COSAN SA -ADR (CSAN)

US22113B1035 - ADR

12.86  -0.16 (-1.23%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to CSAN. CSAN was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. CSAN has a bad profitability rating. Also its financial health evaluation is rather negative. CSAN has a correct valuation and a medium growth rate.



3

1. Profitability

1.1 Basic Checks

CSAN had positive earnings in the past year.
CSAN had a positive operating cash flow in the past year.
CSAN had positive earnings in each of the past 5 years.
Each year in the past 5 years CSAN had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -0.34%, CSAN is not doing good in the industry: 83.10% of the companies in the same industry are doing better.
The Return On Equity of CSAN (-2.50%) is worse than 82.63% of its industry peers.
CSAN has a worse Return On Invested Capital (5.29%) than 69.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSAN is significantly below the industry average of 48.71%.
The 3 year average ROIC (3.95%) for CSAN is below the current ROIC(5.29%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.34%
ROE -2.5%
ROIC 5.29%
ROA(3y)3.17%
ROA(5y)4.53%
ROE(3y)18.36%
ROE(5y)18.94%
ROIC(3y)3.95%
ROIC(5y)4.57%

1.3 Margins

In the last couple of years the Profit Margin of CSAN has declined.
CSAN's Operating Margin of 19.86% is in line compared to the rest of the industry. CSAN outperforms 42.25% of its industry peers.
CSAN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 26.67%, CSAN is doing worse than 64.79% of the companies in the same industry.
CSAN's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 19.86%
PM (TTM) N/A
GM 26.67%
OM growth 3Y-7.41%
OM growth 5Y-11.02%
PM growth 3Y-45.1%
PM growth 5Y-29.63%
GM growth 3Y-8.27%
GM growth 5Y-7.95%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CSAN is destroying value.
The number of shares outstanding for CSAN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, CSAN has more shares outstanding
Compared to 1 year ago, CSAN has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.84, we must say that CSAN is in the distress zone and has some risk of bankruptcy.
CSAN has a worse Altman-Z score (0.84) than 61.03% of its industry peers.
The Debt to FCF ratio of CSAN is 12.45, which is on the high side as it means it would take CSAN, 12.45 years of fcf income to pay off all of its debts.
CSAN's Debt to FCF ratio of 12.45 is on the low side compared to the rest of the industry. CSAN is outperformed by 62.91% of its industry peers.
A Debt/Equity ratio of 3.02 is on the high side and indicates that CSAN has dependencies on debt financing.
With a Debt to Equity ratio value of 3.02, CSAN is not doing good in the industry: 88.26% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 3.02
Debt/FCF 12.45
Altman-Z 0.84
ROIC/WACC0.55
WACC9.7%

2.3 Liquidity

CSAN has a Current Ratio of 1.62. This is a normal value and indicates that CSAN is financially healthy and should not expect problems in meeting its short term obligations.
CSAN has a Current ratio of 1.62. This is in the better half of the industry: CSAN outperforms 71.36% of its industry peers.
A Quick Ratio of 1.51 indicates that CSAN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, CSAN is in the better half of the industry, outperforming 72.30% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.51

6

3. Growth

3.1 Past

CSAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.15%.
CSAN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.50% yearly.
Looking at the last year, CSAN shows a quite strong growth in Revenue. The Revenue has grown by 13.76% in the last year.
CSAN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.95% yearly.
EPS 1Y (TTM)-46.15%
EPS 3Y-5.14%
EPS 5Y1.5%
EPS growth Q2Q-7.14%
Revenue 1Y (TTM)13.76%
Revenue growth 3Y43.1%
Revenue growth 5Y38.95%
Revenue growth Q2Q-10.9%

3.2 Future

Based on estimates for the next years, CSAN will show a very strong growth in Earnings Per Share. The EPS will grow by 25.68% on average per year.
Based on estimates for the next years, CSAN will show a small growth in Revenue. The Revenue will grow by 1.53% on average per year.
EPS Next Y-146.71%
EPS Next 2Y14.65%
EPS Next 3Y25.68%
EPS Next 5YN/A
Revenue Next Year-2.9%
Revenue Next 2Y1.34%
Revenue Next 3Y1.53%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 58.45 indicates a quite expensive valuation of CSAN.
Compared to the rest of the industry, the Price/Earnings ratio of CSAN indicates a slightly more expensive valuation: CSAN is more expensive than 78.87% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.42. CSAN is valued rather expensively when compared to this.
CSAN is valuated correctly with a Price/Forward Earnings ratio of 14.17.
CSAN's Price/Forward Earnings ratio is in line with the industry average.
CSAN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 58.45
Fwd PE 14.17

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as CSAN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSAN indicates a rather cheap valuation: CSAN is cheaper than 80.75% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.98
EV/EBITDA 6

4.3 Compensation for Growth

A more expensive valuation may be justified as CSAN's earnings are expected to grow with 25.68% in the coming years.
PEG (NY)N/A
PEG (5Y)38.93
EPS Next 2Y14.65%
EPS Next 3Y25.68%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.13%, CSAN is a good candidate for dividend investing.
CSAN's Dividend Yield is a higher than the industry average which is at 5.86.
Compared to an average S&P500 Dividend Yield of 2.34, CSAN pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.13%

5.2 History

The dividend of CSAN is nicely growing with an annual growth rate of 6.05%!
CSAN has been paying a dividend for over 5 years, so it has already some track record.
CSAN has decreased its dividend recently.
Dividend Growth(5Y)6.05%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

The earnings of CSAN are negative and hence is the payout ratio. CSAN will probably not be able to sustain this dividend level.
CSAN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-565.22%
EPS Next 2Y14.65%
EPS Next 3Y25.68%

COSAN SA -ADR

NYSE:CSAN (3/28/2024, 3:00:39 PM)

12.86

-0.16 (-1.23%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.99B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 5.13%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 58.45
Fwd PE 14.17
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)38.93
Profitability
Industry RankSector Rank
ROA -0.34%
ROE -2.5%
ROCE
ROIC
ROICexc
ROICexgc
OM 19.86%
PM (TTM) N/A
GM 26.67%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
Industry RankSector Rank
Debt/Equity 3.02
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.62
Quick Ratio 1.51
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-46.15%
EPS 3Y-5.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y-146.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.76%
Revenue growth 3Y43.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y