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Brazilian (BOVESPA) Energy Sector Analysis

UpdatedDec 01, 2021
DataAggregated Company Financials
  • 7D2.7%
  • 3M1.3%
  • 1Y13.0%
  • YTD-3.7%

Over the last 7 days, the Energy industry has risen 2.7%, driven by gains from Ultrapar Participações of 1.3%. Meanwhile, Petro Rio actually underperformed within the industry, shrinking 6.8% in the last week. This takes the industry's 12 month performance to a gain of 13%.

Sector Valuation and Performance

Has the Brazilian Energy Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Thu, 02 Dec 2021R$535.9bR$614.8bR$145.7b7.2x
Sat, 30 Oct 2021R$536.8bR$529.5bR$109.1b18x
Mon, 27 Sep 2021R$459.2bR$529.5bR$109.1b17.8x
Wed, 25 Aug 2021R$464.1bR$527.6bR$109.0b16.6x
Thu, 01 Jul 2021R$487.3bR$419.7bR$106.8b17.9x
Sun, 04 Apr 2021R$404.0bR$350.1bR$59.4b26x
Wed, 06 Jan 2021R$445.0bR$340.0bR$9.2b27x
Sat, 10 Oct 2020R$311.7bR$346.1b-R$43,204,913,000.0020.2x
Fri, 03 Jul 2020R$342.1bR$354.1b-R$41,318,976,000.0016.4x
Mon, 06 Apr 2020R$222.9bR$376.3b-R$18,744,846,000.0020.6x
Thu, 09 Jan 2020R$470.5bR$369.5bR$33.8b13.6x
Wed, 02 Oct 2019R$424.9bR$379.3bR$26.8b16.9x
Sat, 06 Jul 2019R$422.2bR$400.0bR$32.0b13.2x
Tue, 09 Apr 2019R$437.7bR$412.2bR$22.7b19.5x
Mon, 31 Dec 2018R$361.8bR$412.9bR$25.9b7.8x
PE Ratio


Total Market Cap: R$399.3bTotal Earnings: R$18.8bTotal Revenue: R$396.6b0%0%0%3 Year10 Year

Current Industry PE: Investors are more pessimistic on the industry, considering it's trading at a PE ratio of 7.2x which is lower than its 3-year average PE of 18.0x. Given that earnings are expected to decline by 0.2%, the lower than average PE seems justified.

Past Earnings Growth: The earnings for companies in the Energy industry have grown 98% per year over the last three years, and revenues for these companies have grown 16% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Brazilian Energy sector?

Oil and Gas2.72%
Energy Services0.80%

Industry PE: Investors are most optimistic about the Oil and Gas industry even though it's trading below its 3-year average PE ratio of 18.6x. However analysts are expecting annual earnings decline of 0.2%, which is lower than the prior year's growth of 346% per year. So the market might believe that analysts are underestimating future growth or they expect the Oil and Gas industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Energy Services industry, which is trading below its 3-year average of 3.1x.

Forecasted Growth: Despite it being negative, analysts are least pessimistic on the Oil and Gas industry since they expect its earnings to decline by only 0.2% per year over the next 5 years, which isn't as bad as the other industries. However, this is a reversal from its past annual earnings growth rate of 346% per year.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

UGPA3 Ultrapar Participações1.3%+R$196.3m-32.6%PE17.1x
ENAT3 Enauta Participações2.5%+R$86.8m29.4%PE4.5x
RPMG3 Refinaria de Petróleos de Manguinhos3.2%+R$6.1m-2.0%PS0.1x
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