PETR4 Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Petroleo Brasileiro SA Petrobras - Alpha Spread

Petroleo Brasileiro SA Petrobras
BOVESPA:PETR4

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Petroleo Brasileiro SA Petrobras Logo
Petroleo Brasileiro SA Petrobras
BOVESPA:PETR4
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Price: 37.55 BRL -1.96% Market Closed
Market Cap: 488.7B BRL
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Petroleo Brasileiro SA Petrobras

Revenue
499.1B BRL
Cost of Revenue
-263B BRL
Gross Profit
236.1B BRL
Operating Expenses
-58.2B BRL
Operating Income
177.8B BRL
Other Expenses
-99.1B BRL
Net Income
78.8B BRL

Margins Comparison
Petroleo Brasileiro SA Petrobras Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
BR
Petroleo Brasileiro SA Petrobras
BOVESPA:PETR4
484B BRL
47%
36%
16%
SA
Saudi Arabian Oil Co
SAU:2222
6.7T SAR
57%
45%
23%
US
Exxon Mobil Corp
NYSE:XOM
500.5B USD
30%
13%
10%
US
Chevron Corp
NYSE:CVX
253.4B USD
39%
12%
10%
UK
Shell PLC
NYSE:SHEL
210.5B USD
26%
13%
6%
NL
Royal Dutch Shell PLC
OTC:RYDAF
211B USD
26%
13%
6%
CN
PetroChina Co Ltd
SSE:601857
1.5T CNY
14%
9%
5%
FR
TotalEnergies SE
NYSE:TTE
153.1B USD
35%
16%
10%
CN
China Petroleum & Chemical Corp
SSE:600028
787.7B CNY
7%
3%
2%
UK
BP PLC
NYSE:BP
88.4B USD
28%
11%
4%
NO
Equinor ASA
NYSE:EQNR
72.6B USD
52%
31%
9%
Country BR
Market Cap 484B BRL
Gross Margin
47%
Operating Margin
36%
Net Margin
16%
Country SA
Market Cap 6.7T SAR
Gross Margin
57%
Operating Margin
45%
Net Margin
23%
Country US
Market Cap 500.5B USD
Gross Margin
30%
Operating Margin
13%
Net Margin
10%
Country US
Market Cap 253.4B USD
Gross Margin
39%
Operating Margin
12%
Net Margin
10%
Country UK
Market Cap 210.5B USD
Gross Margin
26%
Operating Margin
13%
Net Margin
6%
Country NL
Market Cap 211B USD
Gross Margin
26%
Operating Margin
13%
Net Margin
6%
Country CN
Market Cap 1.5T CNY
Gross Margin
14%
Operating Margin
9%
Net Margin
5%
Country FR
Market Cap 153.1B USD
Gross Margin
35%
Operating Margin
16%
Net Margin
10%
Country CN
Market Cap 787.7B CNY
Gross Margin
7%
Operating Margin
3%
Net Margin
2%
Country UK
Market Cap 88.4B USD
Gross Margin
28%
Operating Margin
11%
Net Margin
4%
Country NO
Market Cap 72.6B USD
Gross Margin
52%
Operating Margin
31%
Net Margin
9%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Petroleo Brasileiro SA Petrobras Competitors

Country Company Market Cap ROE ROA ROCE ROIC
BR
Petroleo Brasileiro SA Petrobras
BOVESPA:PETR4
484B BRL
21%
8%
21%
14%
SA
Saudi Arabian Oil Co
SAU:2222
6.7T SAR
29%
18%
39%
22%
US
Exxon Mobil Corp
NYSE:XOM
500.5B USD
15%
8%
13%
10%
US
Chevron Corp
NYSE:CVX
253.4B USD
12%
7%
10%
7%
UK
Shell PLC
NYSE:SHEL
210.5B USD
10%
5%
12%
8%
NL
Royal Dutch Shell PLC
OTC:RYDAF
211B USD
10%
5%
12%
8%
CN
PetroChina Co Ltd
SSE:601857
1.5T CNY
11%
6%
13%
9%
FR
TotalEnergies SE
NYSE:TTE
153.1B USD
18%
7%
17%
12%
CN
China Petroleum & Chemical Corp
SSE:600028
787.7B CNY
7%
3%
6%
4%
UK
BP PLC
NYSE:BP
88.4B USD
11%
3%
11%
7%
NO
Equinor ASA
NYSE:EQNR
72.6B USD
21%
7%
32%
11%
Country BR
Market Cap 484B BRL
ROE
21%
ROA
8%
ROCE
21%
ROIC
14%
Country SA
Market Cap 6.7T SAR
ROE
29%
ROA
18%
ROCE
39%
ROIC
22%
Country US
Market Cap 500.5B USD
ROE
15%
ROA
8%
ROCE
13%
ROIC
10%
Country US
Market Cap 253.4B USD
ROE
12%
ROA
7%
ROCE
10%
ROIC
7%
Country UK
Market Cap 210.5B USD
ROE
10%
ROA
5%
ROCE
12%
ROIC
8%
Country NL
Market Cap 211B USD
ROE
10%
ROA
5%
ROCE
12%
ROIC
8%
Country CN
Market Cap 1.5T CNY
ROE
11%
ROA
6%
ROCE
13%
ROIC
9%
Country FR
Market Cap 153.1B USD
ROE
18%
ROA
7%
ROCE
17%
ROIC
12%
Country CN
Market Cap 787.7B CNY
ROE
7%
ROA
3%
ROCE
6%
ROIC
4%
Country UK
Market Cap 88.4B USD
ROE
11%
ROA
3%
ROCE
11%
ROIC
7%
Country NO
Market Cap 72.6B USD
ROE
21%
ROA
7%
ROCE
32%
ROIC
11%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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