How often is Companhia de Saneamento Basico do Estado de Sao Paulo SABESP SBS reviewed for Shariah compliance?

Tabadulat reviews Companhia de Saneamento Basico do Estado de Sao Paulo SABESP SBS for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Companhia de Saneamento Basico do Estado de Sao Paulo SABESP reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Companhia de Saneamento Basico do Estado de Sao Paulo SABESP SBS pass the AAOIFI Non Permissible Income criteria?

No, as of September 2026, Companhia de Saneamento Basico do Estado de Sao Paulo SABESP stock (SBS) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or Riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP's income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Companhia de Saneamento Basico do Estado de Sao Paulo SABESP SBS pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of September 2026, Companhia de Saneamento Basico do Estado de Sao Paulo SABESP stock (SBS) passes the AAOIFI interest-bearing investments screen. AAOIFI caps interest-earning holdings at 30% of market capitalisation so that shareholders do not materially profit from Riba. Measured against the latest data, Companhia de Saneamento Basico do Estado de Sao Paulo SABESP's interest-bearing investments sit within the limit. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Companhia de Saneamento Basico do Estado de Sao Paulo SABESP SBS pass the AAOIFI Interest Bearing Debt criteria?

No, as of September 2026, Companhia de Saneamento Basico do Estado de Sao Paulo SABESP stock (SBS) does not pass the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar Riba-based financing) must remain below 30% of its market capitalisation. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP's interest-bearing debt currently exceeds this 30% limit, meaning the company relies on Riba-based financing beyond the level AAOIFI permits for a Halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Companhia de Saneamento Basico do Estado de Sao Paulo SABESP SBS stock?

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP (SBS) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (Tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a Halal investment. If Companhia de Saneamento Basico do Estado de Sao Paulo SABESP returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Companhia de Saneamento Basico do Estado de Sao Paulo SABESP SBS pass the AAOIFI Preference Share screen?

Yes, as of September 2026, Companhia de Saneamento Basico do Estado de Sao Paulo SABESP stock (SBS) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Is Companhia de Saneamento Basico do Estado de Sao Paulo SABESP (SBS) stock Halal?

NYSE

Shariah-Compliant

Not Shariah

As of the September 2026 screening, Companhia de Saneamento Basico do Estado de Sao Paulo SABESP (SBS) does not meet the AAOIFI Shariah Standard No. 21 threshold for the non-permissible income and interest-bearing debt screens, so the stock is not currently classified as Shariah compliant. It is re-screened every month and can regain compliance if its financial structure changes.

Sector:

Utilities

Industry:

Utilities - Regulated Water

Employees:

9306

Website:

https://www.sabesp.com.br

Market cap:

$17.9B

P/E ratio:

10.6

Dividend yield:

2.49%

52-week range:

$4.40 - $7.16

Data as of:

3 September 2026

Screening history:

September 2026: FAIL

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP represents American Depositary Receipts for a leading water and sewage utility company based in São Paulo, Brazil. This ADR allows US investors to invest indirectly in Sabesp, as the company is commonly known, providing access to a pivotal component of Brazil's basic infrastructure sector without dealing with foreign exchanges directly. For Muslim investors, though, the most pressing question is simpler: is Companhia de Saneamento Basico do Estado de Sao Paulo SABESP a Halal investment?

Is Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Shariah compliant?

Finance is the sector where Shariah screening does the most work, because Riba is not incidental here, it can be the product itself. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP passes the business activity screen only if its revenue comes from permissible services rather than lending at interest, and the financial screens of AAOIFI Shariah Standard No. 21 still apply in full.

Does Companhia de Saneamento Basico do Estado de Sao Paulo SABESP pass the business activity test?

The activity screen is only part of the picture this month: Companhia de Saneamento Basico do Estado de Sao Paulo SABESP currently fails the non-permissible income and interest-bearing debt screens, so the overall verdict is not compliant regardless of the business itself. The watch item in this sector is the sharpest of all: revenue must come from permissible services, not from lending at interest.

Is Companhia de Saneamento Basico do Estado de Sao Paulo SABESP's income Halal?

No. Companhia de Saneamento Basico do Estado de Sao Paulo SABESP's income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Companhia de Saneamento Basico do Estado de Sao Paulo SABESP meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing debt currently exceeds the 30% cap, while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read What is Riba? A Clear Guide for Ethical Muslim Investing

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Can I buy Companhia de Saneamento Basico do Estado de Sao Paulo SABESP (SBS) stock on Tabadulat?

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP (SBS) does not currently pass AAOIFI screening, so it isn't available to trade among the Halal stocks on Tabadulat. You can still open an account, track SBS with the free Halal stock screener, and discover Shariah compliant stocks to invest in instead. Compliance is re-screened monthly, and stocks can regain Halal status when their financials change.

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