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Companhia de Saneamento Básico do Estado de São Paulo - SABESP

NYSE:SBS
Snowflake Description

Good value with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SBS
NYSE
R$32B
Market Cap
  1. Home
  2. US
  3. Utilities
Company description

Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services, and supplies treated water and sewage services on a wholesale basis to residential, commercial, industrial, and governmental customers in the state of São Paulo. The last earnings update was 45 days ago. More info.


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SBS Share Price and Events
7 Day Returns
3.5%
NYSE:SBS
-0.1%
US Water Utilities
2.2%
US Market
1 Year Returns
103.6%
NYSE:SBS
29.1%
US Water Utilities
3.8%
US Market
SBS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) 3.5% 22.2% 17.3% 103.6% 48.3% 13.4%
US Water Utilities -0.1% 3.2% 8.2% 29.1% 42.4% 110.4%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • SBS outperformed the Water Utilities industry which returned 29.1% over the past year.
  • SBS outperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
SBS
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Companhia de Saneamento Básico do Estado de São Paulo - SABESP's competitors could be found in our database.

Value

 Is Companhia de Saneamento Básico do Estado de São Paulo - SABESP undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Companhia de Saneamento Básico do Estado de São Paulo - SABESP to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Companhia de Saneamento Básico do Estado de São Paulo - SABESP.

NYSE:SBS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SBS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Water Utilities Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.34 (1 + (1- 34%) (38.12%))
0.615
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:SBS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Companhia de Saneamento Básico do Estado de São Paulo - SABESP is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:SBS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (BRL, Millions) Source Present Value
Discounted (@ 7.5%)
2019 1,083.50 Analyst x2 1,007.93
2020 1,254.50 Analyst x2 1,085.60
2021 1,600.00 Analyst x1 1,288.01
2022 1,640.79 Est @ 2.55% 1,228.71
2023 1,683.51 Est @ 2.6% 1,172.77
2024 1,727.98 Est @ 2.64% 1,119.79
2025 1,774.08 Est @ 2.67% 1,069.47
2026 1,821.74 Est @ 2.69% 1,021.61
2027 1,870.92 Est @ 2.7% 976.00
2028 1,921.60 Est @ 2.71% 932.52
Present value of next 10 years cash flows R$10,902.41
NYSE:SBS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= R$1,921.60 × (1 + 2.73%) ÷ (7.5% – 2.73%)
R$41,402.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= R$41,402.25 ÷ (1 + 7.5%)10
R$20,091.86
NYSE:SBS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= R$10,902.41 + R$20,091.86
R$30,994.27
Equity Value per Share
(BRL)
= Total value / Shares Outstanding
= R$30,994.27 / 683.51
R$45.35
NYSE:SBS Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NYSE:SBS represents 0.26267x of BOVESPA:SBSP3
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.26267x
Value per Share
(Listing Adjusted, USD)
= Value per Share (BRL) x Listing Adjustment Factor
= R$ 45.35 x 0.26267
$11.91
Value per share (USD) From above. $11.91
Current discount Discount to share price of $12.28
= -1 x ($12.28 - $11.91) / $11.91
-3.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Companhia de Saneamento Básico do Estado de São Paulo - SABESP is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Companhia de Saneamento Básico do Estado de São Paulo - SABESP's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Companhia de Saneamento Básico do Estado de São Paulo - SABESP's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SBS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in BRL R$4.25
BOVESPA:SBSP3 Share Price ** BOVESPA (2019-06-21) in BRL R$46.75
United States of America Water Utilities Industry PE Ratio Median Figure of 14 Publicly-Listed Water Utilities Companies 35.43x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Companhia de Saneamento Básico do Estado de São Paulo - SABESP.

