CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis
USA - NYSE:SBS - US20441A1025 - ADR
25.69 USD
+0.16 (+0.63%)
25.69 USD
0 (0%)
Taking everything into account, SBS scores 6 out of 10 in our fundamental rating. SBS was compared to 15 industry peers in the Water Utilities industry. SBS has an excellent profitability rating, but there are some minor concerns on its financial health. SBS has a decent growth rate and is not valued too expensively.
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.
SBS had positive earnings in each of the past 5 years.
Each year in the past 5 years SBS had a positive operating cash flow.
1.2 Ratios
SBS has a Return On Assets of 12.58%. This is amongst the best in the industry. SBS outperforms 100.00% of its industry peers.
SBS has a better Return On Equity (27.61%) than 100.00% of its industry peers.
SBS has a Return On Invested Capital of 16.40%. 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 10.46%. This is significantly above the industry average of 4.86%.
The last Return On Invested Capital (16.40%) for SBS is above the 3 year average (10.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.58% | ||
| ROE | 27.61% | ||
| ROIC | 16.4% |
ROA(3y)7.67%
ROA(5y)5.86%
ROE(3y)16.39%
ROE(5y)12.54%
ROIC(3y)10.46%
ROIC(5y)8.95%
1.3 Margins
SBS's Profit Margin of 27.76% is amongst the best of the industry. SBS outperforms 93.33% of its industry peers.
In the last couple of years the Profit Margin of SBS has grown nicely.
SBS's Operating Margin of 44.20% is amongst the best of the industry. SBS outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of SBS has grown nicely.
SBS has a Gross Margin of 52.84%. This is comparable to the rest of the industry: SBS outperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of SBS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.2% | ||
| PM (TTM) | 27.76% | ||
| GM | 52.84% |
OM growth 3Y26.98%
OM growth 5Y6.17%
PM growth 3Y30.85%
PM growth 5Y7.19%
GM growth 3Y16.63%
GM growth 5Y4.49%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SBS is still creating some value.
The number of shares outstanding for SBS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SBS has about the same amount of shares outstanding.
Compared to 1 year ago, SBS has an improved debt to assets ratio.
2.2 Solvency
SBS has an Altman-Z score of 2.66. 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's Altman-Z score of 2.66 is amongst the best of the industry. SBS outperforms 86.67% of its industry peers.
SBS has a Debt/Equity ratio of 0.69. This is a neutral value indicating SBS is somewhat dependend on debt financing.
SBS's Debt to Equity ratio of 0.69 is amongst the best of the industry. SBS outperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC1.22
WACC13.39%
2.3 Liquidity
SBS has a Current Ratio of 1.26. 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 1.26, SBS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SBS has a Quick Ratio of 1.26. This is a normal value and indicates that SBS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.26, SBS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
SBS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 174.44%, which is quite impressive.
SBS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.08% yearly.
Looking at the last year, SBS shows a very strong growth in Revenue. The Revenue has grown by 48.83%.
Measured over the past years, SBS shows a quite strong growth in Revenue. The Revenue has been growing by 14.98% on average per year.
EPS 1Y (TTM)174.44%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%76.27%
Revenue 1Y (TTM)48.83%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%32.82%
3.2 Future
Based on estimates for the next years, SBS will show a decrease in Earnings Per Share. The EPS will decrease by -3.50% on average per year.
SBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.97% yearly.
EPS Next Y-41.57%
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
EPS Next 5YN/A
Revenue Next Year-8.16%
Revenue Next 2Y2.13%
Revenue Next 3Y5.73%
Revenue Next 5Y3.97%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.40, the valuation of SBS can be described as very reasonable.
100.00% of the companies in the same industry are more expensive than SBS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.83. SBS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.46 indicates a correct valuation of SBS.
100.00% of the companies in the same industry are more expensive than SBS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, SBS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than SBS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
The excellent profitability rating of SBS may justify a higher PE ratio.
SBS's earnings are expected to decrease with -3.50% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
5. Dividend
5.1 Amount
SBS has a yearly dividend return of 0.48%, which is pretty low.
Compared to an average industry Dividend Yield of 3.39, SBS is paying slightly less dividend.
With a Dividend Yield of 0.48, SBS pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of SBS has a limited annual growth rate of 4.65%.
SBS has been paying a dividend for at least 10 years, so it has a reliable track record.
SBS has decreased its dividend recently.
Dividend Growth(5Y)4.65%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SBS pays out 21.17% of its income as dividend. This is a sustainable payout ratio.
