Petróleo Brasileiro S.A. - Petrobras
Petróleo Brasileiro S.A. - Petrobras Fundamental Analysis
Petróleo Brasileiro S.A. - Petrobras (PBR) shows moderate financial fundamentals with a PE ratio of 7.27, profit margin of 16.15%, and ROE of 19.88%. The company generates $86.4B in annual revenue with moderate year-over-year growth of 3.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PBR's fundamental strength across five key dimensions:
Efficiency Score
WeakPBR struggles to generate sufficient returns from assets.
Valuation Score
ModeratePBR shows balanced valuation metrics.
Growth Score
ModeratePBR shows steady but slowing expansion.
Financial Health Score
ModeratePBR shows balanced financial health with some risks.
Profitability Score
ExcellentPBR achieves industry-leading margins.
Key Financial Metrics
Is PBR Expensive or Cheap?
P/E Ratio
PBR trades at 7.27 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PBR's PEG of 7.63 indicates potential overvaluation.
Price to Book
The market values Petróleo Brasileiro S.A. - Petrobras at 1.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.04 times EBITDA. This is generally considered low.
How Well Does PBR Make Money?
Net Profit Margin
For every $100 in sales, Petróleo Brasileiro S.A. - Petrobras keeps $16.15 as profit after all expenses.
Operating Margin
Core operations generate 25.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.88 in profit for every $100 of shareholder equity.
ROA
Petróleo Brasileiro S.A. - Petrobras generates $6.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Petróleo Brasileiro S.A. - Petrobras generates strong operating cash flow of $34.09B, reflecting robust business health.
Free Cash Flow
Petróleo Brasileiro S.A. - Petrobras generates strong free cash flow of $16.73B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.60 in free cash annually.
FCF Yield
PBR converts 16.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How PBR Stacks Against Its Sector Peers
| Metric | PBR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.27 | 20.19 | Better (Cheaper) |
| ROE | 19.88% | 1019.00% | Weak |
| Net Margin | 16.15% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.89 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.82 | 4.60 | Weak Liquidity |
| ROA | 6.12% | -11655350.00% (disorted) | Weak |
PBR outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Petróleo Brasileiro S.A. - Petrobras's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.71%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-25.00%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
50.05%
Industry Style: Cyclical, Value, Commodity
High Growth