Companhia Energetica Minas Gerais (CIG)
NYSE:CIG
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Companhia Energetica Minas Gerais
(NYSE:CIG)
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Rating:69Neutral
Price Target:
$2.50
▲(22.55% Upside)
Action:DowngradedDate:03/24/26
The score is driven primarily by moderate financial performance (2025 margin compression and higher leverage) offset by attractive valuation (low P/E and high dividend yield). Technicals add support with a clear uptrend and positive momentum, while the earnings call was mixed—strong investment and credit positioning but notable EBITDA and profit declines plus distribution headwinds.
Positive Factors
Regulated, diversified utility model
Cemig’s integrated presence across generation, transmission and regulated distribution creates predictable, contract-backed cash flows. Regulated tariffs are designed to recover costs and allow a return on capital, supporting steady revenue visibility and lower demand sensitivity over multi-year horizons.
Negative Factors
Rising leverage
A meaningful increase in leverage reduces balance-sheet flexibility and raises refinancing and interest burden risks. For a capital-intensive utility, higher indebtedness constrains capacity for additional investments, margin shocks or shareholder distributions over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated, diversified utility model
Cemig’s integrated presence across generation, transmission and regulated distribution creates predictable, contract-backed cash flows. Regulated tariffs are designed to recover costs and allow a return on capital, supporting steady revenue visibility and lower demand sensitivity over multi-year horizons.
Read all positive factors
Companhia Energetica Minas Gerais (CIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.44B
Dividend Yield12.98%
Average Volume (3M)7.33M
Price to Earnings (P/E)6.5
Beta (1Y)0.38
Revenue Growth-0.38%
EPS Growth-53.94%
CountryUS
Employees5,028
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.05
Shares Outstanding1,905,179,900
10 Day Avg. Volume6,382,669
30 Day Avg. Volume7,329,631
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)1.10
Price to Sales (P/S)0.75
P/FCF Ratio9.46
Enterprise Value/Market Cap8.77
Enterprise Value/Revenue1.73
Enterprise Value/Gross Profit12.06
Enterprise Value/Ebitda10.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.25
Revenue Forecast (FY)$6.99B
Companhia Energetica Minas Gerais Business Overview & Revenue Model
Company Description
Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of energy in Brazil. As of December 31, 2021, the company operated 70 hydroelectric, wind, and solar plants with an ins...
How the Company Makes Money
CEMIG primarily makes money through regulated utility revenues and electricity commercialization. A major revenue stream comes from electricity distribution, where the company earns regulated tariffs for delivering electricity to end customers wit...
Companhia Energetica Minas Gerais Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
Cemig's earnings call highlighted substantial investments and achievements, such as maintaining a strong credit rating and receiving industry recognition. However, these positives were balanced by significant financial challenges, including declines in EBITDA and net profit, as well as market pressures. Overall, the sentiment reflects resilience amid difficulties.Positive Updates
Record Investment Program
Cemig announced the largest investment program in its history, totaling BRL 4.7 billion for the quarter, with BRL 3.6 billion allocated to distribution. This represents a significant increase compared to the previous year.
Negative Updates
Distribution and Generation Challenges
Cemig faced challenges in distribution due to large clients leaving the network and issues with GSF impacting generation, leading to the need to buy energy at spot prices.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Investment Program
Cemig announced the largest investment program in its history, totaling BRL 4.7 billion for the quarter, with BRL 3.6 billion allocated to distribution. This represents a significant increase compared to the previous year.
