PETROLEO BRASILEIRO-SPON ADR (PBR)
US71654V4086 - ADR
PBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. PBR has an excellent profitability rating, but there are some minor concerns on its financial health. PBR is cheap, but on the other hand it scores bad on growth. Finally PBR also has an excellent dividend rating.
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.
PBR had positive earnings in 4 of the past 5 years.
PBR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PBR has a better Return On Assets (13.35%) than 76.06% of its industry peers.
Looking at the Return On Equity, with a value of 35.47%, PBR belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
PBR's Return On Invested Capital of 16.68% is amongst the best of the industry. PBR outperforms 80.28% of its industry peers.
PBR had an Average Return On Invested Capital over the past 3 years of 14.90%. This is significantly below the industry average of 45.80%.
The 3 year average ROIC (14.90%) for PBR is below the current ROIC(16.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.35% | ||
| ROE | 35.47% | ||
| ROIC | 16.68% |
ROA(3y)10.32%
ROA(5y)7.66%
ROE(3y)27.26%
ROE(5y)20.93%
ROIC(3y)14.9%
ROIC(5y)11.61%
1.3 Margins
PBR's Profit Margin of 25.53% is fine compared to the rest of the industry. PBR outperforms 64.32% of its industry peers.
PBR's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 38.83%, PBR is doing good in the industry, outperforming 71.36% of the companies in the same industry.
PBR's Operating Margin has improved in the last couple of years.
PBR's Gross Margin of 46.69% is in line compared to the rest of the industry. PBR outperforms 46.95% of its industry peers.
PBR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.83% | ||
| PM (TTM) | 25.53% | ||
| GM | 46.69% |
OM growth 3Y20.55%
OM growth 5Y26.86%
PM growth 3Y30.29%
PM growth 5YN/A
GM growth 3Y11.68%
GM growth 5Y8.52%
2. Health
2.1 Basic Checks
PBR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for PBR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 1.91 indicates that PBR is not a great score, but indicates only limited risk for bankruptcy at the moment.
PBR has a Altman-Z score (1.91) which is comparable to the rest of the industry.
PBR has a debt to FCF ratio of 1.86. This is a very positive value and a sign of high solvency as it would only need 1.86 years to pay back of all of its debts.
PBR has a Debt to FCF ratio of 1.86. This is in the better half of the industry: PBR outperforms 75.59% of its industry peers.
PBR has a Debt/Equity ratio of 0.65. This is a neutral value indicating PBR is somewhat dependend on debt financing.
The Debt to Equity ratio of PBR (0.65) is worse than 60.56% of its industry peers.
Although PBR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 1.86 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.6
WACC10.4%
2.3 Liquidity
PBR has a Current Ratio of 0.95. This is a bad value and indicates that PBR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.95, PBR is not doing good in the industry: 65.26% of the companies in the same industry are doing better.
PBR has a Quick Ratio of 0.95. This is a bad value and indicates that PBR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.70, PBR is not doing good in the industry: 73.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
PBR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.66%.
PBR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 56.76% yearly.
PBR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.06%.
Measured over the past years, PBR shows a quite strong growth in Revenue. The Revenue has been growing by 17.72% on average per year.
EPS 1Y (TTM)-13.66%
EPS 3Y61.6%
EPS 5Y56.76%
EPS growth Q2Q-41.29%
Revenue 1Y (TTM)-13.06%
Revenue growth 3Y28.5%
Revenue growth 5Y17.72%
Revenue growth Q2Q-26.6%
3.2 Future
PBR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.61% yearly.
PBR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.21% yearly.
EPS Next Y-28.63%
EPS Next 2Y-18.45%
EPS Next 3Y-15.87%
EPS Next 5Y-11.61%
Revenue Next Year-21.25%
Revenue Next 2Y-12.15%
Revenue Next 3Y-9.27%
Revenue Next 5Y-6.21%
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
PBR is valuated cheaply with a Price/Earnings ratio of 4.08.
Based on the Price/Earnings ratio, PBR is valued cheaper than 91.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.25. PBR is valued rather cheaply when compared to this.
PBR is valuated cheaply with a Price/Forward Earnings ratio of 4.72.
Based on the Price/Forward Earnings ratio, PBR is valued cheaper than 93.90% of the companies in the same industry.
PBR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.08 | ||
| Fwd PE | 4.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PBR is valued cheaper than 91.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PBR indicates a rather cheap valuation: PBR is cheaper than 92.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.39 | ||
| EV/EBITDA | 2.88 |
4.3 Compensation for Growth
PBR has a very decent profitability rating, which may justify a higher PE ratio.
PBR's earnings are expected to decrease with -15.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-18.45%
EPS Next 3Y-15.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.10%, PBR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.79, PBR pays a better dividend. On top of this PBR pays more dividend than 97.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.1% |
5.2 History
The dividend of PBR is nicely growing with an annual growth rate of 85.95%!
PBR has been paying a dividend for at least 10 years, so it has a reliable track record.
PBR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)85.95%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
71.09% of the earnings are spent on dividend by PBR. This is not a sustainable payout ratio.
The Dividend Rate of PBR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP71.09%
EPS Next 2Y-18.45%
EPS Next 3Y-15.87%
PETROLEO BRASILEIRO-SPON ADR
NYSE:PBR (4/24/2024, 7:21:50 PM)
After market: 16.79 -0.02 (-0.12%)16.81
-0.15 (-0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap108.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.08 | ||
| Fwd PE | 4.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.35% | ||
| ROE | 35.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.83% | ||
| PM (TTM) | 25.53% | ||
| GM | 46.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-13.66%
EPS 3Y61.6%
EPS 5Y
EPS growth Q2Q
EPS Next Y-28.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.06%
Revenue growth 3Y28.5%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y