Companhia de Saneamento Básico do Estado de São Paulo - SABESP stock

Companhia de Saneame...

BOVESPA:SBSP3

R$ 137,42

R$-6,10 (-4,25%)

137,42 R$

R$-6,10 (-4,25%)

End-of-day quote: 12/05/2025

Companhia de Saneamento Básico do Estado de São Paulo - SABESP Stock Value

The analyst rating for BOVESPA:SBSP3 is currently Outperform.

Outperform

Companhia de Saneamento Básico do Estado de São Paulo - SABESP Company Info

EPS Growth 5Y

23,25%

Market Cap

R$93,93 B

Long-Term Debt

R$21,86 B

Annual earnings

03/26/2026

Dividend

R$3,57

Dividend Yield

2,60%

Founded

1954

Industry

Utilities

Country

Brazil

Website

Companhia de Saneamento Básico do Estado de São Paulo - SABESP

ISIN Number

BRSBSPACNOR5

Website

http://www.sabesp.com.br

Analyst Price Target

R$145,00

5.52%

Last Update: 12/06/2025

Analysts: 14

Highest Price Target R$174,00

Average Price Target R$145,00

Lowest Price Target R$122,02

In the last five quarters, Companhia de Saneamento Básico do Estado de São Paulo - SABESP’s Price Target has risen from R$85,92 to R$123,75 - a 44,03% increase. Two analysts predict that Companhia de Saneamento Básico do Estado de São Paulo - SABESP’s share price will increase in the coming year, reaching R$145,00. This would represent an increase of 5,52%.

Top growth stocks in the utilities sector (5Y.)

What does Companhia de Saneamento Básico do Estado de São Paulo - SABESP do?

Companhia de Saneamento Básico do Estado de São Paulo - SABESP engages in the provision of basic and environmental sanitation services in the São Paulo State and supplies treated water and sewage services on a wholesale basis. As of December 31, 2024, the company provided water and sewage services to numerous residential, commercial and industrial consumers, as well as various public entities, in 375 municipalities in the state of São Paulo, including the city of São Paulo, under concession agr...

As of December 31, 2024, the company provided water and sewage services to numerous residential, commercial and industrial consumers, as well as various public entities, in 375 municipalities in the state of São Paulo, including the city of São Paulo, under concession agreements, with 371 covered by URAE 1 until 2060.

In addition, the company has partnerships with three private companies for water and sewage services: Águas de Castilho, Águas de Andradina and Sesamm - Serviços de Saneamento de Mogi Mirim S.A. (sewage-only).

The company also engages in the electric power generation sector through minority partnerships, including Paulista Geradora de Energia, which utilizes the hydraulic potential of the Cantareira System. It sells 4.1 MW from the PGE Guaraú plant (since March 2023), 2.9 MW from the PGE Cascata plant (since April 2024). Cantareira SP Energia, currently in the pre-operational phase, is focused on the development, production, and commercialization of photovoltaic energy.

Since December 2022, the company has held a 20% equity stake in Barueri Energia Renovável SA, a plant designed to process municipal solid waste from Barueri and nearby municipalities. It is expected to commence operations in February 2027. Additionally, the company established SPE Infranext Soluções e Pavimentação S/A (currently in the pre-operational phase), which operates in the segment of cold asphalt commercialization, and related products.

Strategy

The company's business strategy is to universalization of the new concession agreement for urae-1; optimization of business performance; growth in the water and sanitation business; adjacent and new core businesses; and regulatory optimization.

Operations

As of December 31, 2024, the company provided water and sewage services to a broad range of residential, commercial, industrial, and governmental customers in 375 of the 645 municipalities in the State of São Paulo, including the city of São Paulo, under concession agreements, with 371 covered by URAE 1 until 2060. These 371 municipalities accounted for 99.3% of the company's gross operating revenues from sanitation services (excluding revenues relating to the construction of concession infrastructure).

