Companhia de Saneamento Basico do Estado de Sao Paulo [SBS] is -14.84% lower this YTD. Is it still time to buy?

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Companhia de Saneamento Basico do Estado de Sao Paulo [NYSE: SBS] closed the trading session at $7.25 on 12/30/21. The day’s price range saw the stock hit a low of $7.16, while the highest price level was $7.295. The company report on December 30, 2021 that SABESP – Material Fact – Capex Plan 2022-2026.

Companhia de Saneamento Básico do Estado de São Paulo – Sabesp (“Company” or “Sabesp”), in compliance with Resolution 44 of the Brazilian Securities and Exchange Commission (CVM – Comissão de Valores Mobiliários), of August 23, 2021, hereby informs its shareholders and the market in general that, on a meeting held at this date, the Board of Directors approved the Capex Plan for the period 2022 to 2026, in the amount of R$ 23.8 billion.


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Capex Plan (R$ million) (Constant values at December 2021 prices).

The stocks have a year to date performance of -14.84 percent and weekly performance of 1.68 percent. The stock has been moved at 1.40 percent over the last six months. The stock has performed 20.43 percent around the most recent 30 days and changed 2.40 percent over the most recent 3-months.

If compared to the average trading volume of 2.15M shares, SBS reached to a volume of 1974929 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Companhia de Saneamento Basico do Estado de Sao Paulo [SBS]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SBS shares is $12.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SBS stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for Companhia de Saneamento Basico do Estado de Sao Paulo shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on February 24, 2021. While these analysts kept the previous recommendation, Citigroup raised their target price to Buy. The new note on the price target was released on December 01, 2020, representing the official price target for Companhia de Saneamento Basico do Estado de Sao Paulo stock.

The Average True Range (ATR) for Companhia de Saneamento Basico do Estado de Sao Paulo is set at 0.19, with the Price to Sales ratio for SBS stock in the period of the last 12 months amounting to 1.44. The Price to Book ratio for the last quarter was 1.14, with the Price to Cash per share for the same quarter was set at 1.08. Price to Free Cash Flow for SBS in the course of the last twelve months was 6.46 with Quick ratio for the last quarter at 1.10.

SBS stock trade performance evaluation

Companhia de Saneamento Basico do Estado de Sao Paulo [SBS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.68. With this latest performance, SBS shares gained by 20.43% in over the last four-week period, additionally plugging by 1.40% over the last 6 months – not to mention a drop of -14.74% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SBS stock in for the last two-week period is set at 63.33, with the RSI for the last a single of trading hit 66.01, and the three-weeks RSI is set at 60.44 for Companhia de Saneamento Basico do Estado de Sao Paulo [SBS]. The present Moving Average for the last 50 days of trading for this stock 6.62, while it was recorded at 7.14 for the last single week of trading, and 7.08 for the last 200 days.

Companhia de Saneamento Basico do Estado de Sao Paulo [SBS]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Companhia de Saneamento Basico do Estado de Sao Paulo [SBS] shares currently have an operating margin of +24.52 and a Gross Margin at +36.31. Companhia de Saneamento Basico do Estado de Sao Paulo’s Net Margin is presently recorded at +5.47.

Return on Total Capital for SBS is now 11.66, given the latest momentum, and Return on Invested Capital for the company is 2.82. Return on Equity for this stock inclined to 4.38, with Return on Assets sitting at 2.01. When it comes to the capital structure of this company, Companhia de Saneamento Basico do Estado de Sao Paulo [SBS] has a Total Debt to Total Equity ratio set at 75.62. Additionally, SBS Total Debt to Total Capital is recorded at 43.06, with Total Debt to Total Assets ending up at 34.19. Long-Term Debt to Equity for the company is recorded at 62.40, with the Long-Term Debt to Total Capital now at 35.53.

Reflecting on the efficiency of the workforce at the company, Companhia de Saneamento Basico do Estado de Sao Paulo [SBS] managed to generate an average of $76,005 per employee. Receivables Turnover for the company is 7.20 with a Total Asset Turnover recorded at a value of 0.37.Companhia de Saneamento Basico do Estado de Sao Paulo’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.20.

Earnings per share (EPS) analysis for Companhia de Saneamento Basico do Estado de Sao Paulo [SBS] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SBS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Companhia de Saneamento Basico do Estado de Sao Paulo go to 10.71%.

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Companhia de Saneamento Basico do Estado de Sao Paulo [SBS]: Insider Ownership positions

There are presently around $683 million, or 16.00% of SBS stock, in the hands of institutional investors. The top three institutional holders of SBS stocks are: IMPAX ASSET MANAGEMENT GROUP PLC with ownership of 30,350,866, which is approximately 2.327% of the company’s market cap and around 41.50% of the total institutional ownership; AMUNDI, holding 6,524,286 shares of the stock with an approximate value of $46.06 million in SBS stocks shares; and MACKENZIE FINANCIAL CORP, currently with $42.1 million in SBS stock with ownership of nearly 9.449% of the company’s market capitalization.

Positions in Companhia de Saneamento Basico do Estado de Sao Paulo stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 64 institutional holders increased their position in Companhia de Saneamento Basico do Estado de Sao Paulo [NYSE:SBS] by around 10,781,684 shares. Additionally, 63 investors decreased positions by around 5,700,504 shares, while 30 investors held positions by with 80,298,265 shares. The mentioned changes placed institutional holdings at 96,780,453 shares, according to the latest SEC report filing. SBS stock had 15 new institutional investments in for a total of 1,346,080 shares, while 26 institutional investors sold positions of 1,653,889 shares during the same period.