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 213 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of PBR while its profitability can be described as average. 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.
In the past year PBR had a positive cash flow from operations.
Each year in the past 5 years PBR has been profitable.
In the past 5 years PBR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PBR (3.25%) is comparable to the rest of the industry.
With a Return On Equity value of 10.00%, PBR perfoms like the industry average, outperforming 56.81% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.24%, PBR is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
PBR had an Average Return On Invested Capital over the past 3 years of 16.80%. This is significantly below the industry average of 25.87%.
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
Looking at the Profit Margin, with a value of 7.46%, PBR is in line with its industry, outperforming 50.23% of the companies in the same industry.
In the last couple of years the Profit Margin of PBR has declined.
PBR has a better Operating Margin (30.83%) than 69.01% of its industry peers.
In the last couple of years the Operating Margin of PBR has grown nicely.
PBR has a Gross Margin (45.22%) which is in line with its industry peers.
PBR's Gross Margin has improved in the last couple of years.
| 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.
PBR has less shares outstanding than it did 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
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.
With a Altman-Z score value of 1.27, PBR perfoms like the industry average, outperforming 51.17% of the companies in the same 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 78.87% 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.
Looking at the Debt to Equity ratio, with a value of 0.83, PBR is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.78
WACC14.49%
2.3 Liquidity
PBR has a Current 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 Current ratio of 0.69. This is in the lower half of the industry: PBR underperforms 75.12% 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's Quick ratio of 0.48 is on the low side compared to the rest of the industry. PBR is outperformed by 83.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for PBR have decreased by -6.90% in the last year.
PBR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.66% yearly.
The Revenue has decreased by -4.13% in the past 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)-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
Based on estimates for the next years, PBR will show a small growth in Earnings Per Share. The EPS will grow by 2.33% on average per year.
Based on estimates for the next years, PBR will show a small growth in Revenue. The Revenue will grow by 0.13% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 3.87, 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 91.55% of the companies listed in the same industry.
PBR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
With a Price/Forward Earnings ratio of 4.14, the valuation of PBR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PBR indicates a rather cheap valuation: PBR is cheaper than 94.37% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, PBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.87 | ||
| Fwd PE | 4.14 |
4.2 Price Multiples
83.10% of the companies in the same industry are more expensive than PBR, based on the Enterprise Value to EBITDA ratio.
PBR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PBR is cheaper than 92.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.48 | ||
| EV/EBITDA | 3.35 |
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.
PBR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.23
PEG (5Y)0.23
EPS Next 2Y7.68%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
PBR has a Yearly Dividend Yield of 4.44%, which is a nice return.
PBR's Dividend Yield is a higher than the industry average which is at 6.77.
Compared to an average S&P500 Dividend Yield of 2.36, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
5.2 History
On average, the dividend of PBR grows each year by 68.55%, which is quite nice.
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.
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%
11.84
+0.03 (+0.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.68%
Inst Owner Change1.84%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap76.30B
Analysts83.53
Price Target16.46 (39.02%)
Short Float %1.07%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend2.75
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)0%
EPS NY rev (3m)-4.55%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-2.1%
Revenue NY rev (1m)-5.68%
Revenue NY rev (3m)-6.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.87 | ||
| Fwd PE | 4.14 | ||
| P/S | 0.88 | ||
| P/FCF | 3.48 | ||
| P/OCF | 2.12 | ||
| P/B | 1.18 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 3.35 |
EPS(TTM)3.06
EY25.84%
EPS(NY)2.86
Fwd EY24.15%
FCF(TTM)3.4
FCFY28.75%
OCF(TTM)5.59
OCFY47.23%
SpS13.45
BVpS10.03
TBVpS9.65
PEG (NY)0.23
PEG (5Y)0.23
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 | 1.27 |
F-Score4
WACC14.49%
ROIC/WACC0.78
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%