Read all positive updates
Company Guidance
During Cemig's Third Quarter 2025 Earnings Call, significant financial and operational metrics were discussed by key company executives. The company reported a recurring EBITDA of BRL 1.5 billion, despite a 16.3% drop compared to the previous year. Investments for the first nine months of 2025 totaled BRL 4.7 billion, with BRL 3.6 billion allocated to distribution, BRL 199 million to generation, and BRL 149 million to expansion and maintenance. Cemig maintained a strong financial position, boasting a leverage ratio of 1.76 times net debt over recurring EBITDA, and retained a AAA rating from two agencies. Additionally, Cemig received recognition as the best energy company in Brazil by Veja Negócios. However, challenges were noted due to client migration impacting distribution results, and nonrecurring effects from 2024 were highlighted, such as the absence of BRL 1.6 billion from the disposal of Aliança. Despite these challenges, the company's strategic investments and financial management indicate resilience and a positive outlook for future growth and sustainability.Companhia Energetica Minas Gerais Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
60
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 41.91B | 39.82B | 36.85B | 34.46B | 33.65B |
| Gross Profit | 7.07B | 7.83B | 8.38B | 6.81B | 6.72B |
| EBITDA | 7.41B | 11.74B | 9.15B | 6.24B | 6.92B |
| Net Income | 4.80B | 7.12B | 5.76B | 4.09B | 3.75B |
Balance Sheet | |||||
| Total Assets | 66.99B | 59.73B | 55.00B | 53.67B | 52.05B |
| Cash, Cash Equivalents and Short-Term Investments | 2.66B | 3.45B | 3.13B | 4.24B | 4.05B |
| Total Debt | 19.87B | 12.71B | 10.26B | 10.94B | 11.61B |
| Total Liabilities | 38.43B | 32.34B | 30.34B | 31.89B | 32.58B |
| Stockholders Equity | 28.56B | 27.38B | 24.65B | 21.78B | 19.46B |
Cash Flow | |||||
| Free Cash Flow | 3.31B | 4.58B | 5.38B | 6.32B | 3.45B |
| Operating Cash Flow | 4.00B | 5.50B | 6.64B | 6.61B | 3.69B |
| Investing Cash Flow | -6.53B | -2.38B | -3.97B | -3.21B | 1.37B |
| Financing Cash Flow | 2.54B | -2.76B | -2.58B | -2.79B | -5.91B |
Companhia Energetica Minas Gerais Technical Analysis
Positive
2.04
Price Trends
2.25
Positive
2.12
Positive
1.99
Positive
Market Momentum
0.08
Negative
74.38
Negative
82.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIG, the sentiment is Positive. The current price of 2.04 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.25, and above the 200-day MA of 1.99, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 74.38 is Negative, neither overbought nor oversold. The STOCH value of 82.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CIG.
Companhia Energetica Minas Gerais Risk Analysis
Companhia Energetica Minas Gerais disclosed 60 risk factors in its most recent earnings report. Companhia Energetica Minas Gerais reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
A member of our board of directors is party to judicial proceedings. Q4, 2022
2.
Increases in energy generated by MMGD in Cemig D's concession area could cause an imbalance in its cash flows and financial results. Q4, 2022
3.
The continuing impact of the ongoing military conflict between Russia and Ukraine, or any widening of the conflict, may have a material adverse effect on the global economy, certain material and commodity prices and potentially on our business. Q4, 2022
Companhia Energetica Minas Gerais Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $9.45B | 3.67 | 8.00% | 5.43% | 1.96% | -35.00% | |
69 Neutral | $8.44B | 6.53 | 17.23% | 12.98% | -0.38% | -53.94% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $64.60B | 31.37 | 5.82% | 2.91% | 9.07% | -28.58% | |
59 Neutral | $16.96B | 35.60 | 9.74% | 4.92% | 8.14% | ― | |
55 Neutral | $10.26B | 10.76 | 20.40% | 5.06% | -1.55% | 12.83% |
* Utilities Sector Average
CIG
Companhia Energetica Minas Gerais
2.64
1.18
80.45%
BIP
Brookfield Infrastructure
36.69
10.55
40.38%
SRE
Sempra Energy
99.75
34.83
53.65%
AES
AES
14.41
4.67
47.92%
ELPC
Companhia Paranaense de Energia Sponsored ADR
13.14
7.28
124.16%
Companhia Energetica Minas Gerais Corporate Events
Cemig Books R$1.25 Billion Health-Plan Settlement and Awaits Tax Refund Impact After Supreme Court Ruling
Jan 20, 2026
In August and September 2025, Cemig advanced the resolution of legacy labor and regulatory issues while signaling potential financial impacts for its electricity distribution operations. On September 11 and 19, 2025, the company negotiated and sec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.