Petroleo Brasileiro S.A. Petrobras ADS (PBR)

FairStock Score: 84/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-13 close of $25.50, Petrobras looks statistically cheap. FairStock’s calculations show a 6.44 P/E, 1.76 P/B, 1.88 EV/EBITDA, a 0.05 PEG, and a 62.4% trailing free-cash-flow yield. The Graham Number is $55.48, implying a 54.04% margin of safety. In the latest reported quarter, fiscal Q1 2026, revenue was $123.7B and net income was $32.7B, a 26.41% net margin. Those are exceptional figures, and the 8.08% dividend yield plus 30.27% ROE suggest capital is being returned and employed effectively. The Piotroski F-Score of 8/9 supports recent financial strength, and a -0.21 beta suggests the shares have not moved with the broad market. But Graham would not ignore the risks. FairStock’s Altman Z-Score of 0.25 is very weak, and debt-to-equity of 0.76 means the balance sheet is not conservative. Integrated oil is a commodity business; scale and integration may help, but they are not a durable moat against oil-price cycles or political interference. ROCE of 10.07% is decent, not spectacular, and the Lynch category is none because only 0 years of filed results are available, needing 3, so the long-term earnings record is not proven in this dataset. The price looks cheap against current profit, cash flow, and book value. But the cheapness may reflect real uncertainties. I would want to see whether the latest quarter’s profit is sustainable, whether debt falls, and whether cash flow remains strong through a full cycle.

In plain English: Petrobras is a large oil and gas company that finds, produces, refines, and sells energy products in Brazil and other countries. Based on the figures given, the business looks very profitable and cash-generative right now: it earned a large profit in the latest quarter, produces strong cash flow, and pays an 8.08% dividend. The share price looks low compared with those profits and cash flows, but the company carries meaningful debt and has a very weak financial-risk score, so the low price comes with real uncertainty.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer