SBS Stock Analysis: Buy, Sell, or Hold?
SBS - COMPANHIA DE SANEAMENTO B SICO DO ESTADO DE SAO PAULO-SABESP ADS'S
$5.93
-0.13 (-2.15%)
▼
5d:
+2.07%
30d:
+10.63%
90d:
-82.62%
HOLD
MODERATE Confidence
Analysis Updated: Jul 13, 2026 12:00 AM ET
Earnings: Aug 10, 2026
26d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: SBS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: SBS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$12.73
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$7.90
25.0% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 11.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SBS is currently trading at $5.93, which is considered extended relative to its 30-day fair value range of $5.39 to $5.81. The stock's valuation (Forward PE: 10.7) is in line with its historical norms (11.8). Remarkably, the market is currently pricing in an annual earnings decline of 3.3% over the next few years. This pessimistic expectation contrasts with the company's recent 15.4% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, SBS is in a strong downtrend. The price is approaching resistance at $5.78. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: SBS has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $6.84 (+15.3%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, SBS is in a strong downtrend. The price is approaching resistance at $5.78. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: SBS has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $6.84 (+15.3%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$5.39 -
$5.81
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
59.5%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($6.84)
Trading Range Analysis
30-Day Trading Range
$5.39 -
$5.81
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$5.25
Resistance Level
$5.78
Current Trend
Strong Downtrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
10.70
Wall Street Target
$6.84
(+15.3%)
Revenue Growth (YoY)
18.3%
Earnings Growth (YoY)
15.4%
Profit Margin
22.0%
Valuation Discount vs History
-3.3% cheaper
PE vs Historical
10.7 vs 11.8
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.3%
(market-implied from PE analysis)
1-Year Target
$5.73
(-3%)
2-Year Target
$5.55
(-7%)
3-Year Target
$5.36
(-10%)
3-Yr Target (if PE normalizes)
(PE: 11→12)
$5.91
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 45.9%)
$37.48
(+532%)
Base:
(SPY PE: 10.7, Growth: 45.9%)
$18.42
(+211%)
Bear:
(PE: 9.1, Growth: 45.9%)
$15.66
(+164%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (12x PE), but valuation improves significantly next year (11x PE) as earnings recover.
Trailing PE: 12.37 | Current EPS (TTM): $0.49
Bull Case
$7.54
(+27%)
Analyst growth 13.1%, PE expands to 13.6
Base Case
$6.85
(+16%)
Market implied 13.1%, PE stable at 12.4
Bear Case
$4.12
(-31%)
Severe decline -20.0%, PE contracts to 10.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 10.7 to 11.8
Stabilization Target:
$6.54
(+10.2%)
PE Expansion Potential:
+10.2%
Share & Embed Analysis
Last updated: July 14, 2026 2:38 AM ET
Data refreshes hourly during market hours. Next update: 3:38 AM
Data refreshes hourly during market hours. Next update: 3:38 AM
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Technical Signals Check
Is SBS showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
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