Petroleo Brasileiro SA- Petrobras (PBR) AI Stock Analysis

• Market Cap: $79.45B
• Dividend Yield: 20.11%
• Average Volume (3M): 21.02M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.37
• Revenue Growth: -10.81%
• EPS Growth: -70.65%
• Country: US
• Employees: 41,778
• Sector: Energy
• Sector Strength: 59
• Industry: Oil & Gas Integrated
• EPS (TTM): 1.12
• Shares Outstanding: 3,721,115,700
• 10 Day Avg. Volume: 19,546,350
• 30 Day Avg. Volume: 21,016,839
• 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: 28.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Petrobras demonstrates strong financial health with impressive profitability and stable leverage. The stock's technical indicators show bullish momentum, and the valuation suggests it may be undervalued with a high dividend yield. Despite accounting losses and external market challenges, the company's strategic focus on production increase and debt reduction remains positive.

Positive Factors

Corporate Governance

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

Operational Performance

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

Negative Factors

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 multiple streams, primarily centered around its core operations in the oil and gas industry. The company's upstream operations, which involve the exploration and production of crude oil and natural gas, are a significant source of revenue. This segment benefits from Petrobras's extensive reserves and technological capabilities in deepwater drilling. The downstream segment, which includes refining, marketing, and distribution of petroleum products, also contributes to its earnings. Petrobras owns and operates refineries that process crude oil into various products such as gasoline, diesel, and petrochemicals, which are then marketed and sold. Additionally, Petrobras is involved in the production and sale of biofuels and other renewable energy solutions, aligning with global trends towards sustainable energy. Furthermore, strategic partnerships and joint ventures, both domestic and international, enhance its operational capabilities and market reach, supporting its financial performance.

Petroleo Brasileiro SA- Petrobras Financial Statement Overview

Summary

Petrobras exhibits strong profitability with solid margins and a stable balance sheet. However, there are concerns about recent declines in revenue and free cash flow growth. The company's moderate leverage provides a stable financial position.

Income Statement

Petroleo Brasileiro SA- Petrobras has demonstrated solid profitability with a gross profit margin of approximately 50.2% and a net profit margin of 7.5% for the recent year. However, the revenue growth rate has been negative recently, indicating a decline in total revenue. The EBIT and EBITDA margins are strong at 41.5% and 40.1%, respectively, supporting the company's profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.02, which suggests balanced leverage. The equity ratio stands at 32.5%, showing a stable foundation. Return on equity is lower at 10.0%, reflecting modest returns for shareholders compared to previous years.

Cash Flow

Cash flow analysis shows a robust operating cash flow to net income ratio of 5.57, indicating strong cash generation relative to earnings. However, the free cash flow growth rate has been negative, suggesting a decline in free cash flow over the past year.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
79.36B	102.41B	124.47B	83.97B	53.68B
	Gross Profit
39.85B	53.97B	64.99B	40.80B	24.49B
	EBIT
32.95B	39.27B	53.26B	31.00B	20.05B
	EBITDA
31.86B	52.30B	70.05B	44.90B	16.99B
	Net Income Common Stockholders
5.92B	24.88B	36.62B	19.88B	1.14B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.54B	15.55B	10.77B	11.12B	12.37B
	Total Assets
181.87B	217.07B	187.19B	174.35B	190.01B
	Total Debt
60.39B	62.60B	53.80B	58.74B	75.54B
	Net Debt
57.11B	49.87B	45.80B	48.28B	63.83B
	Total Liabilities
122.45B	138.09B	117.36B	104.54B	130.13B
	Stockholders Equity
59.18B	78.58B	69.49B	69.41B	59.35B
Cash Flow		Free Cash Flow
20.08B	31.10B	40.14B	31.47B	23.02B
	Operating Cash Flow
32.99B	43.21B	49.72B	37.79B	28.89B
	Investing Cash Flow
-11.70B	-7.96B	-432.00M	2.16B	-4.51B
	Financing Cash Flow
-29.10B	-30.70B	-51.45B	-40.79B	-19.26B

Petroleo Brasileiro SA- Petrobras Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PBR, the sentiment is Negative. The current price of 13.13 is below the 20-day moving average (MA) of 13.76, below the 50-day MA of 13.84, and below the 200-day MA of 13.47, indicating a bearish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 64.14 is Neutral, neither overbought nor oversold. The STOCH value of 66.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PBR.

Petroleo Brasileiro SA- Petrobras Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHEL	79 Outperform	$191.09B	12.55	8.82%	4.33%	-5.74%	-11.09%
EQNR	79 Outperform	$63.90B	7.50	19.39%	4.90%	-4.07%	-20.34%
TTE	78 Outperform	$122.06B	8.41	13.43%	4.80%	-10.66%	-23.19%
E	77 Outperform	$43.55B	16.53	5.58%	5.18%	-5.16%	-41.74%
PBR	76 Outperform	$79.45B	12.47	10.52%	20.11%	-10.81%	-70.65%
BP	61 Neutral	$75.23B	198.74	0.59%	6.54%	-9.97%	-98.08%
Sector *	57 Neutral	$7.70B	4.18	-3.52%	8.32%	0.35%	-64.68%