Companhia de Saneamento Básico do Estado de São Paulo - SABESP

SBS

NYSE · Water Utilities

$4.81

At close - Nov 6, 4:00 PM EST - USD

Market Cap$16.44B

P/E11.8x

52W High$7.16

Volume19.94M

VCP Research Verdict2026Q1

Capex Surge Strains Cash, Regulatory Lag Looms

SABESP is executing an aggressive capex program to achieve universal water and sewage coverage, with total assets expanding 10.8% QoQ to $117.7B in 2026Q1.

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MARKET ACTION

SBS price & volume

Price trend, volume and key moving averages

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Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis

Fundamental Trajectory

Revenue growth is volatile (16.0% YoY in 2026Q1 vs -26.9% in 2025Q4), yet operating margins have averaged ~32% over the last four quarters, with 2026Q1 at 34.1%.

Analyst Consensus+394.6% target

Hold(7 analysts)

2 Buy4 Hold1 Sell

The Bull Case

Upside Catalysts

Post-Privatization Investment Cycle

SBS is experiencing an accelerating capital expenditure cycle aimed at expanding water and sewage infrastructure in São Paulo. The Regulated Asset Base (RAB) is projected to approach R$160 billion by 2030, which will enhance predictable earnings growth with regulatory returns of approximately 8%.

Privatization Efficiency Gains

The privatization of Sabesp has resulted in significant efficiency improvements and cost reductions, reflected in a record-high EV/EBITDA multiple. The reduction of government ownership has led to enhanced operational efficiency.

Infrastructure Expansion Contract

Sabesp has secured a contract to increase water access coverage from 62% to potentially 99% by 2033, which could drive a 50% revenue growth. This expansion is expected to be supported by substantial funding from banks.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return

SBS-0.58%

S&P 500 (^GSPC)+7.63%

1-Year Return

SBS-3.24%

S&P 500 (^GSPC)+9.69%

3-Year Return

SBS+107.42%

S&P 500 (^GSPC)+77.89%

5-Year Return

SBS+304.27%

S&P 500 (^GSPC)+66.29%

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis

Trailing P/E5Y High

11.8x

Forward P/EExpansion

2.9x

EV/EBITDA100th %ile

8.4x

FCF YieldCash Flow

N/A

Valuation vs 5-Year History

Multiple Range

Metric

Current

5Y Median

Historical Range

Percentile

P/E

11.8x

2.2x

100th· High

EV/EBITDA

8.4x

3.4x

100th· High

Price/FCF

N/A

6.7x

N/A

Current Multiple

5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection

Bear$0.00N/A

Base (Fair)$-4.12-185.7%

Bull$0.00N/A

$0.00 Bear$-4.12 Base$0.00 Bull

Current Market Price: $4.81

Trades at a -216.7% premium to Base DCF ($-4.12)

Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend

Revenue FY25

$37.34B+3.3% YoY

Net income FY25

$8.3B-13.4% YoY

Free cash flow FY25

-$7.2B-180.0% YoY

Operating margin FY25

32.2%-10.7 pts YoY

ROIC (FY25)13.1%

Avg ROIC 5Y12%

ROE (TTM)18.1%

Piotroski Score3 / 9

Financial Statements →

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History

EPS Beat Rate7/12 (58%)

Revenue Beat Rate7/12 (58%)

Quarter	EPS (Act vs Est)	Revenue (Act vs Est)
Q4 2026Latest Nov 5, 2026	$0.06-12.1% vs $0.06	$1.1B-6.2% vs $1.2B
Q3 2026 Aug 12, 2026	$0.07-22.1% vs $0.09	$1.2B-5.6% vs $1.2B
Q2 2026 May 7, 2026	$0.09+9.1% vs $0.08	$1.3B+0.9% vs $1.3B
Q2 2026 Mar 17, 2026	$0.10+12.3% vs $0.09	$1.1B-1.3% vs $1.1B

Historical baseline: 12 quarters analyzedGAAP / Adjusted

MARKET COVERAGE

Latest News

4 Stories

Seeking Alpha·1d ago

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) Q3 2026 Earnings Call Transcript

Companhia de Saneamento Básico do Estado de São Paulo - SABESP ( SBS ) Q3 2026 Earnings Call November 6, 2026 8:00 AM EST Company Participants Daniel Szlak - CFO, Investor Relations Officer & Member of Executive Board Carlos Leone Piani - CEO & Member of Executive Board Conference Call Participants Filipe Andrade - Itaú Corretora de Valores S.A., Research Division Francisco Navarrete - Banco Bradesco BBI S.A.

