# Companhia de Saneamento de Minas Gerais (CSMG3.SA)

Canonical: https://gigainvestors.com/s/CSMG3.SA

Analysis as of: 2026-10-16T07:37:41.056Z. Financial observations: FY2000–FY2025.

Listing currency: BRL. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: BRL 62.00 per share; close as of 2026-10-15.

Estimated value: low BRL 31.27 per share, central BRL 33.19 per share, high BRL 35.40 per share. Buy at or below the central value BRL 33.19 per share. Valuation as of 2026-10-16T07:37:41.056Z; scenarios are not confidence intervals.

Expected annual return: 9.9% at the stated quote. About 9.9% a year at today's price (required return 17.0%). required return 17.0% a year (BR 10-year bond 13.0% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.18×

- FY2017: 0.22×

- FY2018: 0.19×

- FY2019: 0.24×

- FY2020: 0.25×

- FY2021: 0.18×

- FY2022: 0.20×

- FY2023: 0.26×

- FY2024: 0.25×

- FY2025: 0.25×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.7%

- ROIC, second-lowest year: 7.9%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 41.2%

- Recent gross margin (lower of latest and 3-year median): 41.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.9%

- ROIC including acquisitions, ten-year median: 11.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.9%

- FY2017: 7.9%

- FY2018: 7.9%

- FY2019: 9.5%

- FY2020: 10.3%

- FY2021: 9.9%

- FY2022: 9.5%

- FY2023: 23.3%

- FY2024: 11.7%

- FY2025: 10.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.39×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 7.7B

- Net income, five-year total: BRL 5.5B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.2 pp

- Working capital / revenue, change between three-year averages: -8.3 pp

- Working capital / revenue, final three-year average: 13.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 2.02×

- FY2022: 1.50×

- FY2023: 1.21×

- FY2024: 1.05×

- FY2025: 1.60×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 7.9% vs 11.7%

- Per-share earnings: 1.12 to 3.64 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.6%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: BRL 12B

- Cumulative retained earnings: BRL 702M

- Diluted shares, 10-year annual growth: 0.6%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 15.8%

- Per-share value change: BRL 2.52

- Per-share value, starting three-year median: BRL 1.12

- Per-share value, ending three-year median: BRL 3.64

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.3%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 19B

- Cumulative net income, 10 years: BRL 8.6B

- ROIC, first three-year median: 7.9%

- ROIC, last three-year median: 11.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 1.12

- FY2017: BRL 1.47

- FY2018: BRL 1.54

- FY2019: BRL 1.99

- FY2020: BRL 2.15

- FY2021: BRL 1.42

- FY2022: BRL 2.22

- FY2023: BRL 3.64

- FY2024: BRL 3.47

- FY2025: BRL 3.73

### accounting: pass

- Sloan accruals: -5.2%

- Receivables to sales index (DSRI): 1.15×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.65×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.84×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.2%

- FY2017: -4.2%

- FY2018: -3.0%

- FY2019: -4.2%

- FY2020: -7.8%

- FY2021: -8.9%

- FY2022: -2.1%

- FY2023: -2.5%

- FY2024: -4.7%

- FY2025: -5.2%

## Holders

## Price story

Price needs cash profits to grow 10.8% a year for ten years · sales +5.7%

Story as of 2026-10-16T10:00:09.391Z; price observation 2026-10-15.

