SBS Stock Analysis: Companhia de Saneamento | NYSE
Utilities - Regulated Water | NYSE, USA | Market Cap: 18.919m USD | 12M Return: 50.3% | US20441A1025 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 44.7M
EPS Trend: -93.5%
Qual. Beats: 0
Rev. Trend: 77.8%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.7 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 utility company that provides basic and environmental sanitation services throughout São Paulo State, supplying treated water and sewage services on a wholesale basis. Founded in 1954 and headquartered in São Paulo, SABESP trades on the NYSE under the ticker SBS as an American Depositary Receipt (ADR), with a market capitalization of approximately $18.2 billion USD and an IPO date of May 10, 2002.
The company operates within the Utilities sector, specifically classified under the Water Utilities sub-industry. Water utilities like SABESP typically operate as regulated entities with concession-based business models, serving residential, commercial, industrial, and public sector customers under long-term contracts with municipal or state authorities. In Brazil, the sanitation sector is governed by federal and state regulatory frameworks that establish service quality standards, tariff structures, and investment obligations for operators.
- New São Paulo concession agreement sets tariff indexation and capex plan
- Brazilian real depreciation pressures ADR dollar-denominated returns
- Elevated Selic rates increase debt service costs and squeeze margins
| 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 October 11, 2026, the stock is trading at USD 6.74 with a total of 15,750,045 shares traded. Over the past week, the price has changed by +25.28%, over one month by +30.12%, over three months by +15.41% and over the past year by +50.29%.
Current recommended Stop Loss: 6.40 (which is 5% or 1.6 ATR below the current price).
Companhia de Saneamento has received a consensus analysts rating of 4.83. Therefore, it is recommended to buy SBS.
- StrongBuy: 5
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 6.7 | 0% |
Market Cap BRL = 94.4b (18.9b USD * 4.9922 USD.BRL)
P/E Trailing = 11.6957
P/E Forward = 11.5207
P/S = 0.4629
P/B = 2.1151
P/EG = 0.4697
Revenue TTM = 40.2b BRL
EBIT TTM = 12.4b BRL
EBITDA TTM = 15.5b BRL
Long Term Debt = 46.4b BRL (from longTermDebt, last quarter)
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 = 129b BRL (94.4b + Debt 51.5b - CCE 17.4b)
Interest Coverage Ratio = 1.90 (Ebit TTM 12.4b / Interest Expense TTM 6.53b)
EV/FCF = 13.27x (Enterprise Value 129b / FCF TTM 9.68b)
FCF Yield = 7.53% (FCF TTM 9.68b / Enterprise Value 129b)
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 = 1.08 (Enterprise Value 129b / 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 = 13.85% (EBIT 12.4b / Capital Employed (Equity 43.3b + L.T.Debt 46.4b))
RoIC = 8.79% (NOPAT 9.33b / Invested Capital 106b)
WACC = 9.12% (E(94.4b)/V(146b) * Re(8.90%) + D(51.5b)/V(146b) * Rd(12.68%) * (1-Tc(0.25)))
Discount Rate = 8.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 20.83 | Cagr: 1.37%
[DCF] Terminal Value 75.45% ; FCFF base≈9.19b ; Y1≈10.5b ; Y5≈15.3b
[DCF] Fair Price = 48.05 (EV 203b - Net Debt 34.1b = Equity 169b / Shares 3.52b; r=9.12% [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=+10.77% | Revisions=-25% | Analysts=1
EPS current Year (2026-12-31): EPS=0.34 | Chg30d=+17.06% | Revisions=-25% | GrowthEPS=-3.4% | GrowthRev=+13.3%
EPS next Year (2027-12-31): EPS=0.43 | Chg30d=-10.00% | Revisions=-25% | GrowthEPS=+27.7% | GrowthRev=+19.2%
[Analyst] Revisions Ratio: -50% (up=0, down=3)