DP21.17%
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
25.69
+0.16 (+0.63%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners51.61%
Inst Owner Change5.1%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.56B
Revenue(TTM)40.23B
Net Income(TTM)11.16B
Analysts83
Price Target26.19 (1.95%)
Short Float %0.68%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.25
Dividend Growth(5Y)4.65%
DP21.17%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.79%
Min EPS beat(2)5.76%
Max EPS beat(2)79.82%
EPS beat(4)3
Avg EPS beat(4)119.57%
Min EPS beat(4)-19.39%
Max EPS beat(4)412.07%
EPS beat(8)5
Avg EPS beat(8)59.86%
EPS beat(12)7
Avg EPS beat(12)46.68%
EPS beat(16)8
Avg EPS beat(16)31.39%
Revenue beat(2)2
Avg Revenue beat(2)27.07%
Min Revenue beat(2)23.03%
Max Revenue beat(2)31.12%
Revenue beat(4)4
Avg Revenue beat(4)52.59%
Min Revenue beat(4)20.14%
Max Revenue beat(4)136.1%
Revenue beat(8)8
Avg Revenue beat(8)36.33%
Revenue beat(12)12
Avg Revenue beat(12)29.49%
Revenue beat(16)16
Avg Revenue beat(16)26.84%
PT rev (1m)2.66%
PT rev (3m)11.51%
EPS NQ rev (1m)2.91%
EPS NQ rev (3m)1.98%
EPS NY rev (1m)0%
EPS NY rev (3m)14.83%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 12.46 | ||
| P/S | 2.33 | ||
| P/FCF | N/A | ||
| P/OCF | 11.01 | ||
| P/B | 2.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.65 |
EPS(TTM)3.06
EY11.91%
EPS(NY)2.06
Fwd EY8.03%
FCF(TTM)-1
FCFYN/A
OCF(TTM)2.33
OCFY9.08%
SpS11.02
BVpS11.08
TBVpS-1.32
PEG (NY)N/A
PEG (5Y)0.36
Graham Number27.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.58% | ||
| ROE | 27.61% | ||
| ROCE | 22.72% | ||
| ROIC | 16.4% | ||
| ROICexc | 18.24% | ||
| ROICexgc | 51.18% | ||
| OM | 44.2% | ||
| PM (TTM) | 27.76% | ||
| GM | 52.84% | ||
| FCFM | N/A |
ROA(3y)7.67%
ROA(5y)5.86%
ROE(3y)16.39%
ROE(5y)12.54%
ROIC(3y)10.46%
ROIC(5y)8.95%
ROICexc(3y)11.27%
ROICexc(5y)9.66%
ROICexgc(3y)60.48%
ROICexgc(5y)53.53%
ROCE(3y)14.49%
ROCE(5y)12.4%
ROICexgc growth 3Y19.27%
ROICexgc growth 5Y-4.83%
ROICexc growth 3Y38.93%
ROICexc growth 5Y9.98%
OM growth 3Y26.98%
OM growth 5Y6.17%
PM growth 3Y30.85%
PM growth 5Y7.19%
GM growth 3Y16.63%
GM growth 5Y4.49%
F-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 543.25% | ||
| Cap/Sales | 30.26% | ||
| Interest Coverage | 7.68 | ||
| Cash Conversion | 42.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.66 |
F-Score5
WACC13.39%
ROIC/WACC1.22
Cap/Depr(3y)198.74%
Cap/Depr(5y)185.31%
Cap/Sales(3y)18.28%
Cap/Sales(5y)18.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)174.44%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%76.27%
EPS Next Y-41.57%
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
EPS Next 5YN/A
Revenue 1Y (TTM)48.83%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%32.82%
Revenue Next Year-8.16%
Revenue Next 2Y2.13%
Revenue Next 3Y5.73%
Revenue Next 5Y3.97%
EBIT growth 1Y130.04%
EBIT growth 3Y56.01%
EBIT growth 5Y22.08%
EBIT Next Year-4.64%
EBIT Next 3Y13.15%
EBIT Next 5Y13.83%
FCF growth 1Y-5806.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y129.11%
OCF growth 3Y23.68%
OCF growth 5Y12.02%
CIA SANEAMENTO BASICO DE-ADR / SBS FAQ
Can you provide the ChartMill fundamental rating for CIA SANEAMENTO BASICO DE-ADR?
ChartMill assigns a fundamental rating of 6 / 10 to SBS.
What is the valuation status of CIA SANEAMENTO BASICO DE-ADR (SBS) stock?
ChartMill assigns a valuation rating of 6 / 10 to CIA SANEAMENTO BASICO DE-ADR (SBS). This can be considered as Fairly Valued.
Can you provide the profitability details for CIA SANEAMENTO BASICO DE-ADR?
CIA SANEAMENTO BASICO DE-ADR (SBS) has a profitability rating of 9 / 10.
What are the PE and PB ratios of CIA SANEAMENTO BASICO DE-ADR (SBS) stock?
The Price/Earnings (PE) ratio for CIA SANEAMENTO BASICO DE-ADR (SBS) is 8.4 and the Price/Book (PB) ratio is 2.32.
What is the expected EPS growth for CIA SANEAMENTO BASICO DE-ADR (SBS) stock?
The Earnings per Share (EPS) of CIA SANEAMENTO BASICO DE-ADR (SBS) is expected to decline by -41.57% in the next year.