COSAN SA -ADR (CSAN) Stock Fundamental Analysis
NYSE:CSAN - New York Stock Exchange, Inc. - US22113B1035 - ADR - Currency: USD
Taking everything into account, CSAN scores 5 out of 10 in our fundamental rating. CSAN was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. CSAN has a bad profitability rating. Also its financial health evaluation is rather negative. CSAN is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year CSAN has reported negative net income.
In the past year CSAN had a positive cash flow from operations.
Of the past 5 years CSAN 4 years were profitable.
In the past 5 years CSAN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -8.64%, CSAN is doing worse than 81.43% of the companies in the same industry.
CSAN has a worse Return On Equity (-139.63%) than 89.05% of its industry peers.
The Return On Invested Capital of CSAN (4.54%) is worse than 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSAN is significantly below the industry average of 23.80%.
The 3 year average ROIC (4.36%) for CSAN is below the current ROIC(4.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.64% | ||
| ROE | -139.63% | ||
| ROIC | 4.54% |
ROA(3y)-1.67%
ROA(5y)0.73%
ROE(3y)-25.17%
ROE(5y)-5.22%
ROIC(3y)4.36%
ROIC(5y)4.21%
1.3 Margins
With a Operating Margin value of 15.03%, CSAN perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CSAN has declined.
CSAN has a Gross Margin of 31.23%. This is comparable to the rest of the industry: CSAN outperforms 41.43% of its industry peers.
CSAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.03% | ||
| PM (TTM) | N/A | ||
| GM | 31.23% |
OM growth 3Y3.25%
OM growth 5Y-3.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.35%
GM growth 5Y1.27%
2. Health
2.1 Basic Checks
CSAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CSAN has been reduced compared to 1 year ago.
The number of shares outstanding for CSAN has been increased compared to 5 years ago.
The debt/assets ratio for CSAN is higher compared to a year ago.
2.2 Solvency
CSAN has an Altman-Z score of 0.70. This is a bad value and indicates that CSAN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.70, CSAN is not doing good in the industry: 61.43% of the companies in the same industry are doing better.
CSAN has a debt to FCF ratio of 15.71. This is a negative value and a sign of low solvency as CSAN would need 15.71 years to pay back of all of its debts.
With a Debt to FCF ratio value of 15.71, CSAN perfoms like the industry average, outperforming 46.19% of the companies in the same industry.
A Debt/Equity ratio of 8.04 is on the high side and indicates that CSAN has dependencies on debt financing.
CSAN has a Debt to Equity ratio of 8.04. This is amonst the worse of the industry: CSAN underperforms 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.04 | ||
| Debt/FCF | 15.71 | ||
| Altman-Z | 0.7 |
ROIC/WACC0.69
WACC6.58%
2.3 Liquidity
CSAN has a Current Ratio of 2.13. This indicates that CSAN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.13, CSAN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 1.98 indicates that CSAN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.98, CSAN belongs to the top of the industry, outperforming 80.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The earnings per share for CSAN have decreased strongly by -768.17% in the last year.
Looking at the last year, CSAN shows a quite strong growth in Revenue. The Revenue has grown by 10.31% in the last year.
CSAN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.51% yearly.
EPS 1Y (TTM)-768.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-485.37%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y20.84%
Revenue growth 5Y26.51%
Sales Q2Q%-1.82%
3.2 Future
The Earnings Per Share is expected to grow by 36.92% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 62.96% on average over the next years. This is a very strong growth
EPS Next Y134.43%
EPS Next 2Y52.78%
EPS Next 3Y36.92%
EPS Next 5YN/A
Revenue Next Year3.65%
Revenue Next 2Y3.57%
Revenue Next 3Y62.96%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CSAN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 3.45, the valuation of CSAN can be described as very cheap.
Based on the Price/Forward Earnings ratio, CSAN is valued cheaply inside the industry as 96.19% of the companies are valued more expensively.
CSAN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.45 |
4.2 Price Multiples
67.14% of the companies in the same industry are more expensive than CSAN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CSAN is valued cheaper than 94.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.57 | ||
| EV/EBITDA | 5.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CSAN's earnings are expected to grow with 36.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y52.78%
EPS Next 3Y36.92%
5. Dividend
5.1 Amount
CSAN has a Yearly Dividend Yield of 7.04%, which is a nice return.
Compared to an average industry Dividend Yield of 6.41, CSAN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, CSAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
5.2 History
On average, the dividend of CSAN grows each year by 25.09%, which is quite nice.
