CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SBS - US20441A1025 - ADR
24.54 USD
+0.06 (+0.25%)
24.54 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SBS. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SBS was profitable.
SBS had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 12.58%, SBS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
SBS has a better Return On Invested Capital (16.40%) than 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 4.61%.
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
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.
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.
SBS's Operating Margin has improved in the last couple of years.
The Gross Margin of SBS (52.84%) is comparable to the rest of the industry.
SBS's Gross Margin has improved in the last couple of years.
| 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.
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
An Altman-Z score of 2.65 indicates that SBS is not a great score, but indicates only limited risk for bankruptcy at the moment.
SBS has a Altman-Z score of 2.65. This is amongst the best in 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 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 | 2.65 |
ROIC/WACC1.25
WACC13.13%
2.3 Liquidity
A Current Ratio of 1.26 indicates that SBS should not have too much problems paying 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 73.33% 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.
SBS has a Quick ratio of 1.26. This is in the better half of the industry: SBS outperforms 80.00% 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.
Measured over the past years, SBS shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.08% on average per year.
The Revenue has grown by 41.35% in the past year. This is a very strong growth!
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 -2.87% 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-32.3%
EPS Next 2Y-9.85%
EPS Next 3Y-2.87%
EPS Next 5YN/A
Revenue Next Year-19.4%
Revenue Next 2Y-3.98%
Revenue Next 3Y1.41%
Revenue Next 5Y5.34%
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.
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
Based on the Price/Earnings ratio of 12.92, the valuation of SBS can be described as correct.
100.00% of the companies in the same industry are more expensive than SBS, based on the Price/Earnings ratio.
SBS is valuated cheaply when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.95, the valuation of SBS can be described as reasonable.
100.00% of the companies in the same industry are more expensive than SBS, based on the Price/Forward Earnings ratio.
SBS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 11.95 |
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 | 5.63 |
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 -2.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-9.85%
EPS Next 3Y-2.87%
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 2.76.
Compared to an average S&P500 Dividend Yield of 1.87, 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 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
SBS pays out 21.17% of its income as dividend. This is a sustainable payout ratio.
DP21.17%
EPS Next 2Y-9.85%
EPS Next 3Y-2.87%
24.54
+0.06 (+0.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners52.51%
Inst Owner Change-4.35%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap16.76B
Revenue(TTM)36.15B
Net Income(TTM)11.16B
Analysts83
Price Target27.95 (13.9%)
Short Float %0.6%
Short Ratio2.69
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)6.23%
PT rev (3m)9.54%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)9.9%
EPS NY rev (1m)7.98%
EPS NY rev (3m)26.97%
Revenue NQ rev (1m)-3.29%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-12.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 11.95 | ||
| P/S | 2.31 | ||
| P/FCF | N/A | ||
| P/OCF | 10.92 | ||
| P/B | 2.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.63 |
EPS(TTM)1.9
EY7.74%
EPS(NY)2.05
Fwd EY8.37%
FCF(TTM)-0.96
FCFYN/A
OCF(TTM)2.25
OCFY9.16%
SpS10.62
BVpS10.67
TBVpS-1.27
PEG (NY)N/A
PEG (5Y)0.56
Graham Number21.36
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 | 2.65 |
F-Score5
WACC13.13%
ROIC/WACC1.25
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-32.3%
EPS Next 2Y-9.85%
EPS Next 3Y-2.87%
EPS Next 5YN/A
Revenue 1Y (TTM)41.35%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%-37.15%
Revenue Next Year-19.4%
Revenue Next 2Y-3.98%
Revenue Next 3Y1.41%
Revenue Next 5Y5.34%
EBIT growth 1Y130.04%
EBIT growth 3Y56.01%
EBIT growth 5Y22.08%
EBIT Next Year-3.24%
EBIT Next 3Y13.4%
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 12.92 and the Price/Book (PB) ratio is 2.3.
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 -32.3% in the next year.