PRIO SA (PRIO3.SA)
Energy · B3 · Brazil
Fundamentals
Valuation and ratings
PRIO SA trades at R$56.79, which is 95% below the R$110.72 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 48 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 16.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About PRIO SA
Prio S.A., together with its subsidiaries, engages in the exploration, development, and production of oil and natural gas properties in Brazil and internationally. The company holds 100% interest in the Polvo Field covering an area of approximately 134 square kilometers located in the southern portion of the Campos Basin, Rio de Janeiro; and the Frade Field that consists of approximately 154 square kilometers located in the northern region of the Campos Basin, Rio de Janeiro. It also holds interest in the Albacora leste Field and the Wahoo and Itaipu Field located in the Camumu Basin, State of Bahia. In addition, the company imports, exports, refines, sells, and distributes oil, natural gas, fuels, and oil by-products; and engages in the generation, sale, and distribution of electric power, as well as holds interests in other companies. The company was formerly known as Petro Rio S.A. and changed its name to Prio S.A. in May 2023. Prio S.A. was incorporated in 2009 and is headquartered in Rio de Janeiro, Brazil.
PRIO3.SA passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is PRIO SA (PRIO3.SA) undervalued?
Against our discounted cash flow estimate of R$110.72, PRIO3.SA at R$56.79 is 95% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is PRIO3.SA's P/E ratio?
PRIO3.SA trades at 16.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for PRIO3.SA, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.