PETROLEO BRASILEIRO-SPON ADR (PBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PBR - US71654V4086 - ADR
11.92 USD
+0.07 (+0.59%)
11.86 USD
-0.06 (-0.5%)
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 scores excellent on profitability, but there are concerns on its financial health. PBR is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PBR was profitable.
PBR had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 6.59%, PBR is in the better half of the industry, outperforming 74.04% of the companies in the same industry.
PBR has a better Return On Equity (19.38%) than 87.02% of its industry peers.
With an excellent Return On Invested Capital value of 10.06%, PBR belongs to the best of the industry, outperforming 83.17% of the companies in the same industry.
PBR had an Average Return On Invested Capital over the past 3 years of 17.44%. This is below the industry average of 21.28%.
The last Return On Invested Capital (10.06%) for PBR is well below the 3 year average (17.44%), which needs to be investigated, but indicates that PBR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 19.38% | ||
| ROIC | 10.06% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)17.44%
ROIC(5y)14.59%
1.3 Margins
PBR has a better Profit Margin (15.69%) than 67.31% of its industry peers.
PBR's Profit Margin has declined in the last couple of years.
The Operating Margin of PBR (29.39%) is better than 72.12% of its industry peers.
In the last couple of years the Operating Margin of PBR has grown nicely.
PBR's Gross Margin of 43.62% is in line compared to the rest of the industry. PBR outperforms 52.40% of its industry peers.
PBR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.39% | ||
| PM (TTM) | 15.69% | ||
| GM | 43.62% |
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.
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.
Compared to 1 year ago, PBR has a worse debt to assets ratio.
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 of 1.27. This is comparable to the rest of the industry: PBR outperforms 51.92% of its industry peers.
PBR has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as PBR would need 3.53 years to pay back of all of its debts.
PBR's Debt to FCF ratio of 3.53 is fine compared to the rest of the industry. PBR outperforms 72.60% of its industry peers.
PBR has a Debt/Equity ratio of 0.77. This is a neutral value indicating PBR is somewhat dependend on debt financing.
PBR has a Debt to Equity ratio of 0.77. This is in the lower half of the industry: PBR underperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.53
WACC6.57%
2.3 Liquidity
PBR has a Current Ratio of 0.76. 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's Current ratio of 0.76 is on the low side compared to the rest of the industry. PBR is outperformed by 70.19% of its industry peers.
PBR has a Quick Ratio of 0.76. 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 0.51. This is amonst the worse of the industry: PBR underperforms 82.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
PBR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.37%.
PBR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.66% yearly.
PBR shows a decrease in Revenue. In the last year, the revenue decreased by -4.13%.
The Revenue has been growing by 10.18% on average over the past years. This is quite good.
EPS 1Y (TTM)-17.37%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-12.39%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-1.28%
3.2 Future
PBR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.60% yearly.
PBR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.71% yearly.
EPS Next Y25.68%
EPS Next 2Y-3.78%
EPS Next 3Y0.29%
EPS Next 5Y1.6%
Revenue Next Year-1.45%
Revenue Next 2Y-1.74%
Revenue Next 3Y0.09%
Revenue Next 5Y-3.71%
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
With a Price/Earnings ratio of 4.52, the valuation of PBR can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PBR indicates a rather cheap valuation: PBR is cheaper than 93.27% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. PBR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.05 indicates a rather cheap valuation of PBR.
Based on the Price/Forward Earnings ratio, PBR is valued cheaply inside the industry as 95.67% of the companies are valued more expensively.
PBR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.52 | ||
| Fwd PE | 5.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PBR indicates a rather cheap valuation: PBR is cheaper than 87.98% of the companies listed in the same industry.
93.75% 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 | 4 | ||
| EV/EBITDA | 3.32 |
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.
The decent profitability rating of PBR may justify a higher PE ratio.
PEG (NY)0.18
PEG (5Y)0.27
EPS Next 2Y-3.78%
EPS Next 3Y0.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.69%, PBR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.96, PBR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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
PBR pays out 92.83% 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.