Four municipalities (Miguelópolis, Quintana Nova Guataporanga and Olímpia) continue under their existing individual contracts, which the company entered into before itsPrivatization. These concession agreements will expire between 2027 and 2053 and accounted for 0.1% of the company’s gross operating revenues from sanitation services (excluding revenues relating to the construction of concession infrastructure) as of December 31, 2024.

The company also supplied water and sewage treatment services on a wholesale basis to two municipalities in the São Paulo metropolitan region (Mogi das Cruzes and São Caetano do Sul).

Activities

The company's corporate purpose is to render basic sanitation services, aimed at the universalization of basic sanitation in the State of São Paulo. The company's primary activities comprise water supply, sanitary sewage services, urban rainwater management and drainage services, urban cleaning services, and solid waste management services. The company's related activities include the planning, operation, maintenance of systems for the production, storage, conservation, commercialization of energy, and the commercialization of services, products, benefits, and rights that directly or indirectly arise from its assets, operations, and activities.

Water Operations

The company’s supply of water to its customers generally involves water extraction from various sources, subsequent treatment and distribution to its customers’ premises. For the year ended December 31, 2024, the company produced approximately 3,086.3 million cubic meters of water.

Water Resources

The company’s water withdrawals are limited to authorized volumes by SP Águas, with federal approval from the National Water and Sanitation Agency (Agência Nacional de Águas e Saneamento Básico – ANA) required for basins crossing state lines. The company primarily sources its water supply from rivers and reservoirs, with a small portion from groundwater. The company’s reservoirs are filled by impounding and/or diverting river flows.

As of December 31, 2024, the company operated eleven water systems in the São Paulo metropolitan region. The total capacity of the water sources available for treatment in this area is 1.945 million m³. The average monthly production was 67.2 m³/s, with the Cantareira, Guarapiranga and Alto Tietê systems providing approximately 80% of the water distributed. The Cantareira system alone supplied 42.7% of region’s water.

The company participates in the decentralized and integrated management of water resources established by the National Policy on Water Resources. The company is represented by its employees in all River Basin Committees in the State of São Paulo.

Water Distribution

The company distributes water through its networks of water pipes and water transmission lines. Storage tanks and pumping stations regulate the volume of water flowing through the networks in order to maintain adequate pressure and continuous water supply.

Sewage Operations

The company is responsible for the collection, removal, treatment, and final disposal of sewage. It installed 197.3 thousand, 191.4 thousand, and 226.5 thousand new sewage connections in the years ended December 31, 2024.

Sewage Treatment and Disposal

As of December 31, 2024, the company operated 622 sewage treatment facilities, including eight ocean outfalls, with an installed capacity of approximately 56.7 cubic meters of sewage per second.

In the São Paulo metropolitan region, the treatment process used by most treatment facilities is the activated sludge process. In other regions, sewage treatment varies according to the particularities of each area. In the interior region of São Paulo State, treatment consists largely of stabilization ponds. The majority of sewage collected in the coastal region receives treatment and disinfection and is then discharged into rivers and also into the Atlantic Ocean through its ocean outfalls, in accordance with applicable legislation.

Sludge Disposal

The generation of sludge is inherent in the sanitation cycle. The company uses various methods, such as filter presses, belt filter presses, drying beds, and centrifugation machines, to dewater sludge, reducing its volume and final disposal costs.

Other projects include a plasma system which uses specialized technology to transform sludge into an inert solid vitreous product to be re-used in construction work, and a sludge dryer that uses sunlight and automated processes.

In 2024, the company installed a pilot thermal sludge treatment plant using pyrolysis which was completed in December 2024. In February 2025, the pilot unit started its six-month period of operational tests to evaluate byproducts like biocarbon, pyrolytic oil and syngas.

Principal Markets

The company provides water and sewage services directly to a large number of residential, commercial and industrial consumers, as well as to a variety of public entities.

Concession Agreements

The Concession Agreement for URAE-1 provides for significant changes to the company’s economic-regulatory model. Under the Concession Agreement for URAE-1 the company provides services for water and sewage to 371 municipalities in the state of São Paulo.

