Making Way Towards North with Profitability Booster: Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR), Eldorado Gold (NYSE:EGO)

By tracking previous views Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) also in plain sight to attract passive investors, shares in most recent trading session rose 1.77% after traded at $10.33. Brazil’s state-run oil company, Petroleo Brasileiro SA, on announced the sale of ethanol and petrochemicals assets for $587 million, but said it would still fall $1.5 billion short of its divestment target for the 2015-2016 period. Among the assets sold were its 46% stake in ethanol producer Guarani SA, which was acquired for $202 million by its French partner Tereos SA, which will now own all of the company.

Petrobras, as the company is known, said it will also sell its two petrochemical units in the northeastern state of Pernambuco – Petroquimica Suape and Citepe – to Mexican group Alpek SAB de CV subsidiaries Grupo Petrotemex SA de CV and Dak Americas Exterior SL for $385 million.

For trailing twelve months, PBR attains gross profit margin of 31.60% and operating margin stands at -12.20% that are showing consistency of trends in firm’s earnings. While to figure out more clear vision, firm’s returns on investment calculated as -1.00%; it gives answer about efficiency of different investments in different securities. The returns on assets of firm also presenting perceptible condition of profitability, it has ROA of -6.40%, the very positive ratio starts from >+15% and very negative hits to <-15%.

The firm has noticeable volatility credentials; price volatility of stock was 2.29% for a week and 3.35% for a month. The performance of firm for the quarter recorded as 8.74% and for year stands at 133.71%, while the YTD performance was 140.23%. The co attains 0.36 for Average True Range for 14 days. The stock price of PBR is moving down from its 20 days moving average with -0.80% and isolated negatively from 50 days moving average with -3.90%.

Eldorado Gold Corporation (NYSE:EGO) persists its position slightly strong in context of buying side, while shares price rose 2.24% during latest trading session.

Profitability Ratio Analysis; to measure firm’s performance and profitability, we focus on ordinary profitability ratio, EGO has gross profit margin of 28.90% for trailing twelve months, these are a better detectors to find consistency or positive/negative trends in a firm’s earnings. Following in trace line, returns on investment amplify the findings, the firm’s ROI concludes as -37.50%; it gives idea for personal financial decisions, to compare a firm’s profitability or to compare the efficiency of different investments. The returns on assets of firm also on noticeable level, it has ROA of -29.30%, which signifies how profitable a firm is relative to its total assets.

To make strengthen this views, the active industry firm has Quick Ratio of 4.30, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.17, sometimes its remain same with long term debt to equity ratio. Taking notice on volatility measures, price volatility of stock was 3.80% for a week and 5.36% for a month.


About Aaron Smithies

Aaron Smithies has a wide look on current monetary and financial events. He is an editor and a writer. His views; At Streetwise Report, we think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Interests: Biotech, Finical markets, Dividend stock ideas & income, Energy stocks, Consumer goods stocks

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