SBS Stock Analysis: Buy, Sell, or Hold?
SBS - COMPANHIA DE SANEAMENTO B SICO DO ESTADO DE SAO PAULO-SABESP ADS'S
$5.40
-0.13 (-2.35%)
▼
5d:
-4.59%
30d:
-83.57%
90d:
-81.46%
BUY
HIGH Confidence
Analysis Updated: Jun 3, 2026 12:00 AM ET
Earnings: May 11, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: SBS trading at deep discount. Market pricing in -7.4% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: SBS trading at deep discount. Market pricing in -7.4% annual earnings decline, creating value opportunity for patient investors.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$13.27
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$8.24
34.5% 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 12.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SBS is currently trading at $5.40, which is considered slightly low relative to its 30-day fair value range of $1.37 to $26.57. From a valuation perspective, the stock is trading at a discount (Forward PE: 9.8) compared to its historical average (12.3). Remarkably, the market is currently pricing in an annual earnings decline of 7.4% 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 downtrend. The price is currently testing key support at $5.34. A bounce from this level would confirm strength, while a break below could signal further downside.
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 (+26.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, SBS is in a downtrend. The price is currently testing key support at $5.34. A bounce from this level would confirm strength, while a break below could signal further downside.
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 (+26.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$1.37 -
$26.57
Company Quality Score
59/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
90.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 26.7% below Wall St target ($6.84)
Trading Range Analysis
30-Day Trading Range
$1.37 -
$26.57
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$5.34
Resistance Level
$5.90
Current Trend
Downtrend
Technical data as of
Jun 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.75
Wall Street Target
$6.84
(+26.7%)
Revenue Growth (YoY)
18.3%
Earnings Growth (YoY)
15.4%
Profit Margin
22.0%
Valuation Discount vs History
-7.4% cheaper
PE vs Historical
9.8 vs 12.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-7.4%
(market-implied from PE analysis)
1-Year Target
$5.00
(-7%)
2-Year Target
$4.63
(-14%)
3-Year Target
$4.29
(-21%)
3-Yr Target (if PE normalizes)
(PE: 10→12)
$5.41
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.9, Growth: 45.9%)
$37.70
(+598%)
Base:
(SPY PE: 9.7, Growth: 45.9%)
$16.77
(+211%)
Bear:
(PE: 8.3, Growth: 45.9%)
$14.26
(+164%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (11x PE), but valuation improves significantly next year (10x PE) as earnings recover.
Trailing PE: 11.10 | Current EPS (TTM): $0.51
Bull Case
$6.76
(+21%)
Analyst growth 8.6%, PE expands to 12.2
Base Case
$6.15
(+10%)
Market implied 8.6%, PE stable at 11.1
Bear Case
$3.85
(-31%)
Severe decline -20.0%, PE contracts to 9.4
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 9.7 to 12.3
Stabilization Target:
$6.81
(+26.2%)
PE Expansion Potential:
+26.2%
Share & Embed Analysis
Last updated: June 03, 2026 7:35 PM ET
Data refreshes hourly during market hours. Next update: 8:35 PM
Data refreshes hourly during market hours. Next update: 8:35 PM
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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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