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. While SBS has a great profitability rating, 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.
In the past year SBS had a positive cash flow from operations.
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 has a Return On Assets of 11.95%. This is amongst the best in the industry. SBS outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 26.66%, SBS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SBS has a Return On Invested Capital of 16.40%. This is amongst the best in the industry. SBS outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SBS is significantly above the industry average of 5.00%.
The 3 year average ROIC (10.46%) for SBS is below the current ROIC(16.40%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of SBS has grown nicely.
SBS has a Operating Margin of 43.81%. This is amongst the best in 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 of 53.66%. This is comparable to the rest of the industry: SBS outperforms 57.14% of its industry peers.
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
An Altman-Z score of 2.40 indicates that SBS is not a great score, but indicates only limited risk for bankruptcy at the moment.
SBS has a better Altman-Z score (2.40) than 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 | 2.4 |
ROIC/WACC1.29
WACC12.67%
2.3 Liquidity
A Current Ratio of 1.09 indicates that SBS should not have too much problems paying 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.
Looking at the Quick ratio, with a value of 1.08, SBS is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| 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.
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
The Earnings Per Share is expected to decrease by -5.41% 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-49.12%
EPS Next 2Y-13%
EPS Next 3Y-5.41%
EPS Next 5YN/A
Revenue Next Year-8.29%
Revenue Next 2Y2.36%
Revenue Next 3Y4.12%
Revenue Next 5Y3.97%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 7.53, the valuation of SBS can be described as very cheap.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.54, SBS is valued rather cheaply.
SBS is valuated reasonably with a Price/Forward Earnings ratio of 10.62.
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 35.28, SBS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 10.62 |
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 | 4.79 |
4.3 Compensation for Growth
The excellent profitability rating of SBS may justify a higher PE ratio.
SBS's earnings are expected to decrease with -5.41% in the coming years. This may justify a cheaper valuation.
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 0.60%, SBS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.40, SBS is paying slightly less dividend.
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 | 0.6% |
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.
The dividend of SBS decreased 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%
NYSE:SBS (8/8/2025, 12:29:08 PM)
20.62
+0.07 (+0.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners40.17%
Inst Owner Change0.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.09B
Analysts83
Price Target23.49 (13.92%)
Short Float %0.7%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)-1.93%
PT rev (3m)5.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-9.22%
Revenue NY rev (1m)-1.07%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 10.62 | ||
| P/S | 2.02 | ||
| P/FCF | N/A | ||
| P/OCF | 10.83 | ||
| P/B | 2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.79 |
EPS(TTM)2.74
EY13.29%
EPS(NY)1.94
Fwd EY9.42%
FCF(TTM)-0.51
FCFYN/A
OCF(TTM)1.9
OCFY9.23%
SpS10.18
BVpS10.29
TBVpS-1.72
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 | 2.4 |
F-Score6
WACC12.67%
ROIC/WACC1.29
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-8.29%
Revenue Next 2Y2.36%
Revenue Next 3Y4.12%
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%