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Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Companhia de Saneamento Básico do Estado de São Paulo - SABESP

SBSMarket cap $22BPrice $6.4

Country🇧🇷Brazil

SectorUtilities

IndustryWater Utilities

Supplies water and sewage treatment to over 28 million people across São Paulo state, making it one of the largest water utilities in the world. Brazil's economic powerhouse runs on this company's pipes.

In Bastion Portfolios?

52W Return+40%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+19%9

Revenue Forecast

Rev CAGR (1y)-28%1

Rev CAGR (3y)-4%1

Rev CAGR (5y)+4%3

Earnings Forecast

EPS Growth Y+1-85%1

EPS Growth Y+2+37%9

EPS Growth Y+3+21%8

Quality

Margins

EBIT Margin32%9

Net Income Margin20%8

Free Cash Flow Margin-20%2

Debt

Net Debt/EBITDA2.24

Efficiency

ROE19%8

ROA8%8

Earnings Stability77

GEAR+AVERAGE48

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)184

P/E Ratio (Forward 3y)126

P/BV2.56

EV Multiples

EV/EBITDA Fwd106

EV/EBIT Fwd128

Yield

Free Cash Flow Yield-7.3%1

Dividend Yield0.3%1

Momentum

Short term

1 month return+21%10

3 month return+12%9

YTD return+34%9

Mid term

Price vs 52wHigh89%8

1 year return+45%9

Long term

3 year return+200%9

5 year return+430%10

Risk Shield

Price Risk

Beta0.110

Volatility37%5

Free Cash Flow

Free Cash Flow Margin-20%2

Free Cash Flow Yield-7.3%1

Quality

ROCE14%7

Earnings Stability77

Net Debt/EBITDA2.24

02Growth

Is it actually growing, and how fast?

SBSCompanhia de Saneamento Básico do Estado de São Paulo - SABESP

Revenue FY25$7.0B

GROWTH RATING↗

WEAK17 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+19%9

Revenue, next 1Y-28%1

Revenue, next 3Y, CAGR-4%1

Revenue, next 5Y, CAGR+4%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-85%1

EPS growth, FY27E+37%9

EPS growth, FY28E+21%8

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 19%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

WATCH

Earnings are set to grow faster than sales (EPS about 21%/yr vs revenue -4%/yr), so margins should widen. One year dips: EPS falls 85% next year.

WEAKNESSES

Growth is the weak spot here, trailing 83% of companies worldwide.

Revenue is set to shrink 4%/yr over the next 3 years, behind most of the market.2/10

Revenue grew 19%/yr over the last 3 years, but it is set to shrink 4%/yr from here.

Over five years revenue is set to grow 4%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business heading into decline. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

SBSCompanhia de Saneamento Básico do Estado de São Paulo - SABESP

Total return Current346%

Price return Current278%

MOMENTUM RATING↗

VERY STRONG97 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+21%10

3-month return+12%9

YTD return+34%9

MID & LONG-TERM▾SCORE

% of 52-week high89%8

1-year return+45%9

3-year return+200%9

5-year return+430%10

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +200% over three years and +430% over five, ahead of 90% of the market.

It's up 45% over the past year, but 11% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+21%), over three months (+12%) and so far this year (+34%).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on SABESP. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

SBSCompanhia de Saneamento Básico do Estado de São Paulo - SABESP

Revenue FY25$7.0B

GROWTH RATING↗

WEAK17 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+19%9

Revenue, next 1Y-28%1

Revenue, next 3Y, CAGR-4%1

Revenue, next 5Y, CAGR+4%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-85%1

EPS growth, FY27E+37%9

EPS growth, FY28E+21%8

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 19%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

WATCH

Earnings are set to grow faster than sales (EPS about 21%/yr vs revenue -4%/yr), so margins should widen. One year dips: EPS falls 85% next year.

WEAKNESSES

Growth is the weak spot here, trailing 83% of companies worldwide.

Revenue is set to shrink 4%/yr over the next 3 years, behind most of the market.2/10

Revenue grew 19%/yr over the last 3 years, but it is set to shrink 4%/yr from here.

Over five years revenue is set to grow 4%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business heading into decline. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

SBSCompanhia de Saneamento Básico do Estado de São Paulo - SABESP

Total return Current346%

Price return Current278%

MOMENTUM RATING↗

VERY STRONG97 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+21%10

3-month return+12%9

YTD return+34%9

MID & LONG-TERM▾SCORE

% of 52-week high89%8

1-year return+45%9

3-year return+200%9

5-year return+430%10

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +200% over three years and +430% over five, ahead of 90% of the market.

It's up 45% over the past year, but 11% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+21%), over three months (+12%) and so far this year (+34%).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on SABESP. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community