CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis
NYSE:SBS - US20441A1025 - ADR
22.65 USD
+0.23 (+1.03%)
22.65 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SBS. SBS was compared to 14 industry peers in the Water Utilities industry. While SBS belongs to the best of the industry regarding profitability, 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
SBS had positive earnings in the past year.
In the past year SBS had a positive cash flow from operations.
In the past 5 years SBS has always been profitable.
SBS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SBS (11.95%) is better than 100.00% of its industry peers.
SBS has a Return On Equity of 26.66%. This is amongst the best in the industry. SBS outperforms 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 4.98%.
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
With an excellent Profit Margin value of 26.93%, SBS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of SBS has grown nicely.
SBS's Operating Margin of 43.81% is amongst the best of the industry. SBS outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of SBS has grown nicely.
SBS has a Gross Margin (53.66%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SBS is creating some value.
The number of shares outstanding for SBS remains at a similar level compared to 1 year ago.
SBS has about the same amout of shares outstanding than it did 5 years ago.
SBS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.49 indicates that SBS is not a great score, but indicates only limited risk for bankruptcy at the moment.
SBS has a Altman-Z score of 2.49. This is amongst the best in the industry. SBS outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that 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 | 2.49 |
ROIC/WACC1.23
WACC13.34%
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 has a Current ratio of 1.09. This is comparable to the rest of the industry: SBS outperforms 57.14% 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 (1.08) which is comparable to the rest of the industry.
| 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 174.44% over the past year.
The Earnings Per Share has been growing by 23.08% on average over the past years. This is a very strong growth
The Revenue has grown by 41.35% 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)174.44%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%76.27%
Revenue 1Y (TTM)41.35%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%32.82%
3.2 Future
The Earnings Per Share is expected to decrease by -5.13% on average over the next years.
Based on estimates for the next years, SBS will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
EPS Next Y-46.64%
EPS Next 2Y-13.98%
EPS Next 3Y-5.13%
EPS Next 5YN/A
Revenue Next Year-8.05%
Revenue Next 2Y2.12%
Revenue Next 3Y3.8%
Revenue Next 5Y3.97%
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.
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
With a Price/Earnings ratio of 7.52, the valuation of SBS can be described as very cheap.
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 27.08, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.86, which indicates a very decent valuation of SBS.
SBS's Price/Forward Earnings ratio is rather cheap when compared to the industry. SBS is cheaper than 100.00% of the companies in the same industry.
SBS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 11.86 |
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 | 5.17 |
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 -5.13% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-13.98%
EPS Next 3Y-5.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, SBS is not a good candidate for dividend investing.
SBS's Dividend Yield is slightly below the industry average, which is at 3.39.
Compared to an average S&P500 Dividend Yield of 2.35, SBS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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 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-13.98%
EPS Next 3Y-5.13%
22.65
+0.23 (+1.03%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners40.17%
Inst Owner Change-0.88%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap15.48B
Analysts83
Price Target24.6 (8.61%)
Short Float %1.2%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend0.25
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)4.73%
PT rev (3m)10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.22%
EPS NY rev (1m)4.87%
EPS NY rev (3m)4.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 11.86 | ||
| P/S | 2.21 | ||
| P/FCF | N/A | ||
| P/OCF | 11.82 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.17 |
EPS(TTM)3.01
EY13.29%
EPS(NY)1.91
Fwd EY8.43%
FCF(TTM)-0.51
FCFYN/A
OCF(TTM)1.92
OCFY8.46%
SpS10.25
BVpS10.35
TBVpS-1.73
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 | 2.49 |
F-Score6
WACC13.34%
ROIC/WACC1.23
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)174.44%
EPS 3Y60.79%
EPS 5Y23.08%
EPS Q2Q%76.27%
EPS Next Y-46.64%
EPS Next 2Y-13.98%
EPS Next 3Y-5.13%
EPS Next 5YN/A
Revenue 1Y (TTM)41.35%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%32.82%
Revenue Next Year-8.05%
Revenue Next 2Y2.12%
Revenue Next 3Y3.8%
Revenue Next 5Y3.97%
EBIT growth 1Y153.09%
EBIT growth 3Y56.01%
EBIT growth 5Y22.08%
EBIT Next Year-7.45%
EBIT Next 3Y11.68%
EBIT Next 5Y13.83%
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%