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Companhia De Saneamento
(NYSE:SBS)
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Rating:63Neutral
Price Target:
$5.50
â–¼(-3.17% Downside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by solid underlying profitability and improved TTM revenue, offset by higher leverage and weaker recent free-cash-flow momentum. Technicals are currently weak (below key moving averages with negative MACD), while valuation is supported by a moderate P/E and strong dividend yield.
Positive Factors
Strong Profitability & Margins
Sabesp's high TTM gross, EBIT and EBITDA margins reflect durable operating leverage typical of regulated water utilities. Combined with improving TTM revenue momentum, these margins support stable cash generation and pricing power under concession frameworks, underpinning long-term service investment and returns.
Negative Factors
Rising Leverage
Material increase in leverage reduces financial flexibility for a capital-intensive utility and raises refinancing and interest-rate sensitivity. Higher debt levels constrain ability to fund capex internally and amplify funding costs risk over the medium term, pressuring free cash flow and strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability & Margins
Sabesp's high TTM gross, EBIT and EBITDA margins reflect durable operating leverage typical of regulated water utilities. Combined with improving TTM revenue momentum, these margins support stable cash generation and pricing power under concession frameworks, underpinning long-term service investment and returns.
Read all positive factors
Companhia De Saneamento (SBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.23B
Dividend Yield2.47%
Average Volume (3M)5.95M
Price to Earnings (P/E)2.6
Beta (1Y)0.35
Revenue Growth7.58%
EPS Growth4.69%
CountryUS
Employees10,552
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)2.47
Shares Outstanding3,524,534,000
10 Day Avg. Volume4,966,937
30 Day Avg. Volume5,946,289
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)2.11
Price to Sales (P/S)2.39
P/FCF Ratio11.27
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.38
Revenue Forecast (FY)$5.02B
Companhia De Saneamento Business Overview & Revenue Model
Company Description
SABESP, or Companhia de Saneamento Básico do Estado de São Paulo, is a key utility provider specializing in water and sewage services for residential, commercial, industrial, and governmental clients. Its offerings are comprehensive, spanning wate...
How the Company Makes Money
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Companhia De Saneamento Earnings Call Summary
Earnings Call Date:Nov 11, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were positive developments in revenue and EBITDA growth, operational cash generation, and new strategic directions post-privatization, significant challenges remain. These include regulatory impacts, transition costs, and construction delays. The company is focused on overcoming these hurdles with a new management team and investment strategies.Positive Updates
Revenue and EBITDA Growth
Net revenue increased by 7%, and EBITDA grew by 17% driven by a 2% increase in volume and pricing adjustments.
Negative Updates
Impact of Regulatory Adjustments
Revenue impacted by regulatory adjustments, including a 1% tariff reduction post-privatization.
Read all updates
Q3-2024 Updates
Positive
Negative
Revenue and EBITDA Growth
Net revenue increased by 7%, and EBITDA grew by 17% driven by a 2% increase in volume and pricing adjustments.
Read all positive updates
Company Guidance
During the Q3 2024 earnings call for SBSP3.SA, the management team provided comprehensive guidance on several financial metrics and strategic initiatives. Daniel Szlak, the CFO, detailed a 7% increase in net revenue, translating into a 17% rise in EBITDA, driven by a 2% growth in volume and pricing adjustments. The company reported a gross revenue impact of approximately BRL 8.8 billion due to deferred revenue adjustments under IFRS 12. Operational cash generation stood at BRL 1.6 billion, reinvested into the asset base. The privatization transition incurred non-recurring costs, yet the company saw a 6.4% tariff readjustment, netting a positive effect of around 5%. Additionally, SABESP completed BRL 1.4 billion in investments this quarter, with expectations to reach BRL 6.5 to 7 billion by year-end, despite transitioning from public to private procurement processes. The call also highlighted the company's strategic focus on universal sanitation, cost control, and an efficient capital structure, aiming to leverage a planned BRL 60 billion investment over five years.Companhia De Saneamento Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.70B | 37.34B | 36.15B | 25.57B | 22.06B | 19.49B |
