CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis
NYSE:SBS - New York Stock Exchange, Inc. - US20441A1025 - ADR - Currency: USD
Overall SBS gets a fundamental rating of 6 out of 10. We evaluated SBS against 14 industry peers in the Water Utilities industry. SBS scores excellent on profitability, but there are some minor concerns on its financial health. SBS is not valued too expensively and it also shows a decent 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
With an excellent Return On Assets value of 11.95%, SBS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of SBS (26.66%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.40%, SBS belongs to the top 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 5.08%.
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 | 11.95% | ||
| ROE | 26.66% | ||
| 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
The Profit Margin of SBS (26.93%) is better than 85.71% of its industry peers.
SBS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 43.81%, SBS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SBS has grown nicely.
SBS has a Gross Margin (53.66%) which is in line with its industry peers.
SBS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.81% | ||
| PM (TTM) | 26.93% | ||
| GM | 53.66% |
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 below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SBS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SBS has about the same amount of shares outstanding.
SBS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.46 indicates that SBS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SBS (2.46) is better than 85.71% of its industry peers.
SBS has a Debt/Equity ratio of 0.65. This is a neutral value indicating SBS is somewhat dependend on debt financing.
SBS has a Debt to Equity ratio of 0.65. This is amongst the best in the industry. SBS outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.46 |
ROIC/WACC0.95
WACC17.26%
2.3 Liquidity
SBS has a Current Ratio of 1.09. This is a normal value and indicates that SBS is financially healthy and should not expect problems in meeting its short term obligations.
SBS's Current ratio of 1.09 is fine compared to the rest of the industry. SBS outperforms 64.29% of its industry peers.
A Quick Ratio of 1.08 indicates that SBS should not have too much problems paying its short term obligations.
SBS has a Quick ratio of 1.08. This is in the better half of the industry: SBS outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 184.24% over the past year.
Measured over the past years, SBS shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.08% on average per year.
The Revenue has grown by 43.80% in the past year. This is a very strong growth!
SBS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.98% yearly.
EPS 1Y (TTM)184.24%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%80.83%
Revenue 1Y (TTM)43.8%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%28.61%
3.2 Future
SBS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.41% yearly.
SBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
EPS Next Y-49.12%
EPS Next 2Y-13%
EPS Next 3Y-5.41%
EPS Next 5YN/A
Revenue Next Year-7.3%
Revenue Next 2Y2.41%
Revenue Next 3Y2.25%
Revenue Next 5Y4.09%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.98, which indicates a rather cheap valuation of SBS.
Compared to the rest of the industry, the Price/Earnings ratio of SBS indicates a rather cheap valuation: SBS is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.19. SBS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.25, the valuation of SBS can be described as reasonable.
100.00% of the companies in the same industry are more expensive than SBS, based on the Price/Forward Earnings ratio.
SBS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 11.25 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.04 |
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 -5.41% in the coming years.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-13%
EPS Next 3Y-5.41%
5. Dividend
5.1 Amount
SBS has a yearly dividend return of 0.54%, which is pretty low.
SBS's Dividend Yield is slightly below the industry average, which is at 3.38.
Compared to an average S&P500 Dividend Yield of 2.40, SBS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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.
SBS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.65%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
9.07% of the earnings are spent on dividend by SBS. This is a low number and sustainable payout ratio.
DP9.07%
EPS Next 2Y-13%
EPS Next 3Y-5.41%
20.98
+0.28 (+1.35%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners45.33%
Inst Owner Change-3.76%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.34B
Analysts83.16
Price Target22.36 (6.58%)
Short Float %0.65%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.24
Dividend Growth(5Y)4.65%
DP9.07%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.81%
Min EPS beat(2)-19.39%
Max EPS beat(2)5.76%
EPS beat(4)3
Avg EPS beat(4)103.22%
Min EPS beat(4)-19.39%
Max EPS beat(4)412.07%
EPS beat(8)4
Avg EPS beat(8)48.05%
EPS beat(12)6
Avg EPS beat(12)36.67%
EPS beat(16)7
Avg EPS beat(16)26.13%
Revenue beat(2)2
Avg Revenue beat(2)21.58%
Min Revenue beat(2)20.14%
Max Revenue beat(2)23.03%
Revenue beat(4)4
Avg Revenue beat(4)49.17%
Min Revenue beat(4)17.4%
Max Revenue beat(4)136.1%
Revenue beat(8)8
Avg Revenue beat(8)33.82%
Revenue beat(12)12
Avg Revenue beat(12)28.69%
Revenue beat(16)16
Avg Revenue beat(16)25.78%
PT rev (1m)2.12%
PT rev (3m)7.03%
EPS NQ rev (1m)-1.74%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.15%
Revenue NQ rev (1m)-5.74%
Revenue NQ rev (3m)-23.44%
Revenue NY rev (1m)-1.35%
Revenue NY rev (3m)-4.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 11.25 | ||
| P/S | 2.14 | ||
| P/FCF | N/A | ||
| P/OCF | 11.47 | ||
| P/B | 2.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.04 |
EPS(TTM)2.63
EY12.54%
EPS(NY)1.86
Fwd EY8.89%
FCF(TTM)-0.49
FCFYN/A
OCF(TTM)1.83
OCFY8.72%
SpS9.78
BVpS9.88
TBVpS-1.65
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.95% | ||
| ROE | 26.66% | ||
| ROCE | 22.73% | ||
| ROIC | 16.4% | ||
| ROICexc | 18.45% | ||
| ROICexgc | 59.11% | ||
| OM | 43.81% | ||
| PM (TTM) | 26.93% | ||
| GM | 53.66% | ||
| 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-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 361.7% | ||
| Cap/Sales | 23.66% | ||
| Interest Coverage | 7.36 | ||
| Cash Conversion | 37.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.46 |
F-Score6
WACC17.26%
ROIC/WACC0.95
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)184.24%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%80.83%
EPS Next Y-49.12%
EPS Next 2Y-13%
EPS Next 3Y-5.41%
EPS Next 5YN/A
Revenue 1Y (TTM)43.8%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%28.61%
Revenue Next Year-7.3%
Revenue Next 2Y2.41%
Revenue Next 3Y2.25%
Revenue Next 5Y4.09%
EBIT growth 1Y153.09%
EBIT growth 3Y56.01%
EBIT growth 5Y22.08%
EBIT Next Year-7.45%
EBIT Next 3Y11.68%
EBIT Next 5Y11.3%
FCF growth 1Y-1142.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y89.74%
OCF growth 3Y23.68%
OCF growth 5Y12.02%