Petroleo Brasileiro SA- Petrobras (PBR) AI Stock Analysis

• Market Cap: $86.04B
• Dividend Yield: 18.65%
• Average Volume (3M): 19.43M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.26
• Revenue Growth: -7.42%
• EPS Growth: -38.32%
• Country: US
• Employees: 41,778
• Sector: Energy
• Sector Strength: 86
• Industry: Oil & Gas Integrated
• EPS (TTM): 1.12
• Shares Outstanding: 3,721,115,700
• 10 Day Avg. Volume: 21,234,703
• 30 Day Avg. Volume: 19,432,530
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.38
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.88
• Price Target Upside: 20.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Petrobras showcases strong financial and operational performance, with efficient debt management and attractive valuation metrics contributing positively. Despite challenges in revenue growth and exploration difficulties, the company's solid cash flow and dividend yield provide a robust investment case, resulting in an overall favorable stock assessment.

Positive Factors

Corporate Governance

The decision to hike diesel prices showcases improvement on the corporate governance front.

Production

PBR started-up the FPSO Maria Quitéria in the Parque das Baleias, ahead of schedule, designed to produce up to 100kbpd and process up to 5MMm³d of natural gas.

Reserves

Petrobras announced tonight its 2024 proven reserves, registering proven reserves of 11.4 billion barrels of oil equivalent, which the company sees as positive.

Negative Factors

Capital Expenditure

PBR closed the year with a capex figure significantly above the revised guidance, which could be received negatively by the market.

Dividends

Petrobras announced a lower-than-expected dividend for 4Q24, which implies a yield well below expectations.

Financial Performance

4Q24 adjusted EBITDA came in 6% below consensus, with the Upstream segment underperforming.

Petroleo Brasileiro SA- Petrobras Business Overview & Revenue Model

Company Description

Petróleo Brasileiro S.A. - Petrobras explores for, produces, and sells oil and gas in Brazil and internationally. The company operates through Exploration and Production; Refining, Transportation and Marketing; Gas and Power; and Corporate and Other Businesses segments. It engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the domestic refineries. The Refining, Transportation and Marketing segment engages in the refining, logistics, transport, marketing, and trading of crude oil and oil products; exportation of ethanol; and extraction and processing of shale, as well as holding interests in petrochemical companies. The Gas and Power segment is involved in the logistic and trading of natural gas and electricity; transportation and trading of LNG; generation of electricity through thermoelectric power plants; holding interests in transportation and distribution of natural gas; and fertilizer production and natural gas processing business. The Corporate and Other Businesses segment produces biodiesel and its co-products, and ethanol; and distributes oil products. Petróleo Brasileiro S.A. - Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.

How the Company Makes Money

Petrobras generates revenue through several key streams within the oil and gas industry. The primary source of income is from the exploration and production of crude oil and natural gas, where the company leverages its expertise in deep-water drilling to access substantial reserves. The refining and transportation of petroleum products also contribute significantly to its earnings, as Petrobras operates a large network of refineries and distribution channels. Additionally, the company is involved in the sale of petroleum derivatives and biofuels. Petrobras also engages in strategic partnerships and joint ventures, both domestically and internationally, which bolster its exploration and production capabilities, enhancing revenue opportunities. Furthermore, fluctuations in global oil prices and domestic market policy can significantly impact Petrobras's financial performance, influencing its profitability.

Petroleo Brasileiro SA- Petrobras Financial Statement Overview

Summary

Petroleo Brasileiro SA- Petrobras has a solid financial performance with high profitability margins and efficient operational management. Despite a drop in revenue growth and free cash flow, its balance sheet remains stable with a moderate debt level and strong cash flow generation.

Income Statement

Petroleo Brasileiro SA- Petrobras shows a robust financial performance with a solid gross profit margin of 51.83% and a net profit margin of 16.95% in TTM (Trailing-Twelve-Months). However, the revenue growth rate is negative at -4.49% compared to the previous year, indicating a decline in sales. The EBIT margin of 33.87% and EBITDA margin of 40.81% are strong, reflecting efficient operational management.

Balance Sheet

The company maintains a balanced financial structure with a debt-to-equity ratio of 0.82, indicating a moderate level of debt compared to equity. The return on equity (ROE) is 22.93%, showcasing effective utilization of shareholders' equity to generate profits. An equity ratio of 36.52% suggests a stable financial position, though improvements could be made to enhance financial independence.

Cash Flow

Petrobras demonstrates strong cash flow management with a free cash flow to net income ratio of 1.58 in TTM, indicating efficient conversion of income to cash. The operating cash flow to net income ratio is 2.41, highlighting robust cash generation. Although the free cash flow growth rate is negative at -15.69% from the previous year, the company still maintains solid free cash flows.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
97.71B	102.41B	124.47B	83.97B	53.68B	76.59B
	Gross Profit
50.64B	53.97B	64.99B	40.80B	24.49B	30.86B
	EBIT
33.10B	39.27B	53.26B	31.00B	20.05B	20.92B
	EBITDA
39.88B	52.30B	70.05B	44.90B	16.99B	33.52B
	Net Income Common Stockholders
16.57B	24.88B	36.62B	19.88B	1.14B	10.15B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.55B	15.55B	10.77B	11.12B	12.37B	8.26B
	Total Assets
217.07B	217.07B	187.19B	174.35B	190.01B	229.74B
	Total Debt
62.60B	62.60B	53.80B	58.74B	75.54B	87.12B
	Net Debt
49.87B	49.87B	45.80B	48.28B	63.83B	79.75B
	Total Liabilities
138.09B	138.09B	117.36B	104.54B	130.13B	155.53B
	Stockholders Equity
78.58B	78.58B	69.49B	69.41B	59.35B	73.32B
Cash Flow		Free Cash Flow
26.22B	31.10B	40.14B	31.47B	23.02B	1.70B
	Operating Cash Flow
40.01B	43.21B	49.72B	37.79B	28.89B	25.60B
	Investing Cash Flow
-13.12B	-7.96B	-432.00M	2.16B	-4.51B	-1.68B
	Financing Cash Flow
-30.36B	-30.70B	-51.45B	-40.79B	-19.26B	-32.07B

Petroleo Brasileiro SA- Petrobras Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PBR, the sentiment is Positive. The current price of 13.97 is above the 20-day moving average (MA) of 13.44, above the 50-day MA of 13.78, and above the 200-day MA of 13.42, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.83 is Neutral, neither overbought nor oversold. The STOCH value of 86.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PBR.

Petroleo Brasileiro SA- Petrobras Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COP	78 Outperform	$129.55B	13.06	16.16%	3.06%	-2.57%	-14.01%
PBR	77 Outperform	$86.04B	13.45	10.52%	18.65%	-7.42%	-38.32%
CVX	76 Outperform	$290.53B	16.95	11.28%	4.01%	-1.90%	-14.56%
XOM	76 Outperform	$501.17B	14.74	14.38%	3.36%	1.86%	-11.52%
HES	75 Outperform	$48.27B	17.43	27.41%	1.20%	20.51%	99.86%
OXY	72 Outperform	$45.05B	19.61	8.88%	1.83%	-4.35%	-37.69%
Sector *	58 Neutral	$8.70B	5.51	-5.93%	7.52%	-0.18%	-74.84%