Companhia Energetica de Minas Gerais SA Sponsored ADR (CIG.C) AI Stock Analysis

Companhia Energetica de Minas Gerais SA Sponsored ADR

(NYSE:CIG.C)

Select Model

Rating:64Neutral

Price Target:$3.50▲(11.11% Upside)

Action:reiterated

Date:10/27/26

Overall score reflects solid underlying financial performance (growth and profitability) tempered by rising leverage and less consistent cash-flow conversion, alongside weak near-term technical momentum. Offsetting these risks, valuation is supportive (low P/E and strong dividend yield) and the latest earnings call reinforced a constructive outlook and capital-return commitment, though management acknowledged higher financing costs and leverage rising through 2027.

Positive Factors

Regulated asset baseCemig’s integrated distribution, generation and transmission platform provides a durable operating base, while planned network investment can strengthen service quality and support future tariff recognition. The large customer footprint and regulated infrastructure should remain central to earnings over the next several quarters.

Negative Factors

Rising leverageLeverage is expected to rise while Cemig funds its investment program, increasing sensitivity to interest expense and refinancing conditions before the planned tariff relief. Higher debt can also reduce capital-allocation flexibility if operating performance or regulatory timing proves less favorable.

Companhia Energetica de Minas Gerais SA Sponsored ADR (CIG.C) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $8.81B
Dividend Yield: 6.19%
Average Volume (3M): 3,588
Price to Earnings (P/E): 10.2
Beta (1Y): 0.42
Revenue Growth: 12.93%
EPS Growth: -24.59%
Country: US
Employees: 5,320
Sector: Utilities
Sector Strength: 66
Industry: Regulated Electric

Companhia Energetica de Minas Gerais SA Sponsored ADR Business Overview & Revenue Model

Company Description

Companhia Energética de Minas Gerais (CEMIG), through its various subsidiaries, plays a comprehensive role in Brazil's energy landscape, covering the production, transmission, distribution, and retail of power. The company also maintained an extensiv...

How the Company Makes Money

CEMIG makes money mainly by providing regulated electricity services and by selling electricity in Brazil’s regulated and competitive power markets. A substantial portion of revenue comes from electricity distribution: CEMIG’s distribution utility bi...

Companhia Energetica de Minas Gerais SA Sponsored ADR Financial Statement Overview

Summary

Fundamentals are solid but not pristine: revenue momentum and profitability are healthy for a regulated utility, but margins have compressed into 2025/TTM. Leverage has been rising (debt-to-equity up to ~0.78 in TTM), and cash-flow conversion has become less consistent recently despite positive free cash flow.

Income Statement

72Positive

Balance Sheet

64Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.65B	42.75B	39.82B	36.85B	34.46B	33.65B
Gross Profit	6.26B	7.24B	7.83B	8.38B	6.81B	6.72B
EBITDA	8.99B	8.71B	11.74B	9.15B	6.24B	6.67B
Net Income	4.60B	4.90B	7.12B	5.76B	4.09B	3.75B
Balance Sheet
Total Assets	70.86B	66.99B	59.73B	55.00B	53.67B	52.05B
Cash, Cash Equivalents and Short-Term Investments	3.08B	2.66B	3.45B	3.13B	4.24B	4.05B
Total Debt	22.75B	19.87B	12.71B	10.26B	10.94B	11.61B
Total Liabilities	41.68B	38.43B	32.34B	30.34B	31.89B	32.58B
Stockholders Equity	29.18B	28.56B	27.38B	24.65B	21.78B	19.46B
Cash Flow
Free Cash Flow	1.02B	3.31B	4.58B	5.38B	6.32B	648.76M
Operating Cash Flow	5.76B	4.00B	5.50B	6.64B	6.61B	682.59M
Investing Cash Flow	-9.81B	-6.53B	-2.38B	-3.97B	-3.21B	254.11M
Financing Cash Flow	4.31B	2.54B	-2.76B	-2.58B	-2.79B	-1.10B

Companhia Energetica de Minas Gerais SA Sponsored ADR Technical Analysis

Technical Analysis SentimentNegative

Last Price3.15

Price Trends

50DMA3.29Negative

100DMA3.17Negative

200DMA3.11Negative

Market Momentum

MACD-0.05Positive

RSI40.65Neutral

STOCH15.49Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIG.C, the sentiment is Negative. The current price of 3.15 is below the 20-day moving average (MA) of 3.40, below the 50-day MA of 3.29, and above the 200-day MA of 3.11, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.65 is Neutral, neither overbought nor oversold. The STOCH value of 15.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CIG.C.

Companhia Energetica de Minas Gerais SA Sponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

CIG.C against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CIG.C	64Neutral	$6.42B	10.22	15.93%	6.19%	12.93%	-24.59%

* Utilities Sector Average

Performance Comparison

CIG.C and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	CIG.C	Companhia Energetica de Minas Gerais SA Sponsored ADR	3.08	0.59	23.50%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 27, 2026

Companhia Energetica de Minas Gerais SA Sponsored ADR AI Stock Analysis