Companhia de Saneamento Basico Stock Analysis, Valuation (NYSE:SBS)

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$6.41 $0.15 (2.29%) SBS stock closing price Aug 17, 2018 (Closing)

Take a look at Amigobulls Companhia de Saneamento Basico stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for SBS stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Companhia de Saneamento Basico (ADR) Stock Rating 4.1/5

Amigobulls SBS stock analysis uses latest quarter 2018 Q1 financial data like Companhia de Saneamento Basico revenue growth, profit margins and cash flows. Companhia de Saneamento Basico valuation forms a crucial part of our stock analysis. Companhia de Saneamento Basico stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy SBS stock?

  • Companhia de Saneamento Basico's average operating margin of 27.18 was exceptional.
  • LTM Net margins were good at 16.5% for Companhia de Saneamento Basico.
  • With a debt/equity ratio of 0.69, Companhia de Saneamento Basico is comparatively less leveraged than its peers in the Utilities sector.
  • The price to earnings multiple of 5.9 is attractive when compared with the sector average PE ratio of 20.1.
  • The lower PS ratio 1 for SBS stock versus Utilities sector average of 2.1 is a positive for the company.
  • Companhia de Saneamento Basico is a dividend paying stock with a high yield of 4.42.
  • Companhia de Saneamento Basico generates a high return on invested capital of 8.6.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Companhia de Saneamento Basico at 14.1.
  • The company has a good Free Cash Flow (FCF) margin of 17.8.

Should you sell SBS stock?

  • The company saw an average annual sales decline of -2.3 in sales over the last 5 years.

Comments on this video and Companhia de Saneamento Basico stock

Amigobulls Companhia de Saneamento Basico stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of SBS stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Companhia de Saneamento Basico revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.