CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis
USA - NYSE:SBS - US20441A1025 - ADR
23.69 USD
+0.54 (+2.33%)
23.63 USD
-0.06 (-0.25%)
Taking everything into account, SBS scores 6 out of 10 in our fundamental rating. SBS was compared to 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 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.
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
SBS's Return On Assets of 12.58% is amongst the best of the industry. SBS outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 27.61%, SBS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.40%, SBS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SBS is significantly above the industry average of 4.98%.
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
SBS's Profit Margin of 27.76% is amongst the best of the industry. SBS outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of SBS has grown nicely.
SBS has a Operating Margin of 44.20%. 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 grown nicely.
With a Gross Margin value of 52.84%, SBS perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
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
SBS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for SBS has been reduced compared to a year ago.
2.2 Solvency
SBS has an Altman-Z score of 2.59. 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 2.59, SBS belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that SBS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, SBS belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.59 |
ROIC/WACC1.23
WACC13.35%
2.3 Liquidity
A Current Ratio of 1.26 indicates that SBS should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.26, SBS is doing good in the industry, outperforming 64.29% 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 64.29% 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 growth in Earnings Per Share. In the last year, the EPS has been growing by 174.44%, 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 48.83% in the past year. This is a very strong growth!
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)174.44%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%76.27%
Revenue 1Y (TTM)48.83%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%32.82%
3.2 Future
The Earnings Per Share is expected to decrease by -3.50% on average over the next years.
The Revenue is expected to grow by 3.97% on average over the next years.
EPS Next Y-41.57%
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
EPS Next 5YN/A
Revenue Next Year-8.16%
Revenue Next 2Y2.13%
Revenue Next 3Y5.73%
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.
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
SBS is valuated cheaply with a Price/Earnings ratio of 7.90.
Based on the Price/Earnings ratio, SBS is valued cheaper than 100.00% of the companies in the same industry.
SBS is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.73, which indicates a very decent valuation of SBS.
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 (22.85), we can say SBS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.9 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBS is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.41 |
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 -3.50% in the coming years.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, SBS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.34, SBS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, SBS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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.
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-11.37%
EPS Next 3Y-3.5%
23.69
+0.54 (+2.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners51.61%
Inst Owner Change1.49%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap16.19B
Analysts83
Price Target25.84 (9.08%)
Short Float %0.73%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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)5.07%
PT rev (3m)7.92%
EPS NQ rev (1m)6.71%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)9.5%
EPS NY rev (3m)14.83%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.9 | ||
| Fwd PE | 11.73 | ||
| P/S | 2.19 | ||
| P/FCF | N/A | ||
| P/OCF | 10.36 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.41 |
EPS(TTM)3
EY12.66%
EPS(NY)2.02
Fwd EY8.53%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)2.29
OCFY9.65%
SpS10.8
BVpS10.86
TBVpS-1.29
PEG (NY)N/A
PEG (5Y)0.34
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%
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-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 | 2.59 |
F-Score5
WACC13.35%
ROIC/WACC1.23
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)174.44%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%76.27%
EPS Next Y-41.57%
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
EPS Next 5YN/A
Revenue 1Y (TTM)48.83%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%32.82%
Revenue Next Year-8.16%
Revenue Next 2Y2.13%
Revenue Next 3Y5.73%
Revenue Next 5Y3.97%
EBIT growth 1Y130.04%
EBIT growth 3Y56.01%
EBIT growth 5Y22.08%
EBIT Next Year-4.64%
EBIT Next 3Y13.15%
EBIT Next 5Y13.83%
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%