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Companhia Energetica Minas Gerais
(NYSE:CIG)
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Rating:67Neutral
Price Target:
$2.50
▲(23.76% Upside)
Action:Reiterated
Date:10/06/26
The score is driven mainly by mixed financial performance (recent margin and free-cash-flow deterioration despite overall stability) and a constructive but somewhat overbought technical setup. Valuation supports the stock with a reasonable P/E and high dividend yield, while the latest earnings call was net positive on execution and cash generation but flagged meaningful near-term trading and cost/financing headwinds.
Positive Factors
Diversified regulated utility platform
Cemig’s presence across the electricity value chain provides multiple regulated and contracted revenue streams. Distribution and transmission add relatively visible network remuneration, while generation and commercialization provide additional growth and portfolio flexibility within Brazil’s established power market.
Negative Factors
Recent revenue and margin slowdown
The recent reversal in revenue momentum and margin compression signals weaker earnings quality than in prior years. If the less favorable cost and revenue mix persists, Cemig may have less internal capacity to fund investment and could face slower profit growth despite its regulated business base.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified regulated utility platform
Cemig’s presence across the electricity value chain provides multiple regulated and contracted revenue streams. Distribution and transmission add relatively visible network remuneration, while generation and commercialization provide additional growth and portfolio flexibility within Brazil’s established power market.
Read all positive factors
Companhia Energetica Minas Gerais (CIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.16B
Dividend Yield7.94%
Average Volume (3M)5.28M
Price to Earnings (P/E)11.4
Beta (1Y)0.32
Revenue Growth12.93%
EPS Growth-24.59%
CountryUS
Employees5,320
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.61
Shares Outstanding1,905,179,900
10 Day Avg. Volume5,602,382
30 Day Avg. Volume5,275,242
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)1.10
Price to Sales (P/S)0.73
P/FCF Ratio9.46
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue0.22
Enterprise Value/Gross Profit1.68
Enterprise Value/Ebitda1.10
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.24
Revenue Forecast (FY)$7.84B
Companhia Energetica Minas Gerais Business Overview & Revenue Model
Company Description
Companhia Energética de Minas Gerais (CIG) is a prominent Brazilian energy company whose operations, conducted through its various subsidiaries, span the entire electricity value chain: generation, transmission, distribution, and retail. As of Dec...
How the Company Makes Money
Cemig’s revenues are primarily generated from the sale and delivery of electricity and from regulated network services across its business segments. (1) Distribution: A major source of revenue is the distribution of electricity to end customers wi...
Companhia Energetica Minas Gerais Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presented numerous operational and financial positives: recurring EBITDA and net income growth, disciplined and on-track investments (BRL 3.3 billion in H1 toward a BRL 6.7 billion plan), robust funding (BRL 4.6 billion), improved distribution quality metrics, strong transmission and generation results, and a solid credit profile. The main negatives were concentrated in the trading segment (negative recurring EBITDA of -BRL 180 million and a BRL 191 million provision), higher consolidated costs (+15.5%) related to investment and seasonal effects, volume declines in some segments (captive market down 3.8%, Gasmig volume -17%), and increased financial expenses from recent funding. Management expects trading and leverage dynamics to improve after position settlement and the 2028 tariff review. Overall, the positives (broad-based operational strength, investment progress, cash generation, and quality metrics) outweigh the near-term negatives focused in trading and financing costs.Positive Updates
Strong Quarterly Operating Performance
Operating performance of BRL 2.5 billion in the quarter with recurring EBITDA growth of 9.3% year-over-year (consolidated). Consolidated net income increased 15.6% year-over-year.
Negative Updates
Trading Business Losses
Cemig Trading posted a negative recurring EBITDA of -BRL 180 million in the quarter, driven by position settlements, higher energy purchase costs and a concentrated sub-market (South) effect. A BRL 191 million provision related to a major industrial client was recorded (non-cash).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Operating Performance
Operating performance of BRL 2.5 billion in the quarter with recurring EBITDA growth of 9.3% year-over-year (consolidated). Consolidated net income increased 15.6% year-over-year.
