BOVESPA:PETR4

Stock Analysis Report

Petróleo Brasileiro - Petrobras

Executive Summary

Petróleo Brasileiro S.A. - Petrobras produce and sells oil and gas in Brazil and internationally.


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has Petróleo Brasileiro - Petrobras's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PETR4's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.8%

PETR4

12.6%

BR Oil and Gas

7.9%

BR Market


1 Year Return

-52.6%

PETR4

-48.3%

BR Oil and Gas

-18.8%

BR Market

Return vs Industry: PETR4 underperformed the BR Oil and Gas industry which returned -44% over the past year.

Return vs Market: PETR4 underperformed the BR Market which returned -14.9% over the past year.


Shareholder returns

PETR4IndustryMarket
7 Day10.8%12.6%7.9%
30 Day-47.5%-41.0%-25.6%
90 Day-55.9%-53.6%-33.9%
1 Year-51.0%-52.6%-46.6%-48.3%-15.8%-18.8%
3 Year-1.1%-8.2%-6.0%-12.9%21.9%8.2%
5 Year33.7%24.1%24.0%13.1%48.7%22.8%

Price Volatility Vs. Market

How volatile is Petróleo Brasileiro - Petrobras's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Petróleo Brasileiro - Petrobras undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PETR4 (R$13.3) is trading below our estimate of fair value (R$32.03)

Significantly Below Fair Value: PETR4 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PETR4 is good value based on its PE Ratio (5.8x) compared to the Oil and Gas industry average (10x).

PE vs Market: PETR4 is good value based on its PE Ratio (5.8x) compared to the BR market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: PETR4 is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: PETR4 is good value based on its PB Ratio (0.6x) compared to the BR Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Petróleo Brasileiro - Petrobras forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PETR4's forecast earnings growth (1.2% per year) is below the savings rate (7%).

Earnings vs Market: PETR4's earnings (1.2% per year) are forecast to grow slower than the BR market (17% per year).

High Growth Earnings: PETR4's earnings are forecast to grow, but not significantly.

Revenue vs Market: PETR4's revenue (2.7% per year) is forecast to grow slower than the BR market (8.8% per year).

High Growth Revenue: PETR4's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PETR4's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Petróleo Brasileiro - Petrobras performed over the past 5 years?

64.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PETR4 has high quality earnings.

Growing Profit Margin: PETR4's current net profit margins (9.9%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: PETR4 has become profitable over the past 5 years, growing earnings by 64.9% per year.

Accelerating Growth: PETR4's earnings growth over the past year (32.9%) is below its 5-year average (64.9% per year).

Earnings vs Industry: PETR4 earnings growth over the past year (32.9%) underperformed the Oil and Gas industry 32.9%.


Return on Equity

High ROE: PETR4's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Petróleo Brasileiro - Petrobras's financial position?


Financial Position Analysis

Short Term Liabilities: PETR4's short term assets (R$112.1B) do not cover its short term liabilities (R$116.1B).

Long Term Liabilities: PETR4's short term assets (R$112.1B) do not cover its long term liabilities (R$510.7B).


Debt to Equity History and Analysis

Debt Level: PETR4's debt to equity ratio (85.2%) is considered high.

Reducing Debt: PETR4's debt to equity ratio has reduced from 113.1% to 85.2% over the past 5 years.

Debt Coverage: PETR4's debt is well covered by operating cash flow (39.9%).

Interest Coverage: PETR4's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: PETR4 has a high level of physical assets or inventory.

Debt Coverage by Assets: PETR4's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Petróleo Brasileiro - Petrobras's current dividend yield, its reliability and sustainability?

6.92%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 30 2020Ex Dividend DateApr 28 2020Dividend Pay DateDec 15 2020231 days from Ex DividendBuy in the next 29 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PETR4's dividend (6.92%) is higher than the bottom 25% of dividend payers in the BR market (1.87%).

High Dividend: PETR4's dividend (6.92%) is in the top 25% of dividend payers in the BR market (6.38%)


Stability and Growth of Payments

Stable Dividend: PETR4's dividend payments have been volatile in the past 10 years.

Growing Dividend: PETR4's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), PETR4's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PETR4's dividends in 3 years are forecast to be well covered by earnings (21.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Roberto da Cunha Castello Branco (75yo)

1.17s

Tenure

Mr. Roberto da Cunha Castello Branco has been the Chief Executive Officer, President and Director of Petroleo Brasileiro SA since January 3, 2019. Mr. da Cunha Castello Branco served as a Director at Petró ...


