COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP

SBS

Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services in the São Paulo State, Brazil. It supplies treated water and sewage services on a wholesale basis. Companhia de Saneamento Básico do Estado de São Paulo - SABESP was founded in 1954 and is headquartered in São Paulo, Brazil.

About the company

Country: BrazilPrice: $4.92Market Cap: $17.4B

Investment snapshot

65%positive consensus

Scored 1d ago

Positive

BUY / PASS

Neutral / negative

2 / 4

NEUTRAL / FAIL

Median fair value

$23.08

+369.1% vs price

Models with upside

11 / 17

Positive margin of safety

Strongest signal

SBS undervalued: all 11 models price fair value above $4.92 (median $23.08)

Key risk

7 of 8 flag SBS's efficiency — Graham, Buffett, Piotroski +4 more

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

Metric	Graham Defensive Value	Buffett Quality Compounder	Lynch GARP	Greenblatt Magic Formula	Piotroski F-Score	Dreman Contrarian Value	Munger Quality Focus	Pabrai Dhandho Framework	Akre Three-Legged Stool	Marks Risk-Aware Value	Ackman Activist Value	Templeton Global Bargain Hunter	Sleep Scale Economies Shared	Asness Systematic Factors	Neff Low-P/E Total Return	Schloss Asset-Value Discipline	O'Shaughnessy Systematic Factor Composite
Verdict	PASS	FAIL	BUY	BUY · Rank #31 (Top 1%)	NEUTRAL	BUY	PASS	NEUTRAL	FAIL	BUY	BUY	BUY	PASS	FAIL	PASS	BUY	FAIL
Score
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Intrinsic Value (annual)					N/A								N/A	N/A	N/A	N/A	N/A
Margin of Safety	+76.7%	+90.2%	+83.7%	+76.2%	N/A	+76.6%	+79.5%	+85.3%	+78.7%	+68.6%	+92.1%	+56.8%	N/A	N/A	N/A	N/A	N/A
Financial Basis	Annual history · FY 2024 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 · Market data at 2026-11-01 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2024 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2024 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 · Qualitative assessment Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 · Qualitative assessment Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 · Market data at 2026-11-01 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 · Price history 2025-01-01–2026-11-01 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 · Qualitative assessment Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 · Price history 2025-01-01–2026-11-01 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 Latest source filing: 2025-04-30 Score computed: 2026-11-14	Annual history · FY 2024 · Price history 2025-01-01–2026-11-01 Latest source filing: 2025-04-30 Score computed: 2026-11-14

