Companhia de Saneamento Basico is a regulated water utility that ranks in the top tier of its peer group on valuation, profitability, and growth simultaneously, trades at a forward price-to-earnings of 10.1x with a PEG of 0.65, but a free cash flow quality flag and thin asymmetry limit near-term positioning.
Thesis pillars
- Peer Leading Valuation Quality Growth↓Deteriorating
- Attractive Forward Valuation↑Improving
- Free Cash Flow Quality Concern→Stable
- +1 more pillar — see the Why tab for full reasoning
Companhia de saneamento Basico (SBS) Stock Analysis
Oversold Bounce setup
Utilities · Utilities - Regulated Water
Hold if already holding. Not a fresh buy at $4.60, but acceptable to hold if already in. Reasons: Leverage penalty (D/E 1.2): -0.5; Negative momentum.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services in the São Paulo State, Brazil. It supplies treated water and sewage services on a wholesale basis. Companhia de Saneamento Básico do Estado de São Paulo - SABESP... Read more
Hold if already holding. Not a fresh buy at $4.60, but acceptable to hold if already in. Reasons: Leverage penalty (D/E 1.2): -0.5; Negative momentum. Chart setup: Oversold RSI 17, near Bollinger lower, volume surge. Maintain position. Not compelling to add more. Score 6.6/10, moderate confidence.
Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.
Recent developments
updated 2026-08-15Recent Developments — Companhia de saneamento Basico
Latest news
- NEWS Is SBS Overvalued? DCF Says Worth $4 - GuruFocus — GuruFocus neutral
- NEWS Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (SBS) Expected to Post Quarterly Earnings on Wednesday - — MarketBeat neutral
- NEWS Inside SBS Restructuring Plan: Tight Timeline, Full Creditor Control, New Incentives. - Insideradio.com — Insideradio.com negative
- NEWS Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp Stock Scheduled to Reverse Split on Monday, May 4th (NYSE — MarketBeat neutral
- NEWS SBS Stock 12‑Month Price Target Cut to $6.87, Implies 35% Upside - TradingView — TradingView positive
Generated 2026-08-15T11:27:13Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $4.60, but acceptable to hold if already in. Reasons: Leverage penalty (D/E 1.2): -0.5; Negative momentum. Chart setup: Oversold RSI 17, near Bollinger lower, volume surge. Maintain position. Not compelling to add more. Target $5.95 (+29.3%), stop $4.35 (−5.7%), A.R:R 3.4:1. Score 6.6/10, moderate confidence.
Take-profit target: $5.95 (+29.3% upside). Target $5.95 (+29.3%), stop $4.35 (−5.7%), A.R:R 3.4:1. Stop-loss: $4.35.
Leverage penalty (D/E 1.2): -0.5; Negative momentum.
Companhia de saneamento Basico trades at a P/E of 10.2 (forward 8.4). TrendMatrix value score: 9.5/10. Verdict: Hold.
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. It supplies treated water and sewage services on a wholesale basis. Companhia de Saneamento Básico do Estado de São Paulo - SABESP was founded in 1954 and is headquartered in São Paulo, Brazil.