DP92.83%
EPS Next 2Y-3.78%
EPS Next 3Y0.29%
11.92
+0.07 (+0.59%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners40.87%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap76.82B
Revenue(TTM)490.83B
Net Income(TTM)77.37B
Analysts78.95
Price Target14.96 (25.5%)
Short Float %0.89%
Short Ratio0.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Yearly Dividend2.84
Dividend Growth(5Y)68.55%
DP92.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.5%
Min EPS beat(2)-25.5%
Max EPS beat(2)10.49%
EPS beat(4)2
Avg EPS beat(4)-4.81%
Min EPS beat(4)-25.5%
Max EPS beat(4)14.05%
EPS beat(8)3
Avg EPS beat(8)-8.25%
EPS beat(12)5
Avg EPS beat(12)-3.16%
EPS beat(16)7
Avg EPS beat(16)-3.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.51%
Min Revenue beat(2)-4.3%
Max Revenue beat(2)-0.71%
Revenue beat(4)1
Avg Revenue beat(4)-3.06%
Min Revenue beat(4)-7.91%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-4.93%
Revenue beat(12)2
Avg Revenue beat(12)-3.68%
Revenue beat(16)3
Avg Revenue beat(16)-2.89%
PT rev (1m)-5.16%
PT rev (3m)-9.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.08%
EPS NY rev (1m)1.32%
EPS NY rev (3m)7.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.47%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.52 | ||
| Fwd PE | 5.05 | ||
| P/S | 0.85 | ||
| P/FCF | 4 | ||
| P/OCF | 2.08 | ||
| P/B | 1.05 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 3.32 |
EPS(TTM)2.64
EY22.15%
EPS(NY)2.36
Fwd EY19.79%
FCF(TTM)2.98
FCFY24.99%
OCF(TTM)5.73
OCFY48.04%
SpS13.97
BVpS11.31
TBVpS10.93
PEG (NY)0.18
PEG (5Y)0.27
Graham Number25.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 19.38% | ||
| ROCE | 14.56% | ||
| ROIC | 10.06% | ||
| ROICexc | 10.61% | ||
| ROICexgc | 10.76% | ||
| OM | 29.39% | ||
| PM (TTM) | 15.69% | ||
| GM | 43.62% | ||
| FCFM | 21.32% |
ROA(3y)11.46%
ROA(5y)9.22%
ROE(3y)31.56%
ROE(5y)24.91%
ROIC(3y)17.44%
ROIC(5y)14.59%
ROICexc(3y)18.75%
ROICexc(5y)15.7%
ROICexgc(3y)19.11%
ROICexgc(5y)16.14%
ROCE(3y)25.25%
ROCE(5y)21.12%
ROICexgc growth 3Y-7.85%
ROICexgc 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-Score3
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 131.19% | ||
| Cap/Sales | 19.67% | ||
| Interest Coverage | 14.18 | ||
| Cash Conversion | 92.35% | ||
| Profit Quality | 135.88% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.27 |
F-Score3
WACC6.57%
ROIC/WACC1.53
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)-17.37%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%-12.39%
EPS Next Y25.68%
EPS Next 2Y-3.78%
EPS Next 3Y0.29%
EPS Next 5Y1.6%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-1.28%
Revenue Next Year-1.45%
Revenue Next 2Y-1.74%
Revenue Next 3Y0.09%
Revenue Next 5Y-3.71%
EBIT growth 1Y-19%
EBIT growth 3Y-3.58%
EBIT growth 5Y15.19%
EBIT Next Year36.06%
EBIT Next 3Y11.5%
EBIT Next 5Y9.5%
FCF growth 1Y-40.39%
FCF growth 3Y-9.76%
FCF growth 5Y12.88%
OCF growth 1Y-12.98%
OCF growth 3Y0.15%
OCF growth 5Y14.93%
PETROLEO BRASILEIRO-SPON ADR / PBR FAQ
Can you provide the ChartMill fundamental rating for PETROLEO BRASILEIRO-SPON ADR?
ChartMill assigns a fundamental rating of 5 / 10 to PBR.
Can you provide the valuation status for PETROLEO BRASILEIRO-SPON ADR?
ChartMill assigns a valuation rating of 9 / 10 to PETROLEO BRASILEIRO-SPON ADR (PBR). This can be considered as Undervalued.
What is the profitability of PBR stock?
PETROLEO BRASILEIRO-SPON ADR (PBR) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for PBR stock?
The Price/Earnings (PE) ratio for PETROLEO BRASILEIRO-SPON ADR (PBR) is 4.52 and the Price/Book (PB) ratio is 1.05.
What is the expected EPS growth for PETROLEO BRASILEIRO-SPON ADR (PBR) stock?
The Earnings per Share (EPS) of PETROLEO BRASILEIRO-SPON ADR (PBR) is expected to grow by 25.68% in the next year.