SBSCompanhia de Saneamento Básico do Estado de São Paulo - SABESP

$5.14+11% 1Y

RyuScore

Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.

RyuScore 75 out of 100, Strong
Today's price. Only valuation depends on it.

Strong. Companhia de Saneamento Básico do Estado de São Paulo - SABESP scores higher than 85% of the 1,794 companies Ryufin scores.

Carried by valuation and return on new capital, held back by cycle position.

Utilities median 49 · all companies 57

Valuation

26% of the score

100median 56

Companhia de Saneamento Básico do Estado de São Paulo - SABESP is valued at 2.4x its operating profit before acquisition amortisation (EBITA), including debt: cheap enough for full points.

60x
50x
35x
25x
18x
12x
8x
2.4x
Full points at 8x or less, none from 60xfull points

Return on capital

18% of the score

70median 34

Over 7 years the business earned 13% a year after tax on the capital it uses.

2%
8%
15%
25%
13%
None at 2% or less, full points from 25%full points
Return on capital by year
7 years agolatest 24%

Return on new capital

16% of the score

100median 49

For every dollar of operating profit earned over 6 years, yearly profit grew by 21 cents. New capital earned 38%, and 56% of profit went back into the business.

-5%
12%
21%
None at minus 5 cents, full points from 12 centsfull points

Capital allocation

14% of the score

77median 67

How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.

Share countFlat over 2 years
62
5%
-3%
0%
0 pointsfull points
Assets against salesAssets grew 12% a year, sales 15%
100
12%
-2%
-3.2%
0 pointsfull points

Cycle position

12% of the score

13median 62

Today's operating margin of 42% is 1.74x its normal 24%: near a peak, where margins tend to fall back. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.

2x
1.5x
1x
0.7x
1.7x
A trough earns points, a peak costs themfull points
Operating margin by year, against its normal level
10 years agonow 42%

Balance sheet

8% of the score

60median 50

What the debt weighs against the profit that has to carry it.

Net debt to EBITDA1.3x a year of EBITDA
80
4.5x
0.5x
1.3x
0 pointsfull points
Interest coverOperating profit covers interest 6x
40
1.5x
12x
5.7x
0 pointsfull points

Earnings quality

6% of the score

49median 90

Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.

Cash against profitOperating cash flow was 1.00x profit over 3 years
60
0.7x
1x
1.3x
1x
0 pointsfull points
AccrualsProfit ran ahead of cash by 3% of assets
37
8%
0%
-8%
3%
0 pointsfull points

How the RyuScore works

Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. Where a criterion cannot be measured from the filings it is taken out and the remaining weights scale up; a company needs 60% of the weight covered, and always a price, to get a score.

Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there. Figures as of 2024-12-31, latest annual report FY2024.