CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SBS - US20441A1025 - ADR
26.37 USD
-0.08 (-0.3%)
27.12 USD
+0.75 (+2.84%)
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. While SBS belongs to the best of the industry regarding profitability, 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.
In the past year SBS had a positive cash flow from operations.
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
The Return On Assets of SBS (12.58%) is better than 100.00% of its industry peers.
The Return On Equity of SBS (27.61%) is better 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.
The Average Return On Invested Capital over the past 3 years for SBS is significantly above the industry average of 4.77%.
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
With an excellent Profit Margin value of 27.76%, SBS belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
SBS's Profit Margin has improved in the last couple of years.
SBS has a better Operating Margin (44.20%) than 100.00% of its industry peers.
SBS's Operating Margin has improved in the last couple of years.
SBS's Gross Margin of 52.84% is in line compared 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SBS is creating some value.
The number of shares outstanding for SBS remains at a similar level compared to 1 year ago.
SBS has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SBS has an improved debt to assets ratio.
2.2 Solvency
SBS has an Altman-Z score of 2.70. 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.
The Altman-Z score of SBS (2.70) is better than 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 has a better Debt to Equity ratio (0.69) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.7 |
ROIC/WACC1.2
WACC13.63%
2.3 Liquidity
A Current Ratio of 1.26 indicates that SBS should not have too much problems paying its short term obligations.
The Current ratio of SBS (1.26) is better than 80.00% of its industry peers.
A Quick Ratio of 1.26 indicates that SBS should not have too much problems paying its short term obligations.
SBS's Quick ratio of 1.26 is amongst the best of the industry. SBS outperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for SBS have decreased strongly by -22.72% in the last year.
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 41.35%.
SBS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.98% yearly.
EPS 1Y (TTM)-22.72%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%-64.65%
Revenue 1Y (TTM)41.35%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%-37.15%
3.2 Future
The Earnings Per Share is expected to decrease by -2.95% on average over the next years.
SBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.34% yearly.
EPS Next Y-37.26%
EPS Next 2Y-11.42%
EPS Next 3Y-2.95%
EPS Next 5YN/A
Revenue Next Year-19.47%
Revenue Next 2Y-5.06%
Revenue Next 3Y0.57%
Revenue Next 5Y5.34%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 13.39, SBS is valued correctly.
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.
When comparing the Price/Earnings ratio of SBS to the average of the S&P500 Index (26.31), we can say SBS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.83, the valuation of SBS can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBS indicates a rather cheap valuation: SBS is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SBS to the average of the S&P500 Index (36.59), we can say SBS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.83 |
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 | 5.83 |
4.3 Compensation for Growth
SBS has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SBS's earnings are expected to decrease with -2.95% in the coming years.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-11.42%
EPS Next 3Y-2.95%
5. Dividend
5.1 Amount
SBS has a yearly dividend return of 0.48%, which is pretty low.
SBS's Dividend Yield is slightly below the industry average, which is at 3.52.
Compared to an average S&P500 Dividend Yield of 2.40, SBS's dividend is way lower than the S&P500 average.
| 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 paid a dividend for at least 10 years, which is 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-11.42%
EPS Next 3Y-2.95%
26.37
-0.08 (-0.3%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners51.61%
Inst Owner Change-4.35%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.02B
Revenue(TTM)36.15B
Net Income(TTM)11.16B
Analysts83
Price Target27.23 (3.26%)
Short Float %0.68%
Short Ratio3.05
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)5.38%
PT rev (3m)10.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.98%
EPS NY rev (1m)7.38%
EPS NY rev (3m)17.59%
Revenue NQ rev (1m)-3.29%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)-12.32%
Revenue NY rev (3m)-12.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.83 | ||
| P/S | 2.4 | ||
| P/FCF | N/A | ||
| P/OCF | 11.32 | ||
| P/B | 2.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.83 |
EPS(TTM)1.97
EY7.47%
EPS(NY)2.06
Fwd EY7.8%
FCF(TTM)-1
FCFYN/A
OCF(TTM)2.33
OCFY8.83%
SpS11.01
BVpS11.06
TBVpS-1.32
PEG (NY)N/A
PEG (5Y)0.58
Graham Number22.15
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 | 2.7 |
F-Score5
WACC13.63%
ROIC/WACC1.2
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)-22.72%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%-64.65%
EPS Next Y-37.26%
EPS Next 2Y-11.42%
EPS Next 3Y-2.95%
EPS Next 5YN/A
Revenue 1Y (TTM)41.35%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%-37.15%
Revenue Next Year-19.47%
Revenue Next 2Y-5.06%
Revenue Next 3Y0.57%
Revenue Next 5Y5.34%
EBIT growth 1Y130.04%
EBIT growth 3Y56.01%
EBIT growth 5Y22.08%
EBIT Next Year-4.64%
EBIT Next 3Y13.15%
EBIT Next 5Y15.05%
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 5 / 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 13.39 and the Price/Book (PB) ratio is 2.38.
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 -37.26% in the next year.