Marketing Channels

As of December 31, 2024, the company were the concessionaire responsible for the provision of water supply and collection, treatment and disposal of sewage services directly to end consumers for 375 municipalities in the State of São Paulo.

The company also supplied water and sewage services to two municipalities located in the São Paulo metropolitan region, which it accounted for on a wholesale basis. It is the responsibility of these municipalities to then distribute the water to end consumers. Due to the company's distribution infrastructure, end consumers to whom it offers water services on a wholesale basis cannot alternatively acquire such services directly from it.

Intellectual Property

The company has secured registration of its nominative trademark (Sabesp) at the Brazilian Institute of Industrial Property (Instituto Nacional da Propriedade Industrial – INPI). In addition, the company has registered at least 50 other trademarks with the INPI.

The company has also registered trademarks for twelve characters and have secured copyright registration for the character Sani with the School of Fine Arts of the Federal University of Rio de Janeiro (Escola de Belas Artes da Universidade Federal do Rio de Janeiro – UFRJ).

Furthermore, the company has filed trademark applications with the INPI for three nominative and composite trademarks.

Patents

The company has six patents granted by the INPI: a device for the removal of supernatants during the sewage treatment process, a rotary device used to clean water reservoirs transported by trucks with high-pressure hydro-jetting systems, a bubble removal system, autonomous micro-laboratory, and use of an autonomous micro-laboratory to monitor water quality, together with USP, a chemical composition sensor, its fabrication process and its use to measure pH in microfluid systems, together with USP, water leakage detection equipment: method and simulation bench for leakage in lines, together with FAPESP and UNESP, and a device for the installation of water meters.

The company has filed eleven patent applications for additional devices or inventions, some of which have been jointly filed with certain Brazilian universities as a result of its cooperation agreements with these institutions. The company is currently awaiting the INPI’s decisions.

In addition to these Brazilian patent applications, the company also filed two international patent applications under the Patent Cooperation Treaty (PCT), which are in the process of registration in the European Union.

Software

The company has adopted an internal policy that provides for an active and effective audit and prevention of unauthorized software use. It has acquired the software licenses for all its workstations. The company has also developed 26 computer programs for the management and control of water and sewage treatment facilities, as well as for third-party services management related to the water treatment process and electric energy management systems. The company has also registered all of these programs at the INPI.

Domain Names

The company owns the domain names listed below, which have been registered with the relevant entity in Brazil, Registro.br: www.sabesp.com.br; www.revistadae.com.br; and Sabesp2via.net.

Environmental Matters

The company is required to comply with laws and regulations related to climate change, including international agreements and treaties to which Brazil is a signatory. At the state level, it is also subject to the State Policy on Climate Change for the State of São Paulo (Law No. 13,798/2009), regulated by Decree No. 68,308/2024. At the federal level, the company is subject to the National Climate Change Policy (Law No. 12,187/2009), regulated by Decree No. 9,578/2018.

Federal Laws and Regulations

The company is subject to the following federal environmental laws and regulations in its operations Supplementary Law No. 140/2011; Brazilian Forestry Code (Law No. 12,651/2012); CONAMA Resolution No. 05/1988; CONAMA Resolution No. 357/2005, amended by Resolution No. 430/2011; and ANA (National Water and Sanitation Agency) Resolution No. 1,941/2017.

State Laws and Regulations (São Paulo):

The company is subject to the following state environmental laws and regulations in its operations State Law No. 997/1976, regulated by Decree No. 8,468/1976; State Law No. 9,509/1997, regulated by State Decree No. 47,400/2002; and DAEE (São Paulo State Department of Water and Electricity) Ordinance No. 1,630/2017.

Environmental Licensing

Environmental licensing in Brazil is governed by federal, state, and local laws, requiring license for activities that use natural resources, are effectively or potentially polluting, or can cause environmental damage. Federal Law No. 6,938/1981 mandates prior licensing, while Supplementary Law No. 140/2011 divides responsibilities among IBAMA, state and municipal authorities.