NYSE:SBS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BOVESPA:SBSP3 Share Price ÷ EPS (both in BRL)

= 46.75 ÷ 4.25

11.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP is good value based on earnings compared to the US Water Utilities industry average.
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Companhia de Saneamento Básico do Estado de São Paulo - SABESP's expected growth come at a high price?
Raw Data
NYSE:SBS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
14%per year
United States of America Water Utilities Industry PEG Ratio Median Figure of 8 Publicly-Listed Water Utilities Companies 3.58x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:SBS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.01x ÷ 14%

0.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Companhia de Saneamento Básico do Estado de São Paulo - SABESP's assets?
Raw Data
NYSE:SBS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in BRL R$29.55
BOVESPA:SBSP3 Share Price * BOVESPA (2019-06-21) in BRL R$46.75
United States of America Water Utilities Industry PB Ratio Median Figure of 17 Publicly-Listed Water Utilities Companies 2.85x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NYSE:SBS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BOVESPA:SBSP3 Share Price ÷ Book Value per Share (both in BRL)

= 46.75 ÷ 29.55

1.58x

* Primary Listing of Companhia de Saneamento Básico do Estado de São Paulo - SABESP.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP is good value based on assets compared to the US Water Utilities industry average.
X
Value checks
We assess Companhia de Saneamento Básico do Estado de São Paulo - SABESP's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Water Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Water Utilities industry average (and greater than 0)? (1 check)
  5. Companhia de Saneamento Básico do Estado de São Paulo - SABESP has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Companhia de Saneamento Básico do Estado de São Paulo - SABESP expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Companhia de Saneamento Básico do Estado de São Paulo - SABESP expected to grow at an attractive rate?
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's earnings growth is expected to exceed the United States of America market average.
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SBS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SBS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 14%
NYSE:SBS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 7.3%
United States of America Water Utilities Industry Earnings Growth Rate Market Cap Weighted Average 10.6%
United States of America Water Utilities Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SBS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in BRL Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SBS Future Estimates Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 20,711 4,826 1
2021-12-31 18,642 3,771 6
2020-12-31 17,653 5,879 3,433 5
2019-12-31 15,943 4,947 3,039 6
NYSE:SBS Past Financials Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income *
2019-03-31 16,264 3,771 2,902
2018-12-31 16,085 3,843 2,835
2018-09-30 15,201 4,051 1,940
2018-06-30 14,927 3,769 2,275
2018-03-31 14,749 3,200 2,425
2017-12-31 14,608 3,302 2,519
2017-09-30 14,476 3,314 2,854
2017-06-30 14,685 3,116 2,527
2017-03-31 14,629 3,035 2,993
2016-12-31 14,098 3,004 2,947
2016-09-30 13,435 2,817 2,461
2016-06-30 12,887 3,081 1,307

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SBS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Companhia de Saneamento Básico do Estado de São Paulo - SABESP Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SBS Future Estimates Data
Date (Data in BRL Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 7.06 7.27 6.85 2.00
2021-12-31 5.38 5.75 4.96 4.00
2020-12-31 4.98 6.40 4.48 6.00
2019-12-31 4.45 4.65 4.24 3.00
NYSE:SBS Past Financials Data
Date (Data in BRL Millions) EPS *
2019-03-31 4.25
2018-12-31 4.15
2018-09-30 2.84
2018-06-30 3.33
2018-03-31 3.55
2017-12-31 3.69
2017-09-30 4.17
2017-06-30 3.70
2017-03-31 4.38
2016-12-31 4.31
2016-09-30 3.60
2016-06-30 1.91

