CIA ENERGETICA DE-SPON ADR (CIG) Stock Fundamental Analysis
USA - NYSE:CIG - US2044096012 - ADR
2.04 USD
+0.01 (+0.49%)
2.04 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CIG. CIG was compared to 47 industry peers in the Electric Utilities industry. While CIG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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
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.
CIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.96%, CIG belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
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 4.95%.
| 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.
In the last couple of years the Profit Margin of CIG has grown nicely.
CIG has a Operating Margin of 16.17%. This is in the lower half of the industry: CIG underperforms 70.21% of its industry peers.
CIG's Operating Margin has improved in the last couple of years.
The Gross Margin of CIG (19.80%) is worse than 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
CIG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CIG has about the same amount of shares outstanding.
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 82.98% 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.
CIG has a better Debt to FCF ratio (3.59) than 93.62% of its industry peers.
CIG has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, CIG belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.97
WACC11%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CIG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, CIG is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
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
The Earnings Per Share has been growing slightly by 5.11% over the past year.
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
Based on estimates for the next years, CIG will show a very negative growth in Earnings Per Share. The EPS will decrease by -21.51% on average per year.
CIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y-46.85%
EPS Next 2Y-27.35%
EPS Next 3Y-21.51%
EPS Next 5YN/A
Revenue Next Year5.94%
Revenue Next 2Y2.22%
Revenue Next 3Y2.25%
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.
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
The Price/Earnings ratio is 4.74, which indicates a rather cheap valuation of CIG.
Based on the Price/Earnings ratio, CIG is valued cheaper than 89.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. CIG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.92, the valuation of CIG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIG indicates a rather cheap valuation: CIG is cheaper than 85.11% of the companies listed in the same industry.
CIG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.74 | ||
| Fwd PE | 7.92 |
4.2 Price Multiples
CIG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CIG is 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 91.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 5.87 |
4.3 Compensation for Growth
The decent profitability rating of CIG may justify a higher PE ratio.
CIG's earnings are expected to decrease with -21.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-27.35%
EPS Next 3Y-21.51%
5. Dividend
5.1 Amount
CIG has a Yearly Dividend Yield of 2.37%.
Compared to an average industry Dividend Yield of 3.37, CIG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, CIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of CIG is nicely growing with an annual growth rate of 36.34%!
CIG has been paying a dividend for at least 10 years, so it has 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-27.35%
EPS Next 3Y-21.51%
2.04
+0.01 (+0.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.12%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.84B
Analysts47.78
Price Target2.19 (7.35%)
Short Float %0.1%
Short Ratio0.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)4.82%
PT rev (3m)3.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.67%
EPS NY rev (1m)4.26%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.74 | ||
| Fwd PE | 7.92 | ||
| P/S | 0.77 | ||
| P/FCF | 7.14 | ||
| P/OCF | 5.96 | ||
| P/B | 1.12 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 5.87 |
EPS(TTM)0.43
EY21.08%
EPS(NY)0.26
Fwd EY12.62%
FCF(TTM)0.29
FCFY14.01%
OCF(TTM)0.34
OCFY16.78%
SpS2.66
BVpS1.83
TBVpS0.71
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-46.85%
EPS Next 2Y-27.35%
EPS Next 3Y-21.51%
EPS Next 5YN/A
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.78%
Revenue growth 5Y9.33%
Sales Q2Q%14.31%
Revenue Next Year5.94%
Revenue Next 2Y2.22%
Revenue Next 3Y2.25%
Revenue Next 5YN/A
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-29.63%
FCF growth 3Y9.88%
FCF growth 5Y110.69%
OCF growth 1Y-20.68%
OCF growth 3Y14.28%
OCF growth 5Y21.96%