CIA ENERGETICA DE-SPON ADR (CIG) Stock Fundamental Analysis
USA - NYSE:CIG - US2044096012 - ADR
2.04 USD
0 (0%)
2.04 USD
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CIG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. CIG scores excellent on profitability, but there are some minor concerns on its financial health. CIG is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make CIG suitable for value investing!
1. Profitability
1.1 Basic Checks
CIG had positive earnings in the past year.
CIG had a positive operating cash flow in the past year.
In the past 5 years CIG has always been profitable.
In the past 5 years CIG always reported a positive cash flow from operatings.
1.2 Ratios
CIG has a better Return On Assets (10.96%) than 97.87% of its industry peers.
CIG has a better Return On Equity (25.09%) than 97.87% of its industry peers.
CIG has a better Return On Invested Capital (10.67%) than 97.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIG is significantly above the industry average of 5.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 25.09% | ||
| ROIC | 10.67% |
ROA(3y)10.01%
ROA(5y)8.5%
ROE(3y)22.72%
ROE(5y)20.77%
ROIC(3y)11.63%
ROIC(5y)10.86%
1.3 Margins
CIG has a Profit Margin of 17.25%. This is amongst the best in the industry. CIG outperforms 82.98% of its industry peers.
CIG's Profit Margin has improved in the last couple of years.
CIG's Operating Margin of 16.17% is on the low side compared to the rest of the industry. CIG is outperformed by 72.34% of its industry peers.
In the last couple of years the Operating Margin of CIG has grown nicely.
CIG has a Gross Margin of 19.80%. This is in the lower half of the industry: CIG underperforms 72.34% of its industry peers.
CIG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.17% | ||
| PM (TTM) | 17.25% | ||
| GM | 19.8% |
OM growth 3Y-4.19%
OM growth 5Y7.35%
PM growth 3Y17.03%
PM growth 5Y7.36%
GM growth 3Y0.83%
GM growth 5Y-2.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CIG is creating some value.
Compared to 1 year ago, CIG has about the same amount of shares outstanding.
The number of shares outstanding for CIG has been increased compared to 5 years ago.
CIG has a worse debt/assets ratio than last year.
2.2 Solvency
CIG has an Altman-Z score of 1.82. This is not the best score and indicates that CIG is in the grey zone with still only limited risk for bankruptcy at the moment.
CIG's Altman-Z score of 1.82 is amongst the best of the industry. CIG outperforms 82.98% of its industry peers.
The Debt to FCF ratio of CIG is 3.59, which is a good value as it means it would take CIG, 3.59 years of fcf income to pay off all of its debts.
CIG has a Debt to FCF ratio of 3.59. This is amongst the best in the industry. CIG outperforms 93.62% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that CIG is not too dependend on debt financing.
CIG's Debt to Equity ratio of 0.46 is amongst the best of the industry. CIG outperforms 91.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.97
WACC11%
2.3 Liquidity
CIG has a Current Ratio of 1.06. This is a normal value and indicates that CIG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CIG (1.06) is better than 70.21% of its industry peers.
A Quick Ratio of 1.06 indicates that CIG should not have too much problems paying its short term obligations.
CIG has a better Quick ratio (1.06) than 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
CIG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.11%.
Measured over the past years, CIG shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.37% on average per year.
CIG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.06%.
CIG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.33% yearly.
EPS 1Y (TTM)5.11%
EPS 3Y15.64%
EPS 5Y26.37%
EPS Q2Q%-28.83%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.78%
Revenue growth 5Y9.33%
Sales Q2Q%14.31%
3.2 Future
The Earnings Per Share is expected to decrease by -21.41% on average over the next years. This is quite bad
CIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.17% yearly.
EPS Next Y-49.02%
EPS Next 2Y-28.81%
EPS Next 3Y-21.41%
EPS Next 5YN/A
Revenue Next Year5.11%
Revenue Next 2Y2.04%
Revenue Next 3Y2.17%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.74, which indicates a rather cheap valuation of CIG.
CIG's Price/Earnings ratio is rather cheap when compared to the industry. CIG is cheaper than 91.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of CIG to the average of the S&P500 Index (27.30), we can say CIG is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.34, the valuation of CIG can be described as very reasonable.
85.11% of the companies in the same industry are more expensive than CIG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CIG to the average of the S&P500 Index (22.73), we can say CIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.74 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIG is valued cheaper than 93.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CIG is valued cheaply inside the industry as 93.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 5.91 |
4.3 Compensation for Growth
CIG has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CIG's earnings are expected to decrease with -21.41% in the coming years.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-28.81%
EPS Next 3Y-21.41%
5. Dividend
5.1 Amount
CIG has a Yearly Dividend Yield of 2.26%.
CIG's Dividend Yield is slightly below the industry average, which is at 3.56.
