PETROLEO BRASILEIRO-SPON ADR (PBR) Stock Fundamental Analysis
NYSE:PBR - New York Stock Exchange, Inc. - US71654V4086 - ADR - Currency: USD
Taking everything into account, PBR scores 5 out of 10 in our fundamental rating. PBR was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. PBR has a medium profitability rating, but doesn't score so well on its financial health evaluation. PBR is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PBR had positive earnings in the past year.
PBR had a positive operating cash flow in the past year.
Each year in the past 5 years PBR has been profitable.
Each year in the past 5 years PBR had a positive operating cash flow.
1.2 Ratios
PBR's Return On Assets of 3.25% is in line compared to the rest of the industry. PBR outperforms 48.56% of its industry peers.
PBR has a Return On Equity of 10.00%. This is comparable to the rest of the industry: PBR outperforms 57.69% of its industry peers.
The Return On Invested Capital of PBR (11.25%) is better than 83.65% of its industry peers.
PBR had an Average Return On Invested Capital over the past 3 years of 16.79%. This is significantly below the industry average of 23.63%.
The last Return On Invested Capital (11.25%) for PBR is well below the 3 year average (16.79%), which needs to be investigated, but indicates that PBR had better years and this may not be a problem.
| 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
The Profit Margin of PBR (7.46%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PBR has declined.
PBR has a Operating Margin of 30.85%. This is in the better half of the industry: PBR outperforms 70.19% of its industry peers.
PBR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.22%, PBR is in line with its industry, outperforming 52.88% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
PBR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that PBR is in the distress zone and has some risk of bankruptcy.
PBR has a Altman-Z score (1.27) which is comparable to the rest of the industry.
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's Debt to FCF ratio of 3.01 is fine compared to the rest of the industry. PBR outperforms 76.44% 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.
The Debt to Equity ratio of PBR (0.83) is worse than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.69
WACC6.65%
2.3 Liquidity
A Current Ratio of 0.69 indicates that PBR may have some problems paying its short term obligations.
PBR has a Current ratio of 0.69. This is in the lower half of the industry: PBR underperforms 77.40% of its industry peers.
A Quick Ratio of 0.48 indicates that PBR may have some problems paying its short term obligations.
With a Quick ratio value of 0.48, PBR is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
PBR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.25%.
The Earnings Per Share has been growing by 16.66% on average over the past years. This is quite good.
Looking at the last year, PBR shows a small growth in Revenue. The Revenue has grown by 1.14% in the last 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
Based on estimates for the next years, PBR will show a small growth in Earnings Per Share. The EPS will grow by 1.00% on average per year.
Based on estimates for the next years, PBR will show a decrease in Revenue. The Revenue will decrease by -3.95% on average per year.
EPS Next Y17.05%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
EPS Next 5Y1%
Revenue Next Year-6.93%
Revenue Next 2Y-2.83%
Revenue Next 3Y-0.29%
Revenue Next 5Y-3.95%
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
A Price/Earnings ratio of 4.73 indicates a rather cheap valuation of PBR.
PBR's Price/Earnings ratio is rather cheap when compared to the industry. PBR is cheaper than 89.90% of the companies in the same industry.
PBR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 4.06, the valuation of PBR can be described as very cheap.
PBR's Price/Forward Earnings ratio is rather cheap when compared to the industry. PBR is cheaper than 94.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PBR to the average of the S&P500 Index (34.04), we can say PBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.73 | ||
| Fwd PE | 4.06 |
4.2 Price Multiples
PBR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PBR is cheaper than 85.58% of the companies in the same industry.
PBR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PBR is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.41 | ||
| EV/EBITDA | 3.32 |
4.3 Compensation for Growth
PBR's 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)0.28
PEG (5Y)0.28
EPS Next 2Y7.68%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
PBR has a Yearly Dividend Yield of 4.40%, which is a nice return.
Compared to an average industry Dividend Yield of 6.32, PBR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
The dividend of PBR is nicely growing with an annual growth rate of 68.55%!
PBR 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
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%
12.12
-0.96 (-7.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.09%
Inst Owner Change-0.03%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap78.11B
Analysts78.95
Price Target16.56 (36.63%)
Short Float %1.29%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Yearly Dividend2.86
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)0.89%
PT rev (3m)0.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)-1.53%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.73 | ||
| Fwd PE | 4.06 | ||
| P/S | 0.86 | ||
| P/FCF | 3.41 | ||
| P/OCF | 2.08 | ||
| P/B | 1.16 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 3.32 |
EPS(TTM)2.56
EY21.12%
EPS(NY)2.98
Fwd EY24.6%
FCF(TTM)3.55
FCFY29.29%
OCF(TTM)5.83
OCFY48.13%
SpS14.03
BVpS10.46
TBVpS10.06
PEG (NY)0.28
PEG (5Y)0.28
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 | 1.27 |
F-Score4
WACC6.65%
ROIC/WACC1.69
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%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%4.74%
Revenue Next Year-6.93%
Revenue Next 2Y-2.83%
Revenue Next 3Y-0.29%
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%