Overview Dividends

(SBS) Companhia de Saneamento - Ratings and Ratios

Exchange: NYSE • Country: Brazil • Currency: USD • Type: Common Stock • ISIN: US20441A1025

Water, Sewage, Treatment, Connections

SBS EPS (Earnings per Share)

EPS Growth (3Y CAGR): -56.10%
EPS Trend (3Y Correlation): -61.4%

SBS Revenue

Revenue Growth (3Y CAGR): 15.81%
Revenue Trend (3Y Correlation): 70.4%

Description: SBS Companhia de Saneamento October 30, 2025

Companhia de Saneamento Básico do Estado de São Paulo (SABESP, NYSE:SBS) is Brazil’s largest water-and-sewage utility, serving 9.5 million water connections and 8.2 million sewage connections across 375 municipalities in São Paulo State as of 31 Dec 2024.

Key recent metrics: • 2024 revenue of R$ 30.2 bn, up 3.5 % YoY, driven by modest tariff adjustments approved by the state regulator. • Adjusted EBITDA margin stabilized around 45 % after a 2023-24 capital-intensive expansion phase. • Net debt/EBITDA ratio sits at 2.1×, reflecting a disciplined refinancing program that extended maturities to 2029.

Primary economic and sector drivers: • Brazil’s inflation-linked tariff regime allows periodic water-price increases, which historically boost top-line growth in line with CPI (average 4.2 % YoY over the past five years). • Ongoing urbanization and population growth in São Paulo (≈ 12 million new residents projected by 2030) raise demand for both water supply and sewage treatment. • Government-mandated universal access targets spur capital-intensive projects, creating a pipeline of roughly R$ 15 bn in approved investments through 2027.

If you want a data-rich, scenario-based assessment of SABESP’s valuation and risk profile, the ValueRay platform provides a structured deep-dive that can help sharpen your investment thesis.

SBS Stock Overview

Market Cap in USD	16,555m
Sub-Industry	Water Utilities
IPO / Inception	2002-05-10

SBS Stock Ratings

Growth Rating	96.5%
Fundamental	82.1%
Dividend Rating	56.1%
Return 12m vs S&P 500	32.8%
Analyst Rating	4.50 of 5

SBS Dividends

Dividend Yield 12m	2.68%
Yield on Cost 5y	9.82%
Annual Growth 5y	2.76%
Payout Consistency	74.6%
Payout Ratio	23.8%

SBS Growth Ratios

Growth Correlation 3m	79%
Growth Correlation 12m	92.8%
Growth Correlation 5y	94.6%
CAGR 5y	31.83%
CAGR/Max DD 3y (Calmar Ratio)	1.34
CAGR/Mean DD 3y (Pain Ratio)	4.43
Sharpe Ratio 12m	1.77
Alpha	50.99
Beta	0.157
Volatility	28.89%
Current Volume	937.6k
Average Volume 20d	834.2k
Stop Loss	23.7 (-3.2%)
Signal	0.39

Piotroski VR‑10 (Strict, 0-10) 8.0

Net Income (11.99b TTM) > 0 and > 6% of Revenue (6% = 2.81b TTM)

FCFTA 0.10 (>2.0%) and ΔFCFTA 3.32pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 5.92% (prev 9.63%; Δ -3.70pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.10 (>3.0%) and CFO 8.52b <= Net Income 11.99b (YES >=105%, WARN >=100%)

Net Debt (26.72b) to EBITDA (21.23b) ratio: 1.26 <= 3.0 (WARN <= 3.5)

Current Ratio 1.26 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (683.5m) change vs 12m ago 0.0% (target <= -2.0% for YES)

Gross Margin 48.24% (prev 40.30%; Δ 7.93pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 61.00% (prev 41.79%; Δ 19.21pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 37.96 (EBITDA TTM 21.23b / Interest Expense TTM 514.6m) >= 6 (WARN >= 3)

Altman Z'' 2.93

(A) 0.03 = (Total Current Assets 13.23b - Total Current Liabilities 10.46b) / Total Assets 88.72b

(B) 0.04 = Retained Earnings (Balance) 3.62b / Total Assets 88.72b

(D) 0.84 = Book Value of Equity 40.44b / Total Liabilities 48.28b

Total Rating: 2.93 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 82.08

1. Piotroski 8.0pt = 3.0

2. FCF Yield 7.53% = 3.76

3. FCF Margin 18.06% = 4.52

4. Debt/Equity 0.77 = 2.21

5. Debt/Ebitda 1.26 = 1.37

6. ROIC - WACC (= 14.77)% = 12.50

7. RoE 31.20% = 2.50

8. Rev. Trend 70.39% = 5.28

9. EPS Trend -61.35% = -3.07

What is the price of SBS shares?

