Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South American oil giant Petroleo Brasileiro (NYSE: PBR ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Petrobras' business and see what CAPS investors are saying about the stock right now.
Petrobras facts
| Headquarters (Founded) |
Rio de Janeiro (1953) |
| Market Cap |
$167.9 billion |
| Industry |
Integrated oil and gas |
| Trailing-12-Month Revenue |
$126.3 billion |
| Management |
CEO Jose de Azevedo (since 2005)
CFO Almir Barbassa (since 2005) |
| Return on Equity (Average, Past 3 Years) |
15.4% |
| Cash/Debt |
$29.6 billion / $79.0 billion |
| Dividend Yield |
0.6% |
| Competitors |
BP (NYSE: BP )
Chevron (NYSE: CVX )
ExxonMobil (NYSE: XOM ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 4,313 members who have rated Petrobras believe the stock will outperform the S&P 500 going forward. These bulls include DCUDFlyer and NJ7.
Just last week, DCUDFlyer nicely summed up the Petrobras bull case: "Seems like a good entry point for a rock solid, cheap oil company. Brazil + oil + PE~8, dont mind if I do. Going long."
Petrobras even boasts a robust operating margin of 21%. That's much higher than that of other integrated oil giants such as BP (8%), Chevron (16%), and Exxon (13%).
CAPS member NJ7 elaborates on the opportunity:
Petrobras=offshore holdings. It's that simple. Petrobras investors like me are ultimately waiting for the company to fully tap those huge reserves. This will require huge amounts of capital and accident avoidance despite the dangers of deep-water drilling. Governmental limits on domestic oil prices are also an issue. But when these reserves are tapped, I could see Petrobras reaching $60 dollars a share like other large multinational oil corporations, and increasing its dividend substantially. The question is, how long will it take and at what cost will it tap those reserves? Debt will be a reality, and a weak currency has increased those debt costs.
What do you think about Petrobras, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.
RSS Headlines
Fool UK