CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis
NYSE:SBS - New York Stock Exchange, Inc. - US20441A1025 - ADR - Currency: USD
SBS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. While SBS has a great profitability rating, 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
In the past year SBS was profitable.
In the past year SBS had a positive cash flow from operations.
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.
1.2 Ratios
The Return On Assets of SBS (11.95%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 26.66%, SBS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of SBS (16.40%) is better 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 5.08%.
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 | 11.95% | ||
| ROE | 26.66% | ||
| 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
The Profit Margin of SBS (26.93%) is better than 85.71% of its industry peers.
SBS's Profit Margin has improved in the last couple of years.
SBS has a Operating Margin of 43.81%. 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 (53.66%) which 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 | 43.81% | ||
| PM (TTM) | 26.93% | ||
| GM | 53.66% |
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.
The number of shares outstanding for SBS remains at a similar level compared to 5 years ago.
SBS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.39 indicates that SBS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SBS (2.39) is better than 85.71% of its industry peers.
SBS has a Debt/Equity ratio of 0.65. This is a neutral value indicating SBS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, SBS belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.39 |
ROIC/WACC1.25
WACC13.17%
2.3 Liquidity
SBS has a Current Ratio of 1.09. 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 better Current ratio (1.09) than 64.29% of its industry peers.
A Quick Ratio of 1.08 indicates that SBS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.08, SBS is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
SBS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 184.24%, which is quite impressive.
The Earnings Per Share has been growing by 23.08% on average over the past years. This is a very strong growth
The Revenue has grown by 43.80% in the past year. This is a very strong growth!
The Revenue has been growing by 14.98% on average over the past years. This is quite good.
EPS 1Y (TTM)184.24%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%80.83%
Revenue 1Y (TTM)43.8%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%28.61%
3.2 Future
SBS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.41% yearly.
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-49.12%
EPS Next 2Y-13%
EPS Next 3Y-5.41%
EPS Next 5YN/A
Revenue Next Year-7.3%
Revenue Next 2Y2.41%
Revenue Next 3Y2.25%
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
Based on the Price/Earnings ratio of 7.47, the valuation of SBS can be described as very cheap.
SBS's Price/Earnings ratio is rather cheap when compared to the industry. SBS is cheaper than 100.00% of the companies in the same industry.
SBS is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.55 indicates a reasonable valuation of SBS.
Based on the Price/Forward Earnings ratio, SBS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SBS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 10.55 |
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 | 4.78 |
4.3 Compensation for Growth
The excellent profitability rating of SBS may justify a higher PE ratio.
A cheap valuation may be justified as SBS's earnings are expected to decrease with -5.41% in the coming years.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-13%
EPS Next 3Y-5.41%
5. Dividend
5.1 Amount
SBS has a yearly dividend return of 0.59%, which is pretty low.
Compared to an average industry Dividend Yield of 3.32, SBS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.35, SBS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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
9.07% of the earnings are spent on dividend by SBS. This is a low number and sustainable payout ratio.
DP9.07%
EPS Next 2Y-13%
EPS Next 3Y-5.41%
20.1
-0.02 (-0.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners40.17%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap13.74B
Analysts83
Price Target23.95 (19.15%)
Short Float %0.76%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.24
Dividend Growth(5Y)4.65%
DP9.07%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.81%
Min EPS beat(2)-19.39%
Max EPS beat(2)5.76%
EPS beat(4)3
Avg EPS beat(4)103.22%
Min EPS beat(4)-19.39%
Max EPS beat(4)412.07%
EPS beat(8)4
Avg EPS beat(8)48.05%
EPS beat(12)6
Avg EPS beat(12)36.67%
EPS beat(16)7
Avg EPS beat(16)26.13%
Revenue beat(2)2
Avg Revenue beat(2)21.58%
Min Revenue beat(2)20.14%
Max Revenue beat(2)23.03%
Revenue beat(4)4
Avg Revenue beat(4)49.17%
Min Revenue beat(4)17.4%
Max Revenue beat(4)136.1%
Revenue beat(8)8
Avg Revenue beat(8)33.82%
Revenue beat(12)12
Avg Revenue beat(12)28.69%
Revenue beat(16)16
Avg Revenue beat(16)25.78%
PT rev (1m)4.05%
PT rev (3m)9.37%
EPS NQ rev (1m)4.22%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)0%
EPS NY rev (3m)7.57%
Revenue NQ rev (1m)-3.85%
Revenue NQ rev (3m)-9.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 10.55 | ||
| P/S | 2.01 | ||
| P/FCF | N/A | ||
| P/OCF | 10.76 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.78 |
EPS(TTM)2.69
EY13.38%
EPS(NY)1.91
Fwd EY9.48%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)1.87
OCFY9.3%
SpS9.99
BVpS10.09
TBVpS-1.69
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.95% | ||
| ROE | 26.66% | ||
| ROCE | 22.73% | ||
| ROIC | 16.4% | ||
| ROICexc | 18.45% | ||
| ROICexgc | 59.11% | ||
| OM | 43.81% | ||
| PM (TTM) | 26.93% | ||
| GM | 53.66% | ||
| 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%
ROICexcg growth 3Y19.27%
ROICexcg 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-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 361.7% | ||
| Cap/Sales | 23.66% | ||
| Interest Coverage | 7.36 | ||
| Cash Conversion | 37.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.39 |
F-Score6
WACC13.17%
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)184.24%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%80.83%
EPS Next Y-49.12%
EPS Next 2Y-13%
EPS Next 3Y-5.41%
EPS Next 5YN/A
Revenue 1Y (TTM)43.8%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%28.61%
Revenue Next Year-7.3%
Revenue Next 2Y2.41%
Revenue Next 3Y2.25%
Revenue Next 5Y3.97%
EBIT growth 1Y153.09%
EBIT growth 3Y56.01%
EBIT growth 5Y22.08%
EBIT Next Year-7.45%
EBIT Next 3Y11.68%
EBIT Next 5Y13.83%
FCF growth 1Y-1142.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y89.74%
OCF growth 3Y23.68%
OCF growth 5Y12.02%