Empresa Metropolitana de Aguas & Energia has a current ratio of 3.12. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
BSP:EMAE4's Current Ratio is ranked better than 91.18% of 510
companies
in the Utilities - Regulated industry
Industry Median: 1.08
vs BSP:EMAE4: 3.12
Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Empresa Metropolitana de Aguas & Energia Current Ratio Related Terms
Empresa Metropolitana de Aguas & Energia Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Empresa Metropolitana de Aguas & Energia Current Ratio Chart
Empresa Metropolitana de Aguas & Energia Annual Data
For the Utilities - Diversified subindustry, Empresa Metropolitana de Aguas & Energia's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Empresa Metropolitana de Aguas & Energia Current Ratio vs Utilities - Regulated Industry
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) has a Current Ratio of 3.12 as of Mar. 2026. This is 25% below median its historical median of 4.17. Over the past decade, Empresa Metropolitana de Aguas & Energia's Current Ratio has ranged from 1.71 to 8.34. According to the industry distribution chart, Empresa Metropolitana de Aguas & Energia ranks #45 out of 510 companies in the Utilities - Regulated industry, placing it in the top 8.8%.
Is Empresa Metropolitana de Aguas & Energia's Current Ratio too high?
Empresa Metropolitana de Aguas & Energia's current Current Ratio of 3.12 is 25% below median its 10-year median of 4.17. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 8.34. The Utilities - Regulated industry median Current Ratio is 1.08. Empresa Metropolitana de Aguas & Energia's value of 3.12 is 188.9% above this industry median. Based on the distribution chart, Empresa Metropolitana de Aguas & Energia ranks #45 out of 510 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Empresa Metropolitana de Aguas & Energia has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Empresa Metropolitana de Aguas & Energia's Current Ratio compare to SRE?
According to the Utilities - Regulated industry distribution chart, Empresa Metropolitana de Aguas & Energia ranks #45 out of 510 companies for Current Ratio. This places Empresa Metropolitana de Aguas & Energia in the top 9% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.08. Empresa Metropolitana de Aguas & Energia's value of 3.12 is 188.9% above this benchmark. Historically, Empresa Metropolitana de Aguas & Energia's own Current Ratio has ranged from 1.71 to 8.34 over the past decade. While the company's 10-year median is 4.17 vs. the industry median of 1.08, Empresa Metropolitana de Aguas & Energia has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for an Utilities - Regulated company?
The median Current Ratio among Utilities - Regulated companies is 1.08, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Empresa Metropolitana de Aguas & Energia's current Current Ratio of 3.12 is 188.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Utilities - Regulated industry, the median Current Ratio is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empresa Metropolitana de Aguas & Energia's current Current Ratio is 3.12, which is 25% below median its own 10-year median of 4.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empresa Metropolitana de Aguas & Energia stock overvalued right now?
Based on GuruFocus' analysis, Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) is currently considered Fairly Valued. The stock's GF Value™ is R$37.23, compared to a current price of R$38.51 — trading 3.4% above its estimated fair value. The current Current Ratio is 3.12, which is 25% below median its 10-year median of 4.17 and 188.9% above the Utilities - Regulated industry median of 1.08. Empresa Metropolitana de Aguas & Energia's overall GF Score™ is 63/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Empresa Metropolitana de Aguas & Energia (BSP:EMAE4), the current Current Ratio is 3.12 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) Overvalued in 2026?
Based on GuruFocus' analysis, Empresa Metropolitana de Aguas & Energia stock appears to be overvalued.
The current stock price of R$38.51 is trading 3.4% above its estimated GF Value™ of R$37.23.
GuruFocus considers Empresa Metropolitana de Aguas & Energia to be Fairly Valued.
Key valuation signals for BSP:EMAE4:
Current Ratio: 3.12 (25% below median its 10-year median of 4.17)
GF Value™: R$37.23 vs. price of R$38.51 (3.4% above fair value)
Industry Position: 188.9% above the Utilities - Regulated median (#45 of 510)
No single metric tells the full story. See the BSP:EMAE4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Empresa Metropolitana de Aguas & Energia Business Description
Empresa Metropolitana de Aguas & Energia SA is engaged in electricity generation. The company manages a complex hydraulic system that includes dykes, dams, and reservoirs, with notable ones being Billings and Guarapiranga, located in the southern zone of Sao Paulo city, as well as the Sao Paulo and Pedreira pumping stations and the Pinheiros River canal. The company's activities include electricity supply, the construction of energy generation assets, and the provision of operation and maintenance services for power plants and related structures, serving both private companies and public sector entities.
63GF Score
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