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
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Future performance checks
We assess Companhia de Saneamento Básico do Estado de São Paulo - SABESP's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Companhia de Saneamento Básico do Estado de São Paulo - SABESP performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Companhia de Saneamento Básico do Estado de São Paulo - SABESP's growth in the last year to its industry (Water Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP has delivered over 20% year on year earnings growth in the past 5 years.
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's 1-year earnings growth is less than its 5-year average (19.6% vs 20.6%)
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's earnings growth has exceeded the US Water Utilities industry average in the past year (19.6% vs 0.1%).
Earnings and Revenue History
Companhia de Saneamento Básico do Estado de São Paulo - SABESP's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Companhia de Saneamento Básico do Estado de São Paulo - SABESP Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SBS Past Revenue, Cash Flow and Net Income Data
Date (Data in BRL Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 16,263.93 2,901.93 1,715.75
2018-12-31 16,085.09 2,835.07 1,798.33
2018-09-30 15,201.01 1,940.10 1,826.56
2018-06-30 14,926.68 2,275.46 1,771.08
2018-03-31 14,749.08 2,425.38 1,799.36
2017-12-31 14,608.23 2,519.31 1,775.24
2017-09-30 14,475.87 2,853.59 1,643.25
2017-06-30 14,685.24 2,526.95 1,735.92
2017-03-31 14,629.19 2,992.67 1,581.55
2016-12-31 14,098.21 2,947.10 1,574.85
2016-09-30 13,435.32 2,461.14 1,576.38
2016-06-30 12,886.51 1,307.11 1,428.55
2016-03-31 12,270.77 846.89 1,331.13
2015-12-31 11,711.57 536.28 473.21
2015-09-30 11,332.09 106.82 556.82
2015-06-30 10,958.63 778.47 594.34
2015-03-31 10,889.93 743.58 834.95
2014-12-31 11,213.22 902.98 1,585.47
2014-09-30 11,471.50 1,462.23 1,386.20
2014-06-30 11,420.33 1,845.70 1,418.93
2014-03-31 11,462.45 1,904.94 1,287.74
2013-12-31 11,315.57 1,923.56 1,291.94
2013-09-30 11,190.76 2,098.25 1,377.72
2013-06-30 11,129.07 1,985.05 1,412.09
2013-03-31 10,811.08 1,916.19 1,316.15
2012-12-31 10,754.44 1,911.90 1,354.94
2012-09-30 10,488.94 1,639.50 1,347.53
2012-06-30 10,371.06 1,345.70 1,259.51

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP used its assets more efficiently than the US Water Utilities industry average last year based on Return on Assets.
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Companhia de Saneamento Básico do Estado de São Paulo - SABESP's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Water Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Companhia de Saneamento Básico do Estado de São Paulo - SABESP's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Companhia de Saneamento Básico do Estado de São Paulo - SABESP's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Companhia de Saneamento Básico do Estado de São Paulo - SABESP's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Companhia de Saneamento Básico do Estado de São Paulo - SABESP Company Filings, last reported 2 months ago.

NYSE:SBS Past Debt and Equity Data
Date (Data in BRL Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 20,198.98 12,180.76 2,205.08
2018-12-31 19,551.69 13,152.80 3,029.19
2018-09-30 18,786.95 13,726.97 3,619.25
2018-06-30 18,221.79 13,186.25 2,832.74
2018-03-31 18,093.44 12,482.48 2,963.86
2017-12-31 17,513.01 12,100.97 2,283.05
2017-09-30 17,263.19 11,887.77 2,101.00
2017-06-30 16,362.66 11,624.81 1,367.61
2017-03-31 16,093.57 11,741.47 1,983.82
2016-12-31 15,419.21 11,964.14 1,886.22
2016-09-30 15,524.29 11,988.96 1,415.47
2016-06-30 15,131.47 11,786.78 1,374.40
2016-03-31 14,345.40 12,193.18 1,539.15
2015-12-31 13,716.61 13,121.60 1,740.71
2015-09-30 13,357.75 12,633.56 980.55
2015-06-30 13,937.89 11,091.44 889.96
2015-03-31 13,622.58 11,847.03 1,737.97
2014-12-31 13,304.40 10,785.77 1,722.99
2014-09-30 13,759.45 10,292.07 1,859.69
2014-06-30 13,667.95 9,818.72 1,823.71
2014-03-31 13,408.39 9,373.95 1,982.47
2013-12-31 12,930.80 9,450.07 1,782.00
2013-09-30 12,509.40 9,085.18 1,828.77
2013-06-30 12,034.43 9,026.48 1,669.09
2013-03-31 11,715.58 9,069.32 1,921.18
2012-12-31 11,715.58 9,069.32 1,921.18
2012-09-30 11,404.24 8,586.13 1,777.71
2012-06-30 11,042.48 8,569.74 1,752.49
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's level of debt (60.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (69.9% vs 60.3% today).
  • Debt is well covered by operating cash flow (31%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 34.7x coverage).
X
Financial health checks
We assess Companhia de Saneamento Básico do Estado de São Paulo - SABESP's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Companhia de Saneamento Básico do Estado de São Paulo - SABESP has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Companhia de Saneamento Básico do Estado de São Paulo - SABESP's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.48%
Current annual income from Companhia de Saneamento Básico do Estado de São Paulo - SABESP dividends. Estimated to be 3.19% next year.
If you bought $2,000 of Companhia de Saneamento Básico do Estado de São Paulo - SABESP shares you are expected to receive $50 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SBS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Water Utilities Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SBS Future Dividends Estimate Data
Date (Data in R$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 3.43 1.00
2021-12-31 1.80 4.00
2020-12-31 1.32 6.00
2019-12-31 1.13 6.00
NYSE:SBS Past Annualized Dividends Data
Date (Data in R$) Dividend per share (annual) Avg. Yield (%)
2019-03-29 1.159 2.655
2018-03-28 1.030 3.508
2017-03-28 1.205 3.678
2016-03-28 0.219 0.752
2015-03-27 0.369 2.042
2014-03-27 0.786 4.105
2013-03-22 0.782 3.310
2012-08-10 0.847 2.897
2012-02-09 0.847 3.520
2011-03-30 0.667 4.216
2011-03-29 0.667 4.413
2010-11-12 0.000 0.000
2010-03-26 0.577 4.894
2009-11-13 0.527 4.931

