SBS

Utilities

Companhia de Saneamento Básico do Estado de São Paulo - SABESP · Regulated Water · $19B

UQS Score — Balanced Preset
60.1
Good

Companhia de Saneamento Básico do Estado de São Paulo - SABESP scores 60.1/100 using the Balanced preset.

UQS vs Utilities Sector
SBS
60.1
Sector avg
43.5
Quality
Neutral
Moat
Good
Growth
Neutral
Risk
Neutral
Valuation
Attractive

What is Companhia de Saneamento Básico do Estado de São Paulo - SABESP?

SABESP is Brazil's largest water and sewage utility, serving tens of millions of residents and businesses across São Paulo state. It operates one of the most extensive water infrastructure networks in Latin America.

SABESP generates revenue by providing water supply and sanitary sewage services to residential, commercial, industrial, and governmental customers. It also manages urban rainwater drainage, urban cleaning, and solid waste services. The company plans, operates, and maintains an enormous network of water pipes and sewer lines, and commercializes energy as a related activity.

The company was founded in 1954 and is headquartered in São Paulo, Brazil.

  • Water supply and distribution services
  • Sanitary sewage collection and treatment
  • Urban rainwater management and drainage
  • Solid waste and urban cleaning services

Is SBS a Good Stock to Buy?

UQS Score rates SBS as Good overall, reflecting a balanced but nuanced picture for investors evaluating this large-cap utility.

SABESP's strongest attributes lie in its Quality and Moat pillars. As a regulated monopoly serving one of the world's largest metropolitan areas, it benefits from durable competitive positioning that few peers can replicate. Its valuation is rated Attractive relative to sector peers, which may interest value-oriented investors.

The Growth and Risk pillars are both rated Weak, reflecting the challenges of operating in an emerging-market regulatory environment and limited near-term expansion catalysts.

Sign up to see the full pillar breakdown and detailed financial metrics behind SABESP's UQS Score. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does SBS pay dividends?

Yes — Companhia de Saneamento Básico do Estado de São Paulo - SABESP pays a dividend.

SABESP pays a regular dividend, consistent with the income-oriented nature of regulated utilities. Dividend distributions reflect the company's relatively stable cash flows from its essential water and sewage services. Investors seeking income exposure to emerging-market infrastructure may find the dividend cadence appealing, though currency and regulatory factors can influence payouts.

When does SBS report earnings?

SABESP reports earnings on a quarterly cadence, as is standard for publicly listed equities on the NYSE.

Results have generally reflected the dynamics of a regulated utility — relatively predictable revenue tied to water tariffs, offset by infrastructure investment costs and currency-related volatility. Growth has been measured rather than rapid, consistent with the Weak Growth pillar rating.

For the most recent quarter's results, visit SABESP's official investor relations page.

SBS Price History

+363.7% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Companhia de Saneamento Básico do Estado de São Paulo - SABESP?

$
Today it would be worth
$44,231
That's a +342% total return, or +34.6% annualized.

Based on Companhia de Saneamento Básico do Estado de São Paulo - SABESP's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

SBS Long-term Outlook

SABESP's fundamental outlook is shaped by its Weak Growth and Weak Risk pillar ratings. While the essential nature of water services provides revenue stability, meaningful growth acceleration faces headwinds from regulatory constraints and macroeconomic conditions in Brazil. The Attractive Valuation rating suggests the market may already be pricing in these challenges, leaving room for patient investors if operational execution improves.

Growth drivers

  • Expansion of sewage coverage across underserved municipalities in São Paulo state
  • Tariff adjustments tied to regulatory review cycles
  • Operational efficiency gains from infrastructure modernization

Key risks

  • Regulatory and political risk in Brazil's utility sector
  • Currency depreciation reducing the USD value of earnings for foreign investors
  • High capital expenditure requirements limiting free cash flow generation

SBS vs Peers

SABESP competes in the global water utility space alongside several well-known North American peers, though its emerging-market profile sets it apart.

AWKSBS scores higher
American Water Works Company, Inc.

The largest publicly traded US water utility, AWK operates in a more stable regulatory environment with a track record of consistent dividend growth.

WTRGSBS scores higher
Essential Utilities, Inc.

WTRG serves water and natural gas customers across multiple US states, offering diversified utility exposure within a developed-market framework.

AWRSBS scores higher
American States Water Company

One of the longest-running dividend payers among US utilities, AWR focuses on water and electric services in California with a conservative operating model.

Frequently Asked Questions

What does SABESP do?