CSAN has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)25.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CSAN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of CSAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-34.2%
EPS Next 2Y52.78%
EPS Next 3Y36.92%
4.23
-0.2 (-4.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners23.09%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.97B
Analysts80
Price Target7.1 (67.85%)
Short Float %0.72%
Short Ratio1.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
Yearly Dividend1.33
Dividend Growth(5Y)25.09%
DP-34.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1428.82%
Min EPS beat(2)-1830.24%
Max EPS beat(2)-1027.4%
EPS beat(4)0
Avg EPS beat(4)-739.03%
Min EPS beat(4)-1830.24%
Max EPS beat(4)-29.45%
EPS beat(8)1
Avg EPS beat(8)-369.09%
EPS beat(12)2
Avg EPS beat(12)-260.9%
EPS beat(16)5
Avg EPS beat(16)-180.48%
Revenue beat(2)0
Avg Revenue beat(2)-75.62%
Min Revenue beat(2)-76.92%
Max Revenue beat(2)-74.31%
Revenue beat(4)0
Avg Revenue beat(4)-73.89%
Min Revenue beat(4)-76.92%
Max Revenue beat(4)-72.08%
Revenue beat(8)0
Avg Revenue beat(8)-48.87%
Revenue beat(12)0
Avg Revenue beat(12)-51.59%
Revenue beat(16)0
Avg Revenue beat(16)-57.63%
PT rev (1m)0.04%
PT rev (3m)-2.71%
EPS NQ rev (1m)-47.23%
EPS NQ rev (3m)-73.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)-8.11%
Revenue NQ rev (3m)-8.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.45 | ||
| P/S | 0.25 | ||
| P/FCF | 2.57 | ||
| P/OCF | 0.85 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.53 |
EPS(TTM)-4.24
EYN/A
EPS(NY)1.23
Fwd EY29%
FCF(TTM)1.65
FCFY38.92%
OCF(TTM)4.96
OCFY117.28%
SpS16.88
BVpS3.04
TBVpS-7.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.64% | ||
| ROE | -139.63% | ||
| ROCE | 5.75% | ||
| ROIC | 4.54% | ||
| ROICexc | 5.37% | ||
| ROICexgc | 7.41% | ||
| OM | 15.03% | ||
| PM (TTM) | N/A | ||
| GM | 31.23% | ||
| FCFM | 9.75% |
ROA(3y)-1.67%
ROA(5y)0.73%
ROE(3y)-25.17%
ROE(5y)-5.22%
ROIC(3y)4.36%
ROIC(5y)4.21%
ROICexc(3y)5.12%
ROICexc(5y)5.21%
ROICexgc(3y)6.64%
ROICexgc(5y)7.56%
ROCE(3y)5.52%
ROCE(5y)5.33%
ROICexcg growth 3Y5.58%
ROICexcg growth 5Y-20.62%
ROICexc growth 3Y6.6%
ROICexc growth 5Y-13.61%
OM growth 3Y3.25%
OM growth 5Y-3.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.35%
GM growth 5Y1.27%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.04 | ||
| Debt/FCF | 15.71 | ||
| Debt/EBITDA | 6.04 | ||
| Cap/Depr | 218.77% | ||
| Cap/Sales | 19.64% | ||
| Interest Coverage | 1.22 | ||
| Cash Conversion | 122.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 0.7 |
F-Score6
WACC6.58%
ROIC/WACC0.69
Cap/Depr(3y)179.81%
Cap/Depr(5y)178.28%
Cap/Sales(3y)15.09%
Cap/Sales(5y)13.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-768.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-485.37%
EPS Next Y134.43%
EPS Next 2Y52.78%
EPS Next 3Y36.92%
EPS Next 5YN/A
Revenue 1Y (TTM)10.31%
Revenue growth 3Y20.84%
Revenue growth 5Y26.51%
Sales Q2Q%-1.82%
Revenue Next Year3.65%
Revenue Next 2Y3.57%
Revenue Next 3Y62.96%
Revenue Next 5YN/A
EBIT growth 1Y-17.38%
EBIT growth 3Y24.77%
EBIT growth 5Y21.84%
EBIT Next Year119.48%
EBIT Next 3Y29%
EBIT Next 5YN/A
FCF growth 1Y-22.73%
FCF growth 3Y65.47%
FCF growth 5Y21.36%
OCF growth 1Y22.65%
OCF growth 3Y35.81%
OCF growth 5Y36.03%