Petrobras: A Perfect Inflation Hedge For Your Portfolio

Alex Ponte
680 Followers

Summary

  • Petrobras' management has proven to create adequate value when looking at its long-term annual per share data.
  • Petrobras is poised to benefit from high inflation as energy prices remain a large driver of inflation.
  • PBR has significantly improved its financial position with a reduced amount of CapEx spending, increased free cash flow, and smaller debt load.
  • PBR stock's valuation is relatively cheap when doing a comparable analysis to big oil.

Front view of Petrobras Petroleo Brasileiro S.A. Company Main Office in Rio de Janeiro, Brazil

caio acquesta/iStock Editorial via Getty Images

Investment Thesis

As higher inflation continues to eventuate, investors are finding it increasingly difficult to find vehicles in which they can store the value of their money. At a year-over-year inflation rate of 8.5%

This article was written by

680 Followers
Alex Ponte provides extensive write-ups on stocks with a market cap of less than $10 Billion in North America and various other topics of interest.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About PBR Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PBR

Related Stocks

SymbolLast Price% Chg
PBR
--