Companhia de Saneamento Básico do Estado de São Paulo - SABESP
- Open
- 6.00
- Day high
- 6.09
- Day low
- 6.00
- Prev close
- 5.84
- Volume
- 3.2M
- Mkt cap
- $21.3B
- P/E (TTM)
- 12.6
- EPS (TTM)
- $0.48
- P/B
- 2.5
- P/S
- 2.8
- Yield
- 9.55%
- Per share
- $0.58
- ▼Insiders net selling -$443K over the last 3 months (0 open-market buys, 7 sales)
- 🏛Institutions accumulating (13F)
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is a Utilities company listed on NYSE. The stock is up 45% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 7 sales (SEC Form 4).
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SBS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 8, 2026 | $0.08 | $0.09 | +9.1% | $1.3B | +0.9% |
| Mar 17, 2026 | $0.45 | $0.51 | +14.6% | $1.9B | +75.4% |
| Mar 24, 2025 | $0.38 | $0.49 | +30.0% | $1.4B | -76.9% |
| Aug 8, 2024 | $0.27 | $0.32 | +21.2% | $1.2B | +25.5% |
| May 10, 2024 | $0.24 | $0.24 | +1.6% | $1.5B | +44.4% |
| Mar 22, 2024 | $0.38 | $0.35 | -7.7% | $1.3B | +22.0% |
| Nov 10, 2023 | $0.26 | $0.25 | -2.7% | $1.3B | +14.5% |
| Aug 10, 2023 | $0.27 | $0.22 | -17.9% | $1.3B | +21.9% |
| Mar 24, 2023 | $0.19 | $0.22 | +14.0% | $1.1B | +11.8% |
| Dec 31, 2022 | — | $0.18 | — | $1.1B | — |
| Aug 11, 2022 | $0.21 | $0.12 | -43.8% | $997M | +20.3% |
| May 23, 2022 | $0.22 | $0.28 | +27.3% | $1.0B | +17.9% |
SBS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 17, 2026 | Tavares de Sousa Robervalofficer: Engineering Officer | Sell | 5,900 | $5.74 |
| Jun 17, 2026 | Tavares de Sousa Samanta I.S.officer: Inst. Rel. & Sustain. Officer | Sell | 5,700 | $5.72 |
| Jun 17, 2026 | Szlak Danielofficer: Chief Financial Officer | Sell | 7,300 | $5.59 |
| Jun 17, 2026 | Szlak Danielofficer: Chief Financial Officer | Sell | 81 | $5.58 |
| Jun 16, 2026 | Szlak Danielofficer: Chief Financial Officer | Sell | 81 | $28.30 |
| May 29, 2026 | Tavares de Sousa Robervalofficer: Engineering Officer | Sell | 5,900 | $28.81 |
| May 27, 2026 | Tavares de Sousa Samanta I.S.officer: Inst. Rel. & Sustain. Officer | Sell | 5,700 | $28.61 |
Source: SBS SEC Form 4 filings, latest Jun 17, 2026. For informational purposes only — not investment advice.
See the full SBS insider & 13F page →Companhia de Saneamento Básico do Estado de São Paulo - SABESP company profile
Overview
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (NYSE:SBS) is Brazil's largest water and sewage utility company, founded in 1954 and headquartered in São Paulo. The state-owned enterprise has evolved from a regional water provider into a comprehensive sanitation services company serving over 27 million people across São Paulo state. SABESP went public in 2002 and trades on both the New York Stock Exchange and Brazilian stock exchanges, making it one of the most prominent utilities in Latin America.
Business
SABESP operates in the regulated water and sanitation industry, providing essential utility services that are fundamental to public health and urban development. The company's core business revolves around the complete water cycle management - from water treatment and distribution to sewage collection and treatment. The company's primary services include water supply services, which involve treating raw water from rivers, reservoirs, and groundwater sources, then distributing clean drinking water through an extensive network of pipes to residential, commercial, industrial, and governmental customers. SABESP operates 88,904 kilometers of water pipes and transmission lines, serving approximately 27.8 million people through 9.8 million water connections. Sanitary sewage services represent the company's second major segment, collecting wastewater from customers and treating it at sewage treatment plants before releasing it back into the environment. This service reaches about 24.6 million people through 8.4 million sewage connections via 61,122 kilometers of sewer lines. The sewage treatment process is crucial for environmental protection and public health, preventing contamination of water bodies and reducing disease transmission. Beyond these core services, SABESP has expanded into complementary areas including urban rainwater management and drainage, helping cities manage stormwater to prevent flooding. The company also provides urban cleaning and solid waste management services in select municipalities. Additionally, SABESP has ventured into energy-related activities, including planning, operation, and commercialization of energy projects, particularly focusing on renewable energy generation from biogas produced at sewage treatment plants. The company primarily serves São Paulo state, Brazil's most populous and economically important state, but also extends services to four other municipalities through special purpose companies. Revenue distribution is heavily weighted toward water and sewage services, which constitute the vast majority of the company's income, with emerging segments like energy and waste management representing smaller but growing portions of the business.
