CIA ENERGETICA DE-SPON ADR (CIG)
US2044096012 - ADR
We assign a fundamental rating of 6 out of 10 to CIG. CIG was compared to 45 industry peers in the Electric Utilities industry. CIG has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on CIG. These ratings could make CIG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year CIG was profitable.
CIG had a positive operating cash flow in the past year.
CIG had positive earnings in 4 of the past 5 years.
Of the past 5 years CIG 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.46%, CIG belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
CIG's Return On Equity of 17.70% is amongst the best of the industry. CIG outperforms 97.78% of its industry peers.
With an excellent Return On Invested Capital value of 8.81%, CIG belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CIG is significantly above the industry average of 4.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.46% | ||
| ROE | 17.7% | ||
| ROIC | 8.81% |
ROA(3y)6.71%
ROA(5y)5.85%
ROE(3y)18.15%
ROE(5y)17.17%
ROIC(3y)10.7%
ROIC(5y)9.01%
1.3 Margins
CIG has a Profit Margin (11.26%) which is in line with its industry peers.
CIG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.82%, CIG is doing worse than 73.33% of the companies in the same industry.
In the last couple of years the Operating Margin of CIG has remained more or less at the same level.
CIG's Gross Margin of 17.01% is on the low side compared to the rest of the industry. CIG is outperformed by 77.78% of its industry peers.
In the last couple of years the Gross Margin of CIG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.82% | ||
| PM (TTM) | 11.26% | ||
| GM | 17.01% |
OM growth 3Y6.44%
OM growth 5Y1.34%
PM growth 3Y-1.78%
PM growth 5Y20.83%
GM growth 3Y-5.07%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
CIG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CIG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CIG has an Altman-Z score of 1.80. This is a bad value and indicates that CIG is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.80, CIG belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
The Debt to FCF ratio of CIG is 1.72, which is an excellent value as it means it would take CIG, only 1.72 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.72, CIG belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
CIG has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.42, CIG belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.68
WACC12.95%
2.3 Liquidity
CIG has a Current Ratio of 1.19. This is a normal value and indicates that CIG is financially healthy and should not expect problems in meeting its short term obligations.
CIG has a better Current ratio (1.19) than 68.89% of its industry peers.
A Quick Ratio of 1.19 indicates that CIG should not have too much problems paying its short term obligations.
CIG's Quick ratio of 1.19 is fine compared to the rest of the industry. CIG outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
CIG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.30%.
The Earnings Per Share has been growing by 28.24% on average over the past years. This is a very strong growth
Looking at the last year, CIG shows a small growth in Revenue. The Revenue has grown by 4.23% in the last year.
The Revenue has been growing by 9.68% on average over the past years. This is quite good.
EPS 1Y (TTM)-15.3%
EPS 3Y32.07%
EPS 5Y28.24%
EPS growth Q2Q-3.03%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y10.58%
Revenue growth 5Y9.68%
Revenue growth Q2Q10.19%
3.2 Future
CIG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.64% yearly.
The Revenue is expected to grow by 4.87% on average over the next years.
EPS Next Y24.97%
EPS Next 2Y6.06%
EPS Next 3Y2.81%
EPS Next 5Y0.64%
Revenue Next Year10.03%
Revenue Next 2Y5.84%
Revenue Next 3Y6.46%
Revenue Next 5Y4.87%
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
CIG is valuated cheaply with a Price/Earnings ratio of 7.09.
Based on the Price/Earnings ratio, CIG is valued cheaper than 88.89% of the companies in the same industry.
CIG is valuated cheaply when we compare the Price/Earnings ratio to 24.76, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.20, the valuation of CIG can be described as very cheap.
Based on the Price/Forward Earnings ratio, CIG is valued cheaper than 86.67% of the companies in the same industry.
CIG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 6.2 |
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 93.33% of the companies listed in the same industry.
95.56% 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 | 4.61 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CIG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.28
PEG (5Y)0.25
EPS Next 2Y6.06%
EPS Next 3Y2.81%
5. Dividend
5.1 Amount
CIG has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.35, CIG's dividend is way lower than its industry peers. On top of this 84.44% of the companies listed in the same industry pay a better dividend than CIG!
CIG's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
On average, the dividend of CIG grows each year by 28.07%, which is quite nice.
CIG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)28.07%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CIG pays out 51.90% of its income as dividend. This is a bit on the high side, but may be sustainable.
CIG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP51.9%
EPS Next 2Y6.06%
EPS Next 3Y2.81%
CIA ENERGETICA DE-SPON ADR
NYSE:CIG (4/19/2024, 6:14:00 PM)
After market: 2.49 +0.01 (+0.4%)2.48
+0.04 (+1.64%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 6.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.28
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.46% | ||
| ROE | 17.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.82% | ||
| PM (TTM) | 11.26% | ||
| GM | 17.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-15.3%
EPS 3Y32.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y24.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.23%
Revenue growth 3Y10.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y