Stock Price & Analysis

Based on the analysis of SBS stock, it is currently below its 200-day moving average, indicating bearish momentum. Given the technical weakness and market sentiment, it may be prudent to consider selling or avoiding SBS stock at this time.

The price prediction for SBS stock in 2025 is expected to range between $16.30 and $17.50, with a potential upside to $16.90. This forecast considers the stock's current price of $15.75, its 52-week range, and analyst targets from the First Trust Water ETF.

The S1 support level for SBS Stock is $15.85 ,The R1 resistant level for SBS Stock is $16.68.

As of the end of day on 2025-03-13, the price of SBS Stock was $16.73.

The target price for SBS Stock according to analyst rating is 22.05, with the highest price target at 23.20 and the lowest at 20.90. Analysts have a Moderate Buy rating on SBS Stock overall.

The market cap of SBS is $22.5B.

Analysis and Insights

Valuation Metrics

SBS currently exhibits lower valuation multiples compared to industry averages, suggesting it may not be overvalued. Key metrics include:

• P/E Ratio: 15.8 (vs. industry average of 22)
• EV/EBITDA: 7.64 (vs. industry average of 10)
• P/S Ratio: 2.15 (vs. industry average of 3)
• P/B Ratio: 1.88 (vs. industry average of 2.5)
• Dividend Yield: 1.81% (industry average of 2.1%)

Financial Performance

SBS has demonstrated strong financial health, with:

• Revenue Growth: Consistent increases in quarterly revenue, reflecting stable demand for its services.
• Net Income Growth: Rising net income margins, indicating efficient operations.
• Return on Equity (ROE): 12.5%, signaling strong profitability.
• Debt-to-Equity Ratio: 0.71, reflecting manageable debt levels.

Market Sentiment and Analyst Views

Analysts remain optimistic about SBS, with a consensus target price of $23.75, implying significant upside potential from its current price of $14.50. Additionally, SBS is a key holding in the First Trust Water ETF (FIW), which has a 12.28% implied upside based on analyst targets.

Conclusion

Based on its attractive valuation, strong financial performance, and positive analyst sentiment, SBS does not appear to be overvalued. Its current price reflects a compelling entry point for investors seeking exposure to the utilities sector.

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP is a water and sewage service provider. The Company provides water and sewage services to a range of residential, commercial, industrial and governmental customers in over 360 municipalities in the state of Sao Paulo, including the city of Sao Paulo. The Company's segments include Water and Sewage. The Company also supplies treated water on a wholesale basis to approximately 10 municipalities located in the Sao Paulo metropolitan region and urban conurbations. The Company's activities comprise water supply, sanitary sewage services, urban rainwater management and drainage services, urban cleaning services, solid waste management services and related activities, including the planning, operation, maintenance and commercialization of energy, and the commercialization of services, products, benefits and rights that directly or indirectly arise from its assets, operations and activities.

SBS stock is predicted to reach $25 by 2030, driven by its role in the First Trust Water ETF (FIW), which has an implied analyst target price of $120.40, indicating confidence in SBS's growth potential.

SBS has a total of 11170 employees.