# Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp American (SBS) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Utilities / Water Utilities. Price $5.15, market value $18.1 billion.

## Valuation
- **P/E (trailing): 11.0×** (5-yr avg 0.7×, 3-yr avg 0.9×). Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp American trades at 11.0× trailing earnings, well above its own five-year average of 0.7×: investors are paying up relative to the company's past. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 10.7×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.3×**. Each dollar of revenue is priced at 2.3×.
- **Price / book: 2.1×**. The shares trade at 2.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.7×**. Enterprise value is 6.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -8.8%** (5-yr avg -33.1%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 9.1%**. The inverse of the P/E: 9.1% of the price is earned each year.

## Profitability
- **Gross margin: 42.5%**. Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp American keeps 42.5% of revenue after the direct cost of what it sells.
- **Operating margin: 31.2%**. 31.2% of revenue is left after running the business, an exceptional level.
- **Net margin: 22.2%**. 22.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 20.0%**. 20.0% on shareholders' equity is solid.
- **Return on invested capital: 13.6%**. Return on all capital, debt included, is 13.6%.
- **Return on assets: 7.7%**. Each dollar of assets produces 7.7% of profit.

## Growth
- **Revenue growth (1 yr): 5.4%** (3-yr 20.0%/yr, 5-yr 16.4%/yr). Revenue grew 5.4% over the last year, against 16.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -82.4%** (3-yr -18.5%/yr, 5-yr 11.7%/yr). Earnings per share fell 82.4%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.95**. Debt is 0.95 times equity, moderate leverage.
- **Net debt / EBITDA: 1.5×**. It would take 1.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 1.12** (quick 1.12). Current assets cover the next year's liabilities 1.12 times.
- **Altman Z-score: 1.53**. A Z-score of 1.53 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 2/9**. 2 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 0.65%** ($0.03 per share, trailing). Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp American yields 0.65%, a modest yield more typical of a growth-oriented payer.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 87.3%/yr** (1-yr 1965.9%). The dividend has compounded at 87.3% a year over five years, doubling roughly every 1 years at that pace.

## Price and momentum
- **Total return (1 yr): 15.5%** (YTD 8.6%, 3-mo -3.7%). The shares are up 15.5% over twelve months including dividends.
- **From 52-week high: -28.1%** (16.4% above the low). Trading 28% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 56**. An RSI of 56 is neutral.
- **Beta (1 yr): 1.04** (volatility 34%). Beta of 1.04 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SBS · Page: https://foliofundamentals.com/stocks/sbs

Not investment advice.