- By GF Value
The stock of Companhia De Saneamento Basico Do Estado De Sao Pa (NYSE:SBS, 30-year Financials) gives every indication of being fairly valued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. At its current price of $7.61 per share and the market cap of $5.2 billion, Companhia De Saneamento Basico Do Estado De Sao Pa stock gives every indication of being fairly valued. GF Value for Companhia De Saneamento Basico Do Estado De Sao Pa is shown in the chart below.
Because Companhia De Saneamento Basico Do Estado De Sao Pa is fairly valued, the long-term return of its stock is likely to be close to the rate of its business growth, which averaged 6.8% over the past five years.
Link: These companies may deliever higher future returns at reduced risk.
It is always important to check the financial strength of a company before buying its stock. Investing in companies with poor financial strength have a higher risk of permanent loss. Looking at the cash-to-debt ratio and interest coverage is a great way to understand the financial strength of a company. Companhia De Saneamento Basico Do Estado De Sao Pa has a cash-to-debt ratio of 0.22, which is in the middle range of the companies in the industry of Utilities - Regulated. The overall financial strength of Companhia De Saneamento Basico Do Estado De Sao Pa is 4 out of 10, which indicates that the financial strength of Companhia De Saneamento Basico Do Estado De Sao Pa is poor. This is the debt and cash of Companhia De Saneamento Basico Do Estado De Sao Pa over the past years:
Companies that have been consistently profitable over the long term offer less risk for investors who may want to purchase shares. Higher profit margins usually dictate a better investment compared to a company with lower profit margins. Companhia De Saneamento Basico Do Estado De Sao Pa has been profitable 10 over the past 10 years. Over the past twelve months, the company had a revenue of $4.1 billion and earnings of $0.716 a share. Its operating margin is 32.06%, which ranks better than 87% of the companies in the industry of Utilities - Regulated. Overall, the profitability of Companhia De Saneamento Basico Do Estado De Sao Pa is ranked 8 out of 10, which indicates strong profitability. This is the revenue and net income of Companhia De Saneamento Basico Do Estado De Sao Pa over the past years: