Companhia Deneamento Basico Do Estado Deo Paulo (NYSE:SBS) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Companhia Deneamento Basico Do Estado Deo Paulo Operating Margin % Related Terms
Companhia Deneamento Basico Do Estado Deo Paulo Operating 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 Operating Margin % Chart
Companhia Deneamento Basico Do Estado Deo Paulo Annual Data
SBS vs AWK, WTRG, AWR: Operating Margin % Comparison
For the Utilities - Regulated Water subindustry, Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Utilities - Regulated Industry
Companhia Deneamento Basico Do Estado Deo Paulo Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 (SBS) has a Operating Margin % of 33.58% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Companhia Deneamento Basico Do Estado Deo Paulo and its competitors. This is 29% above median its historical median of 26.01. Over the past decade, Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % has ranged from 20.67 to 42.62. According to the industry distribution chart, Companhia Deneamento Basico Do Estado Deo Paulo ranks #56 out of 499 companies in the Utilities - Regulated industry, placing it in the top 11.2%.
Is Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % too high?
Companhia Deneamento Basico Do Estado Deo Paulo's current Operating Margin % of 33.58% is 29% above median its 10-year median of 26.01. Over the past 10 years, this metric has ranged from a low of 20.67 to a high of 42.62. The Utilities - Regulated industry median Operating Margin % is 14.97. Companhia Deneamento Basico Do Estado Deo Paulo's value of 33.58% is 124.3% above this industry median. Based on the distribution chart, Companhia Deneamento Basico Do Estado Deo Paulo ranks #56 out of 499 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. 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 Operating Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Companhia Deneamento Basico Do Estado Deo Paulo ranks #56 out of 499 companies for Operating Margin %. This places Companhia Deneamento Basico Do Estado Deo Paulo in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.97. Companhia Deneamento Basico Do Estado Deo Paulo's value of 33.58% is 124.3% above this benchmark. Historically, Companhia Deneamento Basico Do Estado Deo Paulo's own Operating Margin % has ranged from 20.67 to 42.62 over the past decade. While the company's 10-year median is 26.01 vs. the industry median of 14.97, 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 Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating 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 Operating Margin % of 33.58% is 124.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Companhia Deneamento Basico Do Estado Deo Paulo and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — 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 Operating Margin % is 33.58%, which is 29% above median its own 10-year median of 26.01. 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 $4.88, compared to a current price of $5.53 — trading 13.3% above its estimated fair value. The current Operating Margin % is 33.58%, which is 29% above median its 10-year median of 26.01 and 124.3% above the Utilities - Regulated industry median of 14.97. Companhia Deneamento Basico Do Estado Deo Paulo's overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Companhia Deneamento Basico Do Estado Deo Paulo (SBS), the current Operating Margin % is 33.58% 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 $5.53 is trading 13.3% above its estimated GF Value™ of $4.88.
GuruFocus considers Companhia Deneamento Basico Do Estado Deo Paulo to be Modestly Overvalued.
Key valuation signals for SBS:
Operating Margin %: 33.58% (29% above median its 10-year median of 26.01)
GF Value™: $4.88 vs. price of $5.53 (13.3% above fair value)
Industry Position: 124.3% above the Utilities - Regulated median (#56 of 499)
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
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