Read all positive updates
Company Guidance
Management reiterated a disciplined, investment-led guidance: a BRL 6.7 billion 2026 capex plan with BRL 3.3 billion (49%) spent in H1 — including BRL 2.6 billion in distribution, BRL 275 million in generation & transmission and BRL 227 million in Gasmig (BRL 92 million for the Midwest project; 33.5 km built) — supported by BRL 4.6 billion of funding in Q2; operating cash in H1 was ~BRL 4 billion (annualized ~BRL 8 billion) and quarterly operating performance/EBITDA was BRL 2.5 billion. They expect a positive tariff review in 2028 (citing >BRL 22 billion in the review cycle), implemented a 6.5% average tariff adjustment (4.9% Portion B), and maintain a 50% minimum payout (interest on capital BRL 631 million; BRL 0.22/share). Near-term: consolidated recurring EBITDA +9.3% YoY, Cemig D EBITDA +21% YoY, trading recurring EBITDA -BRL 180 million with a BRL 191 million provision, ECL reversal +BRL 232 million, additional RAP +BRL 36 million, transmission EBITDA +50% to BRL 190 million, leverage 2.58 (ratings AAA/AA+), and no budget change for El Niño; trading is expected to improve in H2 and materially in 2028 (management cited ~BRL 1–1.8 billion).Companhia Energetica Minas Gerais Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
55
Neutral
| 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 | 5.83B | 7.24B | 7.83B | 8.38B | 6.81B | 6.72B |
| EBITDA | 8.95B | 8.71B | 11.74B | 9.15B | 6.24B | 6.92B |
| 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 | 656.52M | 3.31B | 4.58B | 5.38B | 6.32B | 648.76M |
| Operating Cash Flow | 5.20B | 4.00B | 5.50B | 6.64B | 6.61B | 682.59M |
| Investing Cash Flow | -8.23B | -6.53B | -2.38B | -3.97B | -3.21B | 254.11M |
| Financing Cash Flow | 2.93B | 2.54B | -2.76B | -2.58B | -2.79B | -1.10B |
Companhia Energetica Minas Gerais Technical Analysis
Positive
2.02
Price Trends
2.09
Positive
2.09
Positive
2.14
Positive
Market Momentum
0.07
Negative
69.55
Neutral
80.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIG, the sentiment is Positive. The current price of 2.02 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.09, and below the 200-day MA of 2.14, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 69.55 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CIG.
Companhia Energetica Minas Gerais Risk Analysis
Companhia Energetica Minas Gerais disclosed 60 risk factors in its most recent earnings report. Companhia Energetica Minas Gerais reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Companhia Energetica Minas Gerais Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $10.51B | 16.97 | 12.91% | 3.67% | 26.97% | 11.70% | |
70 Outperform | $4.58B | 7.92 | 15.56% | 0.66% | 28.77% | 25.20% | |
67 Neutral | $8.16B | 11.43 | 15.93% | 7.94% | 12.93% | -24.59% | |
67 Neutral | $6.09B | 10.89 | 10.70% | 4.31% | 9.54% | 294.77% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $2.01B | 6.37 | 18.17% | 8.51% | 50.81% | 107.08% | |
58 Neutral | $972.10M | 5.71 | 10.46% | ― | 1.93% | -35.13% |
* Utilities Sector Average
CIG
Companhia Energetica Minas Gerais
2.40
0.63
35.21%
EDN
Edenor SA
20.22
0.19
0.95%
PAM
Pampa Energia SA
80.34
12.46
18.36%
ENIC
Enel Chile SA
4.48
0.83
22.84%
CEPU
Central Puerto SA
12.64
3.90
44.69%
ELPC
Companhia Paranaense de Energia Sponsored ADR
14.19
6.14
76.36%
Companhia Energetica Minas Gerais Corporate Events
Cemig Delivers R$1.5 Billion Payout and Completes UN Transparency Targets in 2026
Sep 9, 2026
Cemig announced that it would pay the first installment of shareholder distributions related to fiscal year 2025 on June 30, 2026, totaling R$1.548 billion in dividends and interest on equity. The company detailed ex‑rights dates, per‑...
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.