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Companhia de Saneamento Básico do Estado de São Paulo - SABESP's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Companhia de Saneamento Básico do Estado de São Paulo - SABESP's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Companhia de Saneamento Básico do Estado de São Paulo - SABESP afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Companhia de Saneamento Básico do Estado de São Paulo - SABESP has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Companhia de Saneamento Básico do Estado de São Paulo - SABESP's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Benedito Pinto Braga
AGE 70
TENURE AS CEO 0.5 years
CEO Bio

Mr. Benedito Pinto Ferreira Braga, Junior has been the State Secretary of Sanitation and Water Resources since January 2015. Mr. Braga has been Chief Executive Officer and Member of Board of Executive Officers of Companhia de Saneamento Básico do Estado de São Paulo - SABESP since December 3, 2018 and also serves its Director. He served as the President of the Intergovernmental Council of UNESCO International Hydrological Program from 2009 to 2010, President of the International Water Resources Association (IWRA) from 1998 to 2000. Mr. Braga served as the Chairman of Companhia de Saneamento Basico do Estado de Sao Paulo since January 29, 2015 until May 2018. He served as a member of the board of the directors of the Brazilian National Water Agency (ANA) from 1999 to 2009. He holds a degree in Civil Engineering from the São Carlos School of Engineering at the University of São Paulo (Universidade de São Paulo - USP), with a Master’s degree in Hydrology from Stanford University and in Hydraulics from the Polytechnic School at USP and also a Ph.D in Hydrological Resources from Stanford University.

CEO Compensation
  • Insufficient data for Benedito Pinto to compare compensation growth.
  • Insufficient data for Benedito Pinto to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Companhia de Saneamento Básico do Estado de São Paulo - SABESP management team in years:

5.4
Average Tenure
61.5
Average Age
  • The average tenure for the Companhia de Saneamento Básico do Estado de São Paulo - SABESP management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Benedito Pinto Braga

TITLE
CEO, Member of Board of Executive Officers & Director
AGE
70
TENURE
0.5 yrs

Rui de Britto Álvares Affonso

TITLE
CFO, Investor Relations Officer & Member of Board of Executive Officers
AGE
61
TENURE
15.9 yrs

Paulo Yoshimoto

TITLE
Metropolitan Region Officer & Member of Board of Executive Officers
AGE
66

Edison Airoldi

TITLE
Technology
AGE
61

Adriano Stringhini

TITLE
Corporate Management Officer & Member of Board of Executive Officers
AGE
42

