Buffett Brain · Research note
Score updated 27 Oct 2026
PBR· Energy
Petróleo Brasileiro S.A. - Petrobras
Petrobras offers a compelling valuation with an 18.28% earnings yield, but durability concerns arise from volatile earnings and negative revenue growth.
Buffett fit
Partial fit
Owner
74
Durability
40
Management
62
Price
100
Score updated 27 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Energy stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Petrobras would mean capitalizing on its strong of 17.21% and a substantial earnings yield of 18.28%.
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The main threats to Petrobras include volatile oil prices, regulatory changes in Brazil, and potential environmental liabilities.
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Petrobras has maintained a stable share count with a CAGR of -0.4%, indicating no significant dilution.
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With a of 5.5 and an yield of 15.39%, Petrobras is attractively priced.
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- The 5-year price target and the return it implies
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
8- 1Earnings yield of 18.28% provides a strong .
- 2 of 17.21% is top-quintile in the energy sector.
- 3Net margin of 22.01% is above the sector's top-quintile cutoff.
- 4 of 31.12% is sector-leading.
Concerns
8- 1Revenue CAGR of -9.45% indicates declining sales.
- 2EPS CAGR of -17.47% reflects earnings volatility.
- 3Current ratio of 0.71 suggests potential liquidity issues.
- 4Dividend CAGR of -10.88% indicates recent cuts.
Price history
$22.50+129.1%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Petrobras operates in exploration, production, refining, and marketing of oil and gas. It generates $488.72B in revenue with a net margin of 22.01%. The company focuses on domestic and international markets, with significant operations in Brazil. Unit economics are strong, with a 31.12% .
How this analysis has moved
The call has held across 4 reviews.
Oct 11, 2026 → Oct 26, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Energy
Questions about Petróleo Brasileiro S.A. - Petrobras
- Is Petróleo Brasileiro S.A. - Petrobras undervalued?
- Would Buffett buy Petróleo Brasileiro S.A. - Petrobras?
- How strong is Petróleo Brasileiro S.A. - Petrobras's competitive advantage?
- Is Petróleo Brasileiro S.A. - Petrobras financially healthy?
- Is Petróleo Brasileiro S.A. - Petrobras's dividend safe?
- Is Petróleo Brasileiro S.A. - Petrobras halal?
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