CIG  Comp En De Mn Cemig Ads

Exchange

NYSE

Sector

Public Utilities

Industry

Electric Utilities: Central

Market Cap.

3.44B

Vuru Grade

71.82/100

Current Price

$2.73
+0.09 (+3.41%)

Growth Price

$12.66
Undervalued by 363.63%

Company Metrics

  • P/E 11.42
  • P/S 0.56
  • P/B 0.73
  • EPS 0.24
  • Cash ROIC 8.43%
  • Cash Ratio 0.32
  • Dividend 0.11 / 3.84%
  • Avg. Vol. 5.67M
  • Shares 1.26B
  • Market Cap. 3.44B

Company Description

Companhia Energetica De Minas Gerais engages in the generation, transmission, and distribution of electric power primarily in Rio de Janeiro. As of December 31, 2009, it generated electricity at 54 hydroelectric plants, 3 thermoelectric plants, and 2 wind farms, as well as had a total installed generation capacity of 6,642 megawatts. The company also owned and operated 294,552 miles of distributio... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

News Companhia Energetica de Minas Gerais-Cemig ADRCIG.C
Wall Street Journal - Feb 11, 2011
News Companhia Energetica de Minas Gerais-Cemig ADRCIG.C. Significant News Only. 04/19/17; Press Release. Electric Utilities Stocks Under Review -- Companhia Energetica, AES Corp.
Zacks: Cia Energetica de Minas Gerais CEMIG-ADR (CIG) Given Consensus Rating ...
The Cerbat Gem - Apr 28, 2017
Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) has earned an average broker rating score of 2.00 (Buy) from the two analysts that provide coverage for the company, Zacks Investment Research reports.
Rating and Recommendations under Spotlight: Cia Energetica de Minas Gerais ... - Post Registrar
Analyst Downgrades – Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) Stock ... - Market Exclusive
Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) Brazil's Steady Utilities Star
The Oracle Dispatch - Feb 23, 2017
Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) is one of Brazil's brightest stars on the OTC. Brazilian electricity giant Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) has been on a tear of late. The company's shares were trading near the ...
Bristol-Myers Squibb Co (NYSE:BMY) & Cia Energetica de Minas Gerais CEMIG-ADR ...
Daily News Journal - Apr 27, 2017
On Wednesday, Shares of Bristol-Myers Squibb Co (NYSE:BMY) lost -0.32% to $53.77. The share price is trading in a range of $53.71 - 54.65.
Zacks: Cia Energetica de Minas Gerais CEMIG-ADR (CIG) Given $3.20 Average ...
The Cerbat Gem - Apr 2, 2017
Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) has received a consensus broker rating score of 0.00 () from the one analysts that provide coverage for the company, Zacks Investment Research reports.
Market Movers Snapshot – Ambev SA (ADR) (NYSE:ABEV), Cia Energetica de Minas ... - Wall Street Times (press release)
Cia Energetica de Minas Gerais CEMIG-ADR (CIG) Reaches $2.74 After 7.00% Down ...
NormanObserver.com - Apr 26, 2017
The stock of Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) is a huge mover today! The stock decreased 6.16% or $0.18 on April 26, reaching $2.74.
Zacks: Cia Energetica de Minas Gerais CEMIG-ADR (CIG) Given Consensus ...
Markets Daily - Apr 20, 2017
Cia Energetica de Minas Gerais CEMIG-ADR logo Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) has earned a consensus broker rating score of 1.00 (Strong Buy) from the one analysts that cover the stock, Zacks Investment Research reports.
Stocks on the Move: Kroger Co (NYSE:KR), Cia Energetica de Minas Gerais CEMIG ... - Wall Street Times (press release)
Cia Energetica de Minas Gerais CEMIG-ADR - Receive News & Ratings Daily
Markets Daily - Apr 15, 2017
Cia Energetica de Minas Gerais CEMIG-ADR logo News articles about Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) have trended very positive on Saturday, Alpha One Sentiment Analysis reports.
The Cia Energetica de Minas Gerais CEMIG-ADR (CIG) Getting Somewhat Positive ... - Petro Global News 24
Cia Energetica de Minas Gerais CEMIG-ADR (CIG) Given Media Impact Rating of 0.14
Sports Perspectives - Apr 7, 2017
Cia Energetica de Minas Gerais CEMIG-ADR logo Media coverage about Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) has trended somewhat positive this week, AlphaOne Sentiment reports.
Stocks That Should Be on Your Watchlist – Cia Energetica de Minas Gerais CEMIG ... - Wall Street Times (press release)
Worth Chasing Stocks: Southwestern Energy Company (NYSE:SWN), Cia Energetica ...
Wall Street Times (press release) - Apr 19, 2017
Analysts gives Cia Energetica de Minas Gerais CEMIG-ADR (NYSE:CIG) a mean recommendation of 2.50. The company has grown -37.70% in past 3 months and in the last five trades has moved down -37.70%.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CIG to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CIG's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$2.73 Current Price

$12.66 Growth Price (DCF)

Undervalued by 363.63%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 2.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

