Financials Companhia de Saneamento de Minas Gerais

Equities

CSMG3

BRCSMGACNOR5

Water Utilities

Market Closed - Sao Paulo Other stock markets 04:07:00 2024-05-31 pm EDT			5-day change	1st Jan Change
20.15 ^BRL	-0.25%		-1.52%	-1.61%

Apr. 30	Transcript : Companhia de Saneamento de Minas Gerais, Q1 2024 Earnings Call, Apr 30, 2024
Apr. 30	Companhia de Saneamento de Minas Gerais Reports Earnings Results for the First Quarter Ended March 31, 2024	CI

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	8,594	6,219	4,819	5,949	7,766	7,641	-	-
Enterprise Value (EV) ¹	11,412	9,258	7,571	9,073	11,570	12,313	11,993	11,643
P/E ratio	11.4 x	7.63 x	8.95 x	7.07 x	5.63 x	5.52 x	6.34 x	6.76 x
Yield	2.45%	-	5.87%	4.12%	-	6.97%	5.62%	4.83%
Capitalization / Revenue	1.69 x	1.18 x	0.83 x	0.96 x	1.06 x	1.09 x	1 x	0.98 x
EV / Revenue	2.24 x	1.75 x	1.3 x	1.47 x	1.58 x	1.75 x	1.57 x	1.49 x
EV / EBITDA	6.49 x	4.81 x	3.9 x	4.58 x	4.32 x	4.1 x	4.09 x	4.02 x
EV / FCF	12.1 x	5.36 x	4.61 x	8.74 x	6.94 x	14.4 x	16 x	14.7 x
FCF Yield	8.26%	18.6%	21.7%	11.4%	14.4%	6.94%	6.25%	6.79%
Price to Book	1.27 x	0.96 x	0.71 x	0.82 x	1.03 x	0.92 x	0.85 x	0.8 x
Nbr of stocks (in thousands)	379,182	379,182	379,181	379,181	379,181	379,181	-	-
Reference price ²	22.66	16.40	12.71	15.69	20.48	20.15	20.15	20.15
Announcement Date	3/20/20	3/2/21	3/29/22	3/21/23	3/21/24	-	-	-

¹BRL in Million²BRL

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	5,093	5,289	5,830	6,177	7,326	7,021	7,617	7,798
EBITDA ¹	1,758	1,927	1,941	1,982	2,676	3,001	2,934	2,895
EBIT ¹	1,156	1,281	849	1,252	1,886	2,206	2,026	2,103
Operating Margin	22.7%	24.23%	14.56%	20.27%	25.74%	31.42%	26.59%	26.96%
Earnings before Tax (EBT) ¹	1,022	1,105	654.4	1,046	1,786	1,771	1,450	1,576
Net income ¹	754.4	816.5	537.6	843.4	1,379	1,414	1,193	1,133
Net margin	14.81%	15.44%	9.22%	13.65%	18.83%	20.14%	15.67%	14.53%
EPS ²	1.990	2.150	1.420	2.220	3.640	3.648	3.176	2.980
Free Cash Flow ¹	942.2	1,726	1,644	1,038	1,668	855	750	790
FCF margin	18.5%	32.64%	28.19%	16.81%	22.77%	12.18%	9.85%	10.13%
FCF Conversion (EBITDA)	53.58%	89.61%	84.7%	52.38%	62.32%	28.49%	25.56%	27.29%
FCF Conversion (Net income)	124.9%	211.43%	305.76%	123.13%	120.92%	60.46%	62.84%	69.74%
Dividend per Share ²	0.5553	-	0.7455	0.6471	-	1.404	1.133	0.9728
Announcement Date	3/20/20	3/2/21	3/29/22	3/21/23	3/21/24	-	-	-

¹BRL in Million²BRL

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales	1,520	1,420	1,521	1,622	1,588	1,712	1,783	1,859	1,971	1,844	-	-	-	-	-
EBITDA ¹	456.1	445.3	492.2	515	530	677.5	647.8	638.9	712	700.7	686.3	787.4	756	-	-
EBIT ¹	110.9	261.6	315.9	333.9	343.1	485.6	441.6	444.5	514.1	-	456.1	550.6	512.9	-	-
Operating Margin	7.3%	18.42%	20.77%	20.59%	21.6%	28.36%	24.77%	23.91%	26.08%	-	-	-	-	-	-
Earnings before Tax (EBT) ¹	-	239.3	235.8	303.6	267.2	485.6	-	-	459.8	-	358	445.8	406.2	-	-
Net income ¹	64.3	167.5	180.4	227.2	268.3	337.7	249.3	437.1	355.2	351.6	250.6	312.1	284.3	-	-
Net margin	4.23%	11.79%	11.86%	14.01%	16.89%	19.72%	13.98%	23.51%	18.02%	19.07%	-	-	-	-	-
EPS ²	0.1700	0.4400	0.4800	0.6000	0.7000	0.8900	0.6600	1.150	0.9400	0.9300	0.6609	0.8231	0.7498	-	-
Dividend per Share ²	-	-	-	-	-	-	-	-	-	-	0.3304	0.4115	0.3749	-	-
Announcement Date	3/29/22	5/2/22	8/2/22	11/3/22	3/21/23	5/2/23	7/31/23	10/26/23	3/21/24	4/29/24	-	-	-	-	-

¹BRL in Million²BRL

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	2,819	3,040	2,751	3,124	3,804	4,673	4,352	4,002
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	1.603 x	1.578 x	1.418 x	1.576 x	1.422 x	1.557 x	1.483 x	1.383 x
Free Cash Flow ¹	942	1,726	1,644	1,038	1,668	855	750	790
ROE (net income / shareholders' equity)	11.6%	12.4%	8.14%	12%	18.6%	16.6%	12.3%	10.5%
ROA (Net income/ Total Assets)	-	3.5%	4.39%	6.51%	10.1%	9.15%	8.26%	8.14%
Assets ¹	-	23,301	12,246	12,956	13,690	15,461	14,452	13,924
Book Value Per Share ²	17.80	17.00	17.80	19.10	20.00	22.00	23.70	25.20
Cash Flow per Share ²	3.280	4.590	4.420	2.950	4.570	-4.550	-4.760	-
Capex ¹	302	-	1,012	1,264	1,668	1,725	1,752	1,724
Capex / Sales	5.94%	-	17.36%	20.46%	22.77%	24.57%	23%	22.1%
Announcement Date	3/20/20	3/2/21	3/29/22	3/21/23	3/21/24	-	-	-

¹BRL in Million²BRL

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Companhia de Saneamento de Minas Gerais

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

20.15 BRL

Average target price

22.38 BRL

Spread / Average Target

+11.06%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Water Supply & Irrigation Systems

	1st Jan change	Capi.
COMPANHIA DE SANEAMENTO DE MINAS GERAIS	-1.61%	1.46B
AMERICAN WATER WORKS COMPANY, INC.	-0.92%	25.48B
GUANGDONG INVESTMENT LIMITED	-22.18%	3.7B
BEIJING ENTERPRISES WATER GROUP LIMITED	+43.10%	3.2B
COMPANHIA CATARINENSE DE ÁGUAS E SANEAMENTO - CASAN	-.--%	2.07B
COMPANHIA DE SANEAMENTO DO PARANÁ - SANEPAR	-5.09%	1.57B
MANILA WATER COMPANY, INC.	+49.46%	1.4B
GUANGDONG SHUNKONG DEVELOPMENT CO.,LTD.	-7.12%	1.2B
CHINA WATER AFFAIRS GROUP LIMITED	+31.70%	1.18B
TTW	-0.55%	986M

Water Supply & Irrigation Systems