Price needs cash profits to grow 10.8% a year for ten years

### Sales · FY2024–2025

sales +5.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: BRL 4.0B 

- FY2017: BRL 4.3B 

- FY2018: BRL 4.7B 

- FY2019: BRL 5.2B 

- FY2020: BRL 5.3B 

- FY2021: BRL 5.9B 

- FY2022: BRL 6.2B 

- FY2023: BRL 7.4B 

- FY2024: BRL 7.9B 

- FY2025: BRL 8.3B 

### Gross margin · FY2025

gross margin 41.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 38.4% 

- FY2017: 42.4% 

- FY2018: 39.0% 

- FY2019: 41.8% 

- FY2020: 45.0% 

- FY2021: 36.5% 

- FY2022: 37.5% 

- FY2023: 41.4% 

- FY2024: 42.8% 

- FY2025: 41.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated water; annual sales are BRL 8.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2025: revenue 8330190000; grossProfit 3425248000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 41.1% to 42.8% during 2023–25; it earns 9.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2023: grossProfit / revenue = 41.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2024: grossProfit / revenue = 42.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2025: grossProfit / revenue = 41.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); 10-year return on capital observations [[2016,0.058947439131135065],[2017,0.07908268860142777],[2018,0.0785486952883406],[2019,0.09483375339542052],[2020,0.10300888879958088],[2021,0.09892986907198552],[2022,0.09519199938758105],[2023,0.23328473101747205],[2024,0.11705251558383938],[2025,0.10747004817100153]]; median 0.09706093422978329. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back BRL 36 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2016: growth capex 0; upkeep 409436000; owner earnings 621507000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2017: growth capex 0; upkeep 506184000; owner earnings 618250000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2018: growth capex 0; upkeep 63266000; owner earnings 1083843000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2019: growth capex 0; upkeep 33414000; owner earnings 1312386000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2020: growth capex 0; upkeep 157632000; owner earnings 1292233400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2021: growth capex 0; upkeep 187334000; owner earnings 1083775600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2022: growth capex 0; upkeep 290275000; owner earnings 1262036800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2023: growth capex 0; upkeep 484349000; owner earnings 1666111400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2024: growth capex 0; upkeep 723618000; owner earnings 1378436200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2025: growth capex 0; upkeep 83019000; owner earnings 2259765600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); Dividend observations: [[2016,56164000],[2017,120000000],[2018,279970000],[2019,134730000],[2020,819918000],[2021,340119000],[2022,136141000],[2023,777446000],[2024,735561000],[2025,827570000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); FY2025: cash repurchases 36005000 BRL.

### Are managers owners

Insiders own 35% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CSMG3.SA SharesStats.PercentInsiders = 35.032000000000004 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:41.056Z); Ten-year compound average after fade. Initial solved rate 0.14190287148774738. Price 62; FX 1; discount 0.1695; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.1152435464452024 → FY2025 5.959589790005523. Closing-price date 2026-10-15.

