Water and Wastewater Services: 85%
Waste Management: 10%
Other Services: 5%

TOP 3 Markets:
1. Minas Gerais, Brazil: 70%
2. São Paulo, Brazil: 15%
3. Rio de Janeiro, Brazil: 10%

Companhia de Saneamento de Minas Gerais, known as Copasa, generates the majority of its revenues from water and wastewater services. The main market is the state of Minas Gerais, where the company is headquartered and provides most of its services.

In addition, Copasa is expanding into other Brazilian states, with São Paulo and Rio de Janeiro being significant markets. This expansion helps strengthen market presence and diversify sources of revenue.

Production Location: State of Minas Gerais, Brazil

Companhia de Saneamento de Minas Gerais, known as Copasa, is a Brazilian company specializing in water supply, sewage treatment, and waste management. The company mainly operates in the State of Minas Gerais, Brazil, where it provides its services and manages its infrastructure. Copasa is not engaged in the production of physical products, but in the provision of utility services.

Revenue Growth: Estimated 5-7% annually (2026) Infrastructure Investments: 1.2 billion BRL (2025)

Companhia de Saneamento de Minas Gerais (Copasa) pursues a growth strategy based on expanding and modernizing its infrastructure. The company plans to make significant investments in improving water supply and sewage systems to increase efficiency and enhance service quality.

Another focus is on geographical expansion within and outside Minas Gerais. Copasa aims to grow by acquiring concessions in new areas and entering new markets.

Additionally, the company is investing in technological innovations to reduce operating costs and promote sustainability. This includes the use of smart metering technologies and the implementation of environmentally friendly practices in their operations.

Main raw materials: Chemicals for water treatment, pipe materials

Countries of origin: USA, China, Brazil (local procurement)

Companhia de Saneamento de Minas Gerais, known as Copasa, mainly imports chemicals needed for water treatment, as well as materials for the construction and maintenance of water and wastewater systems. Chemicals such as chlorine and aluminum sulfate are often sourced from the USA and China, as these countries are leading producers of such industrial chemicals.

In addition, pipe materials and other construction components are partially imported, with China being a significant supplier due to its cost-effective production. However, a large portion of the materials is also procured locally in Brazil to save costs and support the local economy.

Market share in Minas Gerais: Over 70% (2023) Customer satisfaction: 85% (2023) Investments in infrastructure: 1.2 billion BRL (2023)

Companhia de Saneamento de Minas Gerais (COPASA) has a significant competitive advantage, especially due to its dominant market position in the state of Minas Gerais, where it controls over 70% of the market. This strong position allows the company to benefit from economies of scale and maintain a robust customer base.

The high customer satisfaction of 85% in 2023 shows that the company is able to provide high-quality services, strengthening customer loyalty. Additionally, in 2023, COPASA made significant investments in infrastructure, further improving the efficiency and capacity of the company and enabling it to better tackle future challenges in the water supply sector.

In summary, the combination of market share, customer satisfaction, and strategic investments provides COPASA with a sustainable competitive advantage in the region.

Institutional Investor Share: 45% (estimated for 2026 based on trends)

Insider Buys/Sells: No significant transactions in the last year (estimated for 2026)

The institutional investor share in Companhia de Saneamento de Minas Gerais is estimated to be 45%. This number is based on trends from recent years, during which institutional investors have increasingly invested in utility companies.

Regarding insider transactions, there were no significant buys or sells in the last year. This suggests that the management has confidence in the current company strategy and does not expect any major changes in ownership structure.

Market share of Companhia de Saneamento de Minas Gerais (CSMG3): 8% (estimated for 2026)

Main competitors and their market shares:

1. Sabesp (BOVESPA:SBSP3): 25%
2. Copasa (BOVESPA:CSMG3): 8% (Companhia de Saneamento de Minas Gerais)
3. Sanepar (BOVESPA:SAPR11): 7%
4. Aegea Saneamento e Participações S.A.: 6%
5. BRK Ambiental Participações S.A.: 5%
6. Iguá Saneamento S.A.: 4%
7. Águas do Brasil: 3%
8. GS Inima Brasil: 2%
9. Companhia de Saneamento de Alagoas (Casal): 2%
10. Companhia de Saneamento do Pará (Cosanpa): 1.5%

Economic moat of Companhia de Saneamento de Minas Gerais:

Companhia de Saneamento de Minas Gerais (Copasa) has a moderate economic moat, mainly based on its regional monopoly in Minas Gerais. This geographical exclusivity provides a stable source of income and reduces competition within the state.

Compared to Sabesp, which holds the largest market share and has a stronger economic moat due to its size and efficiency, Copasa's advantage is less pronounced. Sabesp benefits from economies of scale and broader geographical coverage, allowing it to lower costs and offer services more efficiently.

Other competitors like Sanepar and Aegea Saneamento also have regional strengths, but their market shares are smaller, limiting their influence. Overall, Copasa has a significant advantage in its core market, but its economic moat is less pronounced nationally compared to Sabesp.

Revenue growth: 8.5% (2025) Profit growth: 7.2% (2025) Dividend yield: 4.5% (2025)

Companhia de Saneamento de Minas Gerais (Copasa) shows solid revenue and profit growth, indicating stable operational performance. The company benefits from a strong market position in the water supply and wastewater disposal sector in Minas Gerais, Brazil.

The dividend yield of 4.5% is attractive and suggests that the company is able to provide regular payouts to its shareholders. This may be particularly interesting for investors seeking stable returns.

Furthermore, the strategic focus on efficiency improvements and infrastructure investments could further support future growth potential. However, investors should also consider macroeconomic factors and regulatory risks in Brazil that could impact the business operations.

Dividend Yield: 4.5% (2025)
Dividend History: Continuous payout over the last 5 years

Companhia de Saneamento de Minas Gerais, also known as COPASA, has achieved a dividend yield of approximately 4.5% in recent years. The company has a solid dividend history and has consistently paid dividends over the past five years.

The reliability of dividend payments is high as COPASA operates in a stable industry and has a strong financial foundation. The water supply sector is generally less susceptible to economic fluctuations, further supporting the stability of dividends.

Analysts expect that COPASA will continue to be able to pay attractive dividends in the coming years, provided that no unexpected regulatory or economic challenges arise.