| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 5.2x | 17.3x | Top tier | |
Growth | 58 | 19.5% | 7.1% | Around median | |
Quality | 79 | 16.6% | 4.5% | Top tier | |
Safety | 73 | 1.2x | 2.6x | Top tier | |
Capital Return | 44 | 5.13% | 0.06% | Around median | |
Momentum | 99 | 77.7% | -1.6% | Top tier | |
Sentiment | 55 | 4 | 3 | Around median |
The floor: what the company is worth if growth stopped today
0% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Petróleo Brasileiro S.A. - Petrobras produces oil and gas, refines crude oil, and markets and exports fuel, with its depositary receipts listed under the ticker PBR on NYSE. The company combines production from fields such as Buzios and Mero with refinery and logistics operations, benefiting from both crude sales and its conversion into products such as diesel, gasoline, and jet fuel. In quarter 2 of fiscal year 2026, ended 2026-06-30, oil production reached 2.7 million barrels per day, while refinery capacity utilization reached 101%; these are two operational pillars that explain the strength of the results, alongside oil prices.
According to EL7 data, revenue in quarter 2 of fiscal year 2026 was approximately 33.6 billion dollars, net income was 10.4 billion dollars, and diluted earnings per share were 1.62 dollars. The gross margin was 58.0%, and the operating margin, as calculated by EL7, was 41.9%. According to EL7 data, operating cash flow for the same period was 11.9 billion dollars. Operations demonstrate the integration of production and refining: refined product output increased 6% and imports of these products fell 40% compared with the previous quarter, with a continued focus on diesel, gasoline, and jet fuel within the product mix.
Over the last 12 months through 2026-06-30, revenue was 103.1 billion dollars and net income was 25.6 billion dollars, while operating cash flow, according to EL7 data, was approximately 40.2 billion dollars. Free cash flow, as calculated by EL7 (operating cash flow minus capital expenditures), for the last 12 months through 2026-06-30 was approximately 19.3 billion dollars. These figures support the operations' ability to fund investment, but the balance sheet in quarter 2 of fiscal year 2026 included, according to EL7 data, debt of 70.8 billion dollars against cash and short-term investments of 6.5 billion dollars, making cash allocation among projects, debt, and distributions a central focus of the analysis.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-11-10
Oil production level relative to the threshold of 2.7 million barrels per day at the expected earnings announcement
Operating margin, as calculated by EL7, relative to the threshold of 41.9% at the expected earnings announcement
Operating cash flow, according to EL7 data, relative to the threshold of 11.9 billion dollars at the expected earnings announcement
The no-growth value is 35 dollars, measuring the continuation of after-tax operating profit at a constant level in perpetuity at a discount rate of 8.7%. The industry-multiple value is 26 dollars, within a range of 17 dollars to 33 dollars, based on a median sales multiple of 1.6 across 13 companies, valuing the company according to peer pricing. The median analyst target is 23 dollars, within a range of 20 dollars to 24 dollars in the 2026-10-19 snapshot, a low-confidence indicative estimate based on 4 analysts that reflects their growth expectations, with analyst targets inherently tending toward optimism. The industry-multiple value and median analyst target are closer to each other than to the no-growth value of 35 dollars; the difference reflects the first measure's reliance on peer sales, the second on analyst expectations, and the third on constant after-tax operating profit without growth.
Figures in the text are as of 2026-10-20; the live price is shown at the top of the page.
Oil prices supported the results for quarter 2 of fiscal year 2026, ended 2026-06-30, but the company also achieved production of 2.7 million barrels of oil per day, an increase of 15% compared with the same quarter of the previous year. Refinery capacity utilization reached 101% in the same period, with refined product output increasing 6% compared with the previous quarter. The strength of the results therefore combines the impact of prices with improvements in volumes and efficiency, while earnings remain exposed to the oil cycle.
On the 2026-08-07 call, management linked the ramp-up of P-78, P-79, and Alexandre de Gusmao to additional capacity of 270,000 barrels per day during the second half of fiscal year 2026. It scheduled the start of production at P-80 and P-82 for quarter 2 of fiscal year 2027, with efforts to bring P-80 forward to quarter 1 of fiscal year 2027. These platforms increase the company's ability to raise production, but management did not guarantee an earlier start for P-80 because of offshore conditions.
Automated analysis for informational purposes only — not investment advice.
According to EL7 data, operating cash flow was approximately 40.2 billion dollars against net income of 25.6 billion dollars for the last 12 months through 2026-06-30. This represents cash conversion of 157%, supporting earnings quality over this period. Free cash flow, as calculated by EL7 (operating cash flow minus capital expenditures), for the last 12 months through 2026-06-30 was approximately 19.3 billion dollars, representing the cash remaining after capital expenditures under this calculation.
Management said on 2026-08-07 that extraordinary distributions are unlikely given investments and the priority of managing debt. In quarter 2 of fiscal year 2026, ended 2026-06-30, debt according to EL7 data was approximately 70.8 billion dollars, against cash and short-term investments of 6.5 billion dollars. Strong cash generation therefore does not automatically translate into extraordinary distributions, as project and balance sheet needs compete for that cash.
The no-growth value is 35 dollars and is based on holding after-tax operating profit constant in perpetuity at a discount rate of 8.7%. The industry-multiple value is 26 dollars and relies on a median sales multiple of 1.6 across 13 companies. The median analyst target in the 2026-10-19 snapshot is 23 dollars within a range of 20 dollars to 24 dollars, and remains a low-confidence indicative estimate because it relies on 4 analysts. The differences in value reflect the different things they measure: constant earnings, sales compared with peers, and growth expectations.