Intrinsiqq
Companhia Energética de Minas Gerais S.A. Sponsored ADR logoCompanhia Energética de Minas Gerais S.A. Sponsored ADRCIG
$2.29-1.93%
Companhia Energética de Minas Gerais S.A. Sponsored ADR logo

Companhia Energética de Minas Gerais S.A. Sponsored ADR

CIG

$2.29

-$0.04 (-1.93%)

⊜ Compare
ProfitabilitySolid marginsGrowthSteady growthCash FlowN/AValuationAttractively priced
What stands out

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.

What's changing

Revenue grew 7.4%, steady but not accelerating. Margins contracted 4.0pp, which offsets some of the top-line progress.

What deserves caution

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.

Valuation context

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

+16.0%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market CapBRL 33.00B
EPSBRL 1.61
P/E7.18
P/FCF11.00
EV/EBITDA6.09
FCF Yield9.1%
Div. Yield0.79%
Net Debt/FCF—
52-Week Range
$1.88$2.73

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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Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.