## Monthly share-price history (BRL per share)

- 2016-10: BRL 11.11 per share

- 2016-11: BRL 11.36 per share

- 2016-12: BRL 12.17 per share

- 2017-01: BRL 14.39 per share

- 2017-02: BRL 17.20 per share

- 2017-03: BRL 14.73 per share

- 2017-04: BRL 12.00 per share

- 2017-05: BRL 11.63 per share

- 2017-06: BRL 13.33 per share

- 2017-07: BRL 14.13 per share

- 2017-08: BRL 14.37 per share

- 2017-09: BRL 14.27 per share

- 2017-10: BRL 13.13 per share

- 2017-11: BRL 13.63 per share

- 2017-12: BRL 14.46 per share

- 2018-01: BRL 15.03 per share

- 2018-02: BRL 14.68 per share

- 2018-03: BRL 16.03 per share

- 2018-04: BRL 16.80 per share

- 2018-05: BRL 14.40 per share

- 2018-06: BRL 13.67 per share

- 2018-07: BRL 13.56 per share

- 2018-08: BRL 13.96 per share

- 2018-09: BRL 12.98 per share

- 2018-10: BRL 17.10 per share

- 2018-11: BRL 17.08 per share

- 2018-12: BRL 20.51 per share

- 2019-01: BRL 19.87 per share

- 2019-02: BRL 20.65 per share

- 2019-03: BRL 20.36 per share

- 2019-04: BRL 23.00 per share

- 2019-05: BRL 20.71 per share

- 2019-06: BRL 22.35 per share

- 2019-07: BRL 22.47 per share

- 2019-08: BRL 23.12 per share

- 2019-09: BRL 22.66 per share

- 2019-10: BRL 22.50 per share

- 2019-11: BRL 22.83 per share

- 2019-12: BRL 22.66 per share

- 2020-01: BRL 22.47 per share

- 2020-02: BRL 20.10 per share

- 2020-03: BRL 13.63 per share

- 2020-04: BRL 16.00 per share

- 2020-05: BRL 19.23 per share

- 2020-06: BRL 19.41 per share

- 2020-07: BRL 18.18 per share

- 2020-08: BRL 15.87 per share

- 2020-09: BRL 15.58 per share

- 2020-10: BRL 14.27 per share

- 2020-11: BRL 14.86 per share

- 2020-12: BRL 16.40 per share

- 2021-01: BRL 15.51 per share

- 2021-02: BRL 14.43 per share

- 2021-03: BRL 15.10 per share

- 2021-04: BRL 16.81 per share

- 2021-05: BRL 17.55 per share

- 2021-06: BRL 15.49 per share

- 2021-07: BRL 13.86 per share

- 2021-08: BRL 13.96 per share

- 2021-09: BRL 13.80 per share

- 2021-10: BRL 13.61 per share

- 2021-11: BRL 12.82 per share

- 2021-12: BRL 12.71 per share

- 2022-01: BRL 13.15 per share

- 2022-02: BRL 14.18 per share

- 2022-03: BRL 13.71 per share

- 2022-04: BRL 13.66 per share

- 2022-05: BRL 13.47 per share

- 2022-06: BRL 11.52 per share

- 2022-07: BRL 12.00 per share

- 2022-08: BRL 13.50 per share

- 2022-09: BRL 13.20 per share

- 2022-10: BRL 15.36 per share

- 2022-11: BRL 15.80 per share

- 2022-12: BRL 15.69 per share

- 2023-01: BRL 14.64 per share

- 2023-02: BRL 14.22 per share

- 2023-03: BRL 15.73 per share

- 2023-04: BRL 17.04 per share

- 2023-05: BRL 19.94 per share

- 2023-06: BRL 21.15 per share

- 2023-07: BRL 20.24 per share

- 2023-08: BRL 17.92 per share

- 2023-09: BRL 17.31 per share

- 2023-10: BRL 15.94 per share

- 2023-11: BRL 18.69 per share

- 2023-12: BRL 20.48 per share

- 2024-01: BRL 21.37 per share

- 2024-02: BRL 20.67 per share

- 2024-03: BRL 21.78 per share

- 2024-04: BRL 19.58 per share

- 2024-05: BRL 20.15 per share

- 2024-06: BRL 20.89 per share

- 2024-07: BRL 21.97 per share

- 2024-08: BRL 23.72 per share

- 2024-09: BRL 23.04 per share

- 2024-10: BRL 23.05 per share

- 2024-11: BRL 25.38 per share

- 2024-12: BRL 20.82 per share

- 2025-01: BRL 22.38 per share

- 2025-02: BRL 23.27 per share

- 2025-03: BRL 19.75 per share

- 2025-04: BRL 21.44 per share

- 2025-05: BRL 23.88 per share

- 2025-06: BRL 27.97 per share

- 2025-07: BRL 25.86 per share

- 2025-08: BRL 29.89 per share

- 2025-09: BRL 34.49 per share

- 2025-10: BRL 37.79 per share

- 2025-11: BRL 41.63 per share

- 2025-12: BRL 43.92 per share

- 2026-01: BRL 51.15 per share

- 2026-02: BRL 54.70 per share

- 2026-03: BRL 57.70 per share

- 2026-04: BRL 54.04 per share

- 2026-05: BRL 52.71 per share

- 2026-06: BRL 59.93 per share

- 2026-07: BRL 64.17 per share

- 2026-08: BRL 55.22 per share

- 2026-09: BRL 56.31 per share

- 2026-10: BRL 62.37 per share

## Annual estimated value (BRL per share)

- FY2018: low BRL 11.83 per share, central BRL 12.57 per share, high BRL 13.42 per share

- FY2019: low BRL 13.94 per share, central BRL 15.06 per share, high BRL 16.09 per share

- FY2020: low BRL 21.85 per share, central BRL 23.99 per share, high BRL 25.66 per share

- FY2021: low BRL 24.48 per share, central BRL 25.94 per share, high BRL 27.62 per share

- FY2022: low BRL 25.01 per share, central BRL 26.54 per share, high BRL 28.30 per share

- FY2023: low BRL 28.68 per share, central BRL 30.48 per share, high BRL 32.56 per share

- FY2024: low BRL 27.22 per share, central BRL 28.96 per share, high BRL 30.97 per share

- FY2025: low BRL 28.63 per share, central BRL 30.47 per share, high BRL 32.59 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations