Companhia de Saneamento de Minas Gerais

BOVESPA:CSMG3 Stock Report

Market Cap: R$8.1b

Companhia de Saneamento de Minas Gerais Valuation

Is CSMG3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CSMG3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CSMG3 (R$21.66) is trading above our estimate of fair value (R$20.43)

Significantly Below Fair Value: CSMG3 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CSMG3?

Other financial metrics that can be useful for relative valuation.

CSMG3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA4.6x
PEG Ratio-1.7x

Price to Earnings Ratio vs Peers

How does CSMG3's PE Ratio compare to its peers?

The above table shows the PE ratio for CSMG3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.7x
SAPR4 Companhia de Saneamento do Paraná - SANEPAR
5.3x-1.6%R$7.8b
CASN3 Companhia Catarinense de Águas e Saneamento - CASAN
163.8xn/aR$9.9b
SBSP3 Companhia de Saneamento Básico do Estado de São Paulo - SABESP
16.2x15.5%R$56.1b
EKTR4 Elektro Redes
9.5xn/aR$9.5b
CSMG3 Companhia de Saneamento de Minas Gerais
6x-3.5%R$8.1b

Price-To-Earnings vs Peers: CSMG3 is good value based on its Price-To-Earnings Ratio (6x) compared to the peer average (10.3x).


Price to Earnings Ratio vs Industry

How does CSMG3's PE Ratio compare vs other companies in the Global Water Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CSMG3 is good value based on its Price-To-Earnings Ratio (6x) compared to the Global Water Utilities industry average (16.4x).


Price to Earnings Ratio vs Fair Ratio

What is CSMG3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CSMG3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6x
Fair PE Ratio10.6x

Price-To-Earnings vs Fair Ratio: CSMG3 is good value based on its Price-To-Earnings Ratio (6x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CSMG3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$21.78
R$21.78
-0.005%
10.7%R$27.20R$18.00n/a10
Mar ’25R$20.88
R$21.12
+1.2%
14.0%R$27.40R$17.00n/a9
Feb ’25R$21.35
R$20.74
-2.8%
14.6%R$27.40R$17.00n/a9
Jan ’25R$20.48
R$20.74
+1.3%
14.6%R$27.40R$17.00n/a9
Dec ’24R$19.23
R$20.52
+6.7%
15.0%R$27.40R$17.00n/a9
Nov ’24R$16.68
R$20.46
+22.7%
16.0%R$27.40R$17.00n/a9
Oct ’24R$17.31
R$20.86
+20.5%
15.4%R$27.40R$17.00n/a9
Sep ’24R$18.54
R$20.59
+11.0%
15.3%R$27.40R$17.00n/a10
Aug ’24R$18.53
R$19.54
+5.4%
12.0%R$25.00R$17.00n/a10
Jul ’24R$21.15
R$19.37
-8.4%
11.4%R$25.00R$17.00n/a11
Jun ’24R$20.09
R$18.73
-6.7%
8.7%R$23.00R$17.00n/a11
May ’24R$17.04
R$18.07
+6.0%
4.7%R$19.70R$17.00n/a13
Apr ’24R$15.73
R$17.57
+11.7%
7.8%R$19.70R$14.50n/a13
Mar ’24R$15.07
R$17.78
+18.0%
7.9%R$19.70R$14.50R$20.8814
Feb ’24R$14.82
R$17.64
+19.0%
8.2%R$19.70R$14.50R$21.3514
Jan ’24R$15.69
R$17.52
+11.6%
8.1%R$19.70R$14.50R$20.4814
Dec ’23R$15.75
R$17.31
+9.9%
8.2%R$19.50R$14.00R$19.2313
Nov ’23R$15.47
R$17.37
+12.3%
14.0%R$24.00R$14.00R$16.6814
Oct ’23R$13.20
R$17.08
+29.4%
14.3%R$24.00R$14.00R$17.3115
Sep ’23R$13.64
R$17.03
+24.9%
15.3%R$24.00R$14.00R$18.5415
Aug ’23R$12.21
R$16.70
+36.8%
11.9%R$20.00R$14.00R$18.5312
Jul ’23R$11.68
R$17.21
+47.4%
17.0%R$24.50R$14.00R$21.1512
Jun ’23R$13.70
R$17.85
+30.3%
21.4%R$26.00R$14.00R$20.0912
May ’23R$13.66
R$18.02
+31.9%
20.6%R$26.00R$14.00R$17.0412
Apr ’23R$14.42
R$18.37
+27.4%
20.9%R$26.00R$14.00R$15.7312
Mar ’23R$14.18
R$18.53
+30.7%
20.6%R$26.00R$14.00R$15.0712

Analyst Forecast: Target price is less than 20% higher than the current share price.


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