Fact based stock research
Companhia de Saneamento de Minas Gerais (BOVESPA:CSMG3)

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How to read the ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Companhia de Saneamento de Minas Gerais stock research in summary

copasa.com.br

ANALYSIS: With an Obermatt Combined Rank of 98 (better than 98% compared with investment alternatives), Companhia de Saneamento de Minas Gerais (Water Utilities, Brazil) shares have much better financial characteristics than comparable stocks. Shares of Companhia de Saneamento de Minas Gerais are a good value (attractively priced) with a consolidated Value Rank of 92 (better than 92% of alternatives), show above-average growth (Growth Rank of 61), and are safely financed (Safety Rank of 75), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 98, is a strong buy recommendation based on Companhia de Saneamento de Minas Gerais's financial characteristics. As the company Companhia de Saneamento de Minas Gerais's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 92), above-average growth (Obermatt Growth Rank of 61), and indicate that the company is safely financed (Obermatt Safety Rank of 75), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Companhia de Saneamento de Minas Gerais. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	92
Growth Rank	61
Safety Rank	75
Combined Rank	98

Country	Brazil
Industry	Water Utilities
Index
Size class	Large

25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Companhia de Saneamento de Minas Gerais

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	58	98	96	92
GROWTH
GROWTH	6	17	81	61
SAFETY
SAFETY	40	83	57	75
SENTIMENT
SENTIMENT	n/a	12	61	^new
360° VIEW
360° VIEW	n/a	50	94	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Companhia de Saneamento de Minas Gerais is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	58	98	96	92
GROWTH
GROWTH	6	17	81	61
SAFETY
SAFETY	40	83	57	75
COMBINED
COMBINED	23	82	92	98

Last update of combined financial performance: 25-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Companhia de Saneamento de Minas Gerais the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 92 (better than 92% compared with alternatives) for 2024, Companhia de Saneamento de Minas Gerais shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Companhia de Saneamento de Minas Gerais. Price-to-Sales is 69 which means that the stock price compared with what market professionals expect for future sales is lower than for 69% of comparable companies, indicating a good value for Companhia de Saneamento de Minas Gerais's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 95% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 83. Compared with other companies in the same industry, dividend yields of Companhia de Saneamento de Minas Gerais are expected to be higher than for 92% of all competitors (a Dividend Yield rank of 92). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 92, is a buy recommendation based on Companhia de Saneamento de Minas Gerais's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Companhia de Saneamento de Minas Gerais based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	76	87	74	69
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	59	100	95	95
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	83	92	86	83
DIVIDEND YIELD
DIVIDEND YIELD	1	75	89	92
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	58	98	96	92

Last update of Value Rank: 25-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Companhia de Saneamento de Minas Gerais; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 61 (better than 61% compared with alternatives), Companhia de Saneamento de Minas Gerais shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Companhia de Saneamento de Minas Gerais. Capital Growth has a rank of 62, which means that currently professionals expect the company to grow its invested capital more than 31% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 75 (above 75% of alternative investments). But Sales Growth has only a rank of 46, which means that, currently, professionals expect the company to grow less than 54% of its competitors, and Profit Growth is also low at a rank of 31. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Companhia de Saneamento de Minas Gerais, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	24	29	51	46
PROFIT GROWTH
PROFIT GROWTH	n/a	18	75	31
CAPITAL GROWTH
CAPITAL GROWTH	n/a	68	48	62
STOCK RETURNS
STOCK RETURNS	34	15	71	75
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	6	17	81	61

Last update of Growth Rank: 25-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Companhia de Saneamento de Minas Gerais.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 75 (better than 75% compared with alternatives) for 2024, the company Companhia de Saneamento de Minas Gerais has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Companhia de Saneamento de Minas Gerais is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Companhia de Saneamento de Minas Gerais. Leverage is at a rank of 60, meaning the company has a below-average debt-to-equity ratio. It has less debt than 60% of its competitors. Liquidity is also good at a rank of 77, meaning the company generates more profit to service its debt than 77% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 49, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 75 (better than 75% compared with alternatives), Companhia de Saneamento de Minas Gerais has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Companhia de Saneamento de Minas Gerais. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Companhia de Saneamento de Minas Gerais and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	39	64	64	60
REFINANCING
REFINANCING	48	71	59	49
LIQUIDITY
LIQUIDITY	66	77	57	77
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	40	83	57	75

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Companhia de Saneamento de Minas Gerais and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	22	38	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	75	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	68	100	^new
MARKET PULSE
MARKET PULSE	n/a	9	11	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	12	61	^new

Last update of Sentiment Rank: 25-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Companhia de Saneamento de Minas Gerais.
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