PETROLEO BRASILEIRO-SPON ADR (PBR) Stock Fundamental Analysis
USA - NYSE:PBR - US71654V4086 - ADR
12.86 USD
+0.72 (+5.93%)
12.8098 USD
-0.05 (-0.39%)
We assign a fundamental rating of 5 out of 10 to PBR. PBR was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While PBR belongs to the best of the industry regarding profitability, 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.
In the past year PBR had a positive cash flow from operations.
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 6.59% is fine compared to the rest of the industry. PBR outperforms 74.76% of its industry peers.
With an excellent Return On Equity value of 19.38%, PBR belongs to the best of the industry, outperforming 83.81% of the companies in the same industry.
The Return On Invested Capital of PBR (10.06%) is better than 80.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PBR is below the industry average of 21.78%.
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 66.19% of its industry peers.
In the last couple of years the Profit Margin of PBR has declined.
The Operating Margin of PBR (29.39%) is better than 70.48% of its industry peers.
In the last couple of years the Operating Margin of PBR has grown nicely.
PBR has a Gross Margin (43.62%) which 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PBR is creating value.
PBR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PBR has less shares outstanding
The debt/assets ratio for PBR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that PBR is in the distress zone and has some risk of bankruptcy.
PBR has a Altman-Z score of 1.29. This is comparable to the rest of the industry: PBR outperforms 50.48% of its industry peers.
The Debt to FCF ratio of PBR is 3.53, which is a good value as it means it would take PBR, 3.53 years of fcf income to pay off all of its debts.
PBR's Debt to FCF ratio of 3.53 is fine compared to the rest of the industry. PBR outperforms 72.86% 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 65.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.46
WACC6.88%
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 71.43% 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 83.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.24% over the past 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)7.24%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%72.05%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-3.07%
3.2 Future
The Earnings Per Share is expected to grow by 1.60% on average over the next years.
PBR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.26% yearly.
EPS Next Y20.31%
EPS Next 2Y-0.71%
EPS Next 3Y1.98%
EPS Next 5Y1.6%
Revenue Next Year-2.04%
Revenue Next 2Y-0.97%
Revenue Next 3Y0.38%
Revenue Next 5Y-4.26%
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
A Price/Earnings ratio of 3.67 indicates a rather cheap valuation of PBR.
96.67% of the companies in the same industry are more expensive than PBR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PBR to the average of the S&P500 Index (26.06), we can say PBR is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.01, the valuation of PBR can be described as very cheap.
PBR's Price/Forward Earnings ratio is rather cheap when compared to the industry. PBR is cheaper than 95.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PBR to the average of the S&P500 Index (32.73), we can say PBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.67 | ||
| Fwd PE | 5.01 |
4.2 Price Multiples
86.19% 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 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.23 | ||
| EV/EBITDA | 3.43 |
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)0.22
EPS Next 2Y-0.71%
EPS Next 3Y1.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.31%, PBR is a good candidate for dividend investing.
PBR's Dividend Yield is a higher than the industry average which is at 6.14.
Compared to an average S&P500 Dividend Yield of 2.37, PBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
5.2 History
On average, the dividend of PBR grows each year by 68.55%, which is quite nice.
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
92.83% of the earnings are spent on dividend by PBR. 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-0.71%
EPS Next 3Y1.98%
12.86
+0.72 (+5.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners40.69%
Inst Owner Change-2.84%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap82.87B
Revenue(TTM)490.83B
Net Income(TTM)77.37B
Analysts78.95
Price Target15.62 (21.46%)
Short Float %1.24%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
Yearly Dividend2.9
Dividend Growth(5Y)68.55%
DP92.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-5.17%
PT rev (3m)-5.64%
EPS NQ rev (1m)7.08%
EPS NQ rev (3m)-6.08%
EPS NY rev (1m)2.55%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)5.47%
Revenue NQ rev (3m)11.28%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)5.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.67 | ||
| Fwd PE | 5.01 | ||
| P/S | 0.9 | ||
| P/FCF | 4.23 | ||
| P/OCF | 2.2 | ||
| P/B | 1.11 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 3.43 |
EPS(TTM)3.5
EY27.22%
EPS(NY)2.57
Fwd EY19.95%
FCF(TTM)3.04
FCFY23.65%
OCF(TTM)5.85
OCFY45.48%
SpS14.27
BVpS11.55
TBVpS11.17
PEG (NY)0.18
PEG (5Y)0.22
Graham Number30.16
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 | 1.29 |
F-Score3
WACC6.88%
ROIC/WACC1.46
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)7.24%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%72.05%
EPS Next Y20.31%
EPS Next 2Y-0.71%
EPS Next 3Y1.98%
EPS Next 5Y1.6%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-3.07%
Revenue Next Year-2.04%
Revenue Next 2Y-0.97%
Revenue Next 3Y0.38%
Revenue Next 5Y-4.26%
EBIT growth 1Y-19%
EBIT growth 3Y-3.58%
EBIT growth 5Y15.19%
EBIT Next Year33.4%
EBIT Next 3Y12.07%
EBIT Next 5Y8.23%
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.
What is the valuation status for PBR stock?
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.
How financially healthy is PETROLEO BRASILEIRO-SPON ADR?
The financial health rating of PETROLEO BRASILEIRO-SPON ADR (PBR) is 3 / 10.
Is the dividend of PETROLEO BRASILEIRO-SPON ADR sustainable?
The dividend rating of PETROLEO BRASILEIRO-SPON ADR (PBR) is 5 / 10 and the dividend payout ratio is 92.83%.