Companhia Deneamento Basico Do Estado Deo Paulo (NYSE:SBS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Companhia Deneamento Basico Do Estado Deo Paulo had a gross margin of 39.29% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Companhia Deneamento Basico Do Estado Deo Paulo Gross Margin % Related Terms
Companhia Deneamento Basico Do Estado Deo Paulo Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Companhia Deneamento Basico Do Estado Deo Paulo Gross Margin % Chart
Companhia Deneamento Basico Do Estado Deo Paulo Annual Data
For the Utilities - Regulated Water subindustry, Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Companhia Deneamento Basico Do Estado Deo Paulo Gross Margin % vs Utilities - Regulated Industry
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Companhia Deneamento Basico Do Estado Deo Paulo (SBS) has a Gross Margin % of 39.29% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Companhia Deneamento Basico Do Estado Deo Paulo and its competitors. This is near median its historical median of 37.21. Over the past decade, Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin % has ranged from 34.33 to 54.07. According to the industry distribution chart, Companhia Deneamento Basico Do Estado Deo Paulo ranks #194 out of 489 companies in the Utilities - Regulated industry, placing it in the top 39.7%.
Is Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin % too high?
Companhia Deneamento Basico Do Estado Deo Paulo's current Gross Margin % of 39.29% is near median its 10-year median of 37.21. Over the past 10 years, this metric has ranged from a low of 34.33 to a high of 54.07. The Utilities - Regulated industry median Gross Margin % is 30.88. Companhia Deneamento Basico Do Estado Deo Paulo's value of 39.29% is 27.2% above this industry median. Based on the distribution chart, Companhia Deneamento Basico Do Estado Deo Paulo ranks #194 out of 489 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Companhia Deneamento Basico Do Estado Deo Paulo has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Companhia Deneamento Basico Do Estado Deo Paulo ranks #194 out of 489 companies for Gross Margin %. This puts Companhia Deneamento Basico Do Estado Deo Paulo in the upper half of its industry. The industry median Gross Margin % is 30.88. Companhia Deneamento Basico Do Estado Deo Paulo's value of 39.29% is 27.2% above this benchmark. Historically, Companhia Deneamento Basico Do Estado Deo Paulo's own Gross Margin % has ranged from 34.33 to 54.07 over the past decade. While the company's 10-year median is 37.21 vs. the industry median of 30.88, Companhia Deneamento Basico Do Estado Deo Paulo has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.88, based on 489 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Companhia Deneamento Basico Do Estado Deo Paulo's current Gross Margin % of 39.29% is 27.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Companhia Deneamento Basico Do Estado Deo Paulo and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Companhia Deneamento Basico Do Estado Deo Paulo's current Gross Margin % is 39.29%, which is near median its own 10-year median of 37.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Companhia Deneamento Basico Do Estado Deo Paulo stock overvalued right now?
Based on GuruFocus' analysis, Companhia Deneamento Basico Do Estado Deo Paulo (SBS) is currently considered Modestly Overvalued. The stock's GF Value™ is $4.89, compared to a current price of $5.79 — trading 18.4% above its estimated fair value. The current Gross Margin % is 39.29%, which is near median its 10-year median of 37.21 and 27.2% above the Utilities - Regulated industry median of 30.88. Companhia Deneamento Basico Do Estado Deo Paulo's overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Companhia Deneamento Basico Do Estado Deo Paulo (SBS), the current Gross Margin % is 39.29% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Companhia Deneamento Basico Do Estado Deo Paulo (SBS) Overvalued in 2026?
Based on GuruFocus' analysis, Companhia Deneamento Basico Do Estado Deo Paulo stock appears to be overvalued.
The current stock price of $5.79 is trading 18.4% above its estimated GF Value™ of $4.89.
GuruFocus considers Companhia Deneamento Basico Do Estado Deo Paulo to be Modestly Overvalued.
Key valuation signals for SBS:
Gross Margin %: 39.29% (near median its 10-year median of 37.21)
GF Value™: $4.89 vs. price of $5.79 (18.4% above fair value)
Industry Position: 27.2% above the Utilities - Regulated median (#194 of 489)
No single metric tells the full story. See the SBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Companhia Deneamento Basico Do Estado Deo Paulo Business Description
Companhia De Saneamento Basico Do Estado De Sao Paulo is engaged in the provision of basic and environmental sanitation services in Sao Paulo State, and supplies treated water and sewage services on a wholesale basis. SABESP may perform activities in other states and countries and can operate in drainage, urban cleaning, solid waste handling, and energy markets. The company determined that it has a single operating segment, which is the provision of sanitation services.
84GF Score
Get the complete analysis for SBS
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SBS has been successfully added to your 
