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%)
SBS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SBS was profitable.
In the past year SBS had a positive cash flow from operations.
In the past 5 years SBS has always 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 12.58% is amongst the best of the industry. SBS outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 27.61%, SBS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.40%, 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 10.46%. This is significantly above the industry average of 4.77%.
The 3 year average ROIC (10.46%) for SBS is below the current ROIC(16.40%), indicating increased profibility in the last year.
| 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 86.67% of its industry peers.
SBS's Profit Margin has improved in the last couple of years.
SBS has a Operating Margin of 44.20%. This is amongst the best in the industry. SBS outperforms 100.00% of its industry peers.
SBS's Operating Margin has improved in the last couple of years.
SBS has a Gross Margin (52.84%) which is in line with 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.
Compared to 1 year ago, SBS has about the same amount of shares outstanding.
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 2.70. 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.
SBS has a Altman-Z score of 2.70. This is amongst the best in the industry. SBS outperforms 86.67% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that 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
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.
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
SBS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.72%.
The Earnings Per Share has been growing by 23.08% on average over the past years. This is a very strong growth
Looking at the last year, SBS shows a very strong growth in Revenue. The Revenue has grown by 41.35%.
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)-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
SBS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.95% yearly.
Based on estimates for the next years, SBS will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.39, SBS is valued correctly.
Based on the Price/Earnings ratio, SBS is valued cheaper than 100.00% of the companies 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.
SBS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SBS indicates a rather cheap valuation: SBS is cheaper than 100.00% of the companies listed in the same industry.
| 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.
SBS's earnings are expected to decrease with -2.95% in the coming years. This may justify a cheaper valuation.
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.
Compared to an average industry Dividend Yield of 3.52, 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 2.40.
| 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.
The dividend of SBS decreased recently.
Dividend Growth(5Y)4.65%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
21.17% of the earnings are spent on dividend by SBS. This is a low number and 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.