Cosan S.A. Fundamental Analysis (NYSE: CSAN)
Cosan S.A. (NYSE: CSAN) shows weak financial fundamentals with a PE ratio of -2.64, profit margin of -22.07%, and ROE of -1.81%. The company generates $40.1B in annual revenue with weak year-over-year growth of -8.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -194.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CSAN's fundamental strength across five key dimensions:
Efficiency Score
WeakCSAN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCSAN trades at attractive valuation levels.
Growth Score
ModerateCSAN shows steady but slowing expansion.
Financial Health Score
ModerateCSAN shows balanced financial health with some risks.
Profitability Score
WeakCSAN struggles to sustain strong margins.
Key Financial Metrics
Is CSAN Expensive or Cheap?
P/E Ratio
CSAN trades at -2.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CSAN's PEG of -0.04 indicates potential undervaluation.
Price to Book
The market values Cosan S.A. at 2.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.09 times EBITDA. This is generally considered low.
How Well Does CSAN Make Money?
Net Profit Margin
For every $100 in sales, Cosan S.A. keeps $-22.07 as profit after all expenses.
Operating Margin
Core operations generate 26.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.81 in profit for every $100 of shareholder equity.
ROA
Cosan S.A. generates $-7.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cosan S.A. generates strong operating cash flow of $10.43B, reflecting robust business health.
Free Cash Flow
Cosan S.A. produces free cash flow of $1.77B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.81 in free cash annually.
FCF Yield
CSAN converts 12.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
12.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.81
vs 25 benchmark
ROA
Return on assets percentage
-0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How CSAN Stacks Against Its Sector Peers
| Metric | CSAN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.64 | 21.23 | Better (Cheaper) |
| ROE | -181.06% | 1266.00% | Weak |
| Net Margin | -22.07% | 1278.00% | Weak |
| Debt/Equity | 12.26 | -1.82 (disorted) | Distorted |
| Current Ratio | 1.67 | 2.24 | Neutral |
| ROA | -7.04% | 4418.00% | Weak |
CSAN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cosan S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
84.73%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-798.40%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
145.93%
Industry Style: Cyclical, Value, Commodity
High Growth