Companhia De Saneamento Basico Do Estado De Sao Paulo (SBS, Financial), a leading player in the Utilities - Regulated industry, has been making waves in the stock market. As of August 11, 2023, the company's stock price stands at $11.42, reflecting a gain of 4.77% today and a 1.46% increase over the past four weeks. With a market cap of $7.81 billion, SBS has a GF Score of 86 out of 100, indicating good outperformance potential.
Financial Strength Analysis
The Financial Strength of SBS is ranked at 5/10. This rank is determined by several factors including the interest coverage of 3.75, a debt to revenue ratio of 0.80, and an Altman Z score of 1.48. These figures suggest that the company has a moderate level of financial strength.
Profitability Rank Analysis
SBS's Profitability Rank is impressive at 9/10. This high rank is supported by an operating margin of 21.32%, a Piotroski F-Score of 7, and a consistent profitability record over the past 10 years. However, the 5-year average trend of the operating margin is -7.70%, indicating a need for improvement.
Growth Rank Analysis
The company's Growth Rank is also strong at 9/10, reflecting a 5-year revenue growth rate of 7.80% and a 3-year revenue growth rate of 7.00%. The 5-year EBITDA growth rate is 5.10%, indicating a steady growth in the company's business operations.
GF Value Rank Analysis
The GF Value Rank of SBS is 3/10, suggesting that the stock is currently fairly valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on the company's past returns and growth.
Momentum Rank Analysis
SBS's Momentum Rank stands at 6/10, indicating a moderate momentum in the stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its competitors in the Utilities - Regulated industry, SBS holds a competitive position. Compania de Saneamento de Minas Gerais - COPASA MG has a GF Score of 81, CIA Saneamento Do Parana-SANEPAR has a GF Score of 92, and American Water Works Co Inc has a GF Score of 83. This comparison suggests that SBS is well-positioned in the industry with a strong GF Score.
Conclusion
In conclusion, Companhia De Saneamento Basico Do Estado De Sao Paulo presents a good outperformance potential with a GF Score of 86. The company's strong profitability and growth ranks, moderate financial strength, and momentum, coupled with a fair GF Value Rank, make it an attractive investment option. However, investors should keep an eye on the company's operating margin trend and GF Value Rank for future investment decisions.