Companhia de Saneamento Basico do Estado de Sao Paulo. ADR (NYSE: SBS) has seen a rise in its stock price by 0.32 in relation to its previous close of 17.46. However, the company has experienced a -6.29% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2025-03-26 that I am upgrading my recommendation on Sabesp shares from hold to buy due to strong 4Q24 results, showing revenue and profit growth. Despite a lower EBIT due to redundancy provisions, Sabesp’s operational efficiency post-privatization and healthy leverage position support a positive outlook. SBS stock is undervalued, trading at 5.4x EV/EBITDA versus a 5-year average of 6.56x, indicating a potential 21% upside.
Is It Worth Investing in Companhia de Saneamento Basico do Estado de Sao Paulo. ADR (NYSE: SBS) Right Now?
The price-to-earnings ratio for Companhia de Saneamento Basico do Estado de Sao Paulo. ADR (NYSE: SBS) is 6.86x, which is above its average ratio. Moreover, the 36-month beta value for SBS is 0.84. Analysts have varying opinions on the stock, with 3 analysts rating it as a “buy,” 3 as “overweight,” 0 as “hold,” and 0 as “sell.”
The public float for SBS is 683.42M and currently, short sellers hold a 0.45% of that float. On April 10, 2025, SBS’s average trading volume was 955.03K shares.
SBS’s Market Performance
SBS stock saw an increase of -6.29% in the past week, with a monthly gain of 6.34% and a quarterly increase of 21.97%. The volatility ratio for the week is 4.07%, and the volatility levels for the last 30 days are 2.69% for Companhia de Saneamento Basico do Estado de Sao Paulo. ADR (SBS). The simple moving average for the last 20 days is -1.04% for SBS stock, with a simple moving average of 8.06% for the last 200 days.
SBS Trading at 2.49% from the 50-Day Moving Average
After a stumble in the market that brought SBS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -7.55% of loss for the given period.
Volatility was left at 2.69%, however, over the last 30 days, the volatility rate increased by 4.07%, as shares surge +4.23% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +10.20% upper at present.
During the last 5 trading sessions, SBS fell by -6.31%, which changed the moving average for the period of 200-days by +21.94% in comparison to the 20-day moving average, which settled at $17.70. In addition, Companhia de Saneamento Basico do Estado de Sao Paulo. ADR saw 22.23% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for SBS
Current profitability levels for the company are sitting at:
- 0.45 for the present operating margin
- 0.7 for the gross margin
The net margin for Companhia de Saneamento Basico do Estado de Sao Paulo. ADR stands at 0.26. The total capital return value is set at 0.23. Equity return is now at value 28.81, with 13.27 for asset returns.
Based on Companhia de Saneamento Basico do Estado de Sao Paulo. ADR (SBS), the company’s capital structure generated 0.39 points at debt to capital in total, while cash flow to debt ratio is standing at 0.27. The debt to equity ratio resting at 0.63. The interest coverage ratio of the stock is 11.36.
Currently, EBITDA for the company is 8.96 billion with net debt to EBITDA at 1.14. When we switch over and look at the enterprise to sales, we see a ratio of 2.61. The receivables turnover for the company is 8.67for trailing twelve months and the total asset turnover is 0.47. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.89.
Conclusion
To wrap up, the performance of Companhia de Saneamento Basico do Estado de Sao Paulo. ADR (SBS) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
