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PBR

Petróleo Brasileiro - PetrobrasNYSE:PBR Stock Report

Last Price

R$12.61

Market Cap

R$78.9b

7D

4.9%

1Y

16.4%

Updated

19 Jan, 2022

Data

Company Financials +
PBR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends4/6

PBR Stock Overview

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

Petróleo Brasileiro - Petrobras Competitors

Exxon Mobil

NYSE:XOM

US$309.5b

Chevron

NYSE:CVX

US$248.5b

Royal Dutch Shell

ENXTAM:RDSA

€171.4b

PetroChina

SEHK:857

HK$1.2t

Price History & Performance

Summary of all time highs, changes and price drops for Petróleo Brasileiro - Petrobras
Historical stock prices
Current Share PriceR$12.61
52 Week HighR$12.88
52 Week LowR$7.06
Beta1.35
1 Month Change19.19%
3 Month Change25.47%
1 Year Change16.44%
3 Year Change-18.54%
5 Year Change14.95%
Change since IPO76.21%

Recent News & Updates

Jan 13

Petrobras Is Well-Placed To Take Advantage Of Growth In Global Oil Demand

The energy industry has struggled with profitability and the capital cycle for the past fifteen years, with stock valuations trailing the broader market. With the massive exit of capital, due to industry dynamics and pressure from environmental, social and governance investors, the industry is returning to profitability. Petrobras is likely to be a key beneficiary of that return to profitability, given its operational flexibility, investment in exploration and production. Financially, the company is first-in-class, with profitability in excess of its peers. The market has priced it for an 80% decline in profitability, despite broad industry dynamics in its favor.

Jan 04

Petrobras Is A Great Stock But For Later

Petrobras is a great stock on paper combining many favorable investment positives. Unfortunately, its stock price will likely lag its NOC peers over the coming quarters due to political risks until the Brazilian election later this year. I see better risk-reward elsewhere for the time being.

Dec 29

Petrobras Guides Towards 20% Dividends

Petrobras' sustainability has improved significantly over the past 10+ years, an important part of its future business model. In our view, the company has a pessimistic outlook for oil prices, highlighting an ability to return more. The company is expecting to be able to pay annualized dividends of almost 20% over the next 5 years. The company has a captive native market supporting continued strength in its performance. We see the company as a valuable investment given its earnings potential.

Shareholder Returns

PBRUS Oil and GasUS Market
7D4.9%0.7%-4.6%
1Y16.4%45.7%7.7%

Return vs Industry: PBR underperformed the US Oil and Gas industry which returned 46.8% over the past year.

Return vs Market: PBR exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is PBR's price volatile compared to industry and market?
PBR volatility
PBR Average Weekly Movement5.9%
Oil and Gas Industry Average Movement7.3%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: PBR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PBR's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195349,050Joaquim Silva Lunahttps://petrobras.com.br/pt

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.

Petróleo Brasileiro - Petrobras Fundamentals Summary

How do Petróleo Brasileiro - Petrobras's earnings and revenue compare to its market cap?
PBR fundamental statistics
Market CapR$431.30b
Earnings (TTM)R$135.05b
Revenue (TTM)R$342.81b

3.0x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PBR income statement (TTM)
RevenueR$342.81b
Cost of RevenueR$141.86b
Gross ProfitR$200.95b
ExpensesR$65.90b
EarningsR$135.05b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)10.35
Gross Margin58.62%
Net Profit Margin39.40%
Debt/Equity Ratio53.2%

How did PBR perform over the long term?

See historical performance and comparison

Dividends

18.0%

Current Dividend Yield

8%

Payout Ratio

Valuation

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

27.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PBR ($12.61) is trading below our estimate of fair value ($17.48)

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


Price To Earnings Ratio

PE vs Industry: PBR is good value based on its PE Ratio (3x) compared to the US Oil and Gas industry average (18.2x).

PE vs Market: PBR is good value based on its PE Ratio (3x) compared to the US market (17x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PBR is good value based on its PB Ratio (1.1x) compared to the US Oil and Gas industry average (2.2x).


Future Growth

How is Petróleo Brasileiro - Petrobras forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBR's earnings are forecast to decline over the next 3 years (-4.4% per year).

Earnings vs Market: PBR's earnings are forecast to decline over the next 3 years (-4.4% per year).

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

Revenue vs Market: PBR's revenue (1.4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: PBR's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PBR's Return on Equity is forecast to be high in 3 years time (21.8%)


Past Performance

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

50.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBR has a large one-off gain of R$39.8B impacting its September 30 2021 financial results.

Growing Profit Margin: PBR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PBR has become profitable over the past 5 years, growing earnings by 50.3% per year.

Accelerating Growth: PBR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PBR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (17.4%).


Return on Equity

High ROE: PBR's Return on Equity (36.2%) is considered high.


Financial Health

How is Petróleo Brasileiro - Petrobras's financial position?


Financial Position Analysis

Short Term Liabilities: PBR's short term assets (R$166.3B) exceed its short term liabilities (R$138.7B).

Long Term Liabilities: PBR's short term assets (R$166.3B) do not cover its long term liabilities (R$460.3B).


Debt to Equity History and Analysis

Debt Level: PBR's net debt to equity ratio (36.6%) is considered satisfactory.

Reducing Debt: PBR's debt to equity ratio has reduced from 151.8% to 53.2% over the past 5 years.

Debt Coverage: PBR's debt is well covered by operating cash flow (94.9%).

Interest Coverage: PBR's interest payments on its debt are well covered by EBIT (16.5x coverage).


Balance Sheet


Dividend

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

18.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PBR's dividend (18.02%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: PBR's dividend (18.02%) is in the top 25% of dividend payers in the US market (3.48%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.7%), PBR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PBR's dividends in 3 years are not forecast to be well covered by earnings (97.8% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Joaquim Silva Luna

0.75

Tenure

Mr. Joaquim Silva e Luna serves as Member of Executive Board at Petróleo Brasileiro S.A. – Petrobras. He serves as Chief Executive Officer at Petróleo Brasileiro S.A. - Petrobras since April 16, 2021 and s...


Leadership Team

Experienced Management: PBR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: PBR'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.


Top Shareholders

Company Information

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


Key Information

  • Name: Petróleo Brasileiro S.A. - Petrobras
  • Ticker: PBR
  • Exchange: NYSE
  • Founded: 1953
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Implied Market Cap: R$431.302b
  • Listing Market Cap: R$78.918b
  • Shares outstanding: 13.04b
  • Website: https://petrobras.com.br/pt

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:36
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.