Returns on Capital Paint A Bright Future For Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BVMF:SBSP3)
Mar 04
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Brazilian (BOVESPA) Utilities Sector Analysis
UpdatedMar 13, 2025
DataAggregated Company Financials
Companies35
- 7D1.2%
- 3M4.3%
- 1Y-2.1%
- YTD8.5%
In the last week, the Utilities industry is up 2.1%, with Energisa up 12%. Meanwhile, Auren Energia actually underperformed within the industry, shrinking 5.7% in the last week. Despite this gain, the industry's performance has been flat over the past year. In the next few years, earnings are forecast to decline by 2.9% annually.
Sector Valuation and Performance
Has the Brazilian Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 14 Mar 2025 | R$570.1b | R$494.4b | R$71.2b | 8.2x | 8x | 1.2x |
| Sun, 09 Feb 2025 | R$547.2b | R$474.8b | R$69.1b | 8.4x | 7.9x | 1.2x |
| Tue, 07 Jan 2025 | R$515.6b | R$474.8b | R$69.1b | 8.2x | 7.5x | 1.1x |
| Thu, 05 Dec 2024 | R$537.2b | R$474.8b | R$69.1b | 8.6x | 7.8x | 1.1x |
| Sat, 02 Nov 2024 | R$527.7b | R$447.9b | R$54.1b | 8.3x | 9.7x | 1.2x |
| Mon, 30 Sep 2024 | R$601.2b | R$470.6b | R$57.0b | 8.5x | 10.5x | 1.3x |
| Wed, 28 Aug 2024 | R$610.7b | R$474.3b | R$57.6b | 8.2x | 10.6x | 1.3x |
| Fri, 26 Jul 2024 | R$584.6b | R$469.4b | R$56.5b | 8.3x | 10.4x | 1.2x |
| Sun, 23 Jun 2024 | R$543.4b | R$463.1b | R$55.9b | 7.9x | 9.7x | 1.2x |
| Tue, 21 May 2024 | R$585.7b | R$468.5b | R$56.6b | 8.5x | 10.4x | 1.3x |
| Thu, 18 Apr 2024 | R$585.2b | R$465.6b | R$54.7b | 9x | 10.7x | 1.3x |
| Sat, 16 Mar 2024 | R$581.3b | R$444.6b | R$47.0b | 9.2x | 12.4x | 1.3x |
| Mon, 12 Feb 2024 | R$571.8b | R$434.9b | R$43.9b | 8.9x | 13x | 1.3x |
| Wed, 10 Jan 2024 | R$632.8b | R$468.3b | R$47.0b | 12.6x | 13.5x | 1.4x |
| Fri, 08 Dec 2023 | R$612.7b | R$468.3b | R$47.0b | 12.1x | 13x | 1.3x |
| Sun, 05 Nov 2023 | R$572.0b | R$459.5b | R$46.0b | 11.5x | 12.4x | 1.2x |
| Tue, 03 Oct 2023 | R$574.0b | R$458.7b | R$45.4b | 10.9x | 12.6x | 1.3x |
| Thu, 31 Aug 2023 | R$579.7b | R$458.7b | R$45.4b | 11.1x | 12.8x | 1.3x |
| Sat, 29 Jul 2023 | R$588.1b | R$451.9b | R$40.3b | 11.6x | 14.6x | 1.3x |
| Mon, 26 Jun 2023 | R$587.8b | R$451.2b | R$42.2b | 10.3x | 13.9x | 1.3x |
| Wed, 24 May 2023 | R$549.1b | R$449.7b | R$42.4b | 10.1x | 12.9x | 1.2x |
| Fri, 21 Apr 2023 | R$552.0b | R$454.6b | R$45.9b | 8.9x | 12x | 1.2x |
| Sun, 19 Mar 2023 | R$530.6b | R$457.9b | R$51.8b | 9.3x | 10.2x | 1.2x |
| Tue, 14 Feb 2023 | R$550.2b | R$461.9b | R$51.5b | 8.5x | 10.7x | 1.2x |
| Thu, 12 Jan 2023 | R$576.1b | R$461.9b | R$51.5b | 8.9x | 11.2x | 1.2x |
| Sat, 10 Dec 2022 | R$570.1b | R$461.9b | R$51.5b | 8x | 11.1x | 1.2x |
| Mon, 07 Nov 2022 | R$657.6b | R$469.6b | R$54.7b | 9.2x | 12x | 1.4x |
| Wed, 05 Oct 2022 | R$618.8b | R$474.3b | R$55.4b | 8.9x | 11.2x | 1.3x |
| Fri, 02 Sep 2022 | R$622.7b | R$474.5b | R$54.7b | 9.2x | 11.4x | 1.3x |
| Sun, 31 Jul 2022 | R$594.7b | R$463.6b | R$61.0b | 7.7x | 9.7x | 1.3x |
| Tue, 28 Jun 2022 | R$543.1b | R$463.2b | R$61.0b | 8.1x | 8.9x | 1.2x |
| Thu, 26 May 2022 | R$542.6b | R$460.7b | R$61.1b | 8.4x | 8.9x | 1.2x |
| Sat, 23 Apr 2022 | R$555.3b | R$451.1b | R$60.6b | 8.3x | 9.2x | 1.2x |
| Mon, 21 Mar 2022 | R$512.3b | R$439.3b | R$63.3b | 7.2x | 8.1x | 1.2x |
Price to Earnings Ratio
8.1x
Current Industry PE
- Investors are pessimistic on the Brazilian Utilities industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 8.0x which is lower than its 3-year average PE of 10.9x.
- The industry is trading close to its 3-year average PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have grown 3.9% per year over the last three years.
- Revenues for these companies have grown 4.1% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Brazilian Utilities sector?
| BR Market | 0.089% | |
| Utilities | 1.22% | |
| Electric Utilities | 1.86% | |
| Water Utilities | 1.05% | |
| Gas Utilities | 0% | 0 |
| Renewable Energy | -1.43% | |
Industry PE
- Investors are most optimistic about the Renewable Energy industry even though it's trading below its 3-year average PE ratio of 15.7x.
- Analysts are expecting annual earnings growth of 1.8%, which is lower than the prior year's growth of 56.3% per year.
- Investors are most pessimistic about the Water Utilities industry, which is trading below its 3-year average of 10.9x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 1.8% over the next 5 years.
- In contrast, the Water Utilities industry is expected to see its earnings decline by 14% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| ENGI3 Energisa | R$11.95 | 10.2% +R$2.5b | -25.9% | PE11x | |
| SBSP3 Companhia de Saneamento Básico do Estado de São Paulo - SABESP | R$97.79 | 3.9% +R$2.5b | 27.8% | PE7.2x | |
| EQTL3 Equatorial | R$31.81 | 5.3% +R$2.0b | -3.5% | PE17.9x | |
| NEOE3 Neoenergia | R$20.40 | 4.3% +R$1.0b | -2.5% | PE6.8x | |
| ENEV3 Eneva | R$12.39 | 3.8% +R$869.1m | -2.4% | PE29.3x |
