Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Petroleo Brasileiro SA Petrobras ( PBR.A) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Petroleo Brasileiro SA Petrobras as such a stock due to the following factors:

  • PBR.A has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $226.5 million.
  • PBR.A traded 12,939 shares today in the pre-market hours as of 9:08 AM.
  • PBR.A is down 7% today from yesterday's close.

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More details on PBR.A:

Petroleo Brasileiro S.A. - Petrobras operates as an integrated oil and gas company in Brazil and internationally.

The average volume for Petroleo Brasileiro SA Petrobras has been 17.9 million shares per day over the past 30 days. Petroleo Brasileiro SA Petrobras has a market cap of $56.4 billion and is part of the basic materials sector and energy industry. Shares are up 10.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 20.3%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.84, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • PETROLEO BRASILEIRO SA- PETR's earnings per share declined by 21.7% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, PETROLEO BRASILEIRO SA- PETR's EPS of $1.70 remained unchanged from the prior years' EPS of $1.70. This year, the market expects an improvement in earnings ($2.50 versus $1.70).
  • Net operating cash flow has decreased to $6,413.00 million or 18.05% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, PETROLEO BRASILEIRO SA- PETR has marginally lower results.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PETROLEO BRASILEIRO SA- PETR's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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