Where It Passes

Valuation models100% pass✓ 11▾
SBS undervalued: all 11 models price fair value above $4.92 (median $23.08)
Graham fair value$21.13
✓Graham+76.7% margin vs $4.92
Buffett fair value$50.20
✓Buffett+90.2% margin vs $4.92
Lynch fair value$30.25
✓Lynch+83.7% margin vs $4.92
Greenblatt fair value$20.66
✓Greenblatt+76.2% margin vs $4.92
Dreman fair value$20.99
✓Dreman+76.6% margin vs $4.92
Munger fair value$23.95
✓Munger+79.5% margin vs $4.92
Pabrai fair value$33.51
✓Pabrai+85.3% margin vs $4.92
Akre fair value$23.08
✓Akre+78.7% margin vs $4.92
Marks fair value$15.68
✓Marks+68.6% margin vs $4.92
Ackman fair value$61.96
✓Ackman+92.1% margin vs $4.92
Templeton fair value$11.39
✓Templeton+56.8% margin vs $4.92
Cash Flow80% pass✓ 10✗ 2▾
8 of 10 pass — Piotroski and Oshaughnessy object
Free Cash Flow Proxy$2.0B
✓BuffettPositive and growing
FCF Positive and Growing$1.2B
✓LynchPositive and growing
Operating Cash Flow$1.2B
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=9.15%, ROA=11.83%
✗PiotroskiCFO/Assets > ROA
Price / (CFO / Shares)2.8x
✓Dreman< 8x
P/E or FCF YieldP/E=2.2x, FCF Yield=6.8%
✓PabraiP/E < 15 or FCF Yield > 10%
FCF Positive10/10 years FCF positive
✓MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap35.2%
✓Ackman>= 4%
Price / FCF per Share2.8x
✓Ackman<= 25
Positive Operating Cash Flow frequency10/10 years positive
✓SleepPositive OCF in >= 70% of available years
Operating Cash Flow - Capital Expenditures$1.2B
✓Neff> $0 (app proxy for a strong fundamental case)
(Operating cash flow - capex) / market capitalization+6.81%; #1200/4519 (top 26.6%)
✗OshaughnessyTop 10% of eligible cross-section
Growth75% pass✓ 10✗ 3▾
6 of 8 pass — Ackman and Sleep object
EPS Growth (3-yr avg, 10-yr window)83.8%
✓Graham>= 33% growth
Basic earnings-growth PEG (dividends excluded)0.16
✓Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR13.3%
✓Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthInv: -90.1% vs Rev: 11.0%
✓LynchInventory growth < Revenue growth
EPS Growth Direction$0.20 (2015) -> $2.27 (2024)
✓DremanPositive over recent years
EPS CAGR31.2% CAGR over 9 years
✓Dreman> 5% annualized
Positive Net Income Frequency10/10 years positive
✓MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth19.3%
✓Ackman>= 5%
Positive EPS Growth Frequency2/3 years with positive EPS growth
✗AckmanPositive EPS growth in >= 3 of last 5 years
5-Year EPS CAGR13.1% CAGR over 5 years
✓Templeton> 0% (5-year EPS CAGR)
Revenue growth vs. gross and operating margin trend
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR5.5%
✗SleepCAGR > 7%
3-5 Year Diluted EPS CAGR13.1% over 5 years
✓Neff7%-20% annualized
Verdicts73% pass✓ 11✗ 4▾
Split decision: 6 BUY · 4 PASS · 4 FAIL · 2 NEUTRAL
Overall verdict
✓GrahamPASS (5/9)✗BuffettFAIL (1/9)✓LynchBUY (5/7)✓GreenblattRank #31•PiotroskiNEUTRAL (F-Score 7)✓DremanBUY (9/11)✓MungerPASS (2/4)•PabraiNEUTRAL (2/3)✗AkreFAIL (1/6)✓MarksBUY (5/5)✓AckmanBUY (7/9)✓TempletonBUY (6/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #826/2370 (Top 34.9%))✓NeffPASS (6/6)✓SchlossBUY (5/7)✗OshaughnessyFAIL (Rank #756/963 (Top 78.5%))
Valuation69% pass✓ 21✗ 7▾
9 of 13 pass — Templeton, Asness, Schloss +1 more object
Net income / market capitalization+8.94%; #813/6340 (top 12.8%)
✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Price / 3-yr avg EPS3.5x
✓Graham<= 15x
Price-to-Book Ratio0.6x
✓Graham<= 1.5x
P/E x P/B2.00
✓Graham<= 22.5
Basic earnings-growth PEG (dividends excluded)0.16
✓Lynch< 1.0 (ideally < 0.5)
EBIT / Enterprise Value12.3%
✓Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=12.3%, ROC=710.5%
✓GreenblattBoth EY > 10% and ROC > 25%
Price / EPS2.2x
✓Dreman< 12x✓Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
Price / (CFO / Shares)2.8x
✓Dreman< 8x
Price / Book Value per Share0.6x
✓Dreman< 1.2x✓Templeton< 1.5x✓SchlossP/B <= 0.80x (app cutoff)
Valuation ReasonablenessP/E=2.2x, OE Yield=58.5%
✓MungerP/E < 25 or Owner Earnings Yield > 5%
P/E or FCF YieldP/E=2.2x, FCF Yield=6.8%
✓PabraiP/E < 15 or FCF Yield > 10%
P/B or P/E vs. Historical AverageP/E=2.2x, P/B=0.6x
✓MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value76.6% (IV=$20.99 vs Price=$4.92)
✓Marks>= 20% below intrinsic value
Price / FCF per Share2.8x
✓Ackman<= 25
Price vs. Trailing Low153% of trailing low ($3.22)
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
Positive book equity / market capitalization+0.3445; #3491/6449 (top 54.1%)
✗AsnessTop 30% of eligible cross-section
Price / Diluted EPS2.2x
✓NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E8.09
✓Neff> 0.7 (Neff's published traditional edge)
Price / Tangible Book Value per ShareN/A (non-positive TBVPS)
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change+10.9%
✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Revenue / market capitalization+0.3372; #3156/5247 (top 60.1%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization+6.81%; #1200/4519 (top 26.6%)
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date-27.88%; #4320/6202 (top 69.7%)
✗OshaughnessyTop 10% of eligible cross-section

