(SBS) Companhia de Saneamento - Ratings and Ratios
Treated Water, Sewage Services
SBS EPS (Earnings per Share)
SBS Revenue
Description: SBS Companhia de Saneamento
Companhia de Saneamento Básico do Estado de São Paulo - SABESP is a leading water utility company in Brazil, providing essential sanitation services to a large customer base across 376 municipalities in the São Paulo State. The company has a significant presence in the region, serving 10.3 million water connections and 8.8 million sewage connections as of December 31, 2023.
From a financial perspective, SABESP has a market capitalization of approximately $15.47 billion USD, indicating a substantial market presence. The companys Price-to-Earnings (P/E) ratio is 8.46, suggesting that the stock may be undervalued relative to its earnings. Additionally, the forward P/E ratio is 16.64, indicating potential for future growth. The Return on Equity (RoE) of 32.98% is a strong indicator of the companys ability to generate profits from shareholder equity.
Some key performance indicators (KPIs) that can be used to evaluate SABESPs performance include: the number of water and sewage connections, revenue growth, operating margins, and return on assets (RoA). The companys ability to maintain a high level of service quality, while also investing in infrastructure to meet growing demand, is crucial to its long-term success. Furthermore, SABESPs dividend yield and payout ratio can be important metrics for income investors.
To further analyze SABESPs prospects, it is essential to consider factors such as the regulatory environment, competition, and the companys investment plans. The water utility sector is heavily regulated, and changes in government policies or regulations can significantly impact SABESPs operations. The companys ability to adapt to these changes and maintain a strong financial position will be critical to its future success.
SBS Stock Overview
| Market Cap in USD | 16,397m |
| Sub-Industry | Water Utilities |
| IPO / Inception | 2002-05-10 |
SBS Stock Ratings
| Growth Rating | 95.9% |
| Fundamental | 82.1% |
| Dividend Rating | 55.3% |
| Return 12m vs S&P 500 | 30.4% |
| Analyst Rating | 4.50 of 5 |
SBS Dividends
| Dividend Yield 12m | 2.75% |
| Yield on Cost 5y | 9.07% |
| Annual Growth 5y | 2.76% |
| Payout Consistency | 74.6% |
| Payout Ratio | 23.8% |
SBS Growth Ratios
| Growth Correlation 3m | 83.2% |
| Growth Correlation 12m | 91.5% |
| Growth Correlation 5y | 94.3% |
| CAGR 5y | 31.85% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.34 |
| CAGR/Mean DD 3y (Pain Ratio) | 4.43 |
| Sharpe Ratio 12m | 1.79 |
| Alpha | 46.35 |
| Beta | 0.157 |
| Volatility | 29.91% |
| Current Volume | 812.2k |
| Average Volume 20d | 860.1k |
| Stop Loss | 23.1 (-3.2%) |
| Signal | 0.04 |
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 |
| (C) 0.25 = EBIT TTM 19.53b / Avg Total Assets 76.70b |
| (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) 82.09
| 1. Piotroski 8.0pt = 3.0 |
| 2. FCF Yield 7.55% = 3.77 |
| 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?
Over the past week, the price has changed by +7.14%, over one month by -0.46%, over three months by +18.24% and over the past year by +50.63%.
Is Companhia de Saneamento a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of SBS is around 30.02 USD . This means that SBS is currently undervalued and has a potential upside of +25.82% (Margin of Safety).
Is SBS a buy, sell or hold?
- 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 | 24.4 | 2.1% |
| Analysts Target Price | 24.4 | 2.1% |
| ValueRay Target Price | 32.5 | 36% |
Last update: 2025-10-07 02:28
SBS Fundamental Data Overview
P/E Trailing = 7.8143
P/E Forward = 11.5207
P/S = 0.4076
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 = 111.97b BRL (88.61b + Debt 31.28b - CCE 7.93b)
Interest Coverage Ratio = 37.96 (Ebit TTM 19.53b / Interest Expense TTM 514.6m)
FCF Yield = 7.55% (FCF TTM 8.45b / Enterprise Value 111.97b)
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 = 1.26 (Enterprise Value 111.97b / 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(88.61b)/V(119.89b) * Re(6.59%) + D(31.28b)/V(119.89b) * 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
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