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CIG vs SRE

CIG
Companhia Energética de Minas Gerais - CEMIG
NEUTRAL
Price
$2.58
Market Cap
$7.38B
Sector
Utilities
AI Confidence
85%
SRE
Sempra
BEARISH
Price
$97.78
Market Cap
$63.88B
Sector
Utilities
AI Confidence
75%

Valuation

P/E Ratio
CIG
7.37
SRE
35.55
Forward P/E
CIG
17.2
SRE
17.68
P/B Ratio
CIG
1.29
SRE
2.02
P/S Ratio
CIG
0.17
SRE
4.66
EV/EBITDA
CIG
3.14
SRE
19.79

Profitability

Gross Margin
CIG
12.5%
SRE
41.18%
Operating Margin
CIG
20.07%
SRE
27.74%
Profit Margin
CIG
11.46%
SRE
13.4%
ROE
CIG
17.51%
SRE
5.19%
ROA
CIG
6.29%
SRE
1.77%

Growth

Revenue Growth
CIG
2.9%
SRE
-0.2%
Earnings Growth
CIG
88.1%
SRE
-48.2%

Financial Health

Debt/Equity
CIG
0.7
SRE
0.83
Current Ratio
CIG
1.0
SRE
1.59
Quick Ratio
CIG
0.78
SRE
0.09

Dividends

Dividend Yield
CIG
5.91%
SRE
2.71%
Payout Ratio
CIG
96.83%
SRE
93.82%

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)
SRE BEARISH

SRE shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Concerns include weak profitability or high valuation.

Strengths
Strong financial trend (Piotroski F-Score: 7/9)
Risks
High valuation with P/E of 35.6
Premium vs Graham Number ($54.73)
Declining revenue (-0.2%)

Compare Another Pair

CIG vs SRE: Head-to-Head Comparison

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