Now trading at a price of $14.22, Petróleo Brasileiro has moved -0.9% so far today.
Petróleo Brasileiro returned losses of -5.6% last year, with its stock price reaching a high of $17.91 and a low of $12.9. Over the same period, the stock underperformed the S&P 500 index by -36.1%. AThe company's 50-day average price was $14.24. 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 42.3% dividend yield over the last 12 months.
Generally Positive Cash Flows but Not Enough Current Assets to Cover Current Liabilities:
| 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 |
Petróleo Brasileiro Is Potentially Undervalued and Its Shares Are on Sale:
Petróleo Brasileiro has a trailing twelve month P/E ratio of 5.6, compared to an average of 13.62 for the Energy sector. Based on its EPS guidance of $2.97, the company has a forward P/E ratio of 4.8. According to the 16.8% compound average growth rate of Petróleo Brasileiro's historical and projected earnings per share, the company's PEG ratio is 0.33. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 12.5%. On this basis, the company's PEG ratio is 0.45. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing Petróleo Brasileiro in terms of its equity because its P/B ratio is 0.47 whereas the sector average is 1.86. The company's shares are currently trading -33.4% above their Graham number.
Analysts Give Petróleo Brasileiro an Average Rating of Buy:
The 14 analysts following Petróleo Brasileiro have set target prices ranging from $13.0 to $20.0 per share, for an average of $16.9 with a buy rating. The company is trading -15.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Petróleo Brasileiro has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 19.9% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is GQG Partners LLC, whose 6% stake in the company is worth $3,289,097,105.
