Evaluating CIA SANEAMENTO BASICO DE-ADR (NYSE:SBS) for Growth Investment Opportunities.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if CIA SANEAMENTO BASICO DE-ADR (NYSE:SBS) is suited for growth investing. Investors should of course do their own research, but we spotted CIA SANEAMENTO BASICO DE-ADR showing up in our CANSLIM growth screen, so it may be worth spending some more time on it.

Looking into the canslim metrics of CIA SANEAMENTO BASICO DE-ADR

• The quarterly earnings of SBS have shown a 621.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• SBS has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 132.0%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• SBS has achieved 53.74% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• The Return on Equity(ROE) of SBS is 24.61%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• SBS has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 88.46 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.
• SBS maintains a healthy Debt-to-Equity ratio of 0.56. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• With 45.33% of the total shares held by institutional investors, SBS showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.

Zooming in on the technicals.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall SBS gets a technical rating of 9 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, SBS is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• SBS is part of the Water Utilities industry. There are 14 other stocks in this industry. SBS outperforms 92% of them.
• SBS is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• In the last month SBS has a been trading in the 15.70 - 18.22 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that SBS is one of the better performing stocks in the market, outperforming 88% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

Check the latest full technical report of SBS for a complete technical analysis.

Fundamental analysis of SBS

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, SBS scores 6 out of 10 in our fundamental rating. SBS was compared to 14 industry peers in the Water Utilities industry. While SBS has a great profitability rating, there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: SBS is growing strongly while it also seems undervalued. These ratings could make SBS a good candidate for value and growth investing.

For an up to date full fundamental analysis you can check the fundamental report of SBS

More ideas for growth investing can be found on ChartMill in our CANSLIM screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.