Stock analysis · Bull Rankings model

SBS analysis

Companhia de Saneamento Básico do Estado de São Paulo - SABESPUtilities - Regulated Water. Scored on the same transparent model behind the daily rankings.

SBS
Companhia de Saneamento Básico do Estado de São Paulo - SABESP · Utilities - Regulated Water
FCF-$1.8bF
Rev+41.3%A
D/E1.14B+
P/S2.1xB+
PEG0.47A
60.5Score
$4.61$16.2B
1Y Target$6.76Analyst consensus · 5 analysts
5Y Target$11.82Compound horizon
10Y Target$21.12Long-dated conviction
FCF-$1.8bTTM · 03/26
F
FCF is negative (-$1.8b) — cash-burning phase; acceptable only for pre-profit spec names · TTM computed from 4 most-recent quarters (TTM · 03/26).
Rev+41.3%TTM YoY
A
Revenue +41.3% — hypergrowth, top decile
D/E1.14
B+
D/E 1.14 — below the Utilities debt median (≈40th pctile)
P/S2.1x
B+
P/S 2.1x — below the Utilities median (≈40th pctile)
PEG0.47
A
PEG 0.47 — exceptional; paying well under fair value for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 60.5
Quality54.8
Growth79.6
Value69.8
Why this score
  • Raising its dividend
  • Diluting shareholders
  • Foreign reporter (BRL)
Entry · Margin of safety
52-week rangeNear 52-week low
36% off the 12-month high
Quality signals · context only
Gross profitability24% · Bgross profit ÷ total assets (Novy-Marx)

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Utilities - Regulated Water · market cap $16.2b. Down 36% from 52-week high of $7.16 — deep drawdown territory. Revenue growing +41% — in hypergrowth territory. PEG 0.47 — paying under fair value for the growth rate. 5 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $6.76 (implying +47% upside).
Moat
Net margin 27% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 26% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which.
Risk
Free cash flow is negative (-$1.8b) — capital raises or debt issuance likely required; dilution / leverage risk. Down 36% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon
1-3 yr $6.76 (5-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $11.82 — requires the platform / technology to reach commercial scale. 10 yr $21.12 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

SBS vs the Top Picks average

PillarSBSBook avgDiff
Quality0.550.84-0.29
Growth0.800.84-0.04
Value0.700.78-0.08

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+3.5 over 47 daily scores
From 57.0 (Jun 22) → 60.5 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change-12.8%
90-day change-12.8%
Forward EPS estimate$0.48

Over the last 90 days, what analysts expect SBS to earn is materially lower (-12.8%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
433
Position size
$1,996
4.0% of portfolio
Stop price
$3.46
25% below $4.61
$ at risk if stopped
$499.03
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS): score, valuation & FAQ

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is a Utilities - Regulated Water company that scores 60.5 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are Rev (A), PEG (A) and D/E (B+), while FCF (F) rate weaker.

Is SBS a good stock to buy?

Bull Rankings scores SBS 60.5 out of 100 on its quality-growth model, which is a middling reading. That is driven by Rev (A), PEG (A) and D/E (B+). A score is a quantitative screen of Companhia de Saneamento Básico do Estado de São Paulo - SABESP's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does SBS score 60.5 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). SBS earns its highest marks on Rev (A), PEG (A) and D/E (B+), and is held back by FCF (F). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is SBS overvalued or undervalued?

We don't compute a reliable discounted-cash-flow value for SBS — typically because it is not yet consistently profitable or free-cash-flow positive — so its valuation rests on growth and price-to-sales rather than on earnings-based intrinsic value. Judge it on the trajectory of the business, not a single multiple.

What are the main risks of investing in SBS?

Free cash flow is negative (-$1.8b) — capital raises or debt issuance likely required; dilution / leverage risk. Down 36% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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