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CIG vs ELPC

CIG
Companhia Energética de Minas Gerais - CEMIG
NEUTRAL
Price
$2.58
Market Cap
$7.38B
Sector
Utilities
AI Confidence
85%
ELPC
Companhia Paranaense de Energia
NEUTRAL
Price
$13.26
Market Cap
$9.85B
Sector
Utilities
AI Confidence
80%

Valuation

P/E Ratio
CIG
7.37
ELPC
18.68
Forward P/E
CIG
17.2
ELPC
18.57
P/B Ratio
CIG
1.29
ELPC
8.44
P/S Ratio
CIG
0.17
ELPC
0.38
EV/EBITDA
CIG
3.14
ELPC
9.1

Profitability

Gross Margin
CIG
12.5%
ELPC
18.07%
Operating Margin
CIG
20.07%
ELPC
19.78%
Profit Margin
CIG
11.46%
ELPC
10.29%
ROE
CIG
17.51%
ELPC
10.96%
ROA
CIG
6.29%
ELPC
5.1%

Growth

Revenue Growth
CIG
2.9%
ELPC
19.4%
Earnings Growth
CIG
88.1%
ELPC
88.3%

Financial Health

Debt/Equity
CIG
0.7
ELPC
0.88
Current Ratio
CIG
1.0
ELPC
0.98
Quick Ratio
CIG
0.78
ELPC
0.92

Dividends

Dividend Yield
CIG
5.91%
ELPC
3.92%
Payout Ratio
CIG
96.83%
ELPC
136.66%

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)
ELPC NEUTRAL

ELPC presents a dichotomy between explosive growth and unsustainable payout structures. While the Piotroski F-Score of 4/9 indicates stable financial health and the intrinsic value of $20.95 suggests long-term upside, the Graham Number of $5.01 reveals a significant premium over defensive value. The company exhibits exceptional earnings growth (88.3% YoY) and outperforms sector averages in ROE and profit margins, but these gains are offset by a critical dividend payout ratio of 136.66%.

Strengths
Exceptional earnings growth of 88.30% YoY
Strong revenue growth (19.40%) exceeding sector average
Superior profitability metrics (ROE 10.96% vs sector -2.02%)
Risks
Unsustainable dividend payout ratio of 136.66%
High Price-to-Book ratio (8.44) indicating potential overvaluation of assets
Tight liquidity with a current ratio of 0.98

Compare Another Pair

CIG vs ELPC: Head-to-Head Comparison

This page compares Companhia Energética de Minas Gerais - CEMIG (CIG) and Companhia Paranaense de Energia (ELPC) 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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