Where It Falls Short

Efficiency13% pass✓ 2✗ 9▾
7 of 8 flag SBS's efficiency — Graham, Buffett, Piotroski +4 more
Current Ratio0.89
✗Graham>= 2.0
ROIC (3-5 yr avg)
✗Buffett> 10%
ROIC - WACC
✗BuffettPositive (WACC = 10%)
EBIT / (NWC + Net Fixed Assets)710.5%
✓Greenblatt> 25%
Current Ratio Change YoY0.93 -> 0.89
✗PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.42x -> 0.45x
✓PiotroskiImproved YoY
Current Assets / Current Liabilities0.89
✗Dreman> 1.5
Return on Invested Capital
✗Munger> 15%
ROIC (high and growing)FY2022: ROIC=unavailable; FY2023: ROIC=unavailable; FY2024: ROIC=unavailable
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC
✗AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)
✗SleepROIC > 12% in a majority of years
Debt & Leverage33% pass✓ 6✗ 9▾
8 of 12 flag SBS's debt & leverage — Graham, Buffett, Lynch +5 more
LT Debt vs Net Current AssetsLT Debt $3.6B vs NCA $-220.7M
✗GrahamLT Debt <= Net Current Assets
Debt/Equity & Interest CoverageD/E: 0.68, IC: 6.1x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity0.68
✗Lynch< 0.33
Cash - Long-term Debt$-3.6B
✗LynchPositive preferred
LT Debt / Total Assets Change27.53% -> 27.33%
✓PiotroskiDecreased YoY
Current Assets / Current Liabilities0.89
✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders' Equity0.68
✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x
Debt Levels0.68
✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=6.1x, D/EBITDA=1.3x
✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity0.68
✓Ackman<= 1.0
Negative debt-to-equity (higher means less debt)-0.6840; #2810/4210 (top 66.7%)
✗AsnessTop 30% of eligible cross-section
Profitability44% pass✓ 21✗ 14▾
9 of 16 flag SBS's profitability — Graham, Buffett, Piotroski +6 more
Net income / market capitalization+8.94%; #813/6340 (top 12.8%)
✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Positive EPS (10 years)9/11 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)83.8%
✓Graham>= 33% growth
Net Income Positive (10+ years)10/11 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)12.5%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)
✗BuffettStable or rising over 10 years
Free Cash Flow Proxy$2.0B
✓BuffettPositive and growing
Earnings Variance (10-yr CoV)0.55
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)0.16
✓Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR13.3%
✓Lynch15-30% (Fast Grower); > 0% to pass
ROE25.9%
✓Lynch> 15%
EBIT / Enterprise Value12.3%
✓Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=12.3%, ROC=710.5%
✓GreenblattBoth EY > 10% and ROC > 25%
Net Income / Total Assets11.83%
✓PiotroskiROA > 0
ROA Change YoY5.73% -> 11.83% (delta: +6.10%)
✓PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=9.15%, ROA=11.83%
✗PiotroskiCFO/Assets > ROA
Gross Margin Change YoY37.2% -> 54.1%
✓PiotroskiImproved YoY
Pre-Tax Income / Revenue37.7%
✓Dreman>= 8%
Net Income / Shareholders' Equity25.9%
✓Dreman> 12%
Margin of SafetyP/E=2.2x, P/B=0.6x
✓PabraiP/B < 1.5 or P/E < 15
Return on Equity16.4% (3-yr avg)
✗AkreROE > 20% (3-year avg)
Discount to Intrinsic Value76.6% (IV=$20.99 vs Price=$4.92)
✓Marks>= 20% below intrinsic value
Positive Net Income Frequency10/10 years positive
✓MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue
✗Ackman>= 15%
Net Income / Shareholders Equity25.9%
✓Ackman>= 15%
5-Year EPS CAGR13.1% CAGR over 5 years
✓Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend
✗TempletonNon-negative operating-margin trend over 3 years
Revenue growth vs. gross and operating margin trend
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
Gross profit / total assets+24.14%; #1784/3702 (top 48.2%)
✗AsnessTop 30% of eligible cross-section
Net income / positive book equity+25.94%; #560/5226 (top 10.7%)
✓AsnessTop 30% of eligible cross-section
Negative 5-year standard deviation of ROA-0.0327; #2013/5884 (top 34.2%)
✗AsnessTop 30% of eligible cross-section
3-5 Year Diluted EPS CAGR13.1% over 5 years
✓Neff7%-20% annualized
Positive Diluted-EPS Years9/9 years positive
✓Schloss>= 70% positive over 5-10 observed years (app rule)

Business & financials

Financial snapshot: annual FY 2024. Current investor scores may use newer quarterly data.

