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CIG vs CIG-C

CIG
Companhia Energética de Minas Gerais - CEMIG
NEUTRAL
Price
$2.58
Market Cap
$7.38B
Sector
Utilities
AI Confidence
85%
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
CIG
7.37
CIG-C
9.86
Forward P/E
CIG
17.2
CIG-C
--
P/B Ratio
CIG
1.29
CIG-C
1.73
P/S Ratio
CIG
0.17
CIG-C
0.23
EV/EBITDA
CIG
3.14
CIG-C
3.46

Profitability

Gross Margin
CIG
12.5%
CIG-C
12.5%
Operating Margin
CIG
20.07%
CIG-C
20.07%
Profit Margin
CIG
11.46%
CIG-C
11.46%
ROE
CIG
17.51%
CIG-C
17.51%
ROA
CIG
6.29%
CIG-C
6.29%

Growth

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

Financial Health

Debt/Equity
CIG
0.7
CIG-C
0.7
Current Ratio
CIG
1.0
CIG-C
1.0
Quick Ratio
CIG
0.78
CIG-C
0.78

Dividends

Dividend Yield
CIG
5.91%
CIG-C
4.42%
Payout Ratio
CIG
96.83%
CIG-C
96.63%

AI Verdict

CIG NEUTRAL

CIG presents a classic 'value trap' profile, characterized by a weak Piotroski F-Score of 3/9 indicating deteriorating financial health despite trading significantly below its Graham Number ($3.96) and Intrinsic Value ($10.32). While the current P/E of 7.37 is attractive, the Forward P/E of 17.20 suggests a projected collapse in earnings. Furthermore, a dividend payout ratio of 96.83% is unsustainable and poses a high risk of cuts. The disconnect between deep value metrics and poor fundamental health/analyst 'underperform' ratings warrants a neutral stance.

Strengths
Deeply undervalued relative to Graham Number ($3.96) and Intrinsic Value ($10.32)
Strong Return on Equity (ROE) of 17.51%
Low Price-to-Sales ratio (0.17) indicating high revenue relative to market cap
Risks
Weak financial health as evidenced by a Piotroski F-Score of 3/9
Unsustainable dividend payout ratio (96.83%)
Significant projected earnings decline (Forward P/E is 2.3x higher than current P/E)
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

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

This page compares Companhia Energética de Minas Gerais - CEMIG (CIG) 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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