SABESP provides water supply, sanitary sewage, urban drainage, and solid waste management services across São Paulo state in Brazil. It serves residential, commercial, industrial, and governmental customers through one of the largest water infrastructure networks in Latin America.

Does SBS pay dividends?

Yes, SABESP pays a regular dividend. As a regulated utility with relatively stable cash flows from essential water and sewage services, the company distributes a portion of earnings to shareholders. Currency fluctuations and regulatory decisions can influence the dividend amount received by foreign investors.

When does SBS report earnings?

SABESP reports on a quarterly cadence, standard for NYSE-listed companies. For exact dates and the most recent results, check SABESP's investor relations page directly, as our data source does not cover upcoming earnings dates.

Is SBS a good stock to buy?

UQS Score rates SBS as Good overall. Its Quality and Moat pillars are strong, and its Valuation is rated Attractive. However, the Weak Growth and Weak Risk ratings highlight real challenges tied to Brazil's regulatory and macroeconomic environment. The full pillar breakdown is available to Pro members.

Is SBS overvalued?

The UQS Valuation pillar for SBS is rated Attractive, suggesting the stock is not expensive relative to sector peers. This may reflect the market pricing in the risks associated with emerging-market utility operations. See the complete valuation analysis by signing up for a Pro account.

How does SBS compare to its competitors?

SABESP differs from North American peers like AWK, WTRG, and AWR primarily through its emerging-market exposure. It serves a much larger population base but operates under greater regulatory and currency risk. Its Attractive Valuation rating may partly reflect this risk premium relative to US-listed water utilities.

What is SBS's market cap bracket?

SABESP is classified as a large-cap company. Despite operating in an emerging market, its scale — serving tens of millions of people across São Paulo state — places it among the larger publicly traded water utilities globally.

Who founded SABESP?

SABESP was established in 1954 as a state-owned enterprise by the government of São Paulo. Founding context and corporate history are widely documented on the company's official website and investor relations materials.

Is SBS a long-term quality investment?

From a long-term quality perspective, SABESP's Strong Quality and Good Moat ratings indicate durable fundamentals. However, the Weak Risk rating is a meaningful consideration for long-horizon investors. UQS Score is designed to help investors assess these trade-offs — the full analysis is available to Pro members.

What is the main competitive advantage of SABESP?

SABESP's primary competitive advantage is its position as a regulated monopoly serving São Paulo state — one of the most populous regions in the world. This natural monopoly status, reflected in its Good Moat rating, makes meaningful competition from new entrants practically impossible under current regulatory structures.

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Analyze SBS in Detail →

Pro Analysis

SBS — Score History

505560657075May 25Jun 12Jun 30Jul 18Aug 5Aug 22
Score changes· 30/39 most recent
DateUQSQualityMoatGrowthRiskValueChange
Aug 21, 202660.150.062.048.053.396.7-7.5
Aug 7, 202667.688.662.048.038.696.7+4.4
Jul 29, 202663.281.162.034.238.698.6+0.2
Jul 25, 202663.080.762.034.138.697.9+0.1
Jul 24, 202662.980.462.034.138.697.7+0.1
Jul 23, 202662.880.262.034.138.697.6-0.1
Jul 22, 202662.980.662.034.138.697.6+0.1
Jul 21, 202662.880.462.034.138.697.40.0
Jul 18, 202662.880.262.034.138.697.40.0
Jul 17, 202662.880.262.034.238.697.7+0.1

SBS — Pillar Breakdown

Quality

50.0/100 (25%)

Companhia de Saneamento Básico do Estado de São Paulo - SABESP has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

48.0/100 (20%)

Companhia de Saneamento Básico do Estado de São Paulo - SABESP shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Risk

53.3/100 (15%)

Companhia de Saneamento Básico do Estado de São Paulo - SABESP has some risk factors including moderate leverage or solvency concerns.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityModerate

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

96.7/100 (15%)

Companhia de Saneamento Básico do Estado de São Paulo - SABESP appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

62/100 (25%)

Companhia de Saneamento Básico do Estado de São Paulo - SABESP has meaningful competitive advantages that should protect its market position. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SBS.

Score Composition

Quality
50.0×25%12.5
Growth
48.0×20%9.6
Risk
53.3×15%8.0
Valuation
96.7×15%14.5
Moat
62.0×25%15.5
Total
60.1Good

Financial Data

More Stock Analysis

How is the SBS UQS Score Calculated?

The UQS (Unified Quality Score) for Companhia de Saneamento Básico do Estado de São Paulo - SABESP is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Companhia de Saneamento Básico do Estado de São Paulo - SABESP's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Companhia de Saneamento Básico do Estado de São Paulo - SABESP is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.