SBS's ROA % is ranked better than 90.22% of 511
companies
in the Utilities - Regulated industry
Industry Median: 3.02
vs SBS: 8.61
Companhia Deneamento Basico Do Estado Deo Paulo (NYSE:SBS) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Companhia Deneamento Basico Do Estado Deo Paulo ROA % Related Terms
Companhia Deneamento Basico Do Estado Deo Paulo ROA % 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 ROA % Chart
Companhia Deneamento Basico Do Estado Deo Paulo Annual Data
* 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 ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Companhia Deneamento Basico Do Estado Deo Paulo (SBS) has a ROA % of 6.46% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Companhia Deneamento Basico Do Estado Deo Paulo and its competitors. This is near median its historical median of 6.71. Over the past decade, Companhia Deneamento Basico Do Estado Deo Paulo's ROA % has ranged from 2.01 to 13.45. According to the industry distribution chart, Companhia Deneamento Basico Do Estado Deo Paulo ranks #50 out of 511 companies in the Utilities - Regulated industry, placing it in the top 9.8%.
Is Companhia Deneamento Basico Do Estado Deo Paulo's ROA % too high?
Companhia Deneamento Basico Do Estado Deo Paulo's current ROA % of 6.46% is near median its 10-year median of 6.71. Over the past 10 years, this metric has ranged from a low of 2.01 to a high of 13.45. The Utilities - Regulated industry median ROA % is 3.02. Companhia Deneamento Basico Do Estado Deo Paulo's value of 6.46% is 113.9% above this industry median. Based on the distribution chart, Companhia Deneamento Basico Do Estado Deo Paulo ranks #50 out of 511 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 ROA % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Companhia Deneamento Basico Do Estado Deo Paulo ranks #50 out of 511 companies for ROA %. This places Companhia Deneamento Basico Do Estado Deo Paulo in the top 10% of its industry — outperforming the majority of peers. The industry median ROA % is 3.02. Companhia Deneamento Basico Do Estado Deo Paulo's value of 6.46% is 113.9% above this benchmark. Historically, Companhia Deneamento Basico Do Estado Deo Paulo's own ROA % has ranged from 2.01 to 13.45 over the past decade. While the company's 10-year median is 6.71 vs. the industry median of 3.02, 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 ROA % for an Utilities - Regulated company?
The median ROA % among Utilities - Regulated companies is 3.02, based on 511 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % 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 ROA % of 6.46% is 113.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Companhia Deneamento Basico Do Estado Deo Paulo and its competitors. For the Utilities - Regulated industry, the median ROA % is 3.02 — 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 ROA % is 6.46%, which is near median its own 10-year median of 6.71. 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 ROA % is 6.46%, which is near median its 10-year median of 6.71 and 113.9% above the Utilities - Regulated industry median of 3.02. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Companhia Deneamento Basico Do Estado Deo Paulo (SBS), the current ROA % is 6.46% 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:
ROA %: 6.46% (near median its 10-year median of 6.71)
GF Value™: $4.88 vs. price of $5.53 (13.3% above fair value)
Industry Position: 113.9% above the Utilities - Regulated median (#50 of 511)
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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