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CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis

NYSE:SBS - New York Stock Exchange, Inc. - US20441A1025 - ADR - Currency: USD

15.89  -0.25 (-1.55%)

After market: 15.89 0 (0%)

Fundamental Rating

6

Overall SBS gets a fundamental rating of 6 out of 10. We evaluated SBS against 14 industry peers in the Water Utilities industry. SBS scores excellent on profitability, but there are some minor concerns on its financial health. SBS is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make SBS a good candidate for value and growth investing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year SBS was profitable.
SBS had a positive operating cash flow in the past year.
SBS had positive earnings in each of the past 5 years.
SBS had a positive operating cash flow in each of the past 5 years.
SBS Yearly Net Income VS EBIT VS OCF VS FCFSBS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

1.2 Ratios

Looking at the Return On Assets, with a value of 12.26%, SBS belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.61%, SBS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.94%, SBS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 5.70%.
The last Return On Invested Capital (16.94%) for SBS is above the 3 year average (7.24%), which is a sign of increasing profitability.
Industry RankSector 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%
SBS Yearly ROA, ROE, ROICSBS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

With a decent Profit Margin value of 26.23%, SBS is doing good in the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Profit Margin of SBS has declined.
Looking at the Operating Margin, with a value of 44.63%, SBS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SBS has declined.
SBS has a better Gross Margin (54.58%) than 64.29% of its industry peers.
SBS's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
SBS Yearly Profit, Operating, Gross MarginsSBS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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5

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.
The debt/assets ratio for SBS has been reduced compared to a year ago.
SBS Yearly Shares OutstandingSBS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
SBS Yearly Total Debt VS Total AssetsSBS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

An Altman-Z score of 2.59 indicates that SBS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.59, SBS belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that SBS is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.56, SBS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF N/A
Altman-Z 2.59
ROIC/WACC1.18
WACC14.3%
SBS Yearly LT Debt VS Equity VS FCFSBS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

2.3 Liquidity

A Current Ratio of 1.14 indicates that SBS should not have too much problems paying its short term obligations.
SBS has a Current ratio of 1.14. This is comparable to the rest of the industry: SBS outperforms 57.14% of its industry peers.
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.
The Quick ratio of SBS (1.13) is better than 78.57% of its industry peers.
Industry RankSector Rank
Current Ratio 1.14
Quick Ratio 1.13
SBS Yearly Current Assets VS Current LiabilitesSBS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 213.07% over the past year.
The Earnings Per Share has been growing slightly by 4.40% on average over the past years.
SBS shows a strong growth in Revenue. In the last year, the Revenue has grown by 46.76%.
The Revenue has been growing by 9.72% on average over the past years. This is quite good.
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

The Earnings Per Share is expected to grow by 18.13% on average over the next years. This is quite good.
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 Y26.85%
EPS Next 2Y16.72%
EPS Next 3Y18.13%
EPS Next 5YN/A
Revenue Next Year28.29%
Revenue Next 2Y11.99%
Revenue Next 3Y13.42%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
SBS Yearly Revenue VS EstimatesSBS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
SBS Yearly EPS VS EstimatesSBS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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7

4. Valuation

4.1 Price/Earnings Ratio

SBS is valuated cheaply with a Price/Earnings ratio of 6.82.
Compared to the rest of the industry, the Price/Earnings ratio of SBS indicates a rather cheap valuation: SBS is cheaper than 100.00% of the companies listed in the same industry.
SBS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 13.22, which 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.
SBS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
Industry RankSector Rank
PE 6.82
Fwd PE 13.22
SBS Price Earnings VS Forward Price EarningsSBS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SBS is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 4.39
SBS Per share dataSBS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

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.
The decent profitability rating of SBS may justify a higher PE ratio.
SBS's earnings are expected to grow with 18.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)1.55
EPS Next 2Y16.72%
EPS Next 3Y18.13%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.56%, SBS has a reasonable but not impressive dividend return.
SBS's Dividend Yield is slightly below the industry average, which is at 3.57.
Compared to the average S&P500 Dividend Yield of 2.27, SBS is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.56%

5.2 History

The dividend of SBS has a limited annual growth rate of 4.74%.
SBS has paid a dividend for at least 10 years, which is 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
SBS Yearly Dividends per shareSBS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

SBS pays out 9.95% of its income as dividend. This is a sustainable payout ratio.
SBS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.95%
EPS Next 2Y16.72%
EPS Next 3Y18.13%
SBS Yearly Income VS Free CF VS DividendSBS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B
SBS Dividend Payout.SBS Dividend Payout, showing the Payout Ratio.SBS Dividend Payout.PayoutRetained Earnings

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CIA SANEAMENTO BASICO DE-ADR

NYSE:SBS (1/29/2025, 8:04:00 PM)

After market: 15.89 0 (0%)

15.89

-0.25 (-1.55%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)11-11 2024-11-11/amc
Earnings (Next)N/A N/A
Inst Owners35.02%
Inst Owner Change0.6%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.86B
Analysts81.9
Price Target20.64 (29.89%)
Short Float %1.33%
Short Ratio7.16
Dividend
Industry RankSector Rank
Dividend Yield 1.56%
Yearly Dividend1.21
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)0.31%
PT rev (3m)-5.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.91%
EPS NY rev (1m)0%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)13.79%
Revenue NY rev (1m)16.7%
Revenue NY rev (3m)18.71%
Valuation
Industry RankSector Rank
PE 6.82
Fwd PE 13.22
P/S 1.79
P/FCF N/A
P/OCF 9.63
P/B 1.68
P/tB N/A
EV/EBITDA 4.39
EPS(TTM)2.33
EY14.66%
EPS(NY)1.2
Fwd EY7.57%
FCF(TTM)-0.3
FCFYN/A
OCF(TTM)1.65
OCFY10.39%
SpS8.9
BVpS9.48
TBVpS-0.98
PEG (NY)0.25
PEG (5Y)1.55
Profitability
Industry RankSector 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 RankSector 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 2.59
F-Score6
WACC14.3%
ROIC/WACC1.18
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 Y26.85%
EPS Next 2Y16.72%
EPS Next 3Y18.13%
EPS Next 5YN/A
Revenue 1Y (TTM)46.76%
Revenue growth 3Y12.84%
Revenue growth 5Y9.72%
Sales Q2Q%132.39%
Revenue Next Year28.29%
Revenue Next 2Y11.99%
Revenue Next 3Y13.42%
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%