Companhia Energética de Minas Gerais S.A. Sponsored ADR
Companhia Energética de Minas Gerais S.A. Sponsored ADR is the U.S.-traded depositary receipt of CEMIG, a Brazilian utility company headquartered in Belo Horizonte, Minas Gerais. The company is engaged in the generation, transmission, distribution, and sale of electricity, and it also operates in natural gas distribution and related energy services. Its business spans core power infrastructure and commercial energy operations, serving residential, commercial, and industrial customers across its service areas. Companhia Energética de Minas Gerais S.A. Sponsored ADR represents a diversified utility platform with activities that support Brazil’s energy network through power generation, grid operations, energy trading, and gas-related businesses. As a sponsored ADR, it provides international investors with access to the company’s underlying Brazilian shares while reflecting its role as a major participant in the country’s regulated and competitive energy markets.
$2.29
-$0.04 (-1.93%)
EOD Oct 21, 2026
14.80% operating margin is respectable but not wide. ROIC at 12.35%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 7.4%, steady but not accelerating. Margins contracted 4.0pp, which offsets some of the top-line progress.
Free cash flow declined 34% versus the prior year, cash generation momentum has weakened. ROIC dropped from 15.20% to 12.35%, capital efficiency is deteriorating.
7.2x earnings, 11.0x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
BRL 43.47B
▲ +7.4% YoY
Net Income (TTM)
BRL 4.60B
▼ -31.2% YoY
Op. Margin
15.23%
▼ -4.0pp YoY
ROIC
12.35%
▼ -2.8pp YoY
Cash Flow & Balance Sheet
FCF (FY)
BRL 3.00B
▼ -34.5% YoY
Op. Cash Flow (FY)
BRL 4.08B
▼ -42.4% YoY
Net Debt
BRL 15.55B
Cash & Equiv.
BRL 4.34B
3Y CAGR: +7.4%
3Y CAGR: -21.7%
Continue Research
Is Companhia Energética de Minas Gerais S.A. Sponsored ADR (CIG) overvalued?
At a P/E of 7.2 and a price-to-free-cash-flow of 11.0, Companhia Energética de Minas Gerais S.A. Sponsored ADR (CIG) trades below a two-stage DCF intrinsic value of about BRL 12.73 per share, so at BRL 2.29 the stock looks undervalued (457.2% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Companhia Energética de Minas Gerais S.A. Sponsored ADR scores 63/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.8%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Companhia Energética de Minas Gerais S.A. Sponsored ADR's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about BRL 12.73 per share for CIG, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around BRL 9.55. At today's BRL 2.29, that puts the stock about 457.2% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Companhia Energética de Minas Gerais S.A. Sponsored ADR a high-quality business?+
Companhia Energética de Minas Gerais S.A. Sponsored ADR scores 63 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 15.2% operating margin and a 12.3% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Companhia Energética de Minas Gerais S.A. Sponsored ADR (CIG) pay a dividend, and how much?+
Yes, Companhia Energética de Minas Gerais S.A. Sponsored ADR pays a regular dividend of about BRL 0.09 per share per year (typically in quarterly installments), a yield of roughly 0.8% at the current price. That is a payout ratio of about 5.7% of earnings, so the dividend is amply covered by earnings. Companhia Energética de Minas Gerais S.A. Sponsored ADR has grown the dividend at roughly 3.6% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For CIG's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Companhia Energética de Minas Gerais S.A. Sponsored ADR a good stock to buy right now?+
That depends on valuation and quality together, not either alone. CIG currently trades below its estimated intrinsic value and scores 63/100 on quality (solid). It also yields about 0.8%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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