CIG's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
On average, the dividend of CIG grows each year by 36.34%, which is quite nice.
CIG has paid a dividend for at least 10 years, which is a reliable track record.
CIG has decreased its dividend recently.
Dividend Growth(5Y)36.34%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
61.32% of the earnings are spent on dividend by CIG. This is not a sustainable payout ratio.
CIG's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP61.32%
EPS Next 2Y-28.81%
EPS Next 3Y-21.41%
2.04
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners62.62%
Inst Owner Change-3.06%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.84B
Analysts47.78
Price Target2.17 (6.37%)
Short Float %0.27%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend0.28
Dividend Growth(5Y)36.34%
DP61.32%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.6%
Min EPS beat(2)-25.21%
Max EPS beat(2)36.42%
EPS beat(4)3
Avg EPS beat(4)19.29%
Min EPS beat(4)-25.21%
Max EPS beat(4)61.31%
EPS beat(8)6
Avg EPS beat(8)765.54%
EPS beat(12)9
Avg EPS beat(12)512.66%
EPS beat(16)12
Avg EPS beat(16)407.36%
Revenue beat(2)2
Avg Revenue beat(2)6.5%
Min Revenue beat(2)1.98%
Max Revenue beat(2)11.01%
Revenue beat(4)4
Avg Revenue beat(4)8.99%
Min Revenue beat(4)1.8%
Max Revenue beat(4)21.17%
Revenue beat(8)7
Avg Revenue beat(8)8.45%
Revenue beat(12)9
Avg Revenue beat(12)5.45%
Revenue beat(16)12
Avg Revenue beat(16)9.18%
PT rev (1m)4.71%
PT rev (3m)7.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.52%
EPS NY rev (1m)-2.89%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.74 | ||
| Fwd PE | 8.34 | ||
| P/S | 0.78 | ||
| P/FCF | 7.21 | ||
| P/OCF | 6.02 | ||
| P/B | 1.13 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 5.91 |
EPS(TTM)0.43
EY21.08%
EPS(NY)0.24
Fwd EY11.99%
FCF(TTM)0.28
FCFY13.86%
OCF(TTM)0.34
OCFY16.6%
SpS2.63
BVpS1.81
TBVpS0.7
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 25.09% | ||
| ROCE | 13.32% | ||
| ROIC | 10.67% | ||
| ROICexc | 10.67% | ||
| ROICexgc | 16.33% | ||
| OM | 16.17% | ||
| PM (TTM) | 17.25% | ||
| GM | 19.8% | ||
| FCFM | 10.76% |
ROA(3y)10.01%
ROA(5y)8.5%
ROE(3y)22.72%
ROE(5y)20.77%
ROIC(3y)11.63%
ROIC(5y)10.86%
ROICexc(3y)11.88%
ROICexc(5y)11.36%
ROICexgc(3y)18.79%
ROICexgc(5y)17.51%
ROCE(3y)14.51%
ROCE(5y)13.56%
ROICexcg growth 3Y-2.21%
ROICexcg growth 5Y18.09%
ROICexc growth 3Y-3.95%
ROICexc growth 5Y15.07%
OM growth 3Y-4.19%
OM growth 5Y7.35%
PM growth 3Y17.03%
PM growth 5Y7.36%
GM growth 3Y0.83%
GM growth 5Y-2.38%
F-Score3
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.59 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 61.09% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 5.88 | ||
| Cash Conversion | 65.57% | ||
| Profit Quality | 62.37% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.82 |
F-Score3
WACC11%
ROIC/WACC0.97
Cap/Depr(3y)63.61%
Cap/Depr(5y)46.13%
Cap/Sales(3y)2.2%
Cap/Sales(5y)1.59%
Profit Quality(3y)104.03%
Profit Quality(5y)139.72%
High Growth Momentum
Growth
EPS 1Y (TTM)5.11%
EPS 3Y15.64%
EPS 5Y26.37%
EPS Q2Q%-28.83%
EPS Next Y-49.02%
EPS Next 2Y-28.81%
EPS Next 3Y-21.41%
EPS Next 5YN/A
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.78%
Revenue growth 5Y9.33%
Sales Q2Q%14.31%
Revenue Next Year5.11%
Revenue Next 2Y2.04%
Revenue Next 3Y2.17%
Revenue Next 5YN/A
EBIT growth 1Y-7.22%
EBIT growth 3Y1.34%
EBIT growth 5Y17.37%
EBIT Next Year-8.56%
EBIT Next 3Y-2.95%
EBIT Next 5Y3.62%
FCF growth 1Y-29.63%
FCF growth 3Y9.88%
FCF growth 5Y110.69%
OCF growth 1Y-20.68%
OCF growth 3Y14.28%
OCF growth 5Y21.96%