Aug. 12 at 2:23 PM
$SBS Earnings day...let's see what our favourite sewerage and water utility company in the São Paulo Metropolitan area can do 🇧🇷💧
Been hammered recently with 52-week lows (macro fears/one disappointing quarter) but underlying business remains cash cow 🐮 level
· ROE >20% tech-stock level profitability in a utility
· 33% operating margins wider than most peers
· Morningstar FV
$5.78 - 12% upside
· Analyst PT
$6.90 - 36% upside
· Trading at ~11x P/E cheap for a narrow-moat utility with pricing power
Selling looks overdone
Let's see if the print surprises to the upside