COSAN SA -ADR (CSAN) Stock Fundamental Analysis
NYSE:CSAN - New York Stock Exchange, Inc. - US22113B1035 - ADR - Currency: USD
CSAN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of CSAN have multiple concerns. CSAN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
CSAN had negative earnings in the past year.
In the past year CSAN had a positive cash flow from operations.
CSAN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CSAN had a positive operating cash flow.
1.2 Ratios
CSAN's Return On Assets of -6.67% is on the low side compared to the rest of the industry. CSAN is outperformed by 79.34% of its industry peers.
CSAN has a worse Return On Equity (-86.43%) than 88.26% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.11%, CSAN is doing worse than 62.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CSAN is significantly below the industry average of 25.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.67% | ||
| ROE | -86.43% | ||
| ROIC | 4.11% |
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
Looking at the Operating Margin, with a value of 14.59%, CSAN is in line with its industry, outperforming 46.01% of the companies in the same industry.
In the last couple of years the Operating Margin of CSAN has declined.
CSAN's Gross Margin of 31.20% is in line compared to the rest of the industry. CSAN outperforms 42.25% of its industry peers.
In the last couple of years the Gross Margin of CSAN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.59% | ||
| PM (TTM) | N/A | ||
| GM | 31.2% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CSAN is destroying value.
CSAN has less shares outstanding than it did 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 0.65. This is a bad value and indicates that CSAN is not financially healthy and even has some risk of bankruptcy.
CSAN's Altman-Z score of 0.65 is on the low side compared to the rest of the industry. CSAN is outperformed by 61.50% of its industry peers.
The Debt to FCF ratio of CSAN is 13.94, which is on the high side as it means it would take CSAN, 13.94 years of fcf income to pay off all of its debts.
CSAN has a Debt to FCF ratio (13.94) which is comparable to the rest of the industry.
A Debt/Equity ratio of 6.20 is on the high side and indicates that CSAN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.20, CSAN is doing worse than 90.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.2 | ||
| Debt/FCF | 13.94 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.43
WACC9.62%
2.3 Liquidity
CSAN has a Current Ratio of 1.72. This is a normal value and indicates that CSAN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.72, CSAN is in the better half of the industry, outperforming 71.36% of the companies in the same industry.
A Quick Ratio of 1.60 indicates that CSAN should not have too much problems paying its short term obligations.
CSAN has a better Quick ratio (1.60) than 72.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The earnings per share for CSAN have decreased strongly by -998.95% in the last year.
The Revenue has grown by 11.36% in the past year. This is quite good.
CSAN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.51% yearly.
EPS 1Y (TTM)-998.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-687.06%
Revenue 1Y (TTM)11.36%
Revenue growth 3Y20.84%
Revenue growth 5Y26.51%
Sales Q2Q%-69.69%
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 36.92% on average per year.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for CSAN. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 4.34 indicates a rather cheap valuation of CSAN.
CSAN's Price/Forward Earnings ratio is rather cheap when compared to the industry. CSAN is cheaper than 94.37% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, CSAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSAN is valued a bit cheaper than the industry average as 64.32% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CSAN is valued cheaply inside the industry as 94.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.73 | ||
| EV/EBITDA | 6.18 |
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.
A more expensive valuation may be justified as CSAN's earnings are expected to grow with 36.92% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y52.78%
EPS Next 3Y36.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.96%, CSAN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.03, CSAN pays a bit more dividend than its industry peers.
CSAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.96% |
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.
CSAN has decreased its dividend recently.
Dividend Growth(5Y)25.09%
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-36.58%
EPS Next 2Y52.78%
EPS Next 3Y36.92%
5.44
+0.09 (+1.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners31.72%
Inst Owner Change-12.55%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.53B
Analysts80
Price Target7 (28.68%)
Short Float %0.67%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.96% |
Yearly Dividend1.31
Dividend Growth(5Y)25.09%
DP-36.58%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-949.62%
Min EPS beat(2)-1830.24%
Max EPS beat(2)-69.01%
EPS beat(4)0
Avg EPS beat(4)-536.79%
Min EPS beat(4)-1830.24%
Max EPS beat(4)-29.45%
EPS beat(8)1
Avg EPS beat(8)-274.48%
EPS beat(12)2
Avg EPS beat(12)-181.05%
EPS beat(16)5
Avg EPS beat(16)-121.79%
Revenue beat(2)0
Avg Revenue beat(2)-73.28%
Min Revenue beat(2)-74.31%
Max Revenue beat(2)-72.24%
Revenue beat(4)0
Avg Revenue beat(4)-72.93%
Min Revenue beat(4)-74.31%
Max Revenue beat(4)-72.08%
Revenue beat(8)0
Avg Revenue beat(8)-40.01%
Revenue beat(12)0
Avg Revenue beat(12)-51.56%
Revenue beat(16)0
Avg Revenue beat(16)-57.74%
PT rev (1m)-4.1%
PT rev (3m)-6.6%
EPS NQ rev (1m)183.75%
EPS NQ rev (3m)-83.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.18%
Revenue NQ rev (1m)-4.14%
Revenue NQ rev (3m)2.58%
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.34 | ||
| P/S | 0.32 | ||
| P/FCF | 2.73 | ||
| P/OCF | 1.09 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.18 |
EPS(TTM)-3.64
EYN/A
EPS(NY)1.25
Fwd EY23.03%
FCF(TTM)2
FCFY36.69%
OCF(TTM)4.99
OCFY91.69%
SpS16.76
BVpS4.16
TBVpS-5.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.67% | ||
| ROE | -86.43% | ||
| ROCE | 5.2% | ||
| ROIC | 4.11% | ||
| ROICexc | 4.91% | ||
| ROICexgc | 6.59% | ||
| OM | 14.59% | ||
| PM (TTM) | N/A | ||
| GM | 31.2% | ||
| FCFM | 11.91% |
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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.2 | ||
| Debt/FCF | 13.94 | ||
| Debt/EBITDA | 6.57 | ||
| Cap/Depr | 202.84% | ||
| Cap/Sales | 17.85% | ||
| Interest Coverage | 1.25 | ||
| Cash Conversion | 127.24% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 0.65 |
F-Score5
WACC9.62%
ROIC/WACC0.43
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)-998.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-687.06%
EPS Next Y134.43%
EPS Next 2Y52.78%
EPS Next 3Y36.92%
EPS Next 5YN/A
Revenue 1Y (TTM)11.36%
Revenue growth 3Y20.84%
Revenue growth 5Y26.51%
Sales Q2Q%-69.69%
Revenue Next Year3.65%
Revenue Next 2Y3.57%
Revenue Next 3Y62.96%
Revenue Next 5YN/A
EBIT growth 1Y-14.98%
EBIT growth 3Y24.77%
EBIT growth 5Y21.84%
EBIT Next Year119.14%
EBIT Next 3Y37.51%
EBIT Next 5YN/A
FCF growth 1Y30.58%
FCF growth 3Y65.47%
FCF growth 5Y21.36%
OCF growth 1Y27.29%
OCF growth 3Y35.81%
OCF growth 5Y36.03%