CIA SANEAMENTO BASICO DE-ADR (SBS) Stock Fundamental Analysis
USA - NYSE:SBS - US20441A1025 - ADR
23.69 USD
+0.54 (+2.33%)
23.69 USD
0 (0%)
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.
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
SBS has a Return On Assets of 12.58%. This is amongst the best in the industry. SBS outperforms 100.00% of its industry peers.
SBS has a Return On Equity of 27.61%. This is amongst the best in the industry. SBS outperforms 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 4.98%.
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 | 12.58% | ||
| ROE | 27.61% | ||
| 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's Profit Margin of 27.76% is amongst the best of the industry. SBS outperforms 92.86% of its industry peers.
SBS's Profit Margin has improved in the last couple of years.
SBS has a better Operating Margin (44.20%) than 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 (52.84%) 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 | 44.2% | ||
| PM (TTM) | 27.76% | ||
| GM | 52.84% |
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.
Compared to 1 year ago, SBS has about the same amount of shares outstanding.
The number of shares outstanding for SBS remains at a similar level compared to 5 years ago.
Compared to 1 year ago, SBS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.57 indicates that SBS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SBS (2.57) is better than 85.71% of its industry peers.
SBS has a Debt/Equity ratio of 0.69. This is a neutral value indicating SBS is somewhat dependend on debt financing.
SBS's Debt to Equity ratio of 0.69 is amongst the best of the industry. SBS outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.57 |
ROIC/WACC1.23
WACC13.35%
2.3 Liquidity
A Current Ratio of 1.26 indicates that SBS should not have too much problems paying its short term obligations.
SBS's Current ratio of 1.26 is fine compared to the rest of the industry. SBS outperforms 64.29% of its industry peers.
A Quick Ratio of 1.26 indicates that SBS should not have too much problems paying its short term obligations.
SBS's Quick ratio of 1.26 is fine compared to the rest of the industry. SBS outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
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
SBS shows a strong growth in Revenue. In the last year, the Revenue has grown by 48.83%.
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)48.83%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%32.82%
3.2 Future
The Earnings Per Share is expected to decrease by -3.50% on average over the next years.
SBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.97% yearly.
EPS Next Y-41.57%
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
EPS Next 5YN/A
Revenue Next Year-8.16%
Revenue Next 2Y2.13%
Revenue Next 3Y5.73%
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.
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 7.92, 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 27.31. SBS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.76, the valuation of SBS can be described as very reasonable.
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 22.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.92 | ||
| Fwd PE | 11.76 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.32 |
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 -3.50% in the coming years.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, SBS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.34, SBS is paying slightly less dividend.
With a Dividend Yield of 0.55, SBS pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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
21.17% of the earnings are spent on dividend by SBS. This is a low number and sustainable payout ratio.
DP21.17%
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
23.69
+0.54 (+2.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners51.61%
Inst Owner Change1.49%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap16.19B
Analysts83
Price Target25.84 (9.08%)
Short Float %0.73%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.25
Dividend Growth(5Y)4.65%
DP21.17%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.79%
Min EPS beat(2)5.76%
Max EPS beat(2)79.82%
EPS beat(4)3
Avg EPS beat(4)119.57%
Min EPS beat(4)-19.39%
Max EPS beat(4)412.07%
EPS beat(8)5
Avg EPS beat(8)59.86%
EPS beat(12)7
Avg EPS beat(12)46.68%
EPS beat(16)8
Avg EPS beat(16)31.39%
Revenue beat(2)2
Avg Revenue beat(2)27.07%
Min Revenue beat(2)23.03%
Max Revenue beat(2)31.12%
Revenue beat(4)4
Avg Revenue beat(4)52.59%
Min Revenue beat(4)20.14%
Max Revenue beat(4)136.1%
Revenue beat(8)8
Avg Revenue beat(8)36.33%
Revenue beat(12)12
Avg Revenue beat(12)29.49%
Revenue beat(16)16
Avg Revenue beat(16)26.84%
PT rev (1m)5.07%
PT rev (3m)7.92%
EPS NQ rev (1m)6.71%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)9.5%
EPS NY rev (3m)14.83%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.92 | ||
| Fwd PE | 11.76 | ||
| P/S | 2.2 | ||
| P/FCF | N/A | ||
| P/OCF | 10.39 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.32 |
EPS(TTM)2.99
EY12.62%
EPS(NY)2.01
Fwd EY8.5%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)2.28
OCFY9.63%
SpS10.77
BVpS10.83
TBVpS-1.29
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.58% | ||
| ROE | 27.61% | ||
| ROCE | 22.72% | ||
| ROIC | 16.4% | ||
| ROICexc | 18.24% | ||
| ROICexgc | 51.18% | ||
| OM | 44.2% | ||
| PM (TTM) | 27.76% | ||
| GM | 52.84% | ||
| 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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 543.25% | ||
| Cap/Sales | 30.26% | ||
| Interest Coverage | 7.68 | ||
| Cash Conversion | 42.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.57 |
F-Score5
WACC13.35%
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-41.57%
EPS Next 2Y-11.37%
EPS Next 3Y-3.5%
EPS Next 5YN/A
Revenue 1Y (TTM)48.83%
Revenue growth 3Y22.86%
Revenue growth 5Y14.98%
Sales Q2Q%32.82%
Revenue Next Year-8.16%
Revenue Next 2Y2.13%
Revenue Next 3Y5.73%
Revenue Next 5Y3.97%
EBIT growth 1Y130.04%
EBIT growth 3Y56.01%
EBIT growth 5Y22.08%
EBIT Next Year-4.64%
EBIT Next 3Y13.15%
EBIT Next 5Y13.83%
FCF growth 1Y-5806.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y129.11%
OCF growth 3Y23.68%
OCF growth 5Y12.02%