Leadership Team

NamePositionTenureCompensationOwnership
Roberto da Cunha Castello Branco
CEO, President & Director1.17yrsno datano data
Andrea Marques Almeida
CFO & Chief Investor Relations Officer0.83yrno datano data
Eberaldo de Almeida Neto
Corporate Affairs Officer & Member of Exec. boardno datano datano data
Rodrigo Alves
Chief Accounting & Tax Officerno datano datano data
Hélio Júnior
Acting General Counselno datano datano data
Marcelo de Castro Zenkner
Chief Governance and Compliance Executive Officer0.58yrno datano data
Bruno Motta
Executive Manager of Communication & Brandsno datano datano data
Sérvio Tinoco
Chief Financial Officer of Pifco14.5yrsno datano data
Marcus Antonio Guimaraes
Executive Manager of Internal Auditingno datano datano data
Mario Vinicius Spinelli
Head of Ombudsman's Officeno datano datano data

1.0yrs

Average Tenure

60.5yo

Average Age

Experienced Management: PETR4's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Roberto da Cunha Castello Branco
CEO, President & Director1.17yrsno datano data
Daniel de Oliveira
Chairman & CEO of Pifco14.5yrsno datano data
Sônia Júlia Villalobos
Director1.92yrsno datano data
Marcelo Mesquita de Siqueira Filho
Director3.58yrsno datano data
Walter de Oliveira Filho
Director0.58yrno datano data
Ana Lúcia Zambelli
Director1.92yrsno datano data
Danilo da Silva
Director1.25yrsno datano data
Eduardo Pasa
Chairman of Fiscal Councilno datano datano data
Eduardo Bacellar Ferreira
Chairman of the Board1.17yrsno datano data
João Neto
Director1.17yrsno datano data

1.3yrs

Average Tenure

56yo

Average Age

Experienced Board: PETR4's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Petróleo Brasileiro S.A. - Petrobras's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Petróleo Brasileiro S.A. - Petrobras
  • Ticker: PETR4
  • Exchange: BOVESPA
  • Founded: 1953
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: R$171.478b
  • Shares outstanding: 13.04b
  • Website: https://petrobras.com.br/pt

Number of Employees


Location

  • Petróleo Brasileiro S.A. - Petrobras
  • Avenida República do Chile, 65
  • Centro
  • Rio De Janeiro
  • Rio de Janeiro
  • 20031-912
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PETR4BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred SharesBRBRLAug 1991
XPBRABME (Bolsas y Mercados Espanoles)YesPreferred SharesESEURAug 1991
PJXBDB (Deutsche Boerse AG)YesPreferred SharesDEEURAug 1991
PETR3BOVESPA (Bolsa de Valores de Sao Paulo)Common SharesBRBRLNov 1992
XPBRBME (Bolsas y Mercados Espanoles)Common SharesESEURNov 1992
PJXCDB (Deutsche Boerse AG)Common SharesDEEURNov 1992
PBR.ANYSE (New York Stock Exchange)SPONS ADR-EACH REPR 2 PREF SHS NPVUSUSDSep 1997
PJXDB (Deutsche Boerse AG)SPONS ADR-EACH REPR 2 PREF SHS NPVDEEURSep 1997
PBRA NBMV (Bolsa Mexicana de Valores)SPONS ADR-EACH REPR 2 PREF SHS NPVMXMXNSep 1997
PBRNYSE (New York Stock Exchange)SPONSORED ADRUSUSDAug 2000
PJXADB (Deutsche Boerse AG)SPONSORED ADRDEEURAug 2000
PBR NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNAug 2000
0KHPLSE (London Stock Exchange)SPONSORED ADRGBUSDAug 2000

Biography

Petróleo Brasileiro S.A. - Petrobras produce and sells oil and gas in Brazil and internationally. It engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. The company operates through Exploration and Production; Refining, Transportation and Marketing; Gas and Power; and Corporate and Other Businesses segments. The Exploration and Production segment explores for, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the its domestic refineries. The Refining, Transportation and Marketing segment is involved in the refining, logistics, transport, and trading of crude oil and oil products; exportation of ethanol; and extraction and processing of shale, as well as holding interests in petrochemical companies. The Gas and Power segment engages in the logistic and trading of natural gas and liquid natural gas; generation of electricity through thermoelectric power plants; holding interests in transportation and distribution of natural gas; and fertilizer business operations. The Corporate and Other Businesses segment produces biodiesel and its co-products, and ethanol; and distributes oil products. Petróleo Brasileiro S.A. - Petrobras was founded in 1953 and is headquartered in Rio de Janeiro, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 18:28
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.