Revenue model
SABESP operates under a regulated utility business model where revenue is primarily generated through monthly service fees charged to customers for water supply and sewage treatment services. The company's pricing structure is regulated by state agencies, with tariffs set based on customer categories (residential, commercial, industrial, governmental) and consumption volumes. The company's main revenue streams come from water and sewage service fees collected from over 18 million customer connections. Residential customers typically pay based on metered consumption, while commercial and industrial users face higher rates reflecting their greater usage and the cost of treating more complex wastewater. Government entities also constitute a significant customer base, though they sometimes present collection challenges. SABESP's profitability is influenced by several key factors. Regulatory tariff adjustments represent the most significant driver, as the company must negotiate with state regulators to increase rates in line with inflation, operational costs, and required infrastructure investments. The regulatory environment can either support or constrain margin expansion depending on the political climate and public pressure regarding utility costs. Operational efficiency improvements directly impact margins, including reducing water losses in distribution networks, optimizing energy consumption at treatment plants, and improving billing and collection processes. The company has been investing in digital transformation and automation to reduce operational costs. Volume growth from expanding service coverage to underserved areas provides incremental revenue, though this requires significant upfront capital investment. External factors affecting profitability include energy costs, as water treatment and pumping require substantial electricity consumption, making the company sensitive to energy price fluctuations. Weather patterns and drought conditions can impact both water availability and demand, potentially affecting revenue and requiring costly alternative water sources. Economic conditions in São Paulo state influence customer payment behavior, with economic downturns typically leading to higher delinquency rates, particularly among residential customers. The company also generates ancillary revenue from energy projects, including biogas generation from sewage treatment and solar power installations, though these represent a small fraction of total revenue. SABESP has been exploring opportunities in solid waste management and other environmental services as potential new revenue streams.
Competitive moat
SABESP possesses a strong regulatory moat characteristic of monopolistic utilities, operating under exclusive concession agreements that grant it the sole right to provide water and sewage services across most of São Paulo state. This natural monopoly position stems from the enormous capital requirements and infrastructure complexity involved in building and maintaining water treatment plants, distribution networks, and sewage systems that would be economically inefficient to duplicate. The company's moat is reinforced by high switching costs and customer captivity. Customers cannot practically switch to alternative providers for essential water and sewage services, creating highly predictable and stable cash flows. The regulated nature of the business provides some protection against arbitrary rate cuts, though it also limits pricing flexibility during inflationary periods. Substantial infrastructure assets represent another moat element, as SABESP has built an extensive network of pipes, treatment facilities, and pumping stations over decades that would require billions of dollars and many years for competitors to replicate. The company's deep operational expertise in managing complex water systems in a challenging urban environment like São Paulo creates additional barriers to entry. However, SABESP's moat faces several potential threats. Political and regulatory risks are significant, as government ownership means the company is subject to political interference in pricing, investment decisions, and operational priorities. Privatization discussions, while potentially positive for efficiency, could alter the competitive landscape. Regulatory capture risk exists where political pressure might prevent necessary tariff increases, potentially undermining long-term financial health. Environmental and climate challenges pose growing threats, as water scarcity, changing precipitation patterns, and stricter environmental regulations could require massive capital investments that might not be fully recoverable through tariffs. The company's dependence on São Paulo's economic health also creates concentration risk, though this is mitigated by the region's economic importance and diversification. Overall, SABESP maintains a moderately strong moat that provides defensive characteristics typical of regulated utilities, though political and environmental risks create some vulnerability compared to utilities in more stable regulatory environments.
Risks & safety
SABESP demonstrates a moderate margin of safety with mixed financial health indicators that reflect both the stability of regulated utilities and emerging financial pressures. • Liquidity concerns: Current ratio of 0.89 indicates potential short-term liquidity pressure, with current liabilities exceeding current assets by approximately R$227 million • Debt management: Debt-to-equity ratio of 68% represents manageable leverage for a utility, though higher than optimal; total liabilities of R$7.3 billion against R$6.1 billion in equity • Cash position: Cash and short-term investments of R$280 million provide limited cushion relative to operational scale; positive free cash flow of R$1.2 billion in 2024 demonstrates cash generation ability • Valuation metrics: Trading at attractive multiples with P/E ratio of 6.3x and EV/EBITDA of 4.6x, suggesting potential undervaluation relative to utility peers • Profitability trends: Strong 2024 performance with 26% ROE and significant net income growth, though this includes exceptional items; normalized profitability appears more modest • Operational cash flow: Consistent positive operating cash flow of R$1.23 billion provides foundation for dividend payments and capital investments • Regulatory dependency: Revenue subject to regulatory approval creates uncertainty around future cash flows and return on invested capital • Infrastructure investment needs: Ongoing capital requirements for system expansion and maintenance could pressure free cash flow generation
Recent development
Over the past few years, SABESP has undergone significant strategic transformation focused on modernization, operational efficiency, and business diversification. The company implemented a comprehensive organizational restructuring in 2023, simplifying management structures and creating specialized departments focused on client services, engineering innovation, and digital transformation. A key strategic pivot has been expanding beyond traditional water and sewage services into adjacent business areas. The company established special purpose entities (SPEs) for photovoltaic energy generation, urban waste thermal treatment, and cold asphalt production. These initiatives reflect management's strategy to leverage existing infrastructure and expertise while diversifying revenue streams and improving environmental sustainability. SABESP has prioritized major environmental restoration projects, including the high-profile Novo Pinheiros River restoration initiative and the PCJ Cantareira project for river shoreline restoration. These projects not only fulfill environmental obligations but also enhance the company's public image and regulatory relationships. The company has been actively pursuing operational efficiency improvements through technology adoption and process optimization. This includes implementing digital solutions for customer service, automated billing systems, and smart grid technologies for better network monitoring. A Voluntary Dismissal Program (PDI) was introduced to reduce fixed labor costs while potentially allowing for more strategic hiring in technical areas. Regulatory engagement has intensified, with management working to close revenue gaps through tariff adjustments and exploring simplified service provision structures. The company has been navigating ongoing privatization discussions with the state government, positioning itself for potential ownership changes while maintaining operational excellence. Recent financial performance has been strong, with 2024 showing significant improvement in profitability metrics, though some of this reflects exceptional items. The company has maintained focus on expanding service coverage to underserved residential areas while improving client billing and collection processes to reduce default rates.
SBS company profile · for informational purposes only — not investment advice.
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