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CIG-C vs PNW

CIG-C
Companhia Energética de Minas Gerais - CEMIG
NEUTRAL
Price
$3.45
Market Cap
$9.87B
Sector
Utilities
AI Confidence
85%
PNW
Pinnacle West Capital Corporation
BEARISH
Price
$103.54
Market Cap
$12.53B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
CIG-C
9.86
PNW
20.5
Forward P/E
CIG-C
--
PNW
18.57
P/B Ratio
CIG-C
1.73
PNW
1.78
P/S Ratio
CIG-C
0.23
PNW
2.35
EV/EBITDA
CIG-C
3.46
PNW
13.1

Profitability

Gross Margin
CIG-C
12.5%
PNW
41.6%
Operating Margin
CIG-C
20.07%
PNW
10.99%
Profit Margin
CIG-C
11.46%
PNW
11.55%
ROE
CIG-C
17.51%
PNW
9.06%
ROA
CIG-C
6.29%
PNW
2.4%

Growth

Revenue Growth
CIG-C
2.9%
PNW
3.0%
Earnings Growth
CIG-C
88.1%
PNW
--

Financial Health

Debt/Equity
CIG-C
0.7
PNW
2.02
Current Ratio
CIG-C
1.0
PNW
0.54
Quick Ratio
CIG-C
0.78
PNW
0.23

Dividends

Dividend Yield
CIG-C
4.42%
PNW
3.52%
Payout Ratio
CIG-C
96.63%
PNW
71.19%

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
PNW BEARISH

PNW exhibits a stable but mediocre financial health profile with a Piotroski F-Score of 4/9 and no Altman Z-Score available for distress analysis. The stock is significantly overvalued, trading at $103.54, which is well above both its Graham Number ($81.38) and its growth-based intrinsic value ($35.35). While the company maintains a strong ROE relative to the utility sector, a very bearish technical trend (10/100) and a high PEG ratio of 3.08 suggest limited upside. The combination of low liquidity (Current Ratio 0.54) and high debt-to-equity (2.02) further weighs on the outlook.

Strengths
Strong ROE (9.06%) compared to the sector average (0.34%)
Consistent earnings track record with 3 of the last 4 quarters beating estimates
Positive long-term price performance (5Y Change: +51.2%)
Risks
Severe overvaluation relative to Graham Number and Intrinsic Value
Poor short-term liquidity with a Current Ratio of 0.54 and Quick Ratio of 0.23
High leverage with a Debt/Equity ratio of 2.02, exceeding sector average

Compare Another Pair

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

This page compares Companhia Energética de Minas Gerais - CEMIG (CIG-C) and Pinnacle West Capital Corporation (PNW) 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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