Petroleo Brasileiro SA Petrobras (PBR, Financial), a Brazil-based integrated energy company, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 14.33%, from a modestly undervalued position three months ago to a fairly valued position today, according to the GF Value. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. This article will delve into the factors contributing to this impressive performance and provide an in-depth analysis of the company's operations, profitability, and growth prospects.
Unpacking Petroleo Brasileiro SA Petrobras
Petrobras is a Brazil-based integrated energy company controlled by the Brazilian government. The company focuses on exploration and production for oil and gas in Brazilian offshore fields. Production in 2022 was 2.7 million barrels of oil equivalent a day (80% oil production), and reserves stood at 10.5 billion boe (85% oil). At year-end 2022, Petrobras operated 11 refineries in Brazil with capacity of 1.9 million barrels a day and distributes refined products and natural gas throughout Brazil. 
Profitability Analysis
Petrobras has a profitability rank of 8/10, indicating a high level of profitability. The company's operating margin of 41.90% is better than 85.23% of companies in the industry. Similarly, its ROE, ROA, and ROIC, which stand at 40.28%, 15.91%, and 18.99% respectively, are all better than the majority of companies in the industry. Over the past 10 years, Petrobras has had 6 profitable years, which is better than 59.29% of companies in the industry.
Growth Prospects
Petrobras has a growth rank of 9/10, indicating strong growth. The company's 3-year and 5-year revenue growth rates per share are 28.80% and 17.50% respectively, both of which are better than the majority of companies in the industry. However, the company's future revenue and EPS growth rates are expected to decrease, with the total revenue growth rate estimated to be -10.61% and the EPS growth rate estimated to be -19.46%.
Top Holders of Petrobras Stock
The top three holders of Petrobras stock are Baillie Gifford (Trades, Portfolio), which holds 0.85% of shares, Ken Fisher (Trades, Portfolio), who holds 0.27% of shares, and Howard Marks (Trades, Portfolio), who holds 0.12% of shares.
Competitive Landscape
Petrobras faces competition from several companies in the oil and gas industry. Its main competitors include Hebei Ruixing Gas Equipment Co Ltd, with a market cap of $66.540 million, Nanjing Tanker Corp, with a market cap of $2.13 billion, and Terrence Energy Co Ltd, with a market cap of $142.262 million.
Conclusion
In conclusion, Petrobras's stock performance, operations, and profitability, as well as the competitive landscape, suggest that the company has strong growth prospects. Despite the expected decrease in future revenue and EPS growth rates, the company's high profitability rank and impressive growth rank indicate that it has the potential to continue delivering value to its shareholders.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
