(SBS) Companhia de Saneamento - NYSE
Sector: Utilities | Industry: Utilities - Regulated Water | Exchange: NYSE (USA) | Market Cap: 18.411m USD | Total Return: 34.4% in 12m
Avg Turnover: 33.2M
EPS Trend: -80.1%
Qual. Beats: 0
Rev. Trend: 83.9%
Qual. Beats: 0
Warnings
Share dilution 400.4% YoY
Below Avwap Earnings
Tailwinds
No distinct edge detected
Companhia de Saneamento Básico do Estado de São Paulo (Sabesp) is a Brazilian water and sewage utility that provides wholesale treated water and sewage services across São Paulo State. The company operated approximately 9.5 million water connections and 8.2 million sewage connections as of December 31, 2024, serving 375 municipalities. Headquartered in São Paulo and founded in 1954, Sabesp trades on the NYSE as an ADR under the ticker SBS.
The company operates as a regulated state-level concessionaire within the Water Utilities sub-industry. Its wholesale model means Sabesp supplies bulk water and sewage services to municipal distributors, which then retail to end users. Brazils sanitation sector is governed by state-level concession contracts and federal regulation, with the 2020 New Legal Framework for Basic Sanitation reshaping the competitive landscape by opening the sector to private investment and mandating expanded service coverage targets.
- New concession contract enables inflation-linked annual tariff adjustments
- State share offering and privatization reshape ownership and float
- BRL weakness and elevated Selic rates pressure ADR valuation and financing costs
| Net Income: 8.53b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 6.50 > 1.0 |
| NWC/Revenue: 28.15% < 20% (prev 2.44%; Δ 25.70% < -1%) |
| CFO/TA 0.07 > 3% & CFO 8.02b > Net Income 8.53b |
| Net Debt (32.1b) to EBITDA (15.3b): 2.10 < 3 |
| Current Ratio: 1.74 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.52b) vs 12m ago 3.11% < -2% |
| Gross Margin: 36.07% > 18% (prev 48.69%; Δ -12.63% > 0.5%) |
| Asset Turnover: 38.06% > 50% (prev 52.01%; Δ -13.96% > 0%) |
| Interest Coverage Ratio: 2.42 > 6 (EBIT TTM 13.0b / Interest Expense TTM 5.36b) |
| A: 0.09 (Total Current Assets 25.6b - Total Current Liabilities 14.7b) / Total Assets 118b |
| B: 0.01 (Retained Earnings 1.25b / Total Assets 118b) |
| C: 0.13 (EBIT TTM 13.0b / Avg Total Assets 102b) |
| D: 0.58 (Book Value of Equity 43.2b / Total Liabilities 74.4b) |
| Altman-Z'' = 2.11 = BBB |
| DSRI: 1.73 (Receivables 6.31b/4.19b, Revenue 38.7b/44.6b) |
| GMI: 1.35 (GM 48.69% / 36.07%) |
| AQI: 0.93 (AQ_t 0.77 / AQ_t-1 0.83) |
| SGI: 0.87 (Revenue 38.7b / 44.6b) |
| TATA: 0.00 (NI 8.53b - CFO 8.02b) / TA 118b) |
| Beneish M = -2.24 (Cap -4..+1) = BBB |
As of June 23, 2026, the stock is trading at USD 5.42 with a total of 7,118,012 shares traded. Over the past week, the price has changed by -0.73%, over one month by -4.24%, over three months by -6.45% and over the past year by +34.41%.
Current recommended Stop Loss: 4.70 (which is 13.3% or 1.6 ATR below the current price).
Companhia de Saneamento has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy SBS.
- StrongBuy: 3
- Buy: 3
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 6.8 | 26.2% |
Market Cap BRL = 94.8b (18.4b USD * 5.1518 USD.BRL)
P/E Trailing = 10.5
P/E Forward = 15.7233
P/S = 0.4646
P/B = 2.1506
P/EG = 0.4697
Revenue TTM = 38.7b BRL
EBIT TTM = 13.0b BRL
EBITDA TTM = 15.3b BRL
Long Term Debt = 46.6b BRL (from longTermDebt, last quarter)
Short Term Debt = 4.62b BRL (from shortTermDebt, last quarter)
Debt = 51.1b BRL (from shortLongTermDebtTotal, last quarter) + Leases 266.7m
Net Debt = 32.1b BRL (calculated: Debt 51.1b - CCE 19.0b)
Enterprise Value = 127b BRL (94.8b + Debt 51.1b - CCE 19.0b)
Interest Coverage Ratio = 2.42 (Ebit TTM 13.0b / Interest Expense TTM 5.36b)
EV/FCF = 7.36x (Enterprise Value 127b / FCF TTM 17.3b)
FCF Yield = 13.59% (FCF TTM 17.3b / Enterprise Value 127b)
FCF Margin = 44.60% (FCF TTM 17.3b / Revenue TTM 38.7b)
Net Margin = 22.04% (Net Income TTM 8.53b / Revenue TTM 38.7b)
Gross Margin = 36.07% ((Revenue TTM 38.7b - Cost of Revenue TTM 24.7b) / Revenue TTM)
Gross Margin QoQ = 38.81% (prev 32.46%)
Tobins Q-Ratio = 1.08 (Enterprise Value 127b / Total Assets 118b)
Interest Expense / Debt = 10.50% (Interest Expense 5.36b / Debt 51.1b)
Taxrate = 26.05% (3.00b / 11.5b)
NOPAT = 9.59b (EBIT 13.0b * (1 - 26.05%))
Current Ratio = 1.74 (Total Current Assets 25.6b / Total Current Liabilities 14.7b)
Debt / Equity = 1.18 (Debt 51.1b / totalStockholderEquity, last quarter 43.2b)
Debt / EBITDA = 2.10 (Net Debt 32.1b / EBITDA 15.3b)
Debt / FCF = 1.86 (Net Debt 32.1b / FCF TTM 17.3b)
Total Stockholder Equity = 42.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.39% (Net Income 8.53b / Total Assets 118b)
RoE = 20.23% (Net Income TTM 8.53b / Total Stockholder Equity 42.2b)
RoCE = 14.60% (EBIT 13.0b / Capital Employed (Equity 42.2b + L.T.Debt 46.6b))
RoIC = 9.08% (NOPAT 9.59b / Invested Capital 106b)
WACC = 8.05% (E(94.8b)/V(146b) * Re(8.21%) + D(51.1b)/V(146b) * Rd(10.50%) * (1-Tc(0.26)))
Discount Rate = 8.21% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 24.34 | Cagr: 104.6%
[DCF] Terminal Value 77.97% ; FCFF base≈13.2b ; Y1≈15.1b ; Y5≈22.2b
[DCF] Fair Price = 86.07 (EV 334b - Net Debt 32.1b = Equity 302b / Shares 3.51b; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -80.07 | EPS CAGR: -34.89% | SUE: -0.57 | # QB: 0
Revenue Correlation: 83.90 | Revenue CAGR: 27.07% | SUE: 0.71 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.08 | Chg30d=-7.49% | Revisions=-20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.09 | Chg30d=-7.56% | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=0.38 | Chg30d=+0.56% | Revisions=+0% | GrowthEPS=+8.4% | GrowthRev=+13.1%
EPS next Year (2027-12-31): EPS=0.55 | Chg30d=-7.30% | Revisions=-20% | GrowthEPS=+45.9% | GrowthRev=+18.6%
[Analyst] Revisions Ratio: -20%