ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Companhia Deneamento Basico Do Estado Deo Paulo's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 10.44%.
As of today (2026-06-24), Companhia Deneamento Basico Do Estado Deo Paulo's WACC % is 10.16%. Companhia Deneamento Basico Do Estado Deo Paulo's ROC % is 10.50% (calculated using TTM income statement data).
Companhia Deneamento Basico Do Estado Deo Paulo generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Companhia Deneamento Basico Do Estado Deo Paulo (NYSE:SBS) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Companhia Deneamento Basico Do Estado Deo Paulo's WACC % is 10.16%. Companhia Deneamento Basico Do Estado Deo Paulo's ROC % is 10.50% (calculated using TTM income statement data).
Companhia Deneamento Basico Do Estado Deo Paulo generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.
Companhia Deneamento Basico Do Estado Deo Paulo ROC % Related Terms
Companhia Deneamento Basico Do Estado Deo Paulo ROC % 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 ROC % Chart
Companhia Deneamento Basico Do Estado Deo Paulo Annual Data
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROC % of 10.44% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Companhia Deneamento Basico Do Estado Deo Paulo and its competitors.
Is Companhia Deneamento Basico Do Estado Deo Paulo's ROC % too high?
Companhia Deneamento Basico Do Estado Deo Paulo's current ROC % is 10.44%. The Utilities - Regulated industry median ROC % is 4.18. Companhia Deneamento Basico Do Estado Deo Paulo's value of 10.44% is 149.8% above this industry median. 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 ROC % compare to AWK and WTRG?
Companhia Deneamento Basico Do Estado Deo Paulo's ROC % of 10.44% can be compared against companies in the Utilities - Regulated industry. The industry median ROC % is 4.18. Companhia Deneamento Basico Do Estado Deo Paulo's value of 10.44% is 149.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Utilities - Regulated company?
The median ROC % among Utilities - Regulated companies is 4.18, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % 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 ROC % of 10.44% is 149.8% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Companhia Deneamento Basico Do Estado Deo Paulo and its competitors. For the Utilities - Regulated industry, the median ROC % is 4.18 — 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 ROC % is 10.44%. 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 ROC % is 10.44% and 149.8% above the Utilities - Regulated industry median of 4.18. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For Companhia Deneamento Basico Do Estado Deo Paulo (SBS), the current ROC % is 10.44% 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:
ROC %: 10.44%
GF Value™: $4.88 vs. price of $5.53 (13.3% above fair value)
Industry Position: 149.8% above the Utilities - Regulated median
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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