SABESP (SBS) Fundamental Analysis: Revenue, Earnings & Valuation

6.25 / 10

Outperform

Sabesp demonstrates solid fundamental health: Profit-MV and Cash-MV factors are bullish, while a high ratio of non-current to total assets presents a headwind. Key metrics include a 38.28% gross profit margin, an impressive interest-coverage ratio of 2088%, and a PB-ROE of 1.24, placing it in performance group 4 with a 12.34% one-month return historical win rate. These figures suggest robust profitability, strong cash generation, and efficient fixed-asset utilization, supporting an Outperform stance.

Analysis Checks(9/10)

Revenue-MV

Value-0.26

Score3/3

Weight15.91%

1M Return8.74%

Gross profit margin (%)

Value38.28

Score3/3

Weight8.99%

1M Return4.27%

Profit-MV

Value0.46

Score2/3

Weight10.70%

1M Return4.12%

Non-current assets / Total assets (%)

Value82.25

Score1/3

Weight1.05%

1M Return0.62%

PB-ROE

Value1.24

Score3/3

Weight29.98%

1M Return12.34%

Cash-UP

Value-0.06

Score2/3

Weight6.31%

1M Return2.64%

Fixed assets turnover ratio

Value43.58

Score3/3

Weight10.95%

1M Return4.57%

Interest coverage ratio (EBIT / Interest expense) (%)

Value2088.03

Score2/3

Weight5.13%

1M Return2.64%

Current assets / Total assets (%)

Value17.75

Score2/3

Weight3.78%

1M Return2.02%

Cash-MV

Value-0.07

Score2/3

Weight7.22%

1M Return3.24%

Is SBS fundamentally strong?

SBS scores 6.25/10 on fundamentals and holds a Discounted valuation at present. Backed by its 14.51% ROE, 20.04% net margin, 10.50 P/E ratio, 2.42 P/B ratio, and -35.07% earnings growth, these metrics solidify its Outperform investment rating.