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. However, the $13.3B quarterly capex (17.6x OCF) has driven debt-to-equity to 1.17 and free cash flow to ...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
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%.
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%.
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.
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.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest 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 |
Q4 2025 Nov 11, 2025 | $0.07+23.8% vs $0.06 | $1.0B-2.1% vs $1.1B |
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.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) Q2 2026 Earnings Call Transcript
Investors interested in Utility - Water Supply stocks are likely familiar with Sabesp (SBS) and American States Water (AWR). But which of these two stocks offers value investors a better bang for their buck right now?
The mean of analysts' price targets for Sabesp (SBS) points to a 25% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
Benchmark SBS against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $5.39 | $18.42B | 11.38 | 3.32% | 22.21% | 20.92% | 2.46% | |
| $133.82 | $26.59B | 23.48 | 9.74% | 21.35% | 10.15% | — | |
| $47.29 | $2.83B | 22.00 | -3.54% | 12.63% | 7.61% | — | |
| $31.59 | $512.05M | 22.73 | 3.37% | 401.03% | 9.38% | — | |
| $54.92 | $1.02B | 23.27 | 1.47% | 23.26% | 9.57% | — | |
| $34.30 | $354.13M | 15.52 | 4.62% | 20.18% | 9.37% | — |
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) stock FAQ — growth, dividends, profitability & financials explained
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) reported $40.17B in revenue for fiscal year 2025. This represents a 1076% increase from $3.42B in 2001.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) grew revenue by 3.3% over the past year. Growth has been modest.
Yes, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is profitable, generating $7.87B in net income for fiscal year 2025 (22.2% net margin).
Yes, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) pays a dividend with a yield of 2.46%. This makes it attractive for income-focused investors.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) has a return on equity (ROE) of 20.9%. This is excellent, indicating efficient use of shareholder capital.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) had negative free cash flow of $16.84B in fiscal year 2025, likely due to heavy capital investments.
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.
