Companhia De Saneamento Basico Do Estado De

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SBS : NYSE : Utilities
$8.23 | %
Today's Range: 8.13 - 8.37
Avg. Daily Volume: 1735500.0
12/02/16 - 4:00 PM ET

Financial Analysis


CIA SANEAMENTO BASICO ESTADO's gross profit margin for the fourth quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. CIA SANEAMENTO BASICO ESTADO has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.05% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY12 Q4 FY11
Net Sales ($mil)1393.41425.91
EBITDA ($mil)505.46510.42
EBIT ($mil)413.86407.42
Net Income ($mil)364.71261.67


Balance Sheet Q4 FY12 Q4 FY11
Cash & Equiv. ($mil)969.991207.77
Total Assets ($mil)13027.8313536.79
Total Debt ($mil)4429.244614.97
Equity ($mil)5721.615661.62


Profitability Q4 FY12 Q4 FY11
Gross Profit Margin36.2835.8
EBITDA Margin36.2735.79
Operating Margin29.728.57
Sales Turnover0.40.39
Return on Assets7.164.85
Return on Equity16.3111.6
Debt Q4 FY12 Q4 FY11
Current Ratio0.880.94
Debt/Capital0.440.45
Interest Expense0.052.97
Interest Coverage0.07.69


Share Data Q4 FY12 Q4 FY11
Shares outstanding (mil)683.51683.51
Div / share0.00.0
EPS0.530.38
Book value / share8.378.28
Institutional Own % n/a n/a
Avg Daily Volume1652525.02585718.0

Valuation


BUY. CIA SANEAMENTO BASICO ESTADO's P/E ratio indicates a significant discount compared to an average of 23.37 for the Water Utilities industry and a significant discount compared to the S&P 500 average of 25.16. Conducting a second comparison, its price-to-book ratio of 0.99 indicates a significant discount versus the S&P 500 average of 2.79 and a discount versus the industry average of 2.43. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CIA SANEAMENTO BASICO ESTADO proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SBS 6.04 Peers 23.37   SBS 4.94 Peers 10.79

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SBS is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SBS is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SBS 2.14 Peers 20.96   SBS NM Peers 3.67

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SBS is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SBS's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SBS 0.99 Peers 2.43   SBS 42.12 Peers 2.89

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SBS is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SBS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SBS 1.07 Peers 6.85   SBS -1.60 Peers 2.81

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SBS is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SBS significantly trails its peers on the basis of sales growth

 

 

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