Companhia de Saneamento Básico do Estado de São Paulo - SABESP
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Range $23.794562602523 – $23.794562602523
Price Chart
About the company
SABESP, or Companhia de Saneamento Básico do Estado de São Paulo, is a key utility provider specializing in water and sewage services for residential, commercial, industrial, and governmental clients. Its offerings are comprehensive, spanning water supply, sanitary sewage systems, urban rainwater management and drainage, municipal cleaning, and solid waste management. The company's operations also encompass planning, system operation, maintenance, and the commercialization of energy.
- CEO
- Carlos Augusto Leone Piani
- IPO
- 2002
- Employees
- 8,717
- HQ
- São Paulo, SP, BR
AI snapshot
Six angles, distilled from the data.
The stock remains in a downtrend regime, trading below both the 200-day and 50-day moving averages. It is still well off the 52-week high and closer to the lower end of its annual range, which keeps the longer-term setup defensive despite a recent rebound from the lows.
Street sentiment is cautious but not broken: consensus sits at Hold, while the average target implies meaningful upside from current levels. Recent rating changes have been stable, with Goldman Sachs maintaining a Buy after an earlier initiation, suggesting selective confidence rather than broad enthusiasm.
The earnings backdrop is soft after a string of misses, including the latest quarter at 0.07 versus 0.08 expected and a prior 73.8% miss. Next-year EPS estimates still point higher, so shareholders should watch whether revenue growth and margin discipline can translate into cleaner execution.
Recent insider activity leans negative, with seven reported sales and no buys. The names involved are senior officers, and the pattern suggests ongoing profit-taking or portfolio trimming rather than a one-off event, which does not help sentiment while the stock remains below key trend levels.
Profitability is solid for a regulated utility, with ROE at 21.23% and net margin at 22.03%. Growth is still healthy, with revenue up 18.3% year over year and earnings up 15.4%, while free cash flow of 8.50 billion supports the balance sheet despite 39.99 billion of debt.
SBS screens as a lower-beta regulated water name with stronger cash generation than many utilities, but the equity trades at a discount because of its weak price trend and earnings inconsistency. At 4.51x earnings, valuation remains compressed versus the sector.
Similar companies
Peers in the same neighborhood.
- Market Cap
- $15.29B
- P/E
- 2.91
- Fwd P/E
- 2.46
- PEG
- -0.06
- P/S
- 1.99
- P/B
- 1.81
- EV/EBITDA
- 7.00
- Div Yield
- 2.99%
- Gross Margin
- 35.50%
- Op Margin
- 30.59%
- Net Margin
- 19.67%
- ROE
- 18.48%
- ROIC
- 8.67%
Latest fiscal year · YoY change
- Revenue
- $37.34B+3.3%
- Gross Profit
- $13.68B-30.0%
- Op Income
- $12.04B
- Net Income
- $8.30B-13.4%
- EPS
- $2.42-13.7%
- OCF Growth
- +10.9%
- FCF Growth
- +8.5%
- 52W High
- $7.16
- 52W Low
- $4.24
- 50D MA
- $5.48
- 200D MA
- $5.58
- Beta
- 0.09
- RSI (14)
- 22
- Avg Volume
- 6.96M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
SABESP reported solid Q1 2023 revenue and EBITDA growth, but net profit fell on FX and higher financial expenses, while management highlighted ongoing restructuring, tariff adjustments, and a more aggressive focus on collections and efficiency.· May 12, 2023
- Revenue rose 13.5% year over year to R$4.5 billion, driven by a 12.8% tariff increase from May 2022 and 1.4% volume growth.
- EBITDA increased 18.2%, with EBITDA margin at 45% after construction costs; net profit fell 23.4% to R$747 million because of foreign exchange effects.
- Costs and expenses increased 10.3%, led by staff, materials, services, and higher electricity and municipal-tax-related expenses.
- The new tariff review took effect on May 10, with a R$9.56 correction and a 13.6% adjustment mentioned as helping close the regulatory gap.
- Management emphasized a flatter organization, CapEx reprioritization toward value-creating projects, and stronger billing/collection actions including supply cuts after 90 days of delinquency.
Q1 2023 revenue was R$4.5 billion, up 13.5% from R$3.9 billion in Q1 2022. EBITDA increased 18.2%, and the EBITDA margin was 45% after deducting construction costs. Net profit declined 23.4% to R$747 million, from R$976 million a year earlier, mainly due to foreign exchange variance and higher financial expenses. Costs and expenses rose 10.3%, including staff costs up 11.4%, materials up 21.7%, services up 22%, and general expenses up 12.8%. Management said the latest fee structure review is in effect as of May 10, with a R$9.56 correction and a 13.6% adjustment mentioned. For guidance, management did not give formal full-year EPS or revenue guidance, but said the tariff review and regulatory agenda should make finances “more resilient,” CapEx priorities were being reviewed rather than materially changed, and the company expects efficiency initiatives, collections actions, and possible future regulation/privatization work to shape the rest of 2023 and beyond.
Andre Salcedo framed the quarter as the start of a new operating model, centered on a flatter organization, faster decision-making, and closer focus on clients, operations, and compliance. He repeatedly stressed simplification, centralized management, and a shift toward value-creating investments, modernization, and better service delivery. His tone was upbeat and transformational, with strong emphasis on the company’s long-term potential and the privatization-related agenda, while acknowledging that some details are still being worked through.
Catia Pereira said the main revenue driver was volume, with a 1.1% increase in water revenue volume and a 1.4% overall volume increase, alongside the tariff hike. She walked through the bridge from Q1 2022 to Q1 2023, explaining that the net profit decline to R$747 million was mainly due to FX differences, including a weaker real versus the dollar and the absence of last year’s FX gains. She also highlighted higher costs and expenses of 10.3%, specifically staff up 11.4%, materials up 21.7%, services up 22%, and general expenses up 12.8%, while noting the debt mix includes yen and U.S. dollar exposure and that 50% of debt is linked to CDI. She added that the latest tariff correction should improve near-term financial resilience.
Analysts asked about the PDI/PDI-related staffing program, derivatives for FX/interest-rate protection, and the large balance of receivables older than 360 days. Management said the PDI payback is expected to be 12 to 15 months, that derivatives are being studied, and that collections will be tackled through an open day, billing actions, and supply cuts after notice; they also said it is too early to quantify recoveries. Other questions focused on the IFC process, the regulatory revenue gap, contract renegotiations with municipalities, the 2024 tariff structure review, and the potential R$1.8 billion OpEx reduction; management said these discussions are ongoing, the calendar is not yet detailed, and the R$1.8 billion target is not yet a precise company forecast. They also said the regulatory agency’s fee-structure timing is on the ARCEFB website and referenced the first semester of 2024.
The quarter showed revenue, EBITDA, and margin expansion despite a challenging cost and FX backdrop, suggesting SABESP’s core operating base is still growing. Management is also actively pushing tariff normalization, collections improvement, CapEx prioritization, and organizational simplification, which they believe can improve efficiency and value over time.
Net income was pressured by foreign exchange losses and higher financial expenses, and costs across staff, materials, services, and general expenses all moved higher. Management repeatedly said several important initiatives are still in progress, including the regulatory revenue-gap fix, collections recovery, derivatives strategy, and privatization-related discussions, so the timing and size of benefits remain uncertain.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 100.0%
- Shares Outstanding
- 3.42B
- Float Shares
- 3.42B
of shares held by institutions
247 13F filers
Buy/sell ratio 0.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Impax Asset Management Group PLC | 52.32M | ▲ 45.58M |
| Blackrock, Inc. | 29.94M | ▲ 23.85M |
| Amundi | 26.10M | ▲ 20.85M |
| Royal London Asset Management Ltd | 20.55M | ▲ 17.90M |
| Deutsche Bank AG\ | 19.19M | ▲ 15.49M |
| Wcm Investment Management, LLC | 15.92M | ▲ 13.72M |
| Wellington Management Group Llp | 12.28M | ▲ 10.22M |
| Letko, Brosseau & Associates Inc | 12.11M | ▲ 9.77M |
| Ubs Group AG | 12.05M | ▲ 10.61M |
| Mackenzie Financial Corp | 11.03M | ▲ 8.87M |
| Morgan Stanley | 9.86M | ▲ 7.98M |
| Vanguard Capital Management LLC | 9.39M | ▲ 7.51M |
Held by 58 ETFs
Biggest fund positions in SBS by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| May 25, 26 | Tavares de Sousa Roberval | sell | 5,900 |
| May 21, 26 | Tavares de Sousa Samanta I.S. | sell | 5,700 |
| Jun 15, 26 | Szlak Daniel | sell | 7,300 |
| Jun 15, 26 | Szlak Daniel | sell | 81 |
| Jun 15, 26 | Szlak Daniel | sell | 81 |
| May 25, 26 | Tavares de Sousa Roberval | sell | 5,900 |
| May 21, 26 | Tavares de Sousa Samanta I.S. | sell | 5,700 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our SBS coverage
Recent articles, reports, and earnings notes.

Sabesp (SBS): Regulated Cash Flow vs. Heavy Capex
Sabesp combines a long-dated regulated concession with strong cash generation and a large sanitation investment program. The stock looks inexpensive on earnings and cash flow, but leverage and execution risk keep the path to upside disciplined.

Sabesp’s 8% drop exposes the capex trap in its privatization story
Sabesp’s R$20 billion 2026 investment plan is growing faster than the shareholder cash-flow case can absorb. The stock’s bargain valuation cannot offset weak earnings growth, leverage risk, and a universalization bill that is still moving higher.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) d
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) drops sharply after its latest earnings event, with traders weighing a mixed quarterly record against its regulated utility moat, tariff outlook, and capital spending needs.
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AI analysis · Last refreshed August 14, 2026 · Live quote · Not investment advice