Production Increases, Big Money Lift SABESP

SBS provides sewage services as well as treated water and water management services to residential, commercial, industrial, and governmental customers in the Brazilian state of São Paulo. SBS also provides services to other municipalities and consulting services in Panama and Honduras through a partnership. The company is headquartered in São Paulo, Brazil.

Financially, SBS’s first-quarter fiscal 2025 report showed production volume grew by 4%, resulting in a 3.9% jump in adjusted net revenue and an EBITDA growth rate of 17%. Net income increased by 80% on a year-over-year basis. Also, the company’s commitment to infrastructure investments is paying off as capital expenditures doubled from a year prior as it continues reducing its debt (debt-related costs dropped 63 basis points last quarter).

It’s no wonder SBS shares are up 44% this year – and they could rise more. MoneyFlows data shows how Big Money investors are once again betting heavily on the forward picture of the stock.

SABESP Sees Big Money Support

Institutional volumes reveal plenty. In the last year, SBS has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in SBS shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of utilities names are under accumulation right now. But there’s a powerful fundamental story happening with SABESP.

SABESP Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, SBS has had strong sales and earnings growth:

• 3-year sales growth rate (+23%)
• 3-year EPS growth rate (+70%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +40.7%.

Now it makes sense why the stock has been generating Big Money interest. SBS has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

SABESP has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Outlier 20 report multiple times in the last year. The blue bars below show when SBS was a top pick…sending shares higher:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

SABESP Price Prediction

The SBS action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in SBS at the time of publication.

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