Companhia Energetica Minas Gerais (CIG) AI Stock Analysis

• Market Cap: $6.65B
• Dividend Yield: 12.12%
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.41
• Revenue Growth: -0.38%
• EPS Growth: -53.94%
• Country: US
• Employees: 5,028
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.05
• Shares Outstanding: 1,905,179,900
• 10 Day Avg. Volume: 2,650,981
• 30 Day Avg. Volume: 2,630,554
• PEG Ratio: 0.18
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 6.86
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 1.37
• 1Y Price Target: $1.90
• Price Target Upside: -6.86% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.27
• Revenue Forecast (FY): $7.13B

• Rating: 70 Outperform
• Price Target: $2.50 ▲(22.55% Upside)

Companhia Energetica Minas Gerais scores well due to its strong financial performance and attractive valuation, with a high dividend yield and low P/E ratio. While technical indicators show a positive trend, momentum is limited. The earnings call reflects resilience despite financial challenges, contributing to a balanced outlook.

Positive Factors

Investment Program

The substantial investment program indicates Cemig's commitment to infrastructure expansion and modernization, supporting long-term growth and operational efficiency.

Credit Rating

A strong credit rating enhances Cemig's ability to secure favorable financing terms, supporting future investments and financial stability.

Industry Recognition

Recognition as a top energy company underscores Cemig's leadership and excellence, potentially attracting new partnerships and customer trust.

Negative Factors

EBITDA Decline

A decline in EBITDA indicates pressure on profitability, which may affect Cemig's ability to reinvest in growth and maintain competitive margins.

Net Profit Decrease

A significant drop in net profit can strain financial resources, impacting Cemig's capacity to fund operations and strategic initiatives.

Market Reduction

A shrinking market poses challenges for revenue growth, potentially limiting Cemig's ability to expand its customer base and increase sales.

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 installed capacity of 5,700 MW; 339,086 miles of distribution lines; and 4,449 miles of transmission lines. It is also involved in the acquisition, transportation, and distribution of gas and its sub products and derivatives; provision of cloud solution, IT infrastructure, IT management, and cybersecurity services; provision of technology systems and systems for operational management of public service concessions; sale and trading of energy; provision of telecommunications services; and distributed generation, account services, cogeneration, energy efficiency, and supply and storage management activities. The company was incorporated in 1952 and is headquartered in Belo Horizonte, Brazil.

How the Company Makes Money

CIG generates revenue through multiple streams, primarily from the sale of electricity to residential, commercial, and industrial customers. The company operates a diversified portfolio of power generation facilities, with a significant portion of its output coming from hydroelectric power plants, which are often complemented by thermal plants and renewable energy projects. Revenue is also derived from transmitting electricity through its network of transmission lines and substations. Key partnerships with regulatory bodies and other energy firms facilitate access to new markets and investment opportunities, enhancing its earning potential. Additionally, CIG may engage in long-term power purchase agreements (PPAs) with large consumers, ensuring stable cash flows and reducing market volatility impacts.

Companhia Energetica Minas Gerais Financial Statement Overview

Summary

Companhia Energetica Minas Gerais demonstrates solid financial performance with strong profitability and efficient equity use. While revenue growth is positive, some pressure on margins and cash flow conversion could pose challenges. The company's moderate leverage and strong return on equity are positive indicators, but careful monitoring of cash flow metrics is advisable.

Income Statement

Companhia Energetica Minas Gerais shows strong profitability with a consistent EBIT margin of over 20% in TTM (Trailing-Twelve-Months). However, the gross profit margin has slightly declined from previous years. Revenue growth is positive, but the net profit margin has decreased compared to the previous year, suggesting some pressure on net earnings.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.55 in TTM, indicating a balanced approach to leveraging. Return on equity remains strong at over 23%, showcasing efficient use of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Operating cash flow has decreased compared to the previous year, impacting the operating cash flow to net income ratio. Free cash flow growth is positive in TTM, but the free cash flow to net income ratio has declined, indicating potential challenges in converting income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.41B	39.82B	36.85B	34.46B	33.65B	25.23B
Gross Profit	6.04B	7.83B	8.38B	6.81B	6.72B	5.38B
EBITDA	6.23B	11.74B	9.15B	6.24B	6.92B	6.20B
Net Income	4.02B	7.12B	5.76B	4.09B	3.75B	2.86B
Balance Sheet
Total Assets	64.75B	59.73B	55.00B	53.67B	52.05B	54.08B
Cash, Cash Equivalents and Short-Term Investments	2.32B	3.45B	3.13B	4.24B	4.05B	5.30B
Total Debt	15.84B	12.71B	10.26B	10.94B	11.61B	15.25B
Total Liabilities	36.02B	32.34B	30.34B	31.89B	32.58B	36.60B
Stockholders Equity	28.73B	27.38B	24.65B	21.78B	19.46B	17.47B
Cash Flow
Free Cash Flow	1.98B	4.58B	5.38B	6.32B	3.45B	8.43B
Operating Cash Flow	4.28B	5.50B	6.64B	6.61B	3.69B	8.61B
Investing Cash Flow	-3.93B	-2.38B	-3.97B	-3.21B	1.37B	-5.08B
Financing Cash Flow	-2.56B	-2.76B	-2.58B	-2.79B	-5.91B	-2.39B

Companhia Energetica Minas Gerais Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.13, below the 50-day MA of 2.06, and above the 200-day MA of 1.86, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 28.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CIG.

Companhia Energetica Minas Gerais Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELPC	75 Outperform	$7.86B	19.70	8.00%	5.12%	1.96%	-35.00%
ELP	75 Outperform	$7.64B	14.57	8.00%	5.19%	1.96%	-35.00%
SRE	74 Outperform	$61.82B	29.17	7.10%	2.73%	9.07%	-28.58%
CIG	70 Outperform	$6.65B	8.61	13.35%	12.12%	-0.38%	-53.94%
BIP	69 Neutral	$16.67B	56.64	6.28%	4.77%	8.14%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	59 Neutral	$10.01B	8.56	23.02%	5.01%	-1.55%	12.83%

Companhia Energetica Minas Gerais Corporate Events

CEMIG Secures GSF Credits and Plans Financial Valuation

On August 1, 2025, CEMIG announced that its subsidiary, Cemig GT, along with Cemig PCH S.A. and the Queimado Consortium, won an auction held by the Electric Energy Trading Chamber (CCEE) for Generation Scaling Factor (GSF) credits. This victory will extend the concessions for the Queimado, Pai Joaquim, and Irapé hydroelectric power plants by seven, seven, and three years, respectively, with a total investment of approximately R$200 million. Additionally, CEMIG received an official letter from its controlling shareholder, the State of Minas Gerais, authorizing the Brazilian Development Bank to initiate a Request for Information to identify consultants for preparing CEMIG’s economic and financial valuation report, aimed at debt amortization under the Full Debt Repayment Program for States.