CIA ENERGETICA DE-SPON ADR (CIG) Stock Fundamental Analysis
NYSE:CIG - New York Stock Exchange, Inc. - US2044096012 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to CIG. CIG was compared to 46 industry peers in the Electric Utilities industry. CIG has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on CIG. This makes CIG very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year CIG was profitable.
In the past year CIG had a positive cash flow from operations.
Each year in the past 5 years CIG has been profitable.
In the past 5 years CIG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CIG (10.96%) is better than 97.83% of its industry peers.
CIG's Return On Equity of 25.09% is amongst the best of the industry. CIG outperforms 93.48% of its industry peers.
With an excellent Return On Invested Capital value of 10.67%, CIG belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CIG is significantly below the industry average of 40.10%.
| 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 better Profit Margin (17.25%) than 84.78% of its industry peers.
CIG's Profit Margin has improved in the last couple of years.
CIG has a Operating Margin of 16.17%. This is in the lower half of the industry: CIG underperforms 71.74% of its industry peers.
In the last couple of years the Operating Margin of CIG has grown nicely.
CIG's Gross Margin of 19.80% is on the low side compared to the rest of the industry. CIG is outperformed by 73.91% 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) below the Cost of Capital (WACC), CIG is destroying value.
CIG has about the same amout of shares outstanding than it did 1 year ago.
CIG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CIG is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.82, CIG belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 3.59, CIG belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that CIG is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.46, CIG belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.66
WACC16.16%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CIG should not have too much problems paying its short term obligations.
CIG has a Current ratio of 1.06. This is in the better half of the industry: CIG outperforms 63.04% 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 Quick ratio of 1.06. This is in the better half of the industry: CIG outperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
CIG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.63%.
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.
The Revenue has grown by 8.06% in the past year. This is quite good.
The Revenue has been growing by 9.33% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.63%
EPS 3Y15.64%
EPS 5Y26.37%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.78%
Revenue growth 5Y9.33%
Sales Q2Q%8.68%
3.2 Future
The Earnings Per Share is expected to decrease by -25.52% on average over the next years. This is quite bad
Based on estimates for the next years, CIG will show a small growth in Revenue. The Revenue will grow by 0.75% on average per year.
EPS Next Y-47.51%
EPS Next 2Y-30.29%
EPS Next 3Y-25.52%
EPS Next 5YN/A
Revenue Next Year2.76%
Revenue Next 2Y1.38%
Revenue Next 3Y0.75%
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
Based on the Price/Earnings ratio of 4.25, the valuation of CIG can be described as very cheap.
Based on the Price/Earnings ratio, CIG is valued cheaper than 93.48% of the companies in the same industry.
CIG is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.40, which indicates a very decent valuation of CIG.
Based on the Price/Forward Earnings ratio, CIG is valued cheaper than 82.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, CIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.25 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIG indicates a rather cheap valuation: CIG is cheaper than 95.65% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CIG is valued cheaper than 97.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.96 | ||
| EV/EBITDA | 5.86 |
4.3 Compensation for Growth
CIG has a very decent profitability rating, which may justify a higher PE ratio.
CIG's earnings are expected to decrease with -25.52% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-30.29%
EPS Next 3Y-25.52%
5. Dividend
5.1 Amount
CIG has a Yearly Dividend Yield of 3.07%.
Compared to an average industry Dividend Yield of 3.47, CIG is paying slightly less dividend.
CIG's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of CIG is nicely growing with an annual growth rate of 36.34%!
CIG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)36.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
61.32% of the earnings are spent on dividend by CIG. This is not a sustainable payout ratio.
The Dividend Rate of CIG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP61.32%
EPS Next 2Y-30.29%
EPS Next 3Y-25.52%
1.87
-0.04 (-2.09%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.59%
Inst Owner Change-7.45%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.35B
Analysts47.06
Price Target2.13 (13.9%)
Short Float %0.09%
Short Ratio0.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend0.26
Dividend Growth(5Y)36.34%
DP61.32%
Div Incr Years0
Div Non Decr Years0
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)15.46%
Min Revenue beat(2)3.08%
Max Revenue beat(2)27.84%
Revenue beat(4)4
Avg Revenue beat(4)13.47%
Min Revenue beat(4)1.8%
Max Revenue beat(4)27.84%
Revenue beat(8)7
Avg Revenue beat(8)10.69%
Revenue beat(12)9
Avg Revenue beat(12)6.95%
Revenue beat(16)12
Avg Revenue beat(16)10.3%
PT rev (1m)3.76%
PT rev (3m)5.02%
EPS NQ rev (1m)21.08%
EPS NQ rev (3m)17.52%
EPS NY rev (1m)30.01%
EPS NY rev (3m)15.7%
Revenue NQ rev (1m)-8.52%
Revenue NQ rev (3m)-9.12%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)-3.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.25 | ||
| Fwd PE | 8.4 | ||
| P/S | 0.75 | ||
| P/FCF | 6.96 | ||
| P/OCF | 5.82 | ||
| P/B | 1.09 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 5.86 |
EPS(TTM)0.44
EY23.53%
EPS(NY)0.22
Fwd EY11.91%
FCF(TTM)0.27
FCFY14.36%
OCF(TTM)0.32
OCFY17.2%
SpS2.5
BVpS1.72
TBVpS0.67
PEG (NY)N/A
PEG (5Y)0.16
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
WACC16.16%
ROIC/WACC0.66
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)-11.63%
EPS 3Y15.64%
EPS 5Y26.37%
EPS Q2Q%-23.08%
EPS Next Y-47.51%
EPS Next 2Y-30.29%
EPS Next 3Y-25.52%
EPS Next 5YN/A
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.78%
Revenue growth 5Y9.33%
Sales Q2Q%8.68%
Revenue Next Year2.76%
Revenue Next 2Y1.38%
Revenue Next 3Y0.75%
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 5YN/A
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%