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CIG-C vs NGG

CIG-C
Companhia Energética de Minas Gerais - CEMIG
NEUTRAL
Price
$3.45
Market Cap
$9.87B
Sector
Utilities
AI Confidence
85%
NGG
National Grid plc
BEARISH
Price
$89.54
Market Cap
$89.06B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
CIG-C
9.86
NGG
22.16
Forward P/E
CIG-C
--
NGG
14.7
P/B Ratio
CIG-C
1.73
NGG
8.96
P/S Ratio
CIG-C
0.23
NGG
5.09
EV/EBITDA
CIG-C
3.46
NGG
67.62

Profitability

Gross Margin
CIG-C
12.5%
NGG
100.0%
Operating Margin
CIG-C
20.07%
NGG
24.15%
Profit Margin
CIG-C
11.46%
NGG
16.43%
ROE
CIG-C
17.51%
NGG
7.87%
ROA
CIG-C
6.29%
NGG
3.22%

Growth

Revenue Growth
CIG-C
2.9%
NGG
-11.3%
Earnings Growth
CIG-C
88.1%
NGG
-12.4%

Financial Health

Debt/Equity
CIG-C
0.7
NGG
1.23
Current Ratio
CIG-C
1.0
NGG
0.97
Quick Ratio
CIG-C
0.78
NGG
0.75

Dividends

Dividend Yield
CIG-C
4.42%
NGG
3.48%
Payout Ratio
CIG-C
96.63%
NGG
77.96%

AI Verdict

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
NGG BEARISH

National Grid (NGG) presents a stark divergence between its stable operational health and its current market valuation. While the Piotroski F-Score of 5/9 indicates a stable financial condition, the stock is trading at a massive premium, with a current price of $89.54 far exceeding the Graham Number ($30.15) and Intrinsic Value ($28.28). This valuation gap is compounded by negative YoY revenue (-11.30%) and earnings growth (-12.40%), suggesting the market is pricing in growth that is not supported by current data. Despite strong operating margins, the bearish technical trend and high payout ratio signal significant downside risk.

Strengths
Strong operating margin of 24.15%, significantly outperforming the sector average
Debt/Equity ratio (1.23) is lower than the utility sector average (1.58)
Stable financial health as indicated by a Piotroski F-Score of 5/9
Risks
Severe overvaluation relative to Graham Number ($30.15) and Intrinsic Value ($28.28)
Negative YoY revenue growth (-11.30%) and earnings growth (-12.40%)
Extremely high Price-to-Book ratio of 8.96, indicating a high premium over assets

Compare Another Pair

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

This page compares Companhia Energética de Minas Gerais - CEMIG (CIG-C) and National Grid plc (NGG) 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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