SBS
SABESP·NYSE
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7.06 / 10
Outperform
Sabesp's fundamental analysis is positive, scoring 7.1/10. Key strengths include a healthy profit-to-market value (Profit-MV) of 0.4743, a strong cash-to-market value (Cash-MV) of -0.0663, and an impressive interest-coverage ratio of 2088.0337, all of which place the company in high-performing quartiles. These metrics suggest strong financial health, ample liquidity, and the ability to manage debt effectively, supporting an Outperform rating. However, a slight YoY revenue decline of -5.2672% is a minor concern that tempers the otherwise favorable outlook.
Analysis Checks(10/10)
Revenue-MV
Value-0.26
Score3/3
Weight19.68%
1M Return13.40%
Value-0.26
Score3/3
Weight19.68%
1M Return13.40%
Profit-MV
Value0.47
Score2/3
Weight6.20%
1M Return3.36%
Value0.47
Score2/3
Weight6.20%
1M Return3.36%
PB-ROE
Value1.19
Score3/3
Weight42.92%
1M Return18.60%
Value1.19
Score3/3
Weight42.92%
1M Return18.60%
Interest coverage ratio (EBIT / Interest expense) (%)
Value2088.03
Score2/3
Weight3.08%
1M Return2.44%
Value2088.03
Score2/3
Weight3.08%
1M Return2.44%
Current assets / Total assets (%)
Value17.75
Score2/3
Weight2.24%
1M Return1.63%
Value17.75
Score2/3
Weight2.24%
1M Return1.63%
Gross profit margin (%)
Value38.28
Score3/3
Weight8.08%
1M Return5.11%
Value38.28
Score3/3
Weight8.08%
1M Return5.11%
Net income-Revenue
Value0.73
Score2/3
Weight0.33%
1M Return0.26%
Value0.73
Score2/3
Weight0.33%
1M Return0.26%
Cash-UP
Value-0.05
Score2/3
Weight5.50%
1M Return3.34%
Value-0.05
Score2/3
Weight5.50%
1M Return3.34%
Operating revenue (YoY growth rate %)
Value-5.27
Score3/3
Weight9.30%
1M Return6.53%
Value-5.27
Score3/3
Weight9.30%
1M Return6.53%
Cash-MV
Value-0.07
Score2/3
Weight2.67%
1M Return2.08%
Value-0.07
Score2/3
Weight2.67%
1M Return2.08%
Revenue-MV
Value-0.26
Score3/3
Weight19.68%
1M Return13.40%
Value-0.26
Score3/3
Weight19.68%
1M Return13.40%
Gross profit margin (%)
Value38.28
Score3/3
Weight8.08%
1M Return5.11%
Value38.28
Score3/3
Weight8.08%
1M Return5.11%
Profit-MV
Value0.47
Score2/3
Weight6.20%
1M Return3.36%
Value0.47
Score2/3
Weight6.20%
1M Return3.36%
Net income-Revenue
Value0.73
Score2/3
Weight0.33%
1M Return0.26%
Value0.73
Score2/3
Weight0.33%
1M Return0.26%
PB-ROE
Value1.19
Score3/3
Weight42.92%
1M Return18.60%
Value1.19
Score3/3
Weight42.92%
1M Return18.60%
Cash-UP
Value-0.05
Score2/3
Weight5.50%
1M Return3.34%
Value-0.05
Score2/3
Weight5.50%
1M Return3.34%
Interest coverage ratio (EBIT / Interest expense) (%)
Value2088.03
Score2/3
Weight3.08%
1M Return2.44%
Value2088.03
Score2/3
Weight3.08%
1M Return2.44%
Operating revenue (YoY growth rate %)
Value-5.27
Score3/3
Weight9.30%
1M Return6.53%
Value-5.27
Score3/3
Weight9.30%
1M Return6.53%
Current assets / Total assets (%)
Value17.75
Score2/3
Weight2.24%
1M Return1.63%
Value17.75
Score2/3
Weight2.24%
1M Return1.63%
Cash-MV
Value-0.07
Score2/3
Weight2.67%
1M Return2.08%
Value-0.07
Score2/3
Weight2.67%
1M Return2.08%
Is SBS fundamentally strong?
- SBS scores 7.06/10 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.
