Companhia Energética de Minas Gerais Fundamental Analysis (NYSE: CIG)
Companhia Energética de Minas Gerais Fundamental Analysis (NYSE: CIG)
Companhia Energética de Minas Gerais (NYSE: CIG) shows moderate financial fundamentals with a PE ratio of 5.92, profit margin of 9.74%, and ROE of 11.58%. The company generates $34.0B in annual revenue with moderate year-over-year growth of 7.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CIG's fundamental strength across five key dimensions:
Efficiency Score
WeakCIG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCIG trades at attractive valuation levels.
Growth Score
ModerateCIG shows steady but slowing expansion.
Financial Health Score
ModerateCIG shows balanced financial health with some risks.
Profitability Score
WeakCIG struggles to sustain strong margins.
Key Financial Metrics
Is CIG Expensive or Cheap?
P/E Ratio
CIG trades at 5.92 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CIG's PEG of -0.04 indicates potential undervaluation.
Price to Book
The market values Companhia Energética de Minas Gerais at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.93 times EBITDA. This is generally considered low.
How Well Does CIG Make Money?
Net Profit Margin
For every $100 in sales, Companhia Energética de Minas Gerais keeps $9.74 as profit after all expenses.
Operating Margin
Core operations generate 10.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.58 in profit for every $100 of shareholder equity.
ROA
Companhia Energética de Minas Gerais generates $4.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Companhia Energética de Minas Gerais produces operating cash flow of $4.82B, showing steady but balanced cash generation.
Free Cash Flow
Companhia Energética de Minas Gerais generates weak or negative free cash flow of $269.03M, restricting financial flexibility.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
CIG converts 0.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.009
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How CIG Stacks Against Its Sector Peers
| Metric | CIG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.92 | 20.43 | Better (Cheaper) |
| ROE | 11.58% | 1037.00% | Weak |
| Net Margin | 9.74% | -667.00% (disorted) | Weak |
| Debt/Equity | 0.69 | 1.68 | Strong (Low Leverage) |
| Current Ratio | 0.93 | 1.72 | Weak Liquidity |
| ROA | 4.92% | 4578092.00% | Weak |
CIG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Companhia Energética de Minas Gerais's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
69.66%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
71.20%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-52.58%
Industry Style: Defensive, Dividend, Income
Declining