Company Profile

Industry: Utilities

SIC Sector: Electric, Gas & Sanitary Services

Size: Large Cap($17.4B)

Revenue: $5.9B+11.0% YoY

Net Income: $1.6B+113.4% YoY

Financial Snapshot

Operating Margin--

Return on Equity25.9%

Debt / Equity0.68

Current Ratio0.89

EPS (Diluted)$2.27+113.3% 1y

Shares Retired0.0% / 0.0% 2y

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Shareholder Return

Fiscal 2024

Retired 0.0% of shares last year, 0.0% over two.

Buybacks: —
Dividends: $150.4M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY23

23.0% = 23.0% + 0.0%

FY24

113.3% = 113.4% + −0.1%

Earnings Fewer shares More shares

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

Metric	FY 2024 Sources 20-F · 2025-04-30	FY 2023 Sources 20-F · 2024-05-03	FY 2022 Sources 20-F · 2023-04-26	FY 2021 Sources 20-F · 2022-04-28	FY 2020 Sources 20-F · 2021-04-28
Market Cap	$17.4Bcurrent	$10.3Best.	$6.9Best.	$4.3Best.	$4.5Best.
Revenue	$5.9B↑11%	$5.3B↑26%	$4.2B↑19%	$3.5B↑2%	$3.4B
Operating Income	--	--	--	--	--
Net Income	$1.6B↑113%	$726.5M↑23%	$590.6M↑43%	$414.0M↑121%	$187.5M
EPS (Diluted)	$2.27↑113%	$1.06↑23%	$0.86	--	$0.27
Gross Margin	54.1%↑45%	37.2%↑7%	34.9%↑2%	34.3%↓8%	37.2%
Operating Margin	—	—	—	—	—
ROE	25.9%↑120%	11.8%↑3%	11.4%↑23%	9.2%↑117%	4.3%
Total Debt	$4.1B↑2%	$4.0B↑12%	$3.6B↑13%	$3.2B↓4%	$3.3B
Shareholders' Equity	$6.0B↓3%	$6.2B↑19%	$5.2B↑16%	$4.5B↑2%	$4.4B
Current Ratio	0.89↓4%	0.93↓15%	1.09↓14%	1.28↑17%	1.09
Debt / Equity	0.68↑5%	0.65↓6%	0.69↓2%	0.71↓6%	0.76
Operating Cash Flow	$1.2B↑20%	$1.0B↑33%	$750.8M↑7%	$702.6M↓27%	$959.0M
Free Cash Flow	$1.2B↑22%	$970.5M↑32%	$736.8M↑6%	$693.6M↓27%	$950.9M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Utilities

SBS vs Peers — Financial Grading

Revenue$5.9BBottom 25%

Net Income$1.6BMedian

ROE25.9%Top 25%

D/E0.68Top 25%

Op. Margin—

Curr. Ratio0.89Top 25%

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Greenblatt	Piotroski	Dreman
SOUTHERN COSO	$109.0B	$93.59	$29.6B	$4.3B	12.1%	2.00	24.7%	0.65	2/9	2/9	2/7	0/3	F-Score 5	3/11
AMERICAN ELECTRIC POWER CO INCAEP	$70.3B	$129.18	$21.9B	$3.7B	11.9%	1.52	24.3%	0.45	4/9	3/9	2/7	0/3	F-Score 5	3/11
Cheniere Energy, Inc.LNG	$63.0B	$308.75	$20.0B	$5.3B	67.3%	2.88	45.6%	0.94	2/9	4/9	4/7	0/3	F-Score 8	3/11
DOMINION ENERGY, INCD	$59.5B	$67.66	$16.5B	$3.0B	10.3%	1.60	26.7%	0.77	2/9	0/9	1/7	0/3	F-Score 6	3/11
ATMOS ENERGY CORPATO	$29.8B	$176.30	$4.7B	$1.2B	8.8%	0.66	33.2%	0.77	3/9	3/9	2/7	0/3	F-Score 6	3/11
EVERSOURCE ENERGYES	$27.0B	$71.73	$13.5B	$1.7B	10.5%	1.75	22.1%	0.65	2/9	2/9	2/7	0/3	F-Score 6	4/11
PPL CorpPPL	$26.9B	$35.67	$9.0B	$1.2B	7.9%	1.27	23.5%	0.86	2/9	0/9	0/7	0/3	F-Score 5	2/11
ALLIANT ENERGY CORPLNT	$19.0B	$73.43	$4.4B	$810.0M	11.0%	1.64	23.5%	0.80	2/9	2/9	2/7	0/3	F-Score 6	2/11