CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis
NYSE:SBS - New York Stock Exchange, Inc. - US20441A1025 - ADR - Currency: USD
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. SBS has an excellent profitability rating, but there are some minor concerns on its financial health. SBS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SBS was profitable.
SBS had a positive operating cash flow in the past year.
SBS had positive earnings in each of the past 5 years.
Each year in the past 5 years SBS had a positive operating cash flow.
1.2 Ratios
SBS's Return On Assets of 11.95% is amongst the best of the industry. SBS outperforms 100.00% of its industry peers.
SBS has a better Return On Equity (26.66%) than 100.00% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital 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
SBS has a better Profit Margin (26.93%) than 85.71% of its industry peers.
SBS's Profit Margin has improved in the last couple of years.
SBS's Operating Margin of 43.81% is amongst the best of the industry. SBS outperforms 100.00% of its industry peers.
SBS's Operating Margin has improved in the last couple of years.
SBS has a Gross Margin (53.66%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SBS has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SBS is still creating some value.
SBS has about the same amout of shares outstanding than it did 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
SBS has an Altman-Z score of 2.43. 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.
SBS's Altman-Z score of 2.43 is amongst the best of the industry. SBS outperforms 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.
The Debt to Equity ratio of SBS (0.65) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.43 |
ROIC/WACC1.17
WACC14.06%
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.
SBS has a Quick Ratio of 1.08. 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 Quick ratio of 1.08 is fine compared to the rest 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
SBS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 184.24%, which is quite impressive.
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.
Looking at the last year, SBS shows a very strong growth in Revenue. The Revenue has grown by 43.80%.
The Revenue has been growing by 14.98% on average over the past years. This is quite good.
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
Based on estimates for the next years, SBS will show a decrease in Earnings Per Share. The EPS will decrease by -5.41% on average per year.
SBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.97% 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 5Y1.97%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.60, which indicates a rather cheap valuation of SBS.
SBS's Price/Earnings ratio is rather cheap when compared to the industry. SBS is cheaper than 100.00% of the companies in the same industry.
SBS is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.75, the valuation of SBS can be described as reasonable.
Based on the Price/Forward Earnings ratio, SBS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
SBS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SBS indicates a rather cheap valuation: SBS is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.92 |
4.3 Compensation for Growth
The excellent profitability rating of SBS 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)0.33
EPS Next 2Y-13%
EPS Next 3Y-5.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, SBS is not a good candidate for dividend investing.
SBS's Dividend Yield is slightly below the industry average, which is at 3.32.
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 | 0.57% |
5.2 History
The dividend of SBS has a limited annual growth rate of 4.65%.
SBS has been paying a dividend for at least 10 years, so it has a reliable track record.
SBS has decreased its dividend recently.
Dividend Growth(5Y)4.65%
Div Incr Years1
Div Non Decr Years1
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%
20.76
-0.34 (-1.61%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners40.17%
Inst Owner Change-3.49%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.19B
Analysts83
Price Target23.01 (10.84%)
Short Float %0.67%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.24
Dividend Growth(5Y)4.65%
DP9.07%
Div Incr Years1
Div Non Decr Years1
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)2.93%
PT rev (3m)9.06%
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)0%
Revenue NY rev (3m)-4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 10.75 | ||
| P/S | 2.05 | ||
| P/FCF | N/A | ||
| P/OCF | 10.96 | ||
| P/B | 2.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.92 |
EPS(TTM)2.73
EY13.15%
EPS(NY)1.93
Fwd EY9.3%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)1.89
OCFY9.12%
SpS10.13
BVpS10.23
TBVpS-1.71
PEG (NY)N/A
PEG (5Y)0.33
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 | 2.43 |
F-Score6
WACC14.06%
ROIC/WACC1.17
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 5Y1.97%
EBIT growth 1Y153.09%
EBIT growth 3Y56.01%
EBIT growth 5Y22.08%
EBIT Next Year-7.45%
EBIT Next 3Y11.68%
EBIT Next 5Y14.06%
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%