PETROLEO BRASILEIRO-SPON ADR (PBR)
US71654V4086 - ADR
PBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR has a great profitability rating, there are some minor concerns on its financial health. PBR has a bad growth rate and is valued cheaply. Finally PBR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PBR had positive earnings in the past year.
In the past year PBR had a positive cash flow from operations.
In the past 5 years PBR has always been profitable.
PBR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PBR's Return On Assets of 11.86% is fine compared to the rest of the industry. PBR outperforms 78.57% of its industry peers.
PBR's Return On Equity of 32.75% is amongst the best of the industry. PBR outperforms 84.29% of its industry peers.
PBR has a Return On Invested Capital of 15.61%. This is amongst the best in the industry. PBR outperforms 81.90% 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 30.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.86% | ||
| ROE | 32.75% | ||
| ROIC | 15.61% |
ROA(3y)14.03%
ROA(5y)9.43%
ROE(3y)37.41%
ROE(5y)25.62%
ROIC(3y)17.83%
ROIC(5y)13.33%
1.3 Margins
Looking at the Profit Margin, with a value of 24.34%, PBR is in the better half of the industry, outperforming 70.48% of the companies in the same industry.
PBR's Profit Margin has improved in the last couple of years.
PBR's Operating Margin of 38.84% is fine compared to the rest of the industry. PBR outperforms 74.76% of its industry peers.
PBR's Operating Margin has improved in the last couple of years.
The Gross Margin of PBR (48.11%) is comparable to the rest of the industry.
PBR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.84% | ||
| PM (TTM) | 24.34% | ||
| GM | 48.11% |
OM growth 3Y8.77%
OM growth 5Y9.7%
PM growth 3Y110.41%
PM growth 5Y23.98%
GM growth 3Y8.88%
GM growth 5Y8.21%
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.
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
PBR has an Altman-Z score of 1.79. This is a bad value and indicates that PBR is not financially healthy and even has some risk of bankruptcy.
PBR has a Altman-Z score (1.79) which is in line with its industry peers.
The Debt to FCF ratio of PBR is 1.95, which is an excellent value as it means it would take PBR, only 1.95 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PBR (1.95) is better than 75.71% 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.
Looking at the Debt to Equity ratio, with a value of 0.65, PBR is doing worse than 60.95% of the companies in the same industry.
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 | 1.95 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.5
WACC10.44%
2.3 Liquidity
PBR has a Current Ratio of 0.96. 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 Current ratio of 0.96. This is in the lower half of the industry: PBR underperforms 65.71% of its industry peers.
A Quick Ratio of 0.73 indicates that PBR may have some problems paying its short term obligations.
PBR has a Quick ratio of 0.73. This is in the lower half of the industry: PBR underperforms 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
PBR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.62%.
Measured over the past years, PBR shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.46% on average per year.
The Revenue for PBR has decreased by -20.16% in the past year. This is quite bad
PBR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.54% yearly.
EPS 1Y (TTM)-29.62%
EPS 3Y104.16%
EPS 5Y33.46%
EPS Q2Q%-35.99%
Revenue 1Y (TTM)-20.16%
Revenue growth 3Y23.46%
Revenue growth 5Y10.54%
Sales Q2Q%-15.35%
3.2 Future
The Earnings Per Share is expected to decrease by -4.92% on average over the next years.
Based on estimates for the next years, PBR will show a decrease in Revenue. The Revenue will decrease by -7.89% on average per year.
EPS Next Y-13.97%
EPS Next 2Y-11.15%
EPS Next 3Y-4.92%
EPS Next 5YN/A
Revenue Next Year-2.41%
Revenue Next 2Y-2.22%
Revenue Next 3Y0.31%
Revenue Next 5Y-7.89%
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
The Price/Earnings ratio is 4.40, which indicates a rather cheap valuation of PBR.
93.81% of the companies in the same industry are more expensive than PBR, based on the Price/Earnings ratio.
PBR is valuated cheaply when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.01, the valuation of PBR can be described as very cheap.
90.00% of the companies in the same industry are more expensive than PBR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.59. PBR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.4 | ||
| Fwd PE | 5.01 |
4.2 Price Multiples
93.33% 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 cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.41 | ||
| EV/EBITDA | 2.81 |
4.3 Compensation for Growth
PBR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PBR's earnings are expected to decrease with -4.92% in the coming years.
PEG (NY)N/A
PEG (5Y)0.13
EPS Next 2Y-11.15%
EPS Next 3Y-4.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.09%, PBR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.93, PBR pays a better dividend. On top of this PBR pays more dividend than 87.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.09% |
5.2 History
On average, the dividend of PBR grows each year by 110.80%, which is quite nice.
PBR has paid a dividend for at least 10 years, which is a reliable track record.
PBR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)110.8%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
78.59% of the earnings are spent on dividend by PBR. This is not a sustainable payout ratio.
PBR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP78.59%
EPS Next 2Y-11.15%
EPS Next 3Y-4.92%
PETROLEO BRASILEIRO-SPON ADR
NYSE:PBR (7/26/2024, 7:04:00 PM)
After market: 14.32 -0.15 (-1.04%)14.47
+0.01 (+0.07%)
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 Cap93.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.09% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
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 | 4.4 | ||
| Fwd PE | 5.01 | ||
| 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)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.86% | ||
| ROE | 32.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.84% | ||
| PM (TTM) | 24.34% | ||
| GM | 48.11% | ||
| 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 Turnover0.49
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 | 0.96 | ||
| Quick Ratio | 0.73 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-29.62%
EPS 3Y104.16%
EPS 5Y
EPS Q2Q%
EPS Next Y-13.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.16%
Revenue growth 3Y23.46%
Revenue growth 5Y
Sales 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