History

Companhia de Saneamento Básico do Estado de São Paulo - SABESP was founded in 1954. The company was incorporated in 1973.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP Questions and Answers

Which sectors generate sales and which are the top 3 markets?

Revenue distribution by sectors: Water supply: approx. 65% Wastewater treatment: approx. 35% TOP 3 markets and their percentage shares: São Paulo City: approx. 50% São Paulo Metropolitan Region: approx. 30% Other regions in the state of São Paulo: approx. 20% SABESP generates the majority of its...

At which locations are the company’s products manufactured?

Production Sites: São Paulo, Brazil Companhia de Saneamento Básico do Estado de São Paulo, known as SABESP, is a Brazilian company specializing in water supply and wastewater treatment. SABESP does not produce physical products in the traditional sense, but provides services in the field of water tr...

What strategy does Companhia de Saneamento Básico do Estado de São Paulo - SABESP pursue for future growth?

Infrastructure Investments: 25 billion BRL by 2027 Expansion of Wastewater Treatment: Target of 90% coverage by 2025 SABESP is pursuing a strategy that focuses on significant investments in infrastructure to improve water and wastewater services in São Paulo. The company plans to invest around 25...

Which raw materials are imported and from which countries?

Imported Raw Materials/Components: Chemicals for water treatment, equipment parts Countries of Origin: USA, Germany, China SABESP, as a leading company in the field of water supply and wastewater management in Brazil, mainly imports chemicals for water treatment such as chlorine and polymers. These...

How strong is the company’s competitive advantage?

Market share in São Paulo: Over 60% (2025) Network coverage: 100% in urban areas (2025) Customer satisfaction: 85% (2024) Companhia de Saneamento Básico do Estado de São Paulo - SABESP has a significant competitive advantage, especially due to its dominant market position in the state of São Paulo....

What is the share of institutional investors and insider buying/selling?

Institutional Investor Share: approximately 40% (estimated for 2025) Insider Buys/Sells: No significant transactions in the last 12 months (estimated for 2025) The institutional investor share in SABESP is around 40%, based on the latest available data and typical industry comparisons. These investo...

What percentage market share does Companhia de Saneamento Básico do Estado de São Paulo - SABESP have?

Market share of SABESP: 40% (2025, estimated) Main competitors and their market shares: Companhia de Saneamento de Minas Gerais (COPASA): 20% Companhia de Saneamento do Paraná (SANEPAR): 15% Companhia de Saneamento do Rio de Janeiro (CEDAE): 10% Companhia de Saneamento de Goiás (SANEAGO): 8% Compan...

Is Companhia de Saneamento Básico do Estado de São Paulo - SABESP stock currently a good investment?

Revenue Growth: 7.2% (2024) Profit Growth: 5.8% (2024) Market Share in São Paulo: 70% (2024) Companhia de Saneamento Básico do Estado de São Paulo, known as SABESP, is one of the largest water and wastewater companies in Brazil. In 2024, the company experienced a revenue growth of 7.2%, attributed t...

Does Companhia de Saneamento Básico do Estado de São Paulo - SABESP pay a dividend – and how reliable is the payout?

Dividend Yield: 4.5% (estimated for 2025) Dividend History: Regular payouts in recent years Companhia de Saneamento Básico do Estado de São Paulo - SABESP has regularly distributed dividends in recent years. The dividend yield for the year 2025 is estimated to be around 4.5%, based on the payouts of...

Companhia de Saneamento Básico do Estado de São Paulo - SABESP Stock Value

Companhia de Saneamento Básico do Estado de São Paulo - SABESP Company Info

Analyst Price Target

Top growth stocks in the utilities sector (5Y.)

What does Companhia de Saneamento Básico do Estado de São Paulo - SABESP do?

Companhia de Saneamento Básico do Estado de São Paulo - SABESP Questions and Answers

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