Defense World·Oct 21, 2026

Kapitalo Investimentos Ltda Buys 1,456,225 Shares of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp $SBS

Kapitalo Investimentos Ltda lifted its stake in shares of Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (NYSE: SBS) by 1,506.4% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,552,893 shares of the utilities provider's stock

MarketBeat·Aug 14, 2026

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp Q2 Earnings Call Highlights

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp NYSE: SBS reported second-quarter results marked by revenue growth, lower adjusted profitability and continued expansion of its investment program, while management emphasized customer-service upgrades, workplace safety and progress toward universal sanitation coverage.

Seeking Alpha·Aug 13, 2026

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) Q2 2026 Earnings Call Transcript

Filtered for Companhia de Saneamento Básico do Estado de São Paulo - SABESPMore Headlines

Compare before deciding

Benchmark SBS against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS)

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Company	Price	Market Cap	P/E Ratio	Rev Growth (1Y)	Net Margin	ROE	Div Yield
SBSCompanhia de Saneamento Básico do Estado de São Paulo - SABESPCurrent	$4.81	$16.44B	11.83	3.32%	19.6%	18.14%	2.56%
AWKAmerican Water Works Company, Inc.	$150.29	$29.87B	26.33	9.74%	21.26%	9.99%	2.16%
CWTCalifornia Water Service Group	$51.04	$3.05B	23.22	-3.54%	12.78%	7.63%	2.43%
YORWThe York Water Company	$32.62	$528.75M	20.40	3.37%	—	9.45%	2.69%
MSEXMiddlesex Water Company	$59.87	$1.12B	21.90	1.47%	24.5%	10.06%	2.29%
ARTNAArtesian Resources Corporation	$34.39	$355.06M	15.05	4.62%	20.18%	9.37%	3.57%

Compare SBS vs Peers

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs AWK

Most directly comparable listed peer for SBS.

Scale Benchmark

vs DHR

Larger-name benchmark to compare SBS against a more recognizable public peer.

Peer Set

Compare Top 5

vs AWK, CWT, YORW, MSEX

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SBS Frequently Asked Questions

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials

What is Companhia de Saneamento Básico do Estado de São Paulo - SABESP's revenue?

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) reported $40.17B in revenue over the trailing twelve months. Revenue was $37.34B in fiscal year 2025. That is 993% more than the $3.42B of fiscal year 2001.

How fast is Companhia de Saneamento Básico do Estado de São Paulo - SABESP growing?

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) revenue fell by 14.1% over the trailing twelve months, compared with the twelve months before.

Is SBS profitable?

Yes. Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) earned $7.87B in net income over the trailing twelve months (a 19.6% net margin).

Dividend & Returns

Does SBS pay dividends?

Yes. Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) pays a dividend that yields 2.56% at the current price, a moderate yield.

What is SBS's return on equity?

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) had a return on equity (ROE) of 18.1% over the trailing twelve months. That is above the market's typical 10-15%.

What is Companhia de Saneamento Básico do Estado de São Paulo - SABESP's free cash flow?

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) had negative free cash flow of $16.84B over the trailing twelve months.

Industry Metrics

Is SBS's dividend sustainable?

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) has a dividend payout ratio of 28%. This suggests the dividend is well-covered and sustainable.

What if you invested $1,000 in SBS back in 2001?

Total return calculator · dividends reinvested · 25+ years of data

See returns →

Quarter

EPS (Act vs Est)

Revenue (Act vs Est)

Q4 2026Latest

Nov 5, 2026

$0.06-12.1%

vs $0.06

$1.1B-6.2%

vs $1.2B

Q3 2026

Aug 12, 2026

$0.07-22.1%

vs $0.09

$1.2B-5.6%

vs $1.2B

Q2 2026

May 7, 2026

$0.09+9.1%

vs $0.08

$1.3B+0.9%

vs $1.3B

Q2 2026

Mar 17, 2026

$0.10+12.3%

vs $0.09

$1.1B-1.3%

vs $1.1B

Company

Price

Market Cap

P/E Ratio

Rev Growth (1Y)

Net Margin

ROE

Div Yield

SBSCompanhia de Saneamento Básico do Estado de São Paulo - SABESPCurrent

$4.81

$16.44B

11.83

3.32%

19.6%

18.14%

2.56%

AWKAmerican Water Works Company, Inc.

$150.29

$29.87B

26.33

9.74%

21.26%

9.99%

2.16%

CWTCalifornia Water Service Group

$51.04

$3.05B

23.22

-3.54%

12.78%

7.63%

2.43%

YORWThe York Water Company

$32.62

$528.75M

20.40

3.37%

—

9.45%

2.69%

MSEXMiddlesex Water Company

$59.87

$1.12B

21.90

1.47%

24.5%

10.06%

2.29%

ARTNAArtesian Resources Corporation

$34.39

$355.06M

15.05

4.62%

20.18%

9.37%

3.57%