Stock fact sheet · data as of
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS): fair value, margin of safety and Wheel Score
Ticker symbol SBS · Utilities · Regulated Water · Brazil · ADR · Value
SBS is an American depositary share (ADR): the US listing of Companhia de Saneamento Básico do Estado de São Paulo - SABESP, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is SBS undervalued?
At 4.62 (close of 5 Nov 2026), SBS trades 91% below the GLS average fair value of 54.10. That average comes from 9 models run on the latest filings, and 8 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Companhia de Saneamento Básico do Estado de São Paulo - SABESP the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 9 models disagree widely: DDM gives 1.87 while GLS Growth gives 131.62. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, SBS is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 95, growth score 59, out of 100).
Nine valuation models for SBS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 26.08 | +464% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 10.47 | +127% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 122.98 | +2562% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 53.75 | +1063% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 131.62 | +2749% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 51.64 | +1018% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 64.64 | +1299% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 1.87 | -60% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 23.89 | +417% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -2.42 | -152% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 23.79 | +415% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - SBS passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 8.0 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are moderate - ROIC 10.1%, ROE 19.6%, ROA 7.8% - with debt at 0.94 times equity and a free-cash-flow yield of 6.9%.
The dividend yield is 2.75% at a payout ratio of 0%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.
Institutional ownership scores 1/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 10.1% |
|---|---|---|---|
| GLS Moat | 8.0 / 10 | ROE | 19.6% |
| Debt / equity | 0.94 | ROA | 7.8% |
| Free-cash-flow yield | 6.9% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 50: Fair
SBS scores 50 out of 100 on the Wheel Score (Fair band, 50-69) because it fails filter 1, options that actually trade - options too quiet (871 open interest, 15 a day); and filter 4, financially healthy - Piotroski 5/9 (under 6); and filter 9, not a penny stock - price 4.62 (under $5). A stock must pass all 9 Wheel Trade Filters to reach 70. Otherwise the parts read: value strong, premium strong, moat strong, health fair, red flags fair, option trading weak, stability good.
Implied volatility is 59% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 871 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 12.3M shares a day on a market cap of $15.8B, with a beta of 0.09 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (871 open interest, 15 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Fails | price 4.62 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 91% below fair value | |
| Premium | Strong | implied volatility 59% | |
| Moat | Strong | moat 8.0/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Fair | Red Flags score 75/100 | |
| Option trading | Weak | 15 contracts a day, 871 open interest | |
| Stability | Good | beta 0.09, $15.8B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Companhia de Saneamento Básico do Estado de São Paulo - SABESP reports earnings on 5 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Regulated Water
The 12 companies below are the closest to Companhia de Saneamento Básico do Estado de São Paulo - SABESP by market cap within the Regulated Water industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| WTRG Essential Utilities, Inc. | 45.13 | 23.31 | -94% | 26Weak | $12.8B |
| AWK American Water Works Company, Inc. | 149.63 | 69.73 | -115% | 30Weak | $29.8B |
| AWR American States Water Company | 88.61 | 46.34 | -91% | 31Weak | $3.5B |
| CWT California Water Service Group | 49.96 | 25.23 | -98% | 25Weak | $3.1B |
| HTO H2O America | 62.65 | 37.06 | -69% | 35Weak | $3.0B |
| MSEX Middlesex Water Company | 59.20 | 28.34 | -109% | 36Weak | $1.1B |
| MSEXP Middlesex Water Company PFD 7% | 492.00 | 134.84 | -265% | 15No options | $822M |
| YORW The York Water Company | 32.26 | 16.59 | -94% | 28Weak | $524M |
| CWCO Consolidated Water Co. Ltd. | 27.39 | 37.70 | +27% | 45Weak | $439M |
| ARTNA Artesian Resources Corporation | 33.85 | 26.16 | -29% | 19No options | $350M |
| ARTNB Artesian Resources Corporation | 34.92 | 26.62 | -31% | 19No options | $350M |
| CDZIP Cadiz Inc. | 19.41 | 4.42 | -339% | 10No options | $330M |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about SBS
Is SBS undervalued right now?
By the GLS models, yes: at 4.62 the stock is 91% below the average fair value of 54.10 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of SBS and what does it mean?
SBS scores 50 out of 100 (Fair) - it fails Wheel Trade Filters 1, 4, 9. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for SBS?
54.10 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Companhia de Saneamento Básico do Estado de São Paulo - SABESP report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 0 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does SBS have listed options, and how liquid are they?
Yes. The nightly snapshot found 6 listed contracts with 871 open interest across all expiries and implied volatility of 59% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is SBS an ADR?
Yes. SBS is an American depositary share (ADR): the US listing of Companhia de Saneamento Básico do Estado de São Paulo - SABESP, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.