Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) AI Stock Analysis

Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides essential water and sewage services across residential, commercial, industrial, and governmental sectors in Brazil. Headquartered in São Paulo, the company operates water supply systems, sanitary sewage management, urban rainwater drainage, and solid waste services, as well as energy-related activities. As of December 31, 2021, SABESP maintained 9.8 million water connections serving roughly 27.8 million individuals across 88,904 kilometers of distribution networks. It also managed 8.4 million sewage connections serving approximately 24.6 million people over 61,122 kilometers of sewer lines, extending expertise to four additional municipalities through specialized subsidiaries.

Annual revenue expanded from $19.49B in FY2021 to $22.06B in FY2022, $25.57B in FY2023, and $36.15B in FY2024, reaching $37.34B in FY2025, reflecting a 5-year revenue CAGR of 16.0%. Net income climbed from $2.31B in FY2021 to $9.58B in FY2024 before settling at $8.30B in FY2025. Operating margin rose from 21.0% in FY2021 to 42.9% in FY2024, then moderated to 32.2% in FY2025. For the trailing twelve months ended June 30, 2026, revenue stood at $40.88B with an operating margin of 31.5%. In the latest quarter, revenue grew 13.9% year-over-year, while quarterly earnings declined 33.9%.

As of June 30, 2026, SABESP held $17.44B in cash and short-term investments against $51.25B in total debt, resulting in net debt of $33.80B. Total assets stood at $119.42B and shareholders' equity was $45.10B, yielding a debt-to-equity ratio of 1.14 and a current ratio of 1.47. In FY2025, operating cash flow reached $8.21B and free cash flow totaled $7.93B. Capital allocation for FY2025 included $286.3M in capital expenditures, $466.0M in share buybacks, and $2.32B in dividends paid.

At a market cap of $22.01B and enterprise value of $25.17B, SABESP trades at a trailing P/E of 14.2x and a forward P/E of 11.5x, below the median of its US-listed Utilities peers of 20.6x and 17.2x, respectively. Its enterprise value-to-EBITDA ratio of 7.2x is lower than the peer median of 12.1x, and its price-to-sales ratio is 0.5x compared to the sector median of 2.4x. Over the past year, the stock generated a return of 35.0%, outperforming the S&P 500 benchmark return of 16.8%. Over five years, the stock returned 385.5% versus 83.0% for the S&P 500.

SABESP pays an annual dividend with a forward rate of $0.03 per share, representing a dividend yield of 0.53% and a payout ratio of 33.0%. The company has paid dividends for 15 consecutive years, though its 5-year annualized dividend growth is -7.4%. Its most recent ex-dividend date was March 27, 2026.

Wall Street analysts maintain 5 Strong Buy ratings, 1 Buy rating, and zero Hold, Sell, or Strong Sell ratings on the stock. The mean price target is $6.66, which is 6.4% above the last close of $6.26. For the fiscal year ending December 31, 2026, analysts estimate EPS of $0.34 and revenue of $25.17B. The company recorded 0 EPS beats over the last 4 quarters. The next earnings date is scheduled for November 9, 2026.

This page is an AI-written research summary of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SBS income statement, SBS balance sheet, SBS key metrics, SBS analyst forecast, SBS chart. See the SBS stock overview for the latest quote and news.