PBR Petroleo Brasileiro SA Petrobras

Petróleo Brasileiro (Petrobras) is Brazil's state-controlled oil and gas company and one of the world's largest energy companies, operating in deep-water exploration, production, and refining. Sector: Energy.

Petroleo Brasileiro SA Petrobras (PBR) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Examining the company through a capital allocation lens, ROIC is 12.54%, WACC is 3.21%, and the economic spread is 9.33%. On balance, the company is generating returns above their cost of capital, though the margin is slim enough to warrant attention. Supporting metrics show ROE at 27.98% and ROA at 9.03%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Valuation currently screens at trailing P/E of 6.27, forward P/E of 6.55, PEG of 0.90. Trailing and forward P/E are close together, implying the market does not expect a significant change in the earnings trajectory over the near term. A PEG below 1.5 implies the company's growth rate is not fully reflected in the current multiple — a constructive signal for growth-adjusted value. The aggregate current ratio of 0.71 reflects tighter near-term liquidity — a factor worth monitoring if macro conditions tighten. The valuation profile here is neither obviously cheap nor dramatically expensive — a setup where the return case is built more on earnings delivery than on re-rating potential.

From gross to free cash flow, gross margin sits at 47.64%, operating margin at 30.59%, and free cash flow margin at 19.04%. At this gross margin level, the the company demonstrate adequate production efficiency without commanding premium pricing. The company's operating margins are well above average, pointing to businesses that manage the full cost stack with discipline. The company's FCF margin is above average, pointing to the company with efficient capital deployment and durable cash generation. The margin profile is mixed, with some layers more resilient than others and less room for execution slippage.

Combining revenue momentum with analyst targets, the estimated 12-month price change of -22.97%, where consensus forward pricing suggests a pullback from current levels, while TTM revenue growth of 5.03% reflecting moderate but reliable revenue progress across the company. Separating operating reality from market-implied expectations is useful here — they can diverge meaningfully when sentiment shifts. The forward return case hinges on whether the operating reality stays close enough to analyst assumptions for those targets to remain credible. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The composite read is moderately constructive but uneven — in the absence of a clear catalyst, a neutral stance is well-supported by the data.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.