown nicely.
With a Gross Margin value of 45.22%, PBR perfoms like the industry average, outperforming 51.17% of the companies in the same industry.
In the last couple of years the Gross Margin of PBR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.85% | ||
| PM (TTM) | 7.46% | ||
| GM | 45.22% |
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 is creating value.
PBR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PBR has been reduced compared to 5 years ago.
Compared to 1 year ago, PBR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that PBR is in the distress zone and has some risk of bankruptcy.
PBR has a Altman-Z score (1.30) which is in line with its industry peers.
The Debt to FCF ratio of PBR is 3.01, which is a good value as it means it would take PBR, 3.01 years of fcf income to pay off all of its debts.
PBR has a Debt to FCF ratio of 3.01. This is in the better half of the industry: PBR outperforms 77.46% of its industry peers.
PBR has a Debt/Equity ratio of 0.83. This is a neutral value indicating PBR is somewhat dependend on debt financing.
PBR's Debt to Equity ratio of 0.83 is on the low side compared to the rest of the industry. PBR is outperformed by 65.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.96
WACC5.74%
2.3 Liquidity
A Current Ratio of 0.69 indicates that PBR may have some problems paying its short term obligations.
PBR has a worse Current ratio (0.69) than 77.00% of its industry peers.
PBR has a Quick Ratio of 0.69. This is a bad value and indicates that PBR is not financially healthy enough and could expect problems in meeting its short term obligations.
PBR has a worse Quick ratio (0.48) than 83.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for PBR have decreased strongly by -25.25% in the last year.
PBR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.66% yearly.
The Revenue has been growing slightly by 1.14% in the past year.
PBR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.18% yearly.
EPS 1Y (TTM)-25.25%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-1.95%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%4.74%
3.2 Future
The Earnings Per Share is expected to grow by 1.59% on average over the next years.
PBR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.95% yearly.
EPS Next Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y1.59%
Revenue Next Year-5.48%
Revenue Next 2Y-2.48%
Revenue Next 3Y0.33%
Revenue Next 5Y-3.95%
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
A Price/Earnings ratio of 5.14 indicates a rather cheap valuation of PBR.
Compared to the rest of the industry, the Price/Earnings ratio of PBR indicates a rather cheap valuation: PBR is cheaper than 89.67% of the companies listed in the same industry.
PBR is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.40 indicates a rather cheap valuation of PBR.
Based on the Price/Forward Earnings ratio, PBR is valued cheaply inside the industry as 94.84% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, PBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.14 | ||
| Fwd PE | 4.4 |
4.2 Price Multiples
85.45% of the companies in the same industry are more expensive than PBR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PBR is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.7 | ||
| EV/EBITDA | 3.48 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.3
PEG (5Y)0.31
EPS Next 2Y7.68%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
PBR has a Yearly Dividend Yield of 4.10%, which is a nice return.
Compared to an average industry Dividend Yield of 6.56, PBR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
On average, the dividend of PBR grows each year by 68.55%, which is quite nice.
PBR 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 pays out 274.01% of its income as dividend. This is not a sustainable payout ratio.
PBR'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%
13
-0.07 (-0.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.09%
Inst Owner Change0.34%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap83.78B
Analysts82.22
Price Target15.82 (21.69%)
Short Float %1.09%
Short Ratio0.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend2.79
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)-3.88%
PT rev (3m)-8.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.69%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.14 | ||
| Fwd PE | 4.4 | ||
| P/S | 0.94 | ||
| P/FCF | 3.7 | ||
| P/OCF | 2.25 | ||
| P/B | 1.25 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 3.48 |
EPS(TTM)2.53
EY19.46%
EPS(NY)2.95
Fwd EY22.72%
FCF(TTM)3.52
FCFY27.05%
OCF(TTM)5.78
OCFY44.44%
SpS13.9
BVpS10.36
TBVpS9.97
PEG (NY)0.3
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 10% | ||
| ROCE | 16.28% | ||
| ROIC | 11.25% | ||
| ROICexc | 11.84% | ||
| ROICexgc | 12.03% | ||
| OM | 30.85% | ||
| 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)16.79%
ROIC(5y)14.2%
ROICexc(3y)18.06%
ROICexc(5y)15.29%
ROICexgc(3y)18.4%
ROICexgc(5y)15.72%
ROCE(3y)24.31%
ROCE(5y)20.56%
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-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 119.13% | ||
| Cap/Sales | 16.27% | ||
| Interest Coverage | 14.74 | ||
| Cash Conversion | 93.4% | ||
| Profit Quality | 339.24% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.3 |
F-Score4
WACC5.74%
ROIC/WACC1.96
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)-25.25%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-1.95%
EPS Next Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y1.59%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%4.74%
Revenue Next Year-5.48%
Revenue Next 2Y-2.48%
Revenue Next 3Y0.33%
Revenue Next 5Y-3.95%
EBIT growth 1Y-24.33%
EBIT growth 3Y-3.58%
EBIT growth 5Y15.19%
EBIT Next Year33.4%
EBIT Next 3Y13.68%
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%