A strong performer from today's morning trading session is Petróleo Brasileiro, whose shares rose 1.7% to $13.65 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.
Petróleo Brasileiro Has Attractive Multiples and Trades Below Its Fair Value:
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 11.8 and a P/B ratio of 0.48.
Petróleo Brasileiro has moved -8.0% over the last year compared to 9.5% for the S&P 500 — a difference of -17.5%. Petróleo Brasileiro has a 52 week high of $17.44 and a 52 week low of $12.45.
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 |
