CIA ENERGETICA DE-SPON ADR (CIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIG - US2044096012 - ADR
2.03 USD
+0.01 (+0.5%)
2.03 USD
0 (0%)
CIG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. CIG scores excellent on profitability, but there are some minor concerns on its financial health. CIG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make CIG a good candidate 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.
Each year in the past 5 years CIG has been profitable.
Each year in the past 5 years CIG had a positive operating cash flow.
1.2 Ratios
CIG has a better Return On Assets (10.26%) than 97.83% of its industry peers.
CIG has a better Return On Equity (22.84%) than 95.65% of its industry peers.
CIG has a better Return On Invested Capital (10.00%) than 97.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CIG is significantly above the industry average of 5.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 22.84% | ||
| ROIC | 10% |
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 15.50%. This is amongst the best in the industry. CIG outperforms 82.61% of its industry peers.
In the last couple of years the Profit Margin of CIG has grown nicely.
CIG has a worse Operating Margin (14.79%) than 76.09% of its industry peers.
CIG's Operating Margin has improved in the last couple of years.
CIG's Gross Margin of 18.32% is on the low side compared to the rest of the industry. CIG is outperformed by 73.91% of its industry peers.
In the last couple of years the Gross Margin of CIG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.79% | ||
| PM (TTM) | 15.5% | ||
| GM | 18.32% |
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
CIG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CIG has about the same amout of shares outstanding than it did 1 year ago.
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
An Altman-Z score of 1.84 indicates that CIG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.84, CIG belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
CIG has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as CIG would need 3.91 years to pay back of all of its debts.
CIG's Debt to FCF ratio of 3.91 is amongst the best of the industry. CIG outperforms 93.48% of its industry peers.
CIG has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
CIG has a better Debt to Equity ratio (0.45) than 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.91
WACC10.98%
2.3 Liquidity
CIG has a Current Ratio of 1.00. This is a bad value and indicates that CIG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CIG (1.00) is better than 67.39% of its industry peers.
A Quick Ratio of 1.00 indicates that CIG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, CIG is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for CIG have decreased strongly by -50.36% in the last year.
CIG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.37% yearly.
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)-50.36%
EPS 3Y15.64%
EPS 5Y26.37%
EPS Q2Q%-75.58%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.78%
Revenue growth 5Y9.33%
Sales Q2Q%-8.24%
3.2 Future
The Earnings Per Share is expected to decrease by -21.24% 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 4.32% on average per year.
EPS Next Y-46.23%
EPS Next 2Y-27.03%
EPS Next 3Y-21.24%
EPS Next 5YN/A
Revenue Next Year5.94%
Revenue Next 2Y2.22%
Revenue Next 3Y2.25%
Revenue Next 5Y4.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.52, the valuation of CIG can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CIG indicates a rather cheap valuation: CIG is cheaper than 80.43% of the companies listed in the same industry.
CIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.45.
CIG is valuated cheaply with a Price/Forward Earnings ratio of 7.80.
84.78% 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 (34.46), we can say CIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 7.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIG is valued cheaply inside the industry as 93.48% of the companies are valued more expensively.
93.48% of the companies in the same industry are more expensive than CIG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.71 | ||
| EV/EBITDA | 6.08 |
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 -21.24% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-27.03%
EPS Next 3Y-21.24%
5. Dividend
5.1 Amount
CIG has a Yearly Dividend Yield of 2.44%.
Compared to an average industry Dividend Yield of 3.77, CIG is paying slightly less dividend.
CIG's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
On average, the dividend of CIG grows each year by 36.34%, which is quite nice.
CIG has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CIG decreased recently.
Dividend Growth(5Y)36.34%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CIG pays out 71.23% of its income as dividend. 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.
