Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA) stock analysis

In our weekly check, Companhia de Saneamento Básico do Estado de São Paulo - SABESP is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3.

About Companhia de Saneamento Básico do Estado de São Paulo - SABESP

Companhia de Saneamento Básico do Estado de São Paulo - SABESP is an Utilities company (Regulated Water) based in Brazil, listed on SAO as SBSP3.SA.

What our checks show for SBSP3.SA

Red flags

• Analysts expect revenue to shrink about 7.6% a year.
• Analysts expect the net margin to shrink by 14.2 points from today's 19.7%.
• The stock has fallen as much as 63% from a peak. Would you have held through that?

Warning signs

• Net debt is 2.6x a year of EBITDA (debt/equity 1.14). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2.2 times: a weak year could make the payments hard.
• Analysts expect earnings per share to shrink about 45% a year.
• Recovering from its deepest fall took about 2.5 years.

Strengths

• The net margin rose by 7.8 points over 5 years, to 19.7%.
• The gross margin is 35.5% and has risen by 1.2 points: pricing power is holding.
• Revenue grew 22.8% a year over the last 3 years.
• Earnings per share grew 37% a year over the last 3 years.
• Net profit grew 37.1% a year over the last 3 years.
• Free cash flow is 19.8% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2026-11-05

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Questions

What grade does Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA) have?

In our weekly check, Companhia de Saneamento Básico do Estado de São Paulo - SABESP is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SBSP3.SA stock?

This week's biggest flags for Companhia de Saneamento Básico do Estado de São Paulo - SABESP: Weak revenue forecast, Margins expected to shrink, Deep past fall. In total 7 of 25 checks show a warning or a red flag.

What does Companhia de Saneamento Básico do Estado de São Paulo - SABESP do?

Companhia de Saneamento Básico do Estado de São Paulo - SABESP is an Utilities company (Regulated Water) based in Brazil, listed on SAO as SBSP3.SA.

When does Companhia de Saneamento Básico do Estado de São Paulo - SABESP report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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