Companhia Energetica Minas Gerais (CIG)
NYSE:CIG
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Companhia Energetica Minas Gerais
(NYSE:CIG)
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Rating:59Neutral
Price Target:
$2.50
â–˛(22.55% Upside)
Action:Reiterated
Date:05/14/26
The score is anchored by stable but weakening financial performance (declining TTM revenue/margins and higher debt) and notably weak technical momentum (below key moving averages with negative MACD). These risks are partly offset by attractive valuation, including a low P/E and high dividend yield.
Positive Factors
Regulated distribution revenue base
A large share of CEMIG’s revenue comes from regulated distribution tariffs, providing predictable cash flows and structural demand. Regulated returns reduce volume sensitivity, supporting stable capex planning, dividend capacity and creditworthiness over multiple regulatory cycles.
Negative Factors
Falling TTM revenue and margins
A sharp TTM revenue decline and weaker margins erode the earnings base that funds dividends and debt service. If this trend persists it can reduce retained cash, constrain reinvestment, and force tougher tariff or cost-recovery negotiations with regulators.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated distribution revenue base
A large share of CEMIG’s revenue comes from regulated distribution tariffs, providing predictable cash flows and structural demand. Regulated returns reduce volume sensitivity, supporting stable capex planning, dividend capacity and creditworthiness over multiple regulatory cycles.
Read all positive factors
Companhia Energetica Minas Gerais (CIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.50B
Dividend Yield12.98%
Average Volume (3M)5.65M
Price to Earnings (P/E)47.5
Beta (1Y)0.40
Revenue Growth10.16%
EPS Growth-29.63%
CountryUS
Employees5,028
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.70
Shares Outstanding1,905,179,900
10 Day Avg. Volume6,095,693
30 Day Avg. Volume5,651,788
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)1.10
Price to Sales (P/S)0.73
P/FCF Ratio9.46
Enterprise Value/Market Cap8.70
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit19.21
Enterprise Value/Ebitda16.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.23
Revenue Forecast (FY)$7.06B
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:Aug 13, 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
62
Positive
Balance Sheet
68
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.53B | 42.75B | 39.82B | 36.85B | 34.46B | 33.65B |
| Gross Profit | 3.39B | 7.24B | 7.83B | 8.38B | 6.81B | 6.72B |
| EBITDA | 4.01B | 8.71B | 11.74B | 9.15B | 6.24B | 6.92B |
| Net Income | 2.52B | 4.90B | 7.12B | 5.76B | 4.09B | 3.75B |
Balance Sheet | ||||||
| Total Assets | 67.34B | 66.99B | 59.73B | 55.00B | 53.67B | 52.05B |
| Cash, Cash Equivalents and Short-Term Investments | 1.77B | 2.66B | 3.45B | 3.13B | 4.24B | 4.05B |
| Total Debt | 19.77B | 19.87B | 12.71B | 10.26B | 10.94B | 11.61B |
| Total Liabilities | 38.80B | 38.43B | 32.34B | 30.34B | 31.89B | 32.58B |
| Stockholders Equity | 28.53B | 28.56B | 27.38B | 24.65B | 21.78B | 19.46B |
Cash Flow | ||||||
| Free Cash Flow | 3.18B | 3.31B | 4.58B | 5.38B | 6.32B | 3.45B |
| Operating Cash Flow | 3.83B | 4.00B | 5.50B | 6.64B | 6.61B | 3.69B |
| Investing Cash Flow | -5.52B | -6.53B | -2.38B | -3.97B | -3.21B | 1.37B |
| Financing Cash Flow | -178.45M | 2.54B | -2.76B | -2.58B | -2.79B | -5.91B |
Companhia Energetica Minas Gerais Technical Analysis
Negative
2.04
Price Trends
2.39
Negative
2.24
Negative
2.06
Positive
Market Momentum
-0.06
Positive
39.23
Neutral
26.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIG, the sentiment is Negative. The current price of 2.04 is below the 20-day moving average (MA) of 2.35, below the 50-day MA of 2.39, and below the 200-day MA of 2.06, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 39.23 is Neutral, neither overbought nor oversold. The STOCH value of 26.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks
Companhia Energetica Minas Gerais Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $8.95B | 4.23 | 11.07% | 5.43% | 21.84% | -4.20% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | $59.79B | 13.81 | 6.53% | 2.91% | 2.23% | -35.44% | |
59 Neutral | $7.50B | 47.54 | 16.88% | 12.98% | 10.16% | -29.63% | |
55 Neutral | $18.11B | -48.28 | 7.74% | 4.92% | 13.02% | ― | |
53 Neutral | $10.50B | 5.17 | 28.87% | 5.06% | 2.76% | 5.46% |
* Utilities Sector Average
CIG
Companhia Energetica Minas Gerais
2.23
0.58
35.40%
BIP
Brookfield Infrastructure
39.75
8.97
29.15%
SRE
Sempra Energy
91.55
17.07
22.92%
AES
AES
14.69
5.53
60.39%
ELPC
Companhia Paranaense de Energia Sponsored ADR
11.88
4.35
57.81%
Companhia Energetica Minas Gerais Corporate Events
Cemig Details Hidrelétrica Pipoca Stake Purchase, Debenture Liquidation and AGM Prep in April 2026 6-K
Apr 24, 2026
Cemig has filed its April 2026 Form 6-K with the U.S. Securities and Exchange Commission, consolidating key corporate events and governance actions through mid-April 2026. The filing covers documents for the April 30, 2026 annual shareholders̵...
Cemig Boosts Shareholder Returns With Nearly R$2.9 Billion in IoE and Dividends
Mar 27, 2026
In a Form 6-K filed on March 26, 2026, Cemig detailed a series of shareholder remuneration actions approved in late 2025, including a December 18, 2025 decision by the executive board to declare R$677.4 million in interest on equity, payable in tw...
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.