Poor Cash Return on Invested Capital over the past 5 years

CIG has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CIG has only created $8.43 of cash for every $100 invested.
Figures in BRL. Fiscal year ends in December
20112012201320142015
Free Cash Flow 1.12B 847.00M 2.54B 2.81B 1.92B
divided by
Invested Capital 21.97B 21.38B 20.76B 22.15B 23.57B
Cash ROIC 5.11% 3.96% 12.23% 12.71% 8.16%

Excellent Return on Equity over the past 5 years

Over the past 5 years, CIG has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

CIG has generated $25.51 of Earnings for every $100 of Shareholders' Equity.
Figures in BRL. Fiscal year ends in December
20112012201320142015
Net Income 2.42B 4.27B 3.10B 3.14B 2.49B
divided by
Stockholders' Equity 11.75B 12.04B 12.64B 11.28B 13.00B
Return on Equity 20.56% 35.45% 24.56% 27.81% 19.18%

Excellent Business Performance over the past 10 years

CIG has been able to maintain profitability in good times and bad. This could mean CIG has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

CIG has created positive free cash flow for 9 or more of the past 10 years.
Figures in BRL. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 958.00M 1.72B 1.99B 2.47B 3.11B 1.12B 847.00M 2.54B 2.81B 1.92B

Weak Balance Sheet

CIG's financial position is not ideal. The key is to check whether CIG is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in BRL. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 1.11B 1.78B 1.97B 3.90B 3.30B 3.22B 5.09B 3.14B 2.73B 4.23B
Current Assets 4.85B 5.94B 6.22B 7.88B 8.08B 8.53B 11.99B 6.67B 6.55B 9.38B
Total Assets 23.49B 24.35B 24.78B 28.56B 33.56B 37.36B 40.77B 29.81B 35.00B 40.88B
Current Liabilities 4.39B 4.51B 4.89B 7.39B 6.40B 12.17B 14.31B 5.92B 10.12B 13.09B
Total Liabilities 15.12B 16.13B 15.45B 18.14B 22.08B 25.61B 28.73B 17.18B 23.72B 27.89B
Stockholder' Equity 8.37B 8.22B 9.33B 10.42B 11.48B 11.75B 12.04B 12.64B 11.28B 13.00B
Current Ratio 1.11 1.32 1.27 1.07 1.26 0.70 0.84 1.13 0.65 0.72
TL-to-TA 0.64 0.66 0.62 0.64 0.66 0.69 0.70 0.58 0.68 0.68

Low or No Reinvestment of Profits over the past 10 years

CIG has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CIG operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in BRL. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 4.38B 3.83B 4.59B 4.80B - 3.29B 2.86B - - -
Retained Earnings Growth - -12.71% 19.90% 4.73% -100.00% - -13.27% -100.00% - -

Potential Competitive Advantage over the past 10 years

CIG potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

$15.99 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in BRL. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 702.00M 1.62B 1.75B 1.77B 2.26B 2.42B 4.27B 3.10B 3.14B 2.49B
divided by
Revenue 8.64B 9.43B 9.83B 14.95B 12.86B 15.81B 18.46B 14.63B 19.54B 21.29B
Net Profit Margin 8.13% 17.16% 17.84% 11.82% 17.55% 15.27% 23.13% 21.22% 16.05% 11.70%

Strong Pricing Power over the past 10 years

CIG has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$48.77 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in BRL. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 6.73B 7.28B 6.93B 9.16B 4.57B 5.86B 6.08B 4.78B 6.74B 5.99B
divided by
Revenue 8.64B 9.43B 9.83B 14.95B 12.86B 15.81B 18.46B 14.63B 19.54B 21.29B
Gross Margin 77.93% 77.23% 70.48% 61.26% 35.50% 37.04% 32.92% 32.67% 34.48% 28.15%

High Capital Intensity over the past 10 years

CIG spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

64.96% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in BRL. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 1.33B 1.12B 971.00M 851.00M 347.00M 2.78B 2.27B 977.00M 920.00M 1.08B
divided by
Net Income 702.00M 1.62B 1.75B 1.77B 2.26B 2.42B 4.27B 3.10B 3.14B 2.49B
Capital Expenditure Ratio 189.17% 69.22% 55.39% 48.13% 15.37% 114.95% 53.13% 31.48% 29.33% 43.46%

Inconsistent Dividend History over the past 10 years

CIG has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in BRL. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 2.07B 1.33B 865.00M 937.00M 1.83B 2.04B 1.75B - - -
divided by
Shares Outstanding 546.52M 545.70M 548.77M 685.15M 298.27M 682.41M 1.26B 1.65B - -
Dividend Paid Per Share 2.25 1.45 0.93 0.81 3.64 1.77 0.82 - - -
Price at Year End 10.65 12.25 9.54 16.58 15.68 17.79 10.80 7.66 5.03 1.53
Dividend Yield 21.11% 11.84% 9.80% 4.89% 23.20% 9.94% 7.63% - - -

History of Stock Buybacks over the past 10 years

CIG has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in BRL. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 546.52M 545.70M 548.77M 685.15M 298.27M 682.41M 1.26B 1.65B - -
Stock Bought Back - 0.15% -0.56% -19.91% 129.71% -56.29% -45.77% -23.53% - -
Share your thoughts about CIG

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!