Companhia de Saneamento Básico do Estado de São Paulo - SABESP — Utilities - Regulated Water. Scored on the same transparent 7-signal model behind the daily rankings.
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SBS
Companhia de Saneamento Básico do Estado de São Paulo - SABESP · Utilities - Regulated Water
FCF-$1.8bF
Rev+41.3%A
D/E1.18B+
P/S2.6xB
PEG0.47A
63.9Score
$5.84$20.5B
1Y Target$6.84Analyst consensus · 5 analysts
5Y Target$11.96Compound horizon
10Y Target$30.34Long-dated conviction
FCF-$1.8bTTM · 03/26F
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 YoYA
Revenue +41.3% — hypergrowth, top decile
D/E1.18B+
D/E 1.18 — below the Utilities debt median (≈40th pctile)
P/S2.6xB
P/S 2.6x — near the Utilities median (≈60th pctile)
PEG0.47A
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 · 63.9
Quality0.54
Growth0.90
Value0.74
Why this score
Raising its dividend
Diluting shareholders
Short track record
Foreign reporter (BRL)
Entry · Margin of safety
52-week rangeMid-range
18% off the 12-month high
Quality signals · context only
Gross profitability24% · Bgross profit ÷ total assets (Novy-Marx)
Why now
Utilities - Regulated Water · market cap $20.5b. 18% off the 52-week high of $7.16. 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 $6.84 (implying +17% 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.
Horizon
1-3 yr $6.84 (5-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $11.96 — requires the platform / technology to reach commercial scale. 10 yr $30.34 — 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.
Position sizing · SBS
$
%
%
Shares to buy
342
Position size
$1,997
4.0% of portfolio
Stop price
$4.38
25% below $5.84
$ at risk if stopped
$499.32
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 63.9 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 63.9 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 63.9 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.
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 adviser.