Présentation de l'entreprise
Companhia de Saneamento Básico do Estado de São Paulo - SABESP operates as a utility entity dedicated to providing basic and environmental sanitation services within São Paulo State, Brazil. The company functions primarily by supplying treated water and sewage services on a wholesale basis to downstream clients. SABESP is classified within the Utilities sector, specifically the Regulated Water industry, which implies that its operations are subject to regulatory oversight regarding pricing and service standards rather than pure market competition. As of December 31, 2024, the company reported a market capitalization of $23.31 billion and generated annual revenue of $38.09 billion while employing 9,204 staff members. These substantial financial figures and workforce size indicate that SABESP holds a significant position in the Brazilian infrastructure landscape, reflecting the massive scale required to manage water distribution networks for millions of residents. The revenue of $38.09 billion relative to the market cap of $23.31 billion suggests a capital-intensive business model where asset value is often distinct from immediate market valuation multiples.
Santé financière
SABESP reported a trailing twelve-month revenue of $38.09 billion, accompanied by a net income of $8.46 billion and an EBITDA of $14.53 billion. The substantial gap between the $38.09 billion revenue and the $8.46 billion net income reveals a high cost structure comprising operating expenses, taxes, and interest obligations that absorb more than 77% of top-line earnings. The company generated free cash flow of $-4,160,945,408, indicating a significant cash outflow that impacts its immediate financial flexibility and ability to fund operations without external capital injection. Despite this negative free cash flow, the balance sheet holds $12.37 billion in cash against total debt of $40.14 billion, resulting in a debt-to-equity ratio of 94.67. This leverage profile suggests a highly leveraged balance sheet typical of regulated utilities that require continuous heavy capital expenditure for infrastructure maintenance and expansion. Liquidity analysis shows a current ratio of 1.12, which indicates that SABESP possesses just enough current assets to cover its short-term liabilities, presenting a tight but manageable liquidity position. Return on equity stands at 21.3% while return on assets is 8.5%, metrics that reveal management's effectiveness in generating shareholder value relative to the equity invested and the total asset base employed.
Évaluation de la valorisation
The stock trades with a trailing P/E ratio of 13.21 and a forward P/E of 10.47. The difference between these two multiples implies that the market expects earnings growth that would allow the forward valuation to compress relative to the historical average, or conversely, that future earnings are anticipated to be higher than the trailing twelve-month figures. The price-to-book ratio is stated at 2.73, indicating that the market values the company at a significant premium over its net tangible book value, reflecting the strategic importance of its regulated monopoly status and infrastructure assets. Alternative valuation metrics include a price-to-sales ratio of 0.61 and an EV/EBITDA of 3.44, suggesting that the company is valued at a low multiple of its sales and enterprise value relative to earnings before interest, taxes, depreciation, and amortization. Historical price data shows a 52-week high of $31.84 and a 52-week low of $16.52, placing the current trading context within a wide range of volatility. The beta value is recorded at 0.20, which signifies that the stock's price volatility is substantially lower than the broader market, making it a defensive holding that moves less than one-fifth as much as the market average during periods of fluctuation.
Growth & Income
Revenue growth for the trailing twelve months stands at 43.9%, while earnings growth is reported at 87.2%. The fact that earnings are growing at a rate significantly faster than revenue implies improved operational efficiency, margin expansion, or favorable regulatory adjustments impacting the bottom line more rapidly than top-line volume changes. As a utility company, SABESP pays dividends with a yield of 0.5% and maintains a payout ratio of 50.2%. This payout ratio suggests that the company distributes half of its earnings to shareholders while retaining the remainder, which must be evaluated against the context of negative free cash flow to assess long-term sustainability. The overall growth and income profile is characterized by rapid earnings expansion that outpaces revenue growth, supported by a moderate dividend yield and a capital structure that relies heavily on retained earnings and debt financing rather than dividend distribution.