Fact based stock research
SABESP (BOVESPA:SBSP3)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

SABESP stock research in summary

sabesp.com.br

ANALYSIS: With an Obermatt Combined Rank of 62 (better than 62% compared with investment alternatives), SABESP (Water Utilities, Brazil) shares have above-average financial characteristics compared with similar stocks. Shares of SABESP are low in value (priced high) with a consolidated Value Rank of 28 (worse than 72% of alternatives). But they show above-average growth (Growth Rank of 84) and are safely financed (Safety Rank of 67, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 62, is a buy recommendation based on SABESP's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company SABESP exhibits low value (Obermatt Value Rank of 28), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 84). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 67) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	28
Growth Rank	84
Safety Rank	67
Combined Rank	62

Country	Brazil
Industry	Water Utilities
Index	BOVESPA, SDG 6, Water Tech
Size class	Medium

This stock has achievements: Top 10 Stock.

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: SABESP

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	72	53	26	28
GROWTH
GROWTH	67	61	90	84
SAFETY
SAFETY	59	41	49	67
SENTIMENT
SENTIMENT	70	92	100	^new
360° VIEW
360° VIEW	90	74	84	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better SABESP is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	72	53	26	28
GROWTH
GROWTH	67	61	90	84
SAFETY
SAFETY	59	41	49	67
COMBINED
COMBINED	82	49	61	62

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of SABESP the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 28 (worse than 72% compared with alternatives), SABESP shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for SABESP. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 64, which means that the stock price compared with what market professionals expect for future profits is lower than for 64% of comparable companies, indicating a good value concerning SABESP's profit levels. But Price-to-Sales is 23 which means that the stock price compared with what market professionals expect for future profits is higher than for 77% of comparable companies, indicating a low value concerning SABESP's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 46 and for dividend yield, which is lower than for 73% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 28, is a hold recommendation based on SABESP's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then SABESP is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	61	37	26	23
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	91	64	49	64
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	85	57	44	46
DIVIDEND YIELD
DIVIDEND YIELD	35	40	23	27
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	72	53	26	28

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of SABESP; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 84 (better than 84% compared with alternatives) for 2025, SABESP shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for SABESP. Sales Growth has a rank of 87 which means that currently, professionals expect the company to grow more than 87% of its competitors. Capital Growth is also above 6% of competitors with a rank of 87, and Stock Returns with the rank of 90 is also an outperformance. Only Profit Growth is low with a rank of 6 which means that currently, professionals expect the company to grow its profits less than 94% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 84, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, SABESP is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	40	60	4	87
PROFIT GROWTH
PROFIT GROWTH	84	36	96	6
CAPITAL GROWTH
CAPITAL GROWTH	80	59	91	87
STOCK RETURNS
STOCK RETURNS	27	55	92	90
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	67	61	90	84

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of SABESP.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 67 (better than 67% compared with alternatives), the company SABESP has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of SABESP is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for SABESP. Leverage is at a rank of 63, meaning the company has a below-average debt-to-equity ratio. It has less debt than 63% of its competitors. Liquidity is also good at a rank of 85, meaning the company generates more profit to service its debt than 85% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 24, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 76% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 67 (better than 67% compared with alternatives), SABESP has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for SABESP. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with SABESP and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	56	60	63	63
REFINANCING
REFINANCING	33	27	26	24
LIQUIDITY
LIQUIDITY	79	57	63	85
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	59	41	49	67

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of SABESP and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	74	80	^new
OPINIONS CHANGE
OPINIONS CHANGE	63	79	43	^new
PRO HOLDINGS
PRO HOLDINGS	94	90	94	^new
MARKET PULSE
MARKET PULSE	65	36	77	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	70	92	100	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for SABESP.
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