Companhia de saneamento Basico SBS
Sabesp is the basic sanitation company of the state of São Paulo (Brazil), operating under a regulated concession model for water supply and wastewater treatment. Sabesp shows solid financial health (score 8.24) with an operating margin of 31.52% and moderate leverage (ND/EBITDA 2.25), but suffers a -33.9% drop in profit and negative cash conversion, which weighs on its quality and growth.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Sabesp is the basic sanitation company of the state of São Paulo (Brazil), operating under a regulated concession model for water supply and wastewater treatment. Sabesp shows solid financial health (score 8.24) with an operating margin of 31.52% and moderate leverage (ND/EBITDA 2.25), but suffers a -33.9% drop in profit and negative cash conversion, which weighs on its quality and growth.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.2 |
| Quality / Moat | 4.9 |
| Valuation | 6.1 |
| Growth | 4.6 |
| Dividend | 4.7 |
| Momentum | 4.2 |
| Risk & Context | 5.7 |
OVERALL SCORE: 5.9/10
Context and risks
Elevated governance risk in Brazil: state control (São Paulo government) and a history of political interference in state-owned companies may prioritize political objectives over minority shareholder returns. The country's institutional quality justifies a strong penalty.
News considered in the analysis
- Companhia De Saneamento Basico Do Estado De Sao Paulo (SBS) (Q2 2026) Earnings Call Highlights: ... — Los resultados del Q2 2026 muestran una recuperación, pero el crecimiento de beneficios es negativo, lo que sugiere que la recuperación aún no se refleja en el resultado final.
- SBS or AWR: Which Is the Better Value Stock Right Now? — Listículo comparativo sin información nueva sobre la empresa.
- Stratec SE (XTER:SBS) (H1 2026) Earnings Call Highlights: Strong Q2 Recovery and Robust Cash ... — Noticia sobre otra empresa (Stratec SE) que comparte ticker, irrelevante para Sabesp.
- Equatorial SA (EQUEY) (Q2 2026) Earnings Call Highlights: Strategic Expansion and Resilient ... — Noticia sobre un competidor/empresa relacionada, sin impacto directo en Sabesp.
Verdict: Hold; valuation is attractive (P/E 11.26) but weak cash generation and governance risk in Brazil limit upside potential.
Main risk: The main risk is governance: state control and Brazil's institutional environment may lead to political decisions that harm minority shareholders, despite solid operational fundamentals.
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