OTCPK:CSQS.Y

Stock Analysis Report

CESP - Companhia Energética de São Paulo

Executive Summary

CESP - Companhia Energética de São Paulo engages in the study, planning, design, construction, and operation of systems of production, transformation, transport and storage, distribution, and marketing of energy in Brazil.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has CESP - Companhia Energética de São Paulo's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

CSQS.Y

2.9%

US Renewable Energy

0.07%

US Market


1 Year Return

44.9%

CSQS.Y

22.9%

US Renewable Energy

8.9%

US Market

Return vs Industry: CSQS.Y exceeded the US Renewable Energy industry which returned 22.9% over the past year.

Return vs Market: CSQS.Y exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

CSQS.YIndustryMarket
7 Day0%2.9%0.07%
30 Day-11.1%2.1%-0.3%
90 Dayn/a11.3%-1.6%
1 Year49.6%44.9%27.1%22.9%11.3%8.9%
3 Year53.0%40.5%69.6%45.2%46.3%36.8%
5 Year-3.2%-27.8%30.3%0.4%62.1%44.3%

Price Volatility Vs. Market

How volatile is CESP - Companhia Energética de São Paulo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is CESP - Companhia Energética de São Paulo undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSQS.Y ($6) is trading below our estimate of fair value ($40.61)

Significantly Below Fair Value: CSQS.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CSQS.Y is unprofitable, so we can't compare its PE Ratio to the Renewable Energy industry average.

PE vs Market: CSQS.Y is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CSQS.Y's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CSQS.Y is good value based on its PB Ratio (1.4x) compared to the US Renewable Energy industry average (1.4x).


Next Steps

Future Growth

How is CESP - Companhia Energética de São Paulo forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

50.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSQS.Y is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: CSQS.Y is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: CSQS.Y's loss is forecast to worsen by 0% next year.

Revenue vs Market: CSQS.Y's revenue (1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CSQS.Y's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSQS.Y's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has CESP - Companhia Energética de São Paulo performed over the past 5 years?

-10.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CSQS.Y is unprofitable, and losses have increased over the past 5 years at a rate of -10.7% per year.

Accelerating Growth: Unable to compare CSQS.Y's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CSQS.Y is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (33.9%).


Return on Equity

High ROE: CSQS.Y has a negative Return on Equity (-2.95%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CSQS.Y is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CSQS.Y is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is CESP - Companhia Energética de São Paulo's financial position?


Financial Position Analysis

Short Term Liabilities: CSQS.Y's short term assets (R$782.6M) exceeds its short term liabilities (R$472.3M)

Long Term Liabilities: CSQS.Y's short term assets (782.6M) do not cover its long term liabilities (4.3B)


Debt to Equity History and Analysis

Debt Level: CSQS.Y's debt to equity ratio (26.9%) is considered satisfactory

Reducing Debt: CSQS.Y's debt to equity ratio has increased from 22.9% to 26.9% over the past 5 years.

Debt Coverage: CSQS.Y's debt is not well covered by operating cash flow (7.2%).

Interest Coverage: Insufficient data to determine if CSQS.Y's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: CSQS.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: CSQS.Y's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is CESP - Companhia Energética de São Paulo's current dividend yield, its reliability and sustainability?

2.99%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CSQS.Y's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CSQS.Y's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: CSQS.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: CSQS.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: CSQS.Y is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CSQS.Y's dividends in 3 years are forecast to be covered by earnings (76.8% payout ratio).


Next Steps

Management

What is the CEO of CESP - Companhia Energética de São Paulo's salary, the management and board of directors tenure and is there insider trading?

0.2yrs

Average management tenure


CEO

Mario Antonio Bertoncini (51yo)

0.2yrs

Tenure

0

Mr. Mario Antonio Bertoncini has been Chief Executive Officer at CESP - Companhia Energética de São Paulo since August 2019. Mr. Bertoncini has been Investor Relations Officer and Board of Executive Office ...


Management Age and Tenure

0.2yrs

Average Tenure

Experienced Management: CSQS.Y's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Age and Tenure

0.6yrs

Average Tenure

Experienced Board: CSQS.Y's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Carlos Alberto Costa

    Director of Generation & Member of Management Board

    • Tenure: 0.8yrs
  • Mauro Marques

    Accounting Department Manager

    • Tenure: 0yrs
  • Marcelo de Jesus

    CFO & Member of Management Board

    • Tenure: 0.2yrs
  • Mario Antonio Bertoncini (51yo)

    CEO, Investor Relations Officer & Member of Management Board

    • Tenure: 0.2yrs

Board Members

  • Paulo Franceschi (67yo)

    Member of Supervisory Board

    • Tenure: 0yrs
  • Paulo Sérgio Novais

    Employees Representative Director

    • Tenure: 0yrs
  • Ricardo Szlejf

    Director

    • Tenure: 0.8yrs
  • Mauro Guizeline

    Director

    • Tenure: 0.8yrs
  • Raul Cadena

    Vice-Chairman of the Board of Directors

    • Tenure: 0.8yrs
  • Frederico Sarmento

    Director

    • Tenure: 0.8yrs
  • Fábio Zanfelice

    Chairman of the Board

    • Tenure: 0.2yrs
  • Iara Pasian

    Independent Director

    • Tenure: 0.4yrs
  • Felipe Cançado

    Independent Director

    • Tenure: 0.4yrs
  • Guilhermo Braunbeck

    Member of Supervisory Board

    • Tenure: 0.4yrs

Company Information

CESP - Companhia Energética de São Paulo's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CESP - Companhia Energética de São Paulo
  • Ticker: CSQS.Y
  • Exchange: OTCPK
  • Founded: 1966
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: R$9.398b
  • Listing Market Cap: R$2.307b
  • Shares outstanding: 327.50m
  • Website: https://www.cesp.com.br

Number of Employees


Location

  • CESP - Companhia Energética de São Paulo
  • Avenida Nossa Senhora do Sabará, no 5.312
  • São Paulo
  • São Paulo
  • 04447-011
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CESP3BOVESPA (Bolsa de Valores de Sao Paulo)Common SharesBRBRLFeb 1993
CSQS.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2003
CESD.YOTCPK (Pink Sheets LLC)ADR EACH REP 1 PRF CL A (LEVEL 1)(BNY)USUSDJul 2003
CESP5BOVESPA (Bolsa de Valores de Sao Paulo)Preferred Shares Class ABRBRLJul 2006
CESP6BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred Shares Class BBRBRLJul 2006

Biography

CESP - Companhia Energética de São Paulo engages in the study, planning, design, construction, and operation of systems of production, transformation, transport and storage, distribution, and marketing of  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:45
End of Day Share Price2019/09/30 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.