CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis
NYSE:SBS - New York Stock Exchange, Inc. - US20441A1025 - ADR - Currency: USD
Overall SBS gets a fundamental rating of 6 out of 10. We evaluated SBS against 14 industry peers in the Water Utilities industry. While SBS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SBS is growing strongly while it also seems undervalued. This is an interesting combination This makes SBS very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
SBS had positive earnings in the past year.
SBS had a positive operating cash flow in the past year.
Each year in the past 5 years SBS has been profitable.
Each year in the past 5 years SBS had a positive operating cash flow.
1.2 Ratios
SBS's Return On Assets of 12.26% is amongst the best of the industry. SBS outperforms 92.86% of its industry peers.
With an excellent Return On Equity value of 24.61%, SBS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SBS has a Return On Invested Capital of 16.94%. This is amongst the best in the industry. SBS outperforms 100.00% of its industry peers.
SBS had an Average Return On Invested Capital over the past 3 years of 7.24%. This is in line with the industry average of 5.69%.
The 3 year average ROIC (7.24%) for SBS is below the current ROIC(16.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.26% | ||
| ROE | 24.61% | ||
| ROIC | 16.94% |
ROA(3y)5.18%
ROA(5y)4.94%
ROE(3y)10.82%
ROE(5y)10.46%
ROIC(3y)7.24%
ROIC(5y)7.92%
1.3 Margins
SBS has a better Profit Margin (26.23%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of SBS has declined.
SBS has a Operating Margin of 44.63%. This is amongst the best in the industry. SBS outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of SBS has declined.
SBS has a Gross Margin of 54.58%. This is in the better half of the industry: SBS outperforms 64.29% of its industry peers.
SBS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.63% | ||
| PM (TTM) | 26.23% | ||
| GM | 54.58% |
OM growth 3Y-0.63%
OM growth 5Y-5.14%
PM growth 3Y36.07%
PM growth 5Y-4.8%
GM growth 3Y0.12%
GM growth 5Y-3.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SBS is creating some value.
SBS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SBS remains at a similar level compared to 5 years ago.
The debt/assets ratio for SBS has been reduced compared to a year ago.
2.2 Solvency
SBS has an Altman-Z score of 2.60. This is not the best score and indicates that SBS is in the grey zone with still only limited risk for bankruptcy at the moment.
SBS has a better Altman-Z score (2.60) than 85.71% of its industry peers.
SBS has a Debt/Equity ratio of 0.56. This is a neutral value indicating SBS is somewhat dependend on debt financing.
SBS's Debt to Equity ratio of 0.56 is amongst the best of the industry. SBS outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.6 |
ROIC/WACC1.17
WACC14.44%
2.3 Liquidity
SBS has a Current Ratio of 1.14. This is a normal value and indicates that SBS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.14, SBS is in line with its industry, outperforming 57.14% of the companies in the same industry.
SBS has a Quick Ratio of 1.13. This is a normal value and indicates that SBS is financially healthy and should not expect problems in meeting its short term obligations.
SBS's Quick ratio of 1.13 is fine compared to the rest of the industry. SBS outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 213.07% over the past year.
SBS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.40% yearly.
The Revenue has grown by 46.76% in the past year. This is a very strong growth!
Measured over the past years, SBS shows a quite strong growth in Revenue. The Revenue has been growing by 9.72% on average per year.
EPS 1Y (TTM)213.07%
EPS 3Y53.74%
EPS 5Y4.4%
EPS Q2Q%620.97%
Revenue 1Y (TTM)46.76%
Revenue growth 3Y12.84%
Revenue growth 5Y9.72%
Sales Q2Q%132.39%
3.2 Future
Based on estimates for the next years, SBS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.62% on average per year.
SBS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.04% yearly.
EPS Next Y117.14%
EPS Next 2Y18.82%
EPS Next 3Y15.62%
EPS Next 5YN/A
Revenue Next Year28.48%
Revenue Next 2Y12.03%
Revenue Next 3Y13.43%
Revenue Next 5Y8.04%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.92, the valuation of SBS can be described as very cheap.
SBS's Price/Earnings ratio is rather cheap when compared to the industry. SBS is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.75. SBS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.96, which indicates a correct valuation of SBS.
Based on the Price/Forward Earnings ratio, SBS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.44. SBS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.43 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SBS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SBS's earnings are expected to grow with 15.62% in the coming years.
PEG (NY)0.06
PEG (5Y)1.57
EPS Next 2Y18.82%
EPS Next 3Y15.62%
5. Dividend
5.1 Amount
SBS has a Yearly Dividend Yield of 1.53%.
SBS's Dividend Yield is slightly below the industry average, which is at 3.42.
Compared to the average S&P500 Dividend Yield of 2.30, SBS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of SBS has a limited annual growth rate of 4.74%.
