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Companhia de saneamento Basico (SBS) Stock Analysis

HoldVALUE-TRAP 1/5Moderate Confidence

Utilities · Utilities - Regulated Water

Hold if already holding. Not a fresh buy at $5.75, but acceptable to hold if already in. Reasons: Thin upside margin: 3.0%; Leverage penalty (D/E 1.2): -0.5.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services in the São Paulo State, Brazil. The company supplies treated water and sewage services on a wholesale basis. As of December 31, 2024, it provided water services... Read more

$5.75+3.0% A.UpsideScore 6.5/10#1 of 6 Utilities - Regulated Water
QualityF-score7 / 9FCF yield-50.97%
IncomeYield0.59%(5y avg 1.80%)Payout58.04%sustainable
Stop $5.48Target $5.90(analyst − 13%)A.R:R 0.5:1
Analyst target$6.78+18.0%5 analysts
$5.90our TP
$5.75price
$6.78mean
$7

Hold if already holding. Not a fresh buy at $5.75, but acceptable to hold if already in. Reasons: Thin upside margin: 3.0%; Leverage penalty (D/E 1.2): -0.5. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Maintain position. Not compelling to add more. Score 6.5/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 78d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.

Recent Developments — Companhia de saneamento Basico

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Sector modifier (Utilities): +1.0
Attractive valuation
Outperforming peers
Risks
Thin upside margin: 3.0%
Leverage penalty (D/E 1.2): -0.5
Negative momentum

Key Metrics

P/E (TTM)11.4
P/E (Fwd)10.3
Mkt Cap$19.9B
EV/EBITDA3.5
Profit Mgn22.0%
ROE21.2%
Rev Growth18.3%
Beta0.19
Dividend0.59%
Rating analysts21

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C0.05bullish
IV45%normal

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.0
Obv
1.0
Macd
1.8
Ma Position
4.0
Rsi
8.6
Oversold in uptrend (RSI 21)Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.1<4.5A.R:R 0.5 < 1.5@spotInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 78d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
21 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $5.65Resistance $7.12

Price Targets

$5
$6
A.Upside+2.6%
A.R:R0.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 3.1/10 — below 4.5 minimum
! Reward/Risk 0.5:1 at current price — below 1.5:1 minimum

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-08-06 (78d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SBS stock a buy right now?

Hold if already holding. Not a fresh buy at $5.75, but acceptable to hold if already in. Reasons: Thin upside margin: 3.0%; Leverage penalty (D/E 1.2): -0.5. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Maintain position. Not compelling to add more. Target $5.90 (+2.6%), stop $5.48 (−4.9%), A.R:R 0.5:1. Score 6.5/10, moderate confidence.

What is the SBS stock price target?

Take-profit target: $5.90 (+3.0% upside). Target $5.90 (+2.6%), stop $5.48 (−4.9%), A.R:R 0.5:1. Stop-loss: $5.48.

What are the risks of investing in SBS?

Thin upside margin: 3.0%; Leverage penalty (D/E 1.2): -0.5; Negative momentum.

Is SBS overvalued or undervalued?

Companhia de saneamento Basico trades at a P/E of 11.4 (forward 10.3). TrendMatrix value score: 8.4/10. Verdict: Hold.

What do analysts say about SBS?

21 analysts cover SBS with a consensus score of 4.2/5. Average price target: $7.

What does Companhia de saneamento Basico do?Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services in...

Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services in the São Paulo State, Brazil. The company supplies treated water and sewage services on a wholesale basis. As of December 31, 2024, it provided water services through 9.5 million water connections; and sewage services through 8.2 million sewage connections in the 375 municipalities of the São Paulo State. Companhia de Saneamento Básico do Estado de São Paulo - SABESP was founded in 1954 and is headquartered in São Paulo, Brazil.

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