Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp American Depositary Shares (Each repstg 250 Common Shares) (SBS)
Fast GrowerFairStock Score: 81/100 — HIGH CONVICTION
Key Financials
| Current Price | $5.72 |
| Market Cap | $25.1B |
| P/E Ratio | 11.44 |
| ROE | 21.23% |
| Dividend Yield | 0.62% |
| Sector | Utilities |
Strengths
- High return on equity of 21.3% demonstrating efficient capital deployment
- Revenue growth of 43.9% demonstrates strong top-line momentum
- FairStock composite score of 74/100 places it in the top tier across value, quality, and momentum factors
Concerns
- Altman Z-Score of 0.5 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp American Depositary Shares (Each repstg 250 Common Shares) is a mid-cap utilities company valued at $25.1 billion. The business generates $38.1 billion in annual revenue with a 7.0% net margin. From a quality standpoint, Companhia shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.5 warrants caution. On valuation, the stock is attractively valued at 13.9x earnings, with offers a 40% margin of safety vs Graham Number of $58. Growth dynamics show revenue growing at 43.9% and profit growth of 87.2%. Our composite FairStock Score of 74/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.
Bull Case
Companhia's 44% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the utilities space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer