Bull Rankings model

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) stock analysis

Utilities - Regulated Water. Scored on the same transparent model behind the daily rankings.

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SBS
Companhia de Saneamento Básico do Estado de São Paulo - SABESP · Utilities - Regulated Water
46.3Score
$6.74Oct 9 close$23.7B
1Y Target$6.74Analyst consensus · 5 analysts
5Y Target$11.78Compound horizon
10Y Target$21.06Long-dated conviction
FCF-$1.6bTTM · 06/26
F
FCF is negative (-$1.6b) — cash-burning phase; acceptable only for pre-profit spec names · Trailing twelve months to 06/26 (operating cash flow − capex).
Rev+5.4%FY YoY
C+
Revenue +5.4% — steady but below market-beating range · Computed from the last two annual revenue figures (FY YoY).
D/E1.14
B+
D/E 1.14 — below the Utilities debt median (≈40th pctile)
P/S*2.9x
B
P/S 2.9x — near the Utilities median (≈60th pctile)
PEG0.47
A
PEG 0.47 — exceptional; paying well under fair value for growth

* P/S replaces P/E — no positive earnings to divide by

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Quality-growth score · 46.3
Quality62.0
Growth60.3
Value36.4
Why this score
  • Raising its dividend
  • Diluting shareholders
  • Foreign reporter (BRL)
Entry · Margin of safety
52-week rangeNear 52-week high
6% off the 12-month high

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Utilities - Regulated Water · market cap $23.7b. 6% off the 52-week high of $7.16. PEG 0.47 — paying under fair value for the growth rate. 5 sell-side analysts publish a mean 1-yr target of $6.74 (implying -0% upside).
Moat
Net margin 20% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 19% is above 15% — the equity base is compounding at a rate the market struggles to discount accurately.
Risk
Free cash flow is negative (-$1.6b) — capital raises or debt issuance likely required; dilution / leverage risk.
Horizon
1-3 yr $6.74 (5-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $11.78 — requires the platform / technology to reach commercial scale. 10 yr $21.06 — return distribution heavily skewed.

SBS vs the Top Picks average

PillarSBSBook avgDiff
Quality6283-21
Growth6089-29
Value3676-40

Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.

Trend
-10.7 over 82 daily scores
From 57.0 (Jun 22) → 46.3 (now)

One point per daily run; read From → To for the actual range.

SBS at a glance

THE BULL RANKINGS SCORECARD46.3/ 100 · BULL SCOREPEER MEDIANQUALITY62.0GROWTH60.3VALUE36.4
ONE-YEAR MOVE VS ITS BETAFLATThis stock+48%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.
PRICE IN ITS 52-WEEK RANGE$6.7LOW $4.4HIGH $7.2Trading near its 52-week high ($4.4–$7.2).
WHERE THIS SCORE SITS0255075100SBS 46.3Ranks above 44% of 1,709 companies on the quality-growth score.

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change-0.7%
90-day change-22.0%
Forward EPS estimate$0.43

Over the last 90 days, what analysts expect SBS to earn is materially lower (-22.0%). 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.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
296
Position size
$1,995
4.0% of portfolio
Stop price
$5.05
25% below $6.74
$ at risk if stopped
$498.76
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

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 46.3 out of 100 on the Bull Rankings quality-growth model — a below-average 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 PEG (A) and D/E (B+), while FCF (F) rate weaker.

Is SBS a good stock to buy?

Bull Rankings scores SBS 46.3 out of 100 on its quality-growth model, which is a below-average reading. That is driven by 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 46.3 on Bull Rankings?

The score leans on quality at 62.0 out of 100, with value the weakest pillar at 36.4 — the three combine geometrically, so a weak one cannot be papered over by a strong one. SBS earns its highest marks on PEG (A) and D/E (B+), and is held back by FCF (F). Each signal is graded against sector-aware thresholds rather than one absolute bar, so SBS is measured against Utilities - Regulated Water peers, not against the market as a whole.

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 (-$1.6b) — capital raises or debt issuance likely required; dilution / leverage risk.

New to these metrics? See the guides and the methodology.

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