DP71.23%
EPS Next 2Y-27.03%
EPS Next 3Y-21.24%
2.03
+0.01 (+0.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.12%
Inst Owner Change-3.29%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.81B
Revenue(TTM)39.82B
Net Income(TTM)6.50B
Analysts47.78
Price Target2.23 (9.85%)
Short Float %0.07%
Short Ratio0.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend0.28
Dividend Growth(5Y)36.34%
DP71.23%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.57%
Min EPS beat(2)34.72%
Max EPS beat(2)36.42%
EPS beat(4)3
Avg EPS beat(4)26.81%
Min EPS beat(4)-25.21%
Max EPS beat(4)61.31%
EPS beat(8)6
Avg EPS beat(8)29.22%
EPS beat(12)10
Avg EPS beat(12)523.4%
EPS beat(16)12
Avg EPS beat(16)396.82%
Revenue beat(2)2
Avg Revenue beat(2)7.67%
Min Revenue beat(2)1.98%
Max Revenue beat(2)13.36%
Revenue beat(4)4
Avg Revenue beat(4)11.88%
Min Revenue beat(4)1.98%
Max Revenue beat(4)21.17%
Revenue beat(8)8
Avg Revenue beat(8)10.4%
Revenue beat(12)9
Avg Revenue beat(12)6.51%
Revenue beat(16)12
Avg Revenue beat(16)9.17%
PT rev (1m)0.39%
PT rev (3m)6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.26%
EPS NY rev (1m)1.17%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 7.8 | ||
| P/S | 0.74 | ||
| P/FCF | 7.71 | ||
| P/OCF | 6.29 | ||
| P/B | 1.09 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 6.08 |
EPS(TTM)0.27
EY13.3%
EPS(NY)0.26
Fwd EY12.82%
FCF(TTM)0.26
FCFY12.97%
OCF(TTM)0.32
OCFY15.9%
SpS2.75
BVpS1.87
TBVpS0.74
PEG (NY)N/A
PEG (5Y)0.29
Graham Number3.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 22.84% | ||
| ROCE | 12.48% | ||
| ROIC | 10% | ||
| ROICexc | 10% | ||
| ROICexgc | 15.31% | ||
| OM | 14.79% | ||
| PM (TTM) | 15.5% | ||
| GM | 18.32% | ||
| FCFM | 9.57% |
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%
ROICexgc growth 3Y-2.21%
ROICexgc 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-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 62.94% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 5.93 | ||
| Cash Conversion | 64.36% | ||
| Profit Quality | 61.74% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.84 |
F-Score5
WACC10.98%
ROIC/WACC0.91
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)-50.36%
EPS 3Y15.64%
EPS 5Y26.37%
EPS Q2Q%-75.58%
EPS Next Y-46.23%
EPS Next 2Y-27.03%
EPS Next 3Y-21.24%
EPS Next 5YN/A
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.78%
Revenue growth 5Y9.33%
Sales Q2Q%-8.24%
Revenue Next Year5.94%
Revenue Next 2Y2.22%
Revenue Next 3Y2.25%
Revenue Next 5Y4.32%
EBIT growth 1Y-7.22%
EBIT growth 3Y1.34%
EBIT growth 5Y17.37%
EBIT Next Year-8.04%
EBIT Next 3Y-2.1%
EBIT Next 5Y3.62%
FCF growth 1Y-14.93%
FCF growth 3Y9.88%
FCF growth 5Y110.69%
OCF growth 1Y-17.26%
OCF growth 3Y14.28%
OCF growth 5Y21.96%
CIA ENERGETICA DE-SPON ADR / CIG FAQ
What is the ChartMill fundamental rating of CIA ENERGETICA DE-SPON ADR (CIG) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CIG.
What is the valuation status for CIG stock?
ChartMill assigns a valuation rating of 8 / 10 to CIA ENERGETICA DE-SPON ADR (CIG). This can be considered as Undervalued.
How profitable is CIA ENERGETICA DE-SPON ADR (CIG) stock?
CIA ENERGETICA DE-SPON ADR (CIG) has a profitability rating of 7 / 10.
What is the expected EPS growth for CIA ENERGETICA DE-SPON ADR (CIG) stock?
The Earnings per Share (EPS) of CIA ENERGETICA DE-SPON ADR (CIG) is expected to decline by -46.23% in the next year.
Is the dividend of CIA ENERGETICA DE-SPON ADR sustainable?
The dividend rating of CIA ENERGETICA DE-SPON ADR (CIG) is 3 / 10 and the dividend payout ratio is 71.23%.