CIA SANEAMENTO BASICO DE-ADR (SBS)
US20441A1025 - ADR
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 average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on SBS. With these ratings, SBS could be worth investigating further for value investing!.
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.
Each year in the past 5 years SBS has been profitable.
Each year in the past 5 years SBS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.73%, SBS belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
The Return On Equity of SBS (11.80%) is better than 78.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.76%, SBS belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SBS is above the industry average of 5.16%.
The 3 year average ROIC (7.24%) for SBS is below the current ROIC(8.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 11.8% | ||
| ROIC | 8.76% |
ROA(3y)5.18%
ROA(5y)4.94%
ROE(3y)10.82%
ROE(5y)10.46%
ROIC(3y)7.24%
ROIC(5y)7.92%
1.3 Margins
SBS's Profit Margin of 13.78% is on the low side compared to the rest of the industry. SBS is outperformed by 71.43% of its industry peers.
In the last couple of years the Profit Margin of SBS has declined.
With a Operating Margin value of 24.69%, SBS perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
SBS's Operating Margin has declined in the last couple of years.
SBS has a better Gross Margin (36.88%) than 64.29% of its industry peers.
SBS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.69% | ||
| PM (TTM) | 13.78% | ||
| GM | 36.88% |
OM growth 3Y-0.63%
OM growth 5Y-5.14%
PM growth 3Y36.07%
PM growth 5Y-4.8%
GM growth 3Y0.12%
GM growth 5Y-3.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SBS is destroying 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.
The debt/assets ratio for SBS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.12 indicates that SBS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.12, SBS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Debt to FCF ratio of SBS is 27.29, which is on the high side as it means it would take SBS, 27.29 years of fcf income to pay off all of its debts.
SBS has a Debt to FCF ratio of 27.29. This is amongst the best in the industry. SBS outperforms 92.86% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that SBS is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.57, SBS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 27.29 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.66
WACC13.17%
2.3 Liquidity
SBS has a Current Ratio of 0.93. This is a bad value and indicates that SBS is not financially healthy enough and could expect problems in meeting its short term obligations.
SBS has a Current ratio of 0.93. This is comparable to the rest of the industry: SBS outperforms 50.00% of its industry peers.
A Quick Ratio of 0.92 indicates that SBS may have some problems paying its short term obligations.
SBS has a Quick ratio (0.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
SBS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.16%, which is quite good.
The Earnings Per Share has been growing slightly by 4.40% on average over the past years.
SBS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.94%.
The Revenue has been growing by 9.72% on average over the past years. This is quite good.
EPS 1Y (TTM)13.16%
EPS 3Y53.74%
EPS 5Y4.4%
EPS growth Q2Q85.11%
Revenue 1Y (TTM)15.94%
Revenue growth 3Y12.84%
Revenue growth 5Y9.72%
Revenue growth Q2Q22.48%
3.2 Future
SBS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.99% yearly.
Based on estimates for the next years, SBS will show a quite strong growth in Revenue. The Revenue will grow by 8.04% on average per year.
EPS Next Y34.01%
EPS Next 2Y23.59%
EPS Next 3Y18.99%
EPS Next 5YN/A
Revenue Next Year9.54%
Revenue Next 2Y12.44%
Revenue Next 3Y12.88%
Revenue Next 5Y8.04%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SBS is valuated correctly with a Price/Earnings ratio of 15.55.
SBS's Price/Earnings ratio is rather cheap when compared to the industry. SBS is cheaper than 92.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.06, SBS is valued a bit cheaper.
A Price/Forward Earnings ratio of 11.64 indicates a reasonable valuation of SBS.
Based on the Price/Forward Earnings ratio, SBS is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.72, SBS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBS is valued cheaper than 100.00% of the companies in the same industry.
SBS's Price/Free Cash Flow 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 | 76.88 | ||
| EV/EBITDA | 7.53 |
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.
The decent profitability rating of SBS may justify a higher PE ratio.
A more expensive valuation may be justified as SBS's earnings are expected to grow with 18.99% in the coming years.
PEG (NY)0.46
PEG (5Y)3.53
EPS Next 2Y23.59%
EPS Next 3Y18.99%
5. Dividend
5.1 Amount
SBS has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
SBS's Dividend Yield is slightly below the industry average, which is at 3.83.
Compared to the average S&P500 Dividend Yield of 2.41, SBS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of SBS has a limited annual growth rate of 4.74%.
SBS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SBS decreased in the last 3 years.
Dividend Growth(5Y)4.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SBS pays out 23.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of SBS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.38%
EPS Next 2Y23.59%
EPS Next 3Y18.99%
CIA SANEAMENTO BASICO DE-ADR
NYSE:SBS (5/2/2024, 7:18:15 PM)
After market: 15.71 0 (0%)15.71
+0.08 (+0.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 11.64 | ||
| 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)0.46
PEG (5Y)3.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 11.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.69% | ||
| PM (TTM) | 13.78% | ||
| GM | 36.88% | ||
| 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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.92 | ||
| 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)13.16%
EPS 3Y53.74%
EPS 5Y
EPS growth Q2Q
EPS Next Y34.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.94%
Revenue growth 3Y12.84%
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