NYSE:PBR
$39.73
(2/9 12:00PM)
+4.0%
| Open | $39.67 |
Mkt Cap | $70.7 Billion |
| High | $39.9 |
52Wk High | $53.46 |
| Low | $39 |
52Wk Low | $24.47 |
| Volume | 11.3 Million |
Avg Vol 10D | 17.8 Million |
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PBR Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at PBR through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 2.01x and 0.76x respectively.
Utilizing this range we can see that PBR’s current Price to Sales per share ratio of 1.93x is significantly above its historical average. This places PBR at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 39% merely to return PBR to its historical average.
PBR Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. PBR is significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for PBR to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 10.83 and a 4.14 low over the same period.
Just recall that when a stock's price, as in the cases of PBR, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for PBR's Price to Cash Earnings ratio is 58% below the current ratio of 11.86. That is not an insignificant amount, and diminishes our overall outlook on PBR. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.
PBR Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for PBR, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. PBR’s estimated annual dividend is $0.02 resulting in a current dividend yield of 0.05%. The highest dividend yield from PBR over recent history was 5.61% while the lowest dividend yield was 0.00%. It is never a good sign for a company to pay significantly lower dividends, in this case 98.22% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
PBR Profits on the Mind of Fast Money
In our methodology at Ockham we weight earnings performance heavily, so we always pay attention to earnings news coming from legitimate sources like Fast Money.
The Motley Fool CAPS data suggests that investors believe Petroleo Brasileiro SA ADR will beat the market in the foreseeable future. At Ockham, we are not advising buying Petroleo Brasileiro SA ADR at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, PBR has been less covered in the news compared to the rest of our universe of stocks.
“… The interesting thing in latin america is this we play on the materials side with PETROBRAS with quality companies with everyone's portfolio and you look at the consumer names ... …”
PBR's Earnings Were Talked About on Fast Money
The name of the game in business is profit, and we always pay attention for PBR news as it relates to earnings.
As of this week's report, we have an Overvalued valuation on PBR because the price has gotten too high to be justified by the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. In comparison to the other stocks that we follow, Petroleo Brasileiro SA ADR has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… PETROBRAS, get long. > > celgene. > > karen? > > transocean. Rigs. > > got to go with amgen. This son of a gun's going higher. > > thanks for watching. …”
News on PBR From the Pundits on Closing Bell
The latest news from Closing Bell on PBR is available through Ockham's news analytics platform RazorWire.
We noticed recently that in comparison to all other stocks we analyze in the news; PBR has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Sharply lower because of refining margins, exxonmobil, total and PETROBRAS down. Oil down. Financials mostly weaker. . …”
The Call Discussed the Latest Development of Petroleo Brasileiro SA ADR
As always, the latest news on PBR is available to Ockham clients through RazorWire, and it was mentioned recently on The Call.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Petroleo Brasileiro SA ADR has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. As of this week's report, we have an Overvalued valuation on PBR because the price has gotten too high to be justified by the fundamentals.
“… So we look at exxon mobil, total and PETROBRAS which are also under pressure as well today. Financials also weaker. Word that the obama administration could possibly consider ... …”
Analyst Opinion on PBR the Topic for Closing Bell
Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on Closing Bell.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Petroleo Brasileiro SA ADR has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. As of this week's report, we have an Overvalued valuation on PBR because the price has gotten too high to be justified by the fundamentals.
“… They upgraded chevron, bp, PETROBRAS. Do you really see production growth from these companies this year. > > well, we might. …”
Emerging Markets and PBR Covered on Closing Bell
Petroleo Brasileiro SA ADR and an emerging market growth strategy were discussed recently on PBR.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Petroleo Brasileiro SA ADR has been talked about more than normal recently. At Ockham, we are not advising buying Petroleo Brasileiro SA ADR at the current price level because according to our methodology it is not supported by the fundamentals. The Motley Fool CAPS data suggests that investors believe Petroleo Brasileiro SA ADR will beat the market in the foreseeable future.
“… Getting commodity exposure, 30% in oil, PETROBRAS. And you know if i'm wrong about brazil, at least I still have exposure to china. > > …”
Petroleo Brasileiro SA ADR Was Talked About by Street Signs
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Petroleo Brasileiro SA ADR.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, PBR has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Petroleo Brasileiro SA ADR at the current price level because according to our methodology it is not supported by the fundamentals. The Motley Fool CAPS data suggests that investors believe Petroleo Brasileiro SA ADR will beat the market in the foreseeable future.
“… we do like PETROBRAS in the integrated space. Integrated hasn't had the leadership this year but going forward, ingrated in general where you're getting $1. …”
Petroleo Brasileiro SA ADR News Appeared on Power Lunch
Petroleo Brasileiro SA ADR is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Power Lunch.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; PBR has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Both stocks big movers on a PETROBRAS basis here at big board and expected to provide continued support for the housing mark. …”
PBR's Debt Load is the Topic on Power Lunch
At Ockham, we look to make sure that any debt taken on by a company corresponds directly to increases is sales. Take a look at RazorWire for the latest on PBR's debt from Power Lunch.
We have recently (Saturday, December 05, 2009) downgraded this stock due to deteriorating fundamentals. As of this week's report, we have an Overvalued valuation on PBR because the price has gotten too high to be justified by the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Petroleo Brasileiro SA ADR has actually sunk a bit in comparison to the others.
“… Equities a PETROBRAS of private equity deals has gone way up which puts pressure on them to put funds so to speak to work. …”
Closing Bell Has News on PBR
News has broken via the television and viral blogs regarding PBR, so investors should take an interest in learning what was said.
The Motley Fool CAPS data suggests that investors believe Petroleo Brasileiro SA ADR will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, PBR has been less covered in the news compared to the rest of our universe of stocks. Our valuation of PBR has become less favorable recently, and we have seen it necessary to downgrade the stock. At Ockham, we are not advising buying Petroleo Brasileiro SA ADR at the current price level because according to our methodology it is not supported by the fundamentals.
“… A guess like that, but obviously devon and anadarko, apache are big enough to make a difference to a bp or a total or even somebody coming in like a PETROBRAS. …”