Bedrijfsoverzicht
Companhia de Saneamento Básico do Estado de São Paulo - SABESP, tickered as SBS, operates within the Utilities sector as a specialized provider in the Regulated Water industry. The entity delivers essential basic and environmental sanitation services to the population of São Paulo State, Brazil, functioning primarily on a wholesale basis to supply treated water and manage sewage. This utility giant employs a workforce of 9,204 individuals and holds a substantial market capitalization of $25.07 billion. With annual revenue reaching $38.09 billion, the company demonstrates a massive operational footprint that underscores its critical role in the regional infrastructure landscape. These valuation and revenue figures indicate that SABESP is a dominant market player whose scale is reinforced by its regulated status and extensive service coverage across the state.
Financiële gezondheid
The company reported a Total Revenue of $38.09 billion over the trailing twelve months, generating Net Income of $8.46 billion and an EBITDA of $14.53 billion. The significant gap between the $38.09 billion revenue and the $8.46 billion net income reveals a cost structure that retains substantial earnings before interest, taxes, and other non-operating expenses, yet still results in a profit margin of 22.2%. However, the Free Cash Flow stands at -$4,160,945,408, indicating that the company is currently investing heavily in capital expenditures or working capital, which limits immediate financial flexibility for shareholder distributions. Despite the negative free cash flow, the Gross Margin is 37.0%, the Operating Margin is 34.6%, and the Profit Margin is 22.2%, all of which reflect high pricing power and efficient cost management typical of regulated utilities. The balance sheet shows a Cash position of $12.37 billion against Total Debt of $40.14 billion, resulting in a Debt to Equity ratio of 94.67%, which characterizes a highly leveraged balance sheet common in capital-intensive utility sectors. Liquidity is maintained with a Current Ratio of 1.12, suggesting the company possesses just enough current assets to cover its short-term obligations. Finally, the Return on Equity is 21.3% and the Return on Assets is 8.5%, metrics that reveal management effectiveness in generating returns despite the high debt load and negative cash flow period.
Waarderingsbeoordeling
Valuation multiples show a Trailing Twelve Months P/E Ratio of 14.10 compared to a Forward P/E of 11.55. The lower forward multiple implies that the market expects earnings to grow significantly faster than current levels, driven by the reported earnings growth rate. The Price to Book ratio is 2.93, indicating that the market values the company at nearly three times its book value, reflecting a premium for its regulated franchise value and stable cash flows. Alternative valuation metrics include a Price to Sales ratio of 0.66 and an EV/EBITDA of 3.56, which suggest the company is trading at a relatively low multiple relative to its sales and earnings power when enterprise value is considered. Regarding price volatility, the stock has a 52-week High of $34.23 and a 52-week Low of $18.09. Based on the available data points, the current price sits within this historical range, specifically trading below the 52-week high and above the 52-week low, reflecting recent market fluctuations. The Beta is 0.20, which indicates that the stock price is significantly less volatile than the broader market, offering stability for long-term holders.
Growth & Income
Revenue growth year-over-year is recorded at 43.9%, while earnings growth year-over-year is 87.2%. This disparity indicates that earnings are growing at more than double the rate of revenue, which implies improving operational leverage or significant cost efficiencies realized during the period. The company pays a Dividend Yield of 0.5% with a Payout Ratio of 50.2%, a structure that must be carefully monitored given the negative free cash flow, though the payout is funded from cash on hand. The high payout ratio in the context of negative free cash flow suggests that dividends are not fully covered by current operating cash generation but rather by the company's cash reserves. In summary, SABESP presents a profile characterized by exceptional earnings acceleration, high regulatory barriers to entry, and a dividend policy that relies on substantial cash holdings rather than current cash flow generation.