SBS · NYSE · STOCK
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) Stock Analysis
$6.74
52W $4.45 – $7.16
55/100
$23.03B
2.9
0.09
Is SBS Bullish or Bearish?
Mixed.
Innellis AI committee rates Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) Watch with a composite score of 55/100
, based on 6 analysts with 50% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +4.56 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -15.44 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Value Analyst sees a compelling case — p/e of 14.8 is inexpensive for the broad market. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 14.8 is inexpensive for the broad market — Value
- ROE of 18.3% shows genuine earnings power backing the valuation — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Price structure making higher highs and higher lows — Technical
- MACD histogram positive -- bullish momentum — Technical
- Weekly trend (uptrend) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
- Revenue declining -8.0% YoY -- this is not a growth story right now — Growth
- EPS declining -86.0% YoY despite any revenue growth — Growth
- RSI at 90 is in overbought territory — Technical
- Price structure (LH_LL) contradicts the uptrend -- mixed signals — Technical
- Price trading above the upper Bollinger Band -- stretched — Technical
- Weekly RSI at 77 -- overbought on the larger timeframe too — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
55/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 26%
of 56 Utilities peers
Value Analyst
bullish
70
/ 100 · Moderate confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 14.8 is inexpensive for the broad market
Growth Analyst
bearish
40
/ 100 · High confidence
Growth story is weak, decelerating, or inconsistent
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− Revenue declining -8.0% YoY -- this is not a growth story right now
Technical Analyst
neutral
57
/ 100 · High confidence
Mixed or range-bound price action
+ Price structure making higher highs and higher lows
− RSI at 90 is in overbought territory
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 39.6% signals elevated volatility
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
66
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.25 across 4 articles, 14d)
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 55.4 to 55.4.
- New bearish signals: 3 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 3 signal(s) disappeared.
Analyst-level changes:
- Risk Analyst: +1 bearish signal(s).
- Technical Analyst: +2 bearish signal(s).
- Value Analyst: +1 bullish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
89.8
Overbought
MACD Histogram
0.157
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Lh Ll
Support
$5.42
Resistance
$7.16
Bollinger %B
1.03
Above Upper Band
Price vs Moving Averages
EMA 9
$6.11
Above
EMA 21
$5.70
Above
EMA 50
$5.46
Above
EMA 200
$5.40
Above
Fundamental Analysis
Valuation
100
Growth
52
Profitability
78
Financial Health
62
Cash Flow
70
Valuation
P/E Ratio
2.9×
P/B Ratio
0.51×
PEG Ratio
-0.10
Dividend Yield
2.07%
52W High
$7.16
52W Low
$4.45
Quality & Growth
ROE
1957.5%
ROA
781.0%
Gross Margin
3550.4%
Operating Margin
3059.2%
Revenue Growth YoY
—
Debt / Equity
1.14
AI Fundamental Assessment
P/E ratio of 2.9 (inexpensive relative to a 15-40x range); Price-to-book of 0.5x; PEG ratio of -0.1 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 19.6%; Return on assets of 7.8%; Net margin of 19.7%; Gross margin of 35.5%; Current ratio of 1.47 (tight short-term liquidity); Debt-to-equity of 1.14; Free cash flow per share is positive (8.93); Most recent quarter missed estimates by 7.6%; EPS growth accelerating (-41.7% -> -18.0% QoQ); Average YoY EPS growth of -32.2%; Analyst estimates falling over recent quarters
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