It hasn't been a great afternoon session for Petróleo Brasileiro investors, who have watched their shares sink by -1.1% to a price of $13.72. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
The Market May Be Undervaluing Petróleo Brasileiro's Assets and Equity:
Petróleo Brasileiro S.A. - Petrobras explores, produces, and sells oil and gas in Brazil and internationally. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 13.62 and an average price to book (P/B) ratio of 1.86. In contrast, Petróleo Brasileiro has a trailing 12 month P/E ratio of 5.4 and a P/B ratio of 0.45.
Petróleo Brasileiro has moved -20.6% over the last year compared to 20.0% for the S&P 500 — a difference of -40.6%. Petróleo Brasileiro has a 52 week high of $17.91 and a 52 week low of $12.55.
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 |