Ricardo Borsari

TITLE
Regional Systems Officer & Member of Board of Executive Officers
AGE
62

Marcelo Miyagui

TITLE
Head of Accounting

Mario Sampaio

TITLE
Head of Capital Market & Investor Relations

Silvio Valdrighi

TITLE
Managing Director of Risk Management and Quality
AGE
66
TENURE
4.4 yrs

João Tonello

TITLE
Head of the Integrated Planning Department
AGE
41
TENURE
6.4 yrs
Board of Directors Tenure

Average tenure and age of the Companhia de Saneamento Básico do Estado de São Paulo - SABESP board of directors in years:

2.2
Average Tenure
63.5
Average Age
  • The average tenure for the Companhia de Saneamento Básico do Estado de São Paulo - SABESP board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mário Pinto

TITLE
Chairman
AGE
62
TENURE
1.2 yrs

Benedito Pinto Braga

TITLE
CEO, Member of Board of Executive Officers & Director
AGE
70

Ernesto Gelbcke

TITLE
Independent Director
AGE
74
TENURE
1.2 yrs

Reinaldo Guerreiro

TITLE
Independent Director
AGE
65
TENURE
12.4 yrs

Francisco Luna

TITLE
Independent Director
AGE
72
TENURE
6.2 yrs

Luís Eduardo de Assis

TITLE
Independent Director
AGE
61
TENURE
5.2 yrs

Francisco Luiz Gomide

TITLE
Independent Director
AGE
72
TENURE
2.2 yrs

Lucas Prado

TITLE
Independent Director
AGE
37
TENURE
1.8 yrs

Mônica Ferreira Amaral Porto

TITLE
Director
AGE
61
TENURE
0.3 yrs

Humberto Puccinelli

TITLE
Member of Fiscal Committee
AGE
60
TENURE
8.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Companhia de Saneamento Básico do Estado de São Paulo - SABESP's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Companhia de Saneamento Básico do Estado de São Paulo - SABESP has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Companhia de Saneamento Básico do Estado de São Paulo - SABESP (NYSE:SBS) Undervalued?

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (NYSE:SBS), a water utilities company based in Brazil, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $11.78 at one point, and dropping to the lows of $8.58. … Let’s take a look at Companhia de Saneamento Básico do Estado de São Paulo - SABESP’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … What’s more interesting is that, Companhia de Saneamento Básico do Estado de São Paulo - SABESP’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value.

Simply Wall St -

Company Info

Description

Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services, and supplies treated water and sewage services on a wholesale basis to residential, commercial, industrial, and governmental customers in the state of São Paulo. It provides water supply, sanitary sewage, urban rainwater management and drainage, urban cleaning, and solid waste management services, as well as related activities, including the planning, operation, maintenance, and commercialization of energy. As of December 31, 2018, the company provided water services through 9.1 million water connections to approximately 25.1 million people; and sewage services through 7.5 million sewage connections to approximately 21.7 million people, as well as operated 75,519 kilometers of water pipes and water transmission lines, and 51,788 kilometers of sewer lines. It also offers water and/or sewage services to other municipalities through special purpose companies. The company was founded in 1954 and is headquartered in São Paulo, Brazil.

Details
Name: Companhia de Saneamento Básico do Estado de São Paulo - SABESP
SBS
Exchange: NYSE
Founded: 1954
R$8,363,849,333
683,509,869
Website: http://www.sabesp.com.br
Address: Companhia de Saneamento Básico do Estado de São Paulo - SABESP
Rua Costa Carvalho, 300,
São Paulo,
São Paulo, 05429-900,
Brazil
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BOVESPA SBSP3 Registered Common Shares Bolsa de Valores de Sao Paulo BR BRL 18. Jun 1997
NYSE SBS SPONS ADR EACH REPR 1 COM NPV New York Stock Exchange US USD 10. May 2002
DB SAJA SPONS ADR EACH REPR 1 COM NPV Deutsche Boerse AG DE EUR 10. May 2002
BMV SBS N SPONS ADR EACH REPR 1 COM NPV Bolsa Mexicana de Valores MX MXN 10. May 2002
Number of employees
Current staff
Staff numbers
15,405
Companhia de Saneamento Básico do Estado de São Paulo - SABESP employees.
Industry
Water Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 23:36
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/16
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.