As of October 31, 2025, the stock is trading at USD 24.48 with a total of 937,600 shares traded.
Over the past week, the price has changed by +0.62%, over one month by +0.04%, over three months by +25.41% and over the past year by +57.53%.

Is Companhia de Saneamento a good stock to buy?

Yes, based on ValueRay´s Fundamental Analyses, Companhia de Saneamento (NYSE:SBS) is currently (October 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 82.08 and therefor a positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of SBS is around 31.11 USD . This means that SBS is currently undervalued and has a potential upside of +27.08% (Margin of Safety).

Is SBS a buy, sell or hold?

Companhia de Saneamento has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy SBS.

Strong Buy: 3
Buy: 3
Hold: 0
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the SBS price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	25.1	2.4%
Analysts Target Price	25.1	2.4%
ValueRay Target Price	33.6	37.4%

SBS Fundamental Data Overview October 22, 2025

Market Cap BRL = 88.95b (16.55b USD * 5.3733 USD.BRL)
P/E Trailing = 8.0199
P/E Forward = 11.5207
P/S = 0.4115
P/B = 2.1543
P/EG = 2.55
Beta = 0.157
Revenue TTM = 46.79b BRL
EBIT TTM = 19.53b BRL
EBITDA TTM = 21.23b BRL
Long Term Debt = 27.74b BRL (from longTermDebt, last quarter)
Short Term Debt = 3.32b BRL (from shortTermDebt, last quarter)
Debt = 31.28b BRL (from shortLongTermDebtTotal, last quarter)
Net Debt = 26.72b BRL (from netDebt column, last quarter)
Enterprise Value = 112.31b BRL (88.95b + Debt 31.28b - CCE 7.93b)
Interest Coverage Ratio = 37.96 (Ebit TTM 19.53b / Interest Expense TTM 514.6m)
FCF Yield = 7.53% (FCF TTM 8.45b / Enterprise Value 112.31b)
FCF Margin = 18.06% (FCF TTM 8.45b / Revenue TTM 46.79b)
Net Margin = 25.62% (Net Income TTM 11.99b / Revenue TTM 46.79b)
Gross Margin = 48.24% ((Revenue TTM 46.79b - Cost of Revenue TTM 24.22b) / Revenue TTM)
Gross Margin QoQ = 41.82% (prev 41.78%)
Tobins Q-Ratio = 1.27 (Enterprise Value 112.31b / Total Assets 88.72b)
Interest Expense / Debt = 1.55% (Interest Expense 484.7m / Debt 31.28b)
Taxrate = 33.83% (1.09b / 3.23b)
NOPAT = 12.93b (EBIT 19.53b * (1 - 33.83%))
Current Ratio = 1.26 (Total Current Assets 13.23b / Total Current Liabilities 10.46b)
Debt / Equity = 0.77 (Debt 31.28b / totalStockholderEquity, last quarter 40.44b)
Debt / EBITDA = 1.26 (Net Debt 26.72b / EBITDA 21.23b)
Debt / FCF = 3.16 (Net Debt 26.72b / FCF TTM 8.45b)
Total Stockholder Equity = 38.42b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.51% (Net Income 11.99b / Total Assets 88.72b)
RoE = 31.20% (Net Income TTM 11.99b / Total Stockholder Equity 38.42b)
RoCE = 29.53% (EBIT 19.53b / Capital Employed (Equity 38.42b + L.T.Debt 27.74b))
RoIC = 19.91% (NOPAT 12.93b / Invested Capital 64.93b)
WACC = 5.14% (E(88.95b)/V(120.24b) * Re(6.59%) + D(31.28b)/V(120.24b) * Rd(1.55%) * (1-Tc(0.34)))
Discount Rate = 6.59% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
[DCF Debug] Terminal Value 79.32% ; FCFE base≈6.68b ; Y1≈7.18b ; Y5≈8.81b
Fair Price DCF = 225.1 (DCF Value 153.87b / Shares Outstanding 683.5m; 5y FCF grow 8.49% → 3.0% )
EPS Correlation: -61.35 | EPS CAGR: -56.10% | SUE: -0.51 | # QB: 0
Revenue Correlation: 70.39 | Revenue CAGR: 15.81% | SUE: 0.69 | # QB: 0

Additional Sources for SBS Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle