PBF Energy may be undervalued with strong growth indicators, but the 11 analysts following the company give it an rating of hold. Their target prices range from $8.23 to $19.0 per share, for an average of $13.65. At today's price of $13.03, PBF Energy is trading -4.58% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
Petróleo Brasileiro S.A. - Petrobras explores, produces, and sells oil and gas in Brazil and internationally. Based in Rio De Janeiro, Brazil, the large-cap Energy company has 45,149 full time employees. PBF Energy has offered a 86.7% dividend yield over the last 12 months.
PBF Energy has a trailing twelve month P/E ratio of 2.4, compared to an average of 7.54 for the Energy sector. Based on its EPS guidance of 2.83, the company has a forward P/E ratio of 4.6.
The average compound growth rate of the company's historical and projected earnings per share is 12.7%. On this basis, the company's PEG ratio is 0.17. However, this growth rate is probably not sustainable. In its place we will use the broader market's estimated 5-year EPS growth rate of 9.2%, which gives us a PEG ratio of 0.23. Even with this more conservative assumption on EPS growth, the PEG ratio suggests that PBF Energy shares are underpriced.
Furthermore, the market is potentially undervaluing PBF Energy in terms of its book value because its P/B ratio is 0.21. In comparison, the sector average P/B ratio is 1.68. The company's shares are currently -78.1% below their Graham number, indicating that its shares have a margin of safety.
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $76,589 | $53,683 | $83,966 | $124,474 |
| Gross Margins | 40.3% | 45.6% | 48.6% | 52.2% |
| Operating Margins | 26.1% | 30.8% | 38.6% | 44.6% |
| Net Margins | 13.25% | 2.13% | 23.67% | 29.42% |
| Net Income (MM) | $10,151 | $1,141 | $19,875 | $36,623 |
| Net Interest Income | -$6,314,000 | -$5,655,000 | -$4,644,000 | -$2,827,000 |
| Depreciation & Amort. | -$14,836,000 | -$11,445,000 | -$11,695,000 | -$13,218,000 |
| Earnings Per Share | $1.56 | $0.18 | $3.04 | $5.42 |
| EPS Growth | n/a | -88.46% | 1588.89% | 78.29% |
| Diluted Shares (MM) | 6,522 | 6,522 | 6,522 | 6,522 |
| Free Cash Flow (MM) | $1,703 | $23,016 | $31,466 | $40,136 |
| Capital Expenditures (MM) | -$23,897 | -$5,874 | -$6,325 | -$9,581 |
| Net Current Assets (MM) | -$127,713 | -$102,746 | -$74,387 | -$86,105 |
| Current Ratio | 0.97 | 1.04 | 1.25 | 1.0 |
| Long Term Debt (MM) | $58,791 | $49,702 | $32,059 | $26,378 |
| Net Debt / EBITDA | 1.74 | 2.81 | 0.69 | 0.4 |
