SBS stock: buy or sell?

SBS stock price: $13.38 -1.55% At close on July 16th, 2019

Updated on:
July 16th, 2019

3

After topping to all time highs on Thursday, Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp slightly fell -1.55% to $13.38. With Tuesday it's been 3 red days in a row.

Companhia de Saneamento Básico do Estado de São Paulo-SABESP provides basic and environmental sanitation services, and supplies treated water and sewage services on a wholesale basis to residential, commercial, industrial, and governmental customers in the state of São Paulo.

Should I buy SBS stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading plan that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

These 2 buy setups match with Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we gathered 3 ratings published for SBS stock in the last 30 days.

Is SBS a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-1-30HSBCBuyHold
2019-1-3Janney Montgomery ScottBuyNeutral
2019-1-16CitigroupNeutralSell

SBS stock analysis

Daily outlook

After reaching all time highs on Thursday, Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp slightly fell -1.55% to $13.38.

On Thursday, SBS hit new all time highs, pushing higher previous ATH of $13.78 recorded . New ATHs are usual entry points for many trading setups as there aren't higher resistences. After topping to all time highs on Thursday, Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp slightly fell -1.55% today to $13.38. From a daily perspective, SBS is in a short term uptrend after plotting its last bottom ($12.01, on Jul/3) higher than the previous bottom, and its last top ($14.00, on Thursday) also over the previous top. Now trading in between its last bottom and last top SBS might consolidate in a plain range, waiting to break out over $14.00 or down under $12.01. Since last May when SBS stock price broke up the SMA100d line, it gained $3.33 (33.13%).

SBS stock chart (daily)

Weekly outlook

After boosting an amazing 6.77% in a week last week, Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp closed this week at $13.38 and dropped a fatal -2.62%.

Not so far away is the last price record Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp marked last week. Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, SBS might consolidate in a flat-base, waiting to break out over or down under . Early January, SMA20w and SMA40w crossed up triggering a rise of 36.25%. Since price and SMA40w lines crossed up by mid December 2018, SBS climbed $6.25 (87.66%).

SBS stock chart (weekly)

SBS stock price history

SBS IPO was on May 10th, 2002 at $0.81 per share1. Since then, SBS stock grew a 1,551.90%, with an average of 91.30% per year. If you had invested right after SBS's IPO a $1,000 in SBS stock in 2002, it would worth $15,519.00 today.

1: Adjusted price after possible price splits or reverse-splits.

SBS stock historical price chart

SBS stock reached all-time highs on Thursday with a price of $14.00.

SBS stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we have not detected any price prediction for Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp presented its financial report, posting an exceptional growth for the Earnings per Share (EPS) ratio. Experts were expecting $0.27 per share, but Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp posted $0.58.
SBS earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.98n/a
2017-Q2-n/a0.49n/a
2017-Q3-n/a1.32n/a
2017-Q42018-03-27n/a0.28n/a
2018-Q12018-05-100.290.26-10.3%
2018-Q22018-08-090.250.08-68.0%
2018-Q32018-11-080.260.21-19.2%
2018-Q42019-03-290.270.58114.8%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp annual revenues skyrocketed a cool 10.94% to $17,056.30 million USD from $15,374.60 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) stayed constant a 0.24% to 16.62%.

SBS annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$11,320 M-$1,920 M17.0%-
2014$11,823 M4.45%$903 M7.6%-52.97%
2015$12,284 M3.89%$536 M4.4%-40.61%
2016$14,855 M20.94%$2,947 M19.8%449.55%
2017$15,375 M3.50%$2,519 M16.4%-14.52%
2018$17,056 M10.94%$2,835 M16.6%12.53%

Quarterly financial results

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp reported $5,155.62 million in revenues for 2018-Q4, a 27.12% improvement compared to previous quarter. Reported quarter earnings marked $1,507.59 M with a profit margin of 29.24%. Profit margin rocketed a 15.31% compared to previous quarter when profit margin was 13.93%. When comparing turnover to same quarter last year, Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp sales marked an astounding increase and boosted a 21.92%. Looking back to recent quarterly results, Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp posted 2 negative quarters in a row.
SBS quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$3,560 M-$674 M18.9%-
2017-Q2$3,490 M-1.97%$332 M9.5%-50.80%
2017-Q3$1,174 M-66.37%$285 M24.3%-14.21%
2017-Q4$4,229 M260.35%$613 M14.5%115.22%
2018-Q1$3,928 M-7.11%$580 M14.8%-5.25%
2018-Q2$3,917 M-0.28%$182 M4.6%-68.66%
2018-Q3$4,056 M3.54%$565 M13.9%210.72%
2018-Q4$5,156 M27.12%$1,508 M29.2%166.75%

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp ownership

When you are planning to invest in a company, it's always worth to overview its ownership structure.

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.00% of all shares.

In case of Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp stock, 17.24% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for SBS stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related companies:

SBSAWKCWCO
Market cap$9.1 B$20.9 B$211.2 M
Total shares683.5 M180.5 M15.0 M
Float shares339.6 M180.1 M14.3 M
  - Institutional holdings (%)17.2%88.1%57.1%
  - Insider holdings (%)0.0%0.2%2.7%
Shares in short selling0.0%0.0%0.0%

SBS summary

Tuesday, July 16th, 2019
Open$13.65
Close$13.38
Day range$13.34 - $13.74
Previous close$13.59
Session gain-1.55%
Average true range$0.44
50d mov avg$11.84
100d mov avg$11.18
200d mov avg$9.77
Daily patternlt06a
Weekly pattern lt06a

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We chose and Consolidated Water as the bechmarking frame for Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp stock.
Stock3m6m12m
SBS31.18%26.70%108.74%
AWK11.29%26.42%35.11%
CWCOConsolidated Wate...12.66%14.96%-1.47%

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp competitors

Defining a list of competitors for Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp it's not an easy task. We selected 2 public companies that are related to and can be considered as competitors of Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp: