PETROLEO BRASILEIRO-SPON ADR (PBR) Stock Fundamental Analysis
NYSE:PBR - US71654V4086 - ADR
12.4 USD
+0.04 (+0.32%)
12.4 USD
0 (0%)
Overall PBR gets a fundamental rating of 5 out of 10. We evaluated PBR against 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
PBR had positive earnings in the past year.
PBR had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 6.59%, PBR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
PBR has a Return On Equity of 19.38%. This is amongst the best in the industry. PBR outperforms 82.86% of its industry peers.
PBR has a better Return On Invested Capital (10.06%) than 79.52% 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 23.42%.
The 3 year average ROIC (17.44%) for PBR is well above the current ROIC(10.06%). The reason for the recent decline needs to be investigated.
| 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
With a decent Profit Margin value of 15.69%, PBR is doing good in the industry, outperforming 65.71% of the companies in the same industry.
PBR's Profit Margin has declined in the last couple of years.
PBR has a better Operating Margin (29.39%) than 70.00% 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.
In the last couple of years the Gross Margin of PBR has grown nicely.
| 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.
Compared to 1 year ago, PBR has less shares outstanding
PBR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PBR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that PBR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PBR (1.28) is comparable to the rest of the industry.
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 has a Debt to FCF ratio of 3.53. This is in the better half of the industry: PBR outperforms 73.81% 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.
Looking at the Debt to Equity ratio, with a value of 0.77, PBR is doing worse than 64.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.49
WACC6.74%
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.
Looking at the Current ratio, with a value of 0.76, PBR is doing worse than 73.33% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that PBR may have some problems paying its short term obligations.
PBR's Quick ratio of 0.51 is on the low side compared to the rest of the industry. PBR is outperformed by 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 for PBR have decreased by -8.97% 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 -1.19% 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)-8.97%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%49.75%
Revenue 1Y (TTM)-1.19%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-2.56%
3.2 Future
PBR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.45% yearly.
The Revenue is expected to decrease by -0.71% on average over the next years.
EPS Next Y18.27%
EPS Next 2Y-0.82%
EPS Next 3Y3.66%
EPS Next 5Y1.45%
Revenue Next Year-6.37%
Revenue Next 2Y-3.37%
Revenue Next 3Y-0.75%
Revenue Next 5Y-0.71%
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
Based on the Price/Earnings ratio of 4.46, the valuation of PBR can be described as very cheap.
Based on the Price/Earnings ratio, PBR is valued cheaply inside the industry as 94.76% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PBR to the average of the S&P500 Index (27.08), we can say PBR is valued rather cheaply.
A Price/Forward Earnings ratio of 4.90 indicates a rather cheap valuation of PBR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PBR indicates a rather cheap valuation: PBR is cheaper than 92.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.72. PBR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.46 | ||
| Fwd PE | 4.9 |
4.2 Price Multiples
86.67% of the companies in the same industry are more expensive than PBR, based on the Enterprise Value to EBITDA ratio.
93.81% 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 | 4.12 | ||
| EV/EBITDA | 3.38 |
4.3 Compensation for Growth
PBR's 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)0.24
PEG (5Y)0.27
EPS Next 2Y-0.82%
EPS Next 3Y3.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.99%, PBR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.11, PBR pays a bit more dividend than its industry peers.
PBR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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-0.82%
EPS Next 3Y3.66%
12.4
+0.04 (+0.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.09%
Inst Owner Change-5.25%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap79.91B
Analysts78.95
Price Target16.14 (30.16%)
Short Float %1.57%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
Yearly Dividend2.86
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)-1.82%
PT rev (3m)-1.95%
EPS NQ rev (1m)10.71%
EPS NQ rev (3m)-22.55%
EPS NY rev (1m)1.04%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)7.02%
Revenue NQ rev (3m)-6.51%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.46 | ||
| Fwd PE | 4.9 | ||
| P/S | 0.88 | ||
| P/FCF | 4.12 | ||
| P/OCF | 2.14 | ||
| P/B | 1.09 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 3.38 |
EPS(TTM)2.78
EY22.42%
EPS(NY)2.53
Fwd EY20.41%
FCF(TTM)3.01
FCFY24.25%
OCF(TTM)5.78
OCFY46.62%
SpS14.1
BVpS11.42
TBVpS11.04
PEG (NY)0.24
PEG (5Y)0.27
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%
ROICexcg growth 3Y-7.85%
ROICexcg 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 | 1.28 |
F-Score3
WACC6.74%
ROIC/WACC1.49
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)-8.97%
EPS 3Y3.04%
EPS 5Y16.66%
EPS Q2Q%49.75%
EPS Next Y18.27%
EPS Next 2Y-0.82%
EPS Next 3Y3.66%
EPS Next 5Y1.45%
Revenue 1Y (TTM)-1.19%
Revenue growth 3Y2.73%
Revenue growth 5Y10.18%
Sales Q2Q%-2.56%
Revenue Next Year-6.37%
Revenue Next 2Y-3.37%
Revenue Next 3Y-0.75%
Revenue Next 5Y-0.71%
EBIT growth 1Y-19%
EBIT growth 3Y-3.58%
EBIT growth 5Y15.19%
EBIT Next Year33.4%
EBIT Next 3Y13.68%
EBIT Next 5Y9.07%
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%