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

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

18.72  +0.37 (+2.02%)

After market: 18.83 +0.11 (+0.59%)

Fundamental Rating

5

Taking everything into account, SBS scores 5 out of 10 in our fundamental rating. SBS was compared to 14 industry peers in the Water Utilities industry. SBS has only an average score on both its financial health and profitability. SBS is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

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.
Of the past 5 years SBS 4 years were profitable.
Of the past 5 years SBS 4 years had a positive operating cash flow.
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

SBS has a better Return On Assets (12.26%) than 100.00% of its industry peers.
SBS's Return On Equity of 24.61% is amongst the best of the industry. SBS outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 16.94%, SBS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SBS is in line with the industry average of 5.27%.
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

SBS has a better Profit Margin (26.23%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of SBS has declined.
SBS has a Operating Margin of 44.63%. This is amongst the best in the industry. SBS outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of SBS has declined.
With a Gross Margin value of 54.58%, SBS perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
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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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SBS is destroying value.
SBS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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

SBS has an Altman-Z score of 2.77. 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.
Looking at the Altman-Z score, with a value of 2.77, SBS belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
SBS has a Debt/Equity ratio of 0.56. This is a neutral value indicating SBS is somewhat dependend on debt financing.
The Debt to Equity ratio of SBS (0.56) is better than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF N/A
Altman-Z 2.77
ROIC/WACC0.97
WACC17.46%
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

SBS has a Current Ratio of 1.14. This is a normal value and indicates that SBS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.14, SBS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.13, SBS is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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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3

3. Growth

3.1 Past

SBS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 171.50%, which is quite impressive.
SBS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.08% yearly.
EPS 1Y (TTM)171.5%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%20.65%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.89%

3.2 Future

SBS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -17.53% yearly.
Based on estimates for the next years, SBS will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y-52.7%
EPS Next 2Y-17.33%
EPS Next 3Y-17.53%
EPS Next 5YN/A
Revenue Next Year-5.28%
Revenue Next 2Y4.3%
Revenue Next 3Y9.66%
Revenue Next 5Y3.61%

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.
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 5 10

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.87, the valuation of SBS can be described as very cheap.
Based on the Price/Earnings ratio, SBS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
SBS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 16.61, the valuation of SBS can be described as correct.
Based on the Price/Forward Earnings ratio, SBS is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SBS to the average of the S&P500 Index (21.08), we can say SBS is valued slightly cheaper.
Industry RankSector Rank
PE 7.87
Fwd PE 16.61
SBS Price Earnings VS Forward Price EarningsSBS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

SBS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SBS is cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 5.01
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 decent profitability rating of SBS may justify a higher PE ratio.
SBS's earnings are expected to decrease with -17.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-17.33%
EPS Next 3Y-17.53%

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4

5. Dividend

5.1 Amount

SBS has a Yearly Dividend Yield of 1.35%.
SBS's Dividend Yield is slightly below the industry average, which is at 3.45.
With a Dividend Yield of 1.35, SBS pays less dividend than the S&P500 average, which is at 2.57.
Industry RankSector Rank
Dividend Yield 1.35%

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.
DP9.95%
EPS Next 2Y-17.33%
EPS Next 3Y-17.53%
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 (4/17/2025, 8:04:00 PM)

After market: 18.83 +0.11 (+0.59%)

18.72

+0.37 (+2.02%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)03-24 2025-03-24/amc
Earnings (Next)05-12 2025-05-12/amc
Inst Owners45.33%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap12.80B
Analysts83.16
Price Target21.9 (16.99%)
Short Float %1.09%
Short Ratio6.55
Dividend
Industry RankSector Rank
Dividend Yield 1.35%
Yearly Dividend0.21
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)3.76%
PT rev (3m)6.09%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)25.37%
EPS NY rev (1m)5.9%
EPS NY rev (3m)81.28%
Revenue NQ rev (1m)-2.52%
Revenue NQ rev (3m)-9.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.75%
Valuation
Industry RankSector Rank
PE 7.87
Fwd PE 16.61
P/S 2.12
P/FCF N/A
P/OCF 11.41
P/B 1.99
P/tB N/A
EV/EBITDA 5.01
EPS(TTM)2.38
EY12.71%
EPS(NY)1.13
Fwd EY6.02%
FCF(TTM)-0.3
FCFYN/A
OCF(TTM)1.64
OCFY8.77%
SpS8.85
BVpS9.43
TBVpS-0.97
PEG (NY)N/A
PEG (5Y)0.34
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 2.77
F-Score6
WACC17.46%
ROIC/WACC0.97
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)171.5%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%20.65%
EPS Next Y-52.7%
EPS Next 2Y-17.33%
EPS Next 3Y-17.53%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.89%
Revenue Next Year-5.28%
Revenue Next 2Y4.3%
Revenue Next 3Y9.66%
Revenue Next 5Y3.61%
EBIT growth 1Y204.19%
EBIT growth 3Y12.13%
EBIT growth 5Y4.08%
EBIT Next Year157.14%
EBIT Next 3Y38.34%
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%