PETROLEO BRASILEIRO-SPON ADR (PBR) Stock Fundamental Analysis
NYSE:PBR - New York Stock Exchange, Inc. - US71654V4086 - ADR - Currency: USD
Overall PBR gets a fundamental rating of 5 out of 10. We evaluated PBR against 214 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR is still in line with the averages on profitability rating, there are concerns on its financial health. PBR has a bad growth rate and is valued cheaply.
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 49.07% of its industry peers.
The Return On Equity of PBR (10.00%) is comparable to the rest of the industry.
The Return On Invested Capital of PBR (11.24%) is better than 78.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PBR is significantly below the industry average of 25.65%.
The 3 year average ROIC (16.80%) for PBR is well above the current ROIC(11.24%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 7.46% is in line compared to the rest of the industry. PBR outperforms 50.47% of its industry peers.
PBR's Profit Margin has declined in the last couple of years.
PBR has a better Operating Margin (30.83%) than 68.69% of its industry peers.
PBR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 45.22%, PBR perfoms like the industry average, outperforming 50.47% 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 | 30.83% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PBR is creating some value.
The number of shares outstanding for PBR has been reduced compared to 1 year ago.
PBR has less shares outstanding than it did 5 years ago.
PBR has a worse debt/assets ratio than last year.
2.2 Solvency
PBR has an Altman-Z score of 1.28. This is a bad value and indicates that PBR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PBR (1.28) is comparable to the rest of the industry.
PBR has a debt to FCF ratio of 3.01. This is a good value and a sign of high solvency as PBR would need 3.01 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.01, PBR belongs to the best of the industry, outperforming 80.37% of the companies in the same industry.
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 67.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.76
WACC14.84%
2.3 Liquidity
A Current Ratio of 0.69 indicates that PBR may have some problems paying its short term obligations.
PBR's Current ratio of 0.69 is on the low side compared to the rest of the industry. PBR is outperformed by 74.77% 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 Quick ratio of 0.48. This is amonst the worse of the industry: PBR underperforms 82.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
PBR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.90%.
Measured over the past years, PBR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.66% on average per year.
PBR shows a decrease in Revenue. In the last year, the revenue decreased by -4.13%.
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)-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 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.33% yearly.
PBR 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
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 4.00 indicates a rather cheap valuation of PBR.
Based on the Price/Earnings ratio, PBR is valued cheaper than 91.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of PBR to the average of the S&P500 Index (24.95), we can say PBR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.27, the valuation of PBR can be described as very cheap.
Based on the Price/Forward Earnings ratio, PBR is valued cheaply inside the industry as 94.86% of the companies are valued more expensively.
PBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4 | ||
| Fwd PE | 4.27 |
4.2 Price Multiples
PBR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PBR is cheaper than 83.64% of the companies in the same industry.
92.99% of the companies in the same industry are more expensive than PBR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.58 | ||
| EV/EBITDA | 3.41 |
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.
The decent profitability rating of PBR 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
With a Yearly Dividend Yield of 4.36%, PBR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.26, PBR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
5.2 History
The dividend of PBR is nicely growing with an annual growth rate of 68.55%!
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
274.01% of the earnings are spent on dividend by PBR. This is not a sustainable payout ratio.
The dividend of PBR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP274.01%
EPS Next 2Y7.68%
EPS Next 3Y7.47%
12.19
+0.12 (+0.99%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.68%
Inst Owner Change0.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap78.56B
Analysts83.53
Price Target16.46 (35.03%)
Short Float %1.07%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
Yearly Dividend2.74
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)-7.19%
PT rev (3m)-5.55%
EPS NQ rev (1m)8.95%
EPS NQ rev (3m)16.75%
EPS NY rev (1m)-2.68%
EPS NY rev (3m)-4.55%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-2.1%
Revenue NY rev (1m)-5.68%
Revenue NY rev (3m)-6.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4 | ||
| Fwd PE | 4.27 | ||
| P/S | 0.91 | ||
| P/FCF | 3.58 | ||
| P/OCF | 2.18 | ||
| P/B | 1.22 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 3.41 |
EPS(TTM)3.05
EY25.02%
EPS(NY)2.86
Fwd EY23.44%
FCF(TTM)3.4
FCFY27.9%
OCF(TTM)5.59
OCFY45.85%
SpS13.44
BVpS10.03
TBVpS9.64
PEG (NY)0.23
PEG (5Y)0.24
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 | 1.28 |
F-Score4
WACC14.84%
ROIC/WACC0.76
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%