SBS has been paying a dividend for at least 10 years, so it has a reliable track record.
SBS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
9.95% of the earnings are spent on dividend by SBS. This is a low number and sustainable payout ratio.
SBS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.95%
EPS Next 2Y18.82%
EPS Next 3Y15.62%
16.19
+0.08 (+0.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners45.33%
Inst Owner Change4.05%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.07B
Analysts81.9
Price Target20.89 (29.03%)
Short Float %1.07%
Short Ratio6.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.21
Dividend Growth(5Y)4.74%
DP9.95%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)213.26%
Min EPS beat(2)14.45%
Max EPS beat(2)412.07%
EPS beat(4)3
Avg EPS beat(4)104.75%
Min EPS beat(4)-18.95%
Max EPS beat(4)412.07%
EPS beat(8)4
Avg EPS beat(8)47.91%
EPS beat(12)6
Avg EPS beat(12)39.21%
EPS beat(16)7
Avg EPS beat(16)27.18%
Revenue beat(2)2
Avg Revenue beat(2)76.75%
Min Revenue beat(2)17.4%
Max Revenue beat(2)136.1%
Revenue beat(4)4
Avg Revenue beat(4)50.95%
Min Revenue beat(4)17.4%
Max Revenue beat(4)136.1%
Revenue beat(8)8
Avg Revenue beat(8)31.95%
Revenue beat(12)12
Avg Revenue beat(12)27.74%
Revenue beat(16)16
Avg Revenue beat(16)25.51%
PT rev (1m)0%
PT rev (3m)-3.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)31.07%
EPS NY rev (1m)0%
EPS NY rev (3m)71.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.67%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)16.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 12.96 | ||
| P/S | 1.81 | ||
| P/FCF | N/A | ||
| P/OCF | 9.78 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.43 |
EPS(TTM)2.34
EY14.45%
EPS(NY)1.25
Fwd EY7.72%
FCF(TTM)-0.3
FCFYN/A
OCF(TTM)1.66
OCFY10.22%
SpS8.92
BVpS9.51
TBVpS-0.98
PEG (NY)0.06
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.26% | ||
| ROE | 24.61% | ||
| ROCE | 23.02% | ||
| ROIC | 16.94% | ||
| ROICexc | 17.89% | ||
| ROICexgc | 49.78% | ||
| OM | 44.63% | ||
| PM (TTM) | 26.23% | ||
| GM | 54.58% | ||
| FCFM | N/A |
ROA(3y)5.18%
ROA(5y)4.94%
ROE(3y)10.82%
ROE(5y)10.46%
ROIC(3y)7.24%
ROIC(5y)7.92%
ROICexc(3y)7.75%
ROICexc(5y)8.49%
ROICexgc(3y)53.39%
ROICexgc(5y)57.97%
ROCE(3y)9.84%
ROCE(5y)10.77%
ROICexcg growth 3Y15.4%
ROICexcg growth 5Y5.27%
ROICexc growth 3Y4.85%
ROICexc growth 5Y-2.93%
OM growth 3Y-0.63%
OM growth 5Y-5.14%
PM growth 3Y36.07%
PM growth 5Y-4.8%
GM growth 3Y0.12%
GM growth 5Y-3.09%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 268.14% | ||
| Cap/Sales | 21.9% | ||
| Interest Coverage | 7.89 | ||
| Cash Conversion | 35.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.6 |
F-Score6
WACC14.44%
ROIC/WACC1.17
Cap/Depr(3y)154.16%
Cap/Depr(5y)162.08%
Cap/Sales(3y)17.28%
Cap/Sales(5y)17.76%
Profit Quality(3y)12.85%
Profit Quality(5y)46.82%
High Growth Momentum
Growth
EPS 1Y (TTM)213.07%
EPS 3Y53.74%
EPS 5Y4.4%
EPS Q2Q%620.97%
EPS Next Y117.14%
EPS Next 2Y18.82%
EPS Next 3Y15.62%
EPS Next 5YN/A
Revenue 1Y (TTM)46.76%
Revenue growth 3Y12.84%
Revenue growth 5Y9.72%
Sales Q2Q%132.39%
Revenue Next Year28.48%
Revenue Next 2Y12.03%
Revenue Next 3Y13.43%
Revenue Next 5Y8.04%
EBIT growth 1Y204.19%
EBIT growth 3Y12.13%
EBIT growth 5Y4.08%
EBIT Next Year92.04%
EBIT Next 3Y35.19%
EBIT Next 5Y27.46%
FCF growth 1Y-114.78%
FCF growth 3Y-24.09%
FCF growth 5Y-15.48%
OCF growth 1Y103.94%
OCF growth 3Y-0.84%
OCF growth 5Y4.78%