Petróleo Brasileiro 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 $14.5 to $19.2 per share, for an average of $17.02. At today's price of $14.4, Petróleo Brasileiro is trading -15.39% 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 46,730 full time employees. Petróleo Brasileiro has offered a 37.4% dividend yield over the last 12 months.
Petróleo Brasileiro has a trailing twelve month P/E ratio of 5.8, compared to an average of 13.84 for the Energy sector. Considering its EPS guidance of $3.23, the company has a forward P/E ratio of 4.5.
Furthermore, the market is potentially undervaluing Petróleo Brasileiro in terms of its book value because its P/B ratio is 0.5. In comparison, the sector average P/B ratio is 2.05. The company's shares are currently -32.6% above their Graham number, which suggests that they are not trading at a fair value in terms of earnings and net assets.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $84,638 | $76,589 | $53,683 | $83,966 | $124,474 | $102,409 |
| Gross Margins | 38% | 40% | 46% | 49% | 52% | 53% |
| Net Margins | 9% | 14% | 2% | 24% | 30% | 24% |
| Net Income (M) | $7,414 | $10,363 | $948 | $19,986 | $36,755 | $24,995 |
| Diluted Shares (M) | 7,442 | 7,442 | 7,442 | 7,442 | 7,442 | 7,442 |
| Earnings Per Share | $1.0 | $1.39 | $0.13 | $1.52 | $2.81 | $1.91 |
| Free Cash Flow (M) | $382 | $15,664 | $15,656 | $19,724 | $24,913 | $23,223 |
| Total Debt (M) | $80,508 | $58,791 | $49,702 | $32,059 | $26,378 | $24,479 |
| Net Debt / EBITDA | 2.31 | 1.45 | 1.77 | 0.44 | 0.26 | 0.23 |
| Current Ratio | 1.48 | 0.97 | 1.04 | 1.25 | 1.0 | 0.96 |
