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AES vs CIG-C

AES
The AES Corporation
NEUTRAL
Price
$14.25
Market Cap
$10.15B
Sector
Utilities
AI Confidence
65%
CIG-C
Companhia Energética de Minas Gerais - CEMIG
NEUTRAL
Price
$3.45
Market Cap
$9.87B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
AES
9.63
CIG-C
9.86
Forward P/E
AES
6.16
CIG-C
--
P/B Ratio
AES
2.63
CIG-C
1.73
P/S Ratio
AES
0.84
CIG-C
0.23
EV/EBITDA
AES
14.64
CIG-C
3.46

Profitability

Gross Margin
AES
17.27%
CIG-C
12.5%
Operating Margin
AES
20.5%
CIG-C
20.07%
Profit Margin
AES
8.74%
CIG-C
11.46%
ROE
AES
5.11%
CIG-C
17.51%
ROA
AES
2.27%
CIG-C
6.29%

Growth

Revenue Growth
AES
1.9%
CIG-C
2.9%
Earnings Growth
AES
25.3%
CIG-C
88.1%

Financial Health

Debt/Equity
AES
3.03
CIG-C
0.7
Current Ratio
AES
0.72
CIG-C
1.0
Quick Ratio
AES
0.38
CIG-C
0.78

Dividends

Dividend Yield
AES
4.82%
CIG-C
4.42%
Payout Ratio
AES
46.08%
CIG-C
96.63%

AI Verdict

AES NEUTRAL

The AES Corporation exhibits a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and lacks an Altman Z-Score to confirm safety from distress. While the stock appears undervalued based on a low P/E of 9.63 and forward P/E of 6.16 relative to sector peers, and trades near its Graham Number of $13.44, high leverage (Debt/Equity: 3.03) and weak liquidity (Current Ratio: 0.72) raise concerns. Strong recent earnings growth (YoY +25.3%, Q/Q +26.8%) and a solid dividend yield of 4.82% provide support, but inconsistent quarterly earnings beats (1 of last 4) and bearish technical trend (10/100) limit upside conviction. Analysts recommend a 'buy' with a target of $15.21, implying modest upside, aligning with a neutral stance.

Strengths
Attractive valuation with P/E (9.63) and forward P/E (6.16) well below sector average (20.74)
Dividend yield of 4.82% is high and supported by a sustainable payout ratio of 46.08%
Recent earnings growth is strong: 25.3% YoY and 26.8% Q/Q
Risks
Weak Piotroski F-Score of 4/9 indicates fragile financial health and operational instability
Very high Debt/Equity ratio of 3.03, significantly above sector average of 1.73, increasing financial risk
Poor liquidity with Current Ratio (0.72) and Quick Ratio (0.38) below 1.0, indicating short-term solvency concerns
CIG-C NEUTRAL

CIG-C presents a stark contrast between deep value and deteriorating operational health, highlighted by a weak Piotroski F-Score of 3/9. While the stock trades significantly below its Graham Number ($3.96) and Intrinsic Value ($10.32), the financial health metrics are concerning. Strong profitability (ROE 17.51%) and low leverage (Debt/Equity 0.70) relative to the utilities sector are offset by an unsustainable dividend payout ratio of 96.63%. The valuation is highly attractive on a PEG basis (0.33), but the bearish technical trend and poor health score suggest caution.

Strengths
Significant undervaluation relative to Intrinsic Value ($10.32) and Graham Number ($3.96)
Strong ROE of 17.51%, vastly outperforming the sector average of -5.14%
Conservative leverage with a Debt/Equity ratio of 0.70 compared to the sector average of 1.66
Risks
Weak Piotroski F-Score (3/9) indicating declining fundamental health
Unsustainable dividend payout ratio (96.63%) leaving no room for error or reinvestment
Stagnant revenue growth (2.90% YoY) despite high earnings growth

Compare Another Pair

AES vs CIG-C: Head-to-Head Comparison

This page compares The AES Corporation (AES) and Companhia Energética de Minas Gerais - CEMIG (CIG-C) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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