Want to see SBS full AI Analyst Report?
Top Page
Companhia De Saneamento
(NYSE:SBS)
Select Model
Select Model
Rating:70Outperform
Price Target:
$7.00
â–˛(44.33% Upside)
Action:Upgraded
Date:10/06/26
The score is driven primarily by mixed financial performance: strong profitability is offset by rising leverage and notably weaker cash flow with negative free cash flow. Technicals are supportive (uptrend and positive MACD) but risk is elevated due to overbought RSI. Valuation is a key positive given the very low P/E and a moderate dividend yield.
Positive Factors
Solid regulated-utility profitability
SABESP continues to generate meaningful profits and healthy margins within its regulated utility model. This provides an established earnings base, supports ongoing investment, and indicates that the core sanitation business retains economic strength despite recent cost and financing pressure.
Negative Factors
Leverage has risen sharply
The substantial increase in debt has reduced financial flexibility and made SABESP more sensitive to funding costs. Higher leverage can constrain future capital allocation and increase the burden of financing the company’s large infrastructure program over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Solid regulated-utility profitability
SABESP continues to generate meaningful profits and healthy margins within its regulated utility model. This provides an established earnings base, supports ongoing investment, and indicates that the core sanitation business retains economic strength despite recent cost and financing pressure.
Read all positive factors
Companhia De Saneamento (SBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.73B
Dividend Yield2%
Average Volume (3M)9.74M
Price to Earnings (P/E)2.9
Beta (1Y)0.41
Revenue Growth9.43%
EPS Growth-22.80%
CountryUS
Employees8,717
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)2.27
Shares Outstanding3,524,534,000
10 Day Avg. Volume11,143,458
30 Day Avg. Volume9,737,025
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 Cap1.13
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit1.91
Enterprise Value/Ebitda1.80
Forecast
1Y Price Target
$6.40Price Target Upside31.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.34
Revenue Forecast (FY)$4.93B
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
null...
Companhia De Saneamento Earnings Call Summary
Earnings Call Date:Nov 11, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 05, 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
70
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.17B | 37.34B | 36.15B | 25.57B | 22.06B | 19.49B |
| Gross Profit | 14.11B | 13.68B | 19.54B | 9.52B | 7.70B | 6.69B |
| EBITDA | 14.95B | 17.90B | 18.11B | 8.96B | 7.94B | 6.16B |
| Net Income | 7.87B | 8.30B | 9.58B | 3.52B | 3.12B | 2.31B |
Balance Sheet | ||||||
| Total Assets | 119.42B | 106.22B | 80.97B | 61.47B | 57.21B | 53.17B |
| Cash, Cash Equivalents and Short-Term Investments | 17.44B | 12.37B | 5.38B | 3.27B | 3.55B | 3.15B |
| Total Debt | 51.25B | 39.99B | 25.26B | 19.54B | 18.96B | 17.72B |
| Total Liabilities | 74.18B | 63.84B | 44.04B | 31.61B | 29.87B | 28.23B |
| Stockholders Equity | 45.10B | 42.38B | 36.93B | 29.86B | 27.33B | 24.93B |
Cash Flow | ||||||
| Free Cash Flow | -3.61B | 7.93B | 7.30B | 4.71B | 3.89B | 3.86B |
| Operating Cash Flow | 9.09B | 8.21B | 7.40B | 4.85B | 3.97B | 3.91B |
| Investing Cash Flow | -26.24B | -15.41B | -9.98B | -4.91B | -2.88B | -2.66B |
| Financing Cash Flow | 16.83B | 10.12B | 3.42B | -977.84M | 60.30M | -929.02M |
Companhia De Saneamento Technical Analysis
Positive
4.85
Price Trends
5.22
Positive
5.43
Positive
5.60
Positive
Market Momentum
0.35
Negative
82.55
Negative
95.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBS, the sentiment is Positive. The current price of 4.85 is below the 20-day moving average (MA) of 5.57, below the 50-day MA of 5.22, and below the 200-day MA of 5.60, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 82.55 is Negative, neither overbought nor oversold. The STOCH value of 95.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $23.73B | 2.86 | 18.48% | 2.00% | 9.43% | -22.80% | |
67 Neutral | $3.26B | 22.48 | 13.50% | 2.50% | 13.23% | 12.00% | |
66 Neutral | $11.06B | 19.89 | 8.05% | 3.56% | 9.86% | -16.27% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $2.84B | 20.62 | 7.62% | 2.84% | 6.43% | -2.99% | |
64 Neutral | $25.61B | 22.30 | 10.15% | 2.67% | 6.92% | 4.00% | |
60 Neutral | $2.45B | 20.45 | 6.35% | 2.98% | 5.04% | -6.59% |
* Utilities Sector Average
SBS
Companhia De Saneamento
6.74
2.43
56.42%
AWR
American States Water
82.26
11.03
15.49%
AWK
American Water
128.88
-7.04
-5.18%
WTRG
Essential Utilities
38.98
0.61
1.60%
CWT
California Water Service
45.94
0.94
2.08%
HTO
H2O America
58.48
12.18
26.32%
Companhia De Saneamento Corporate Events
SABESP Clarifies Status of Share Capital Increase Approved in July 2026
Oct 2, 2026
SABESP reported that its shareholders approved amended corporate bylaws on July 30, 2026, reflecting an increase in the company’s share capital. The clarification, filed as an Amendment No. 1 to its September 23, 2026 Form 6-K, specifies tha...
Sabesp Updates Bylaws to Define Governance, Voting Caps and State Veto Powers
Sep 23, 2026
In September 2026, Sabesp filed an updated set of bylaws detailing its corporate structure, governance regime and capital configuration as a Novo Mercado-listed company. The bylaws confirm a fully paid-in share capital of approximately R$21.5 bill...
Sabesp Secures EMAE Shareholder Approval for September 2026 Share Merger and Sets Withdrawal Terms
Sep 18, 2026
On September 17, 2026, EMAE shareholders approved the merger of all EMAE shares not already held by Sabesp into Sabesp, completing a share merger previously approved by Sabesp’s shareholders on July 30, 2026. EMAE investors will receive 1.31...
SABESP Posts Higher Revenue But Lower Profit in Q2 2026 Amid Rising Leverage
Aug 14, 2026
SABESP reported its quarterly financial information for the three and six months ended June 30, 2026, showing a substantial increase in total assets to about R$119.6 billion from R$104.2 billion at year-end 2025, driven mainly by higher financial ...
Sabesp’s 2Q26 Profit Drops as Investment and Cost Pressures Rise Amid Transformation Drive
Aug 13, 2026
In its second-quarter 2026 results, Sabesp reported that it is advancing a transformation agenda centered on customer satisfaction, with upgrades to service platforms, expanded digital channels, and proactive communication, despite inflationary pr...
SABESP Shareholders Approve Merger of EMAE Shares, Await CVM-Delayed EMAE Vote
Jul 31, 2026
On July 30, 2026, SABESP shareholders at an Extraordinary Shareholders’ Meeting approved the merger into SABESP of all remaining shares of EMAE – Empresa Metropolitana de Águas e Energia S.A. that the company does not already own,...
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.