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Companhia de Saneamento Basico do Estado de Sao Paulo

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In the last month, SABESP's American Depository Receipts (ADR) has outperformed the industry. The company is working diligently to maintain its position as one of the largest water and sewage service providers in the world. With growing population in Brazil, demand for better water and sewage services may boost company's profitability in the near term. However, unwarranted rise in costs and expenses and lower construction might be detrimental to the company's top- and bottom-line results, going forward. Heavy dependence on electricity, as a source of energy for its pumping stations are threats to company’s financial health. SABESP is exposed to risks arising from unwarranted political or governmental interference.

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