SBS Stock Analysis: Companhia de Saneamento | NYSE
Utilities - Regulated Water | NYSE, USA | Market Cap: 17.056m USD | 12M Return: 12.1% | US20441A1025 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 43.8M
EPS Trend: -93.5%
Qual. Beats: 0
Rev. Trend: 77.8%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
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: 7.87b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -1.42 > 1.0 |
| NWC/Revenue: 19.01% < 20% (prev 5.92%; Δ 13.09% < -1%) |
| CFO/TA 0.08 > 3% & CFO 9.09b > Net Income 7.87b |
| Net Debt (34.1b) to EBITDA (15.5b): 2.20 < 3 |
| Current Ratio: 1.47 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.52b) vs 12m ago 3.11% < -2% |
| Gross Margin: 35.12% > 18% (prev 48.24%; Δ -13.12% > 0.5%) |
| Asset Turnover: 38.60% > 50% (prev 52.74%; Δ -14.13% > 0%) |
| Interest Coverage Ratio: 1.90 > 6 (EBIT TTM 12.4b / Interest Expense TTM 6.53b) |
| A: 0.06 (Total Current Assets 23.9b - Total Current Liabilities 16.2b) / Total Assets 119b |
| B: 0.02 (Retained Earnings 2.70b / Total Assets 119b) |
| C: 0.12 (EBIT TTM 12.4b / Avg Total Assets 104b) |
| D: 0.61 (Book Value of Equity 45.1b / Total Liabilities 74.2b) |
| Altman-Z'' = 1.93 = BBB |
| DSRI: 1.35 (Receivables 5.95b/5.13b, Revenue 40.2b/46.8b) |
| GMI: 1.37 (GM 48.24% / 35.12%) |
| AQI: 0.94 (AQ_t 0.79 / AQ_t-1 0.84) |
| SGI: 0.86 (Revenue 40.2b / 46.8b) |
| TATA: -0.01 (NI 7.87b - CFO 9.09b) / TA 119b) |
| Beneish M = -2.54 (Cap -4..+1) = A |
As of September 01, 2026, the stock is trading at USD 4.86 with a total of 12,627,334 shares traded. Over the past week, the price has changed by +4.97%, over one month by -10.83%, over three months by -10.99% and over the past year by +12.09%.
Current recommended Stop Loss: 4.60 (which is 5.3% or 1.5 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 | 39.1% |
Market Cap BRL = 88.6b (17.1b USD * 5.1932 USD.BRL)
P/E Trailing = 10.3191
P/E Forward = 15.7233
P/S = 0.4173
P/B = 1.9208
P/EG = 0.4697
Revenue TTM = 40.2b BRL
EBIT TTM = 12.4b BRL
EBITDA TTM = 15.5b BRL
Long Term Debt = 34.9b BRL (from longTermDebt, last fiscal year)
Short Term Debt = 4.95b BRL (from shortTermDebt, last quarter)
Debt = 51.5b BRL (from shortLongTermDebtTotal, last quarter) + Leases 266.7m
Net Debt = 34.1b BRL (calculated: Debt 51.5b - CCE 17.4b)
Enterprise Value = 123b BRL (88.6b + Debt 51.5b - CCE 17.4b)
Interest Coverage Ratio = 1.90 (Ebit TTM 12.4b / Interest Expense TTM 6.53b)
EV/FCF = 12.67x (Enterprise Value 123b / FCF TTM 9.68b)
FCF Yield = 7.90% (FCF TTM 9.68b / Enterprise Value 123b)
FCF Margin = 24.10% (FCF TTM 9.68b / Revenue TTM 40.2b)
Net Margin = 19.60% (Net Income TTM 7.87b / Revenue TTM 40.2b)
Gross Margin = 35.12% ((Revenue TTM 40.2b - Cost of Revenue TTM 26.1b) / Revenue TTM)
Gross Margin QoQ = 37.36% (prev 38.81%)
Tobins Q-Ratio = 1.03 (Enterprise Value 123b / Total Assets 119b)
Interest Expense / Debt = 12.68% (Interest Expense 6.53b / Debt 51.5b)
Taxrate = 24.89% (2.62b / 10.5b)
NOPAT = 9.33b (EBIT 12.4b * (1 - 24.89%))
Current Ratio = 1.47 (Total Current Assets 23.9b / Total Current Liabilities 16.2b)
Debt / Equity = 1.14 (Debt 51.5b / totalStockholderEquity, last quarter 45.1b)
Debt / EBITDA = 2.20 (Net Debt 34.1b / EBITDA 15.5b)
Debt / FCF = 3.52 (Net Debt 34.1b / FCF TTM 9.68b)
Total Stockholder Equity = 43.3b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.57% (Net Income 7.87b / Total Assets 119b)
RoE = 18.17% (Net Income TTM 7.87b / Total Stockholder Equity 43.3b)
RoCE = 15.88% (EBIT 12.4b / Capital Employed (Equity 43.3b + L.T.Debt 34.9b))
RoIC = 8.79% (NOPAT 9.33b / Invested Capital 106b)
WACC = 8.97% (E(88.6b)/V(140b) * Re(8.65%) + D(51.5b)/V(140b) * Rd(12.68%) * (1-Tc(0.25)))
Discount Rate = 8.65% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 20.83 | Cagr: 1.37%
[DCF] Terminal Value 75.91% ; FCFF base≈9.19b ; Y1≈10.5b ; Y5≈15.3b
[DCF] Fair Price = 49.42 (EV 208b - Net Debt 34.1b = Equity 174b / Shares 3.52b; r=8.97% [WACC]; 5y FCF grow 14.57% → 2.50% )
EPS Correlation: -93.52 | EPS CAGR: -67.80% | SUE: -0.11 | # QB: 0
Revenue Correlation: 77.84 | Revenue CAGR: 22.79% | SUE: 0.84 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.07 | Chg30d=-26.14% | Revisions=-25% | Analysts=1
EPS current Year (2026-12-31): EPS=0.29 | Chg30d=-23.36% | Revisions=-25% | GrowthEPS=-16.9% | GrowthRev=+14.0%
EPS next Year (2027-12-31): EPS=0.48 | Chg30d=-12.82% | Revisions=-25% | GrowthEPS=+66.0% | GrowthRev=+18.6%