Petróleo Brasileiro - Petrobras (BMV:PBRA N) - Share price, News & Analysis

PBRA N fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	6/6
Financial Health	5/6
Dividends	4/6

PBRA N Stock Overview

Petróleo Brasileiro S.A. - Petrobras explores for, produces, and sells oil and gas in Brazil and internationally.

Rewards

Trading at 36.9% below our estimate of its fair value

Earnings grew by 1400.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 2.5% per year for the next 3 years

Shares are highly illiquid

Dividend of 28.18% is not well covered by earnings

Petróleo Brasileiro - Petrobras Competitors

Exxon Mobil

NYSE:XOM

US$364.0b

Shell

LSE:SHEL

UK£166.4b

PetroChina

SEHK:857

HK$1.1t

ConocoPhillips

NYSE:COP

US$124.3b

Price History & Performance

Summary of all time highs, changes and price drops for Petróleo Brasileiro - Petrobras
Historical stock prices
Current Share Price	R$278.00
52 Week High	R$280.00
52 Week Low	R$211.00
Beta	1.32
1 Month Change	-0.26%
3 Month Change	n/a
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	65.48%
Change since IPO	74.40%

Shareholder Returns

	PBRA N	MX Oil and Gas	MX Market
7D	0%	-2.3%	-1.7%
1Y	n/a	21.6%	10.8%

Return vs Industry: Insufficient data to determine how PBRA N performed against the MX Oil and Gas industry.

Return vs Market: Insufficient data to determine how PBRA N performed against the MX Market.

Price Volatility

Is PBRA N's price volatile compared to industry and market?
PBRA N volatility
PBRA N Average Weekly Movement	n/a
Oil and Gas Industry Average Movement	6.4%
Market Average Movement	4.5%
10% most volatile stocks in MX Market	7.2%
10% least volatile stocks in MX Market	2.7%

Stable Share Price: Insufficient data to determine PBRA N's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine PBRA N's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1953	45,532	Jose Mauro Coelho	https://petrobras.com.br

Petróleo Brasileiro S.A. - Petrobras explores for, produces, and sells oil and gas in Brazil and internationally. The company operates through Exploration and Production; Refining, Transportation and Marketing; Gas and Power; and Corporate and Other Businesses segments. 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.

Petróleo Brasileiro - Petrobras Fundamentals Summary

How do Petróleo Brasileiro - Petrobras's earnings and revenue compare to its market cap?
PBRA N fundamental statistics
Market Cap	R$418.50b
Earnings (TTM)	R$106.67b
Revenue (TTM)	R$452.67b

3.7x

P/E Ratio

0.9x

P/S Ratio

Is PBRA N overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PBRA N income statement (TTM)
Revenue	R$452.67b
Cost of Revenue	R$233.03b
Gross Profit	R$219.64b
Other Expenses	R$112.97b
Earnings	R$106.67b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 05, 2022

Earnings per share (EPS)	8.18
Gross Margin	48.52%
Net Profit Margin	23.56%
Debt/Equity Ratio	51.1%

How did PBRA N perform over the long term?

See historical performance and comparison

Dividends

28.2%

Current Dividend Yield

104%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

36.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PBRA N (MX$278) is trading below our estimate of fair value (MX$440.6)

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

Price To Earnings Ratio

PE vs Industry: PBRA N is good value based on its PE Ratio (3.7x) compared to the South American Oil and Gas industry average (11.5x).

PE vs Market: PBRA N is good value based on its PE Ratio (3.7x) compared to the MX market (12.7x).

Price to Earnings Growth Ratio

PEG Ratio: PBRA N's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: PBRA N is good value based on its PB Ratio (1x) compared to the XS Oil and Gas industry average (1.3x).

Future Growth

How is Petróleo Brasileiro - Petrobras forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-2.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBRA N's earnings are forecast to decline over the next 3 years (-2.5% per year).

Earnings vs Market: PBRA N's earnings are forecast to decline over the next 3 years (-2.5% per year).

High Growth Earnings: PBRA N's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PBRA N's revenue (2.9% per year) is forecast to grow slower than the MX market (6% per year).

High Growth Revenue: PBRA N's revenue (2.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PBRA N's Return on Equity is forecast to be high in 3 years time (23.9%)

Past Performance

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

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

49.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PBRA N has high quality earnings.

Growing Profit Margin: PBRA N's current net profit margins (23.6%) are higher than last year (2.6%).

Past Earnings Growth Analysis

Earnings Trend: PBRA N has become profitable over the past 5 years, growing earnings by 49.7% per year.

Accelerating Growth: PBRA N's earnings growth over the past year (1400.7%) exceeds its 5-year average (49.7% per year).

Earnings vs Industry: PBRA N earnings growth over the past year (1400.7%) exceeded the Oil and Gas industry 501.6%.

Return on Equity

High ROE: PBRA N's Return on Equity (27.5%) is considered high.

Financial Health

How is Petróleo Brasileiro - Petrobras's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PBRA N's short term assets (R$168.2B) exceed its short term liabilities (R$134.9B).

Long Term Liabilities: PBRA N's short term assets (R$168.2B) do not cover its long term liabilities (R$448.5B).

Debt to Equity History and Analysis

Debt Level: PBRA N's net debt to equity ratio (35.2%) is considered satisfactory.

Reducing Debt: PBRA N's debt to equity ratio has reduced from 152.2% to 51.1% over the past 5 years.

Debt Coverage: PBRA N's debt is well covered by operating cash flow (102%).

Interest Coverage: PBRA N's interest payments on its debt are well covered by EBIT (12.4x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

28.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PBRA N's dividend (28.18%) is higher than the bottom 25% of dividend payers in the MX market (1.84%).

High Dividend: PBRA N's dividend (28.18%) is in the top 25% of dividend payers in the MX market (5.75%)

Stability and Growth of Payments

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

Growing Dividend: PBRA N's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (104.4%), PBRA N's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (65.9%), PBRA N's dividend payments are covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Energy industry.

Management

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

1.0yrs

Average management tenure

CEO

Jose Mauro Coelho

0.083

Tenure

Mr. Jose Mauro Ferreira Coelho serves as Member of the Executive Board at Petróleo Brasileiro S.A. - Petrobras since April 2022. He is Chief Executive Officer of Petróleo Brasileiro S.A. - Petrobras from A...

Leadership Team

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

Board Members

Experienced Board: PBRA N's board of directors are not considered experienced ( 1.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/02 00:00
End of Day Share Price	2022/04/18 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31