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CIG vs MWH

CIG
Companhia Energética de Minas Gerais - CEMIG
NEUTRAL
Price
$2.58
Market Cap
$7.38B
Sector
Utilities
AI Confidence
85%
MWH
SOLV Energy, Inc.
NEUTRAL
Price
$33.97
Market Cap
$6.88B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
CIG
7.37
MWH
45.29
Forward P/E
CIG
17.2
MWH
22.3
P/B Ratio
CIG
1.29
MWH
8.67
P/S Ratio
CIG
0.17
MWH
2.76
EV/EBITDA
CIG
3.14
MWH
13.4

Profitability

Gross Margin
CIG
12.5%
MWH
18.64%
Operating Margin
CIG
20.07%
MWH
5.95%
Profit Margin
CIG
11.46%
MWH
5.99%
ROE
CIG
17.51%
MWH
35.28%
ROA
CIG
6.29%
MWH
8.09%

Growth

Revenue Growth
CIG
2.9%
MWH
80.0%
Earnings Growth
CIG
88.1%
MWH
--

Financial Health

Debt/Equity
CIG
0.7
MWH
1.04
Current Ratio
CIG
1.0
MWH
1.01
Quick Ratio
CIG
0.78
MWH
0.93

Dividends

Dividend Yield
CIG
5.91%
MWH
--
Payout Ratio
CIG
96.83%
MWH
0.0%

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)
MWH NEUTRAL

MWH exhibits a stable financial foundation with a Piotroski F-Score of 5/9, but faces a severe valuation disconnect. While the company shows explosive growth (80% YoY Revenue) and an exceptional ROE of 35.28%, it trades at a massive premium compared to its Graham Number ($8.13) and Intrinsic Value ($5.25). The strong analyst consensus (Strong Buy) and forward P/E compression suggest high growth expectations, but the current price of $33.97 is fundamentally unsupported by traditional value metrics.

Strengths
Explosive revenue growth of 80% YoY
Exceptional ROE of 35.28%, significantly outperforming sector average
Strong analyst consensus with a 'Strong Buy' rating from 11 analysts
Risks
Extreme overvaluation relative to Graham Number and Intrinsic Value
Very high Price-to-Book ratio (8.67), indicating high premium over tangible assets
Tight liquidity position with a Current Ratio of 1.01 and Quick Ratio of 0.93

Compare Another Pair

CIG vs MWH: Head-to-Head Comparison

This page compares Companhia Energética de Minas Gerais - CEMIG (CIG) and SOLV Energy, Inc. (MWH) 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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