PETROBRAS ON N2

Petrobras explores, produces, and sells oil and gas in Brazil and internationally. The company operates through three segments: Exploration and Production; Refining, Transportation and Marketing; and Gas and Power. It explores, develops, and produces crude oil and natural gas for domestic refineries. The Refining segment refines, logsits, transports, and exports crude oil and produces fertilizers. The Gas and Power segment trades natural gas, electricity, and LNG, and generates electricity through thermoelectric power plants. Petrobras also engages in prospecting, drilling, refining, processing, trading, and transporting energy products. Headquartered in Rio de Janeiro, Brazil since 1953.

Overview

Sector

Oil & Gas

Target Price

39.5 BRL

Current Price

33.6 BRL

Potential

17%

Strengths

The company has low debt. Net Debt to EBITDA Ratio is 0.51 and it is lower than the sector mean.
The company has high returns. ROIC (46.17%) is higher than the sector mean (21.23%).
Strong EBITDA Margin of 42.46%.

Weaknesses

Current Price to Earnings Ratio (58.47) is significantly higher than the sector mean (41.35).
Price to book ratio (7.45) is significantly higher than the sector mean (1.34).
EV/EBITDA (11.85) is significantly higher than the sector mean (6.05).
EV/EBIT (30.70) is significantly higher than the sector mean.
The Price to Free Cash Flow ratio (18.86) is significantly higher than the sector mean.

Key Financial Data

Indicator	Value
PER	57.6
EV/EBITDA	11.7
Price/Free Cash Flow'	18.6
ROIC	46.2%
Net Debt/EBITDA	0.5