| Gross Profit | 13.96B | 13.68B | 19.54B | 9.52B | 7.70B | 6.69B |
| EBITDA | 15.30B | 17.85B | 18.11B | 8.96B | 7.94B | 6.16B |
| Net Income | 8.53B | 8.30B | 9.58B | 3.52B | 3.12B | 2.31B |
Balance Sheet | ||||||
| Total Assets | 117.67B | 106.22B | 80.97B | 61.47B | 57.21B | 53.17B |
| Cash, Cash Equivalents and Short-Term Investments | 18.96B | 12.37B | 5.38B | 3.27B | 3.55B | 3.15B |
| Total Debt | 50.82B | 39.99B | 25.26B | 19.54B | 18.96B | 17.72B |
| Total Liabilities | 74.38B | 63.84B | 44.04B | 31.61B | 29.87B | 28.23B |
| Stockholders Equity | 43.16B | 42.38B | 36.93B | 29.86B | 27.33B | 24.93B |
Cash Flow | ||||||
| Free Cash Flow | 3.97B | 7.93B | 7.30B | 4.71B | 3.89B | 3.86B |
| Operating Cash Flow | 8.02B | 8.21B | 7.40B | 4.85B | 3.97B | 3.91B |
| Investing Cash Flow | -27.50B | -15.41B | -9.98B | -4.91B | -2.88B | -2.66B |
| Financing Cash Flow | 19.40B | 10.12B | 3.42B | -977.84M | 60.30M | -929.02M |
Companhia De Saneamento Technical Analysis
Negative
5.68
Price Trends
5.61
Negative
5.93
Negative
5.50
Negative
Market Momentum
-0.08
Positive
41.67
Neutral
33.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBS, the sentiment is Negative. The current price of 5.68 is below the 20-day moving average (MA) of 5.70, above the 50-day MA of 5.61, and above the 200-day MA of 5.50, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 33.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBS.
Companhia De Saneamento Risk Analysis
Companhia De Saneamento disclosed 39 risk factors in its most recent earnings report. Companhia De Saneamento reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Companhia De Saneamento Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $26.66B | 23.21 | 10.15% | 2.51% | 6.92% | 4.00% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $3.10B | 22.50 | 7.62% | 2.50% | 6.43% | -2.99% | |
65 Neutral | $1.08B | 21.95 | 9.59% | 2.53% | 5.26% | 7.26% | |
64 Neutral | $3.36B | 24.97 | 13.06% | 2.33% | 11.68% | 5.79% | |
63 Neutral | $19.23B | 2.59 | 20.63% | 2.37% | 7.58% | 4.69% | |
61 Neutral | $11.30B | 20.23 | 8.16% | 3.46% | 13.07% | -11.65% |
* Utilities Sector Average
SBS
Companhia De Saneamento
5.43
1.70
45.77%
AWR
American States Water
84.75
11.28
15.36%
AWK
American Water
131.30
-11.93
-8.33%
WTRG
Essential Utilities
38.78
1.80
4.87%
CWT
California Water Service
49.38
3.73
8.16%
MSEX
Middlesex Water Company
56.85
5.08
9.80%
Companhia De Saneamento Corporate Events
Sabesp Moves to Fully Absorb EMAE in June 2026 Share Merger Plan
Jun 30, 2026
On June 2026, Sabesp and EMAE executed a merger protocol under which Sabesp will absorb all EMAE shares it does not already own, turning EMAE into a wholly owned subsidiary and delisting its stock from B3’s Traditional segment. The boards of...
Sabesp Reshapes Executive Board With New Customer Experience Directorate
Jun 16, 2026
On June 15, 2026, Sabesp announced changes to its executive board and organizational structure, highlighting a strategic focus on customer service and operational excellence. The company created a new Customer Experience Directorate, appointing ci...
Sabesp Posts Strong 1Q26 Earnings and R$3.7 Billion Capex Surge
May 8, 2026
On May 7, 2026, Sabesp reported that in the first quarter of 2026 it delivered adjusted earnings per share of R$0.44, up from R$0.34 a year earlier, supported by higher volumes from new connections, tariff gains and improved collections despite a ...
Sabesp Posts Higher Assets in First-Quarter 2026 Financial Report
May 8, 2026
Sabesp reported its quarterly financial information for the period ended March 31, 2026, showing total individual assets of R$115.5 billion, up from R$104.2 billion at December 31, 2025. The increase was driven by higher current assets, particular...
Sabesp Files 2025 Form 20-F With SEC, Makes Audited Results Available to Investors
Apr 30, 2026
On April 29, 2026, Sabesp announced that it had filed its annual report on Form 20-F for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission. The filing includes the company’s complete audited financial s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.