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CIG-CCompanhia Energética de Minas Gerais
$3.05$8.7B
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  4. Financial Ratios

Companhia Energética de Minas Gerais (CIG-C) Financial Ratios

Latest Ratios: P/E Ratio 9.3x · EV/EBITDA 8.0x · ROE 17.5%. (2000–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

CIG-C Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$8.7B$7.4B$6.6B$6.9B$5.1B$4.6B$3.8B$4.6B$5.1B$2.1B$2.4B
Enterprise Value$12.2B$25.4B$17.4B$15.6B$14.6B$15.4B$17.4B$19.2B$19.0B$15.4B$16.6B
P/E Ratio →9.281.530.931.201.261.591.721.453.033.7727.80
P/S Ratio1.060.170.170.190.150.140.150.180.230.100.13
P/B Ratio1.580.260.240.280.240.240.220.290.320.140.19
P/FCF——2.132.591.514.891.0742.4639.14——
P/OCF11.291.861.211.040.786.710.442.275.093.582.02

P/E links to full P/E history page with 30-year chart

CIG-C EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.590.440.420.420.460.690.750.850.710.89
EV / EBITDA8.033.231.972.092.131.923.084.685.714.426.30
EV / EBIT9.973.541.681.992.902.624.026.255.474.416.94
EV / FCF——5.595.854.3016.404.91175.75145.11——

CIG-C Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin16.9%16.9%19.7%22.8%19.8%20.0%21.1%27.0%14.6%15.1%15.3%
Operating Margin14.8%14.8%18.8%16.9%16.5%20.7%18.7%12.6%11.2%12.2%9.6%
Net Profit Margin11.5%11.5%17.9%15.6%11.9%11.1%11.4%12.5%7.6%4.6%1.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE17.5%17.5%27.4%24.8%19.8%20.3%17.1%19.9%11.2%7.3%2.6%
ROA7.7%7.7%12.4%10.6%7.7%7.1%5.5%5.8%3.3%2.4%0.8%
ROIC11.2%11.2%15.7%14.4%13.9%17.0%11.4%8.0%6.5%7.2%5.0%
ROCE12.9%12.9%17.1%14.7%13.6%16.2%10.9%8.2%7.1%8.2%6.2%

CIG-C Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.700.700.460.420.500.600.870.940.931.001.17
Debt / EBITDA2.532.531.431.371.591.452.713.684.444.125.75
Net Debt / Equity—0.630.390.350.440.550.780.900.870.931.10
Net Debt / EBITDA2.292.291.221.171.381.352.413.554.173.835.38
Debt / FCF——3.473.262.7911.513.84133.29105.96——
Interest Coverage4.774.7710.2833.035.415.0317.598.962.631.940.97

CIG-C Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.001.000.860.911.201.211.601.271.190.990.72
Quick Ratio1.001.000.860.911.201.211.601.271.190.980.72
Cash Ratio0.180.180.240.240.380.380.550.300.110.350.27
Asset Turnover—0.640.670.670.640.650.470.510.370.510.45
Inventory Turnover———————476.82528.24485.11324.55
Days Sales Outstanding———————————

CIG-C Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield8.6%52.4%64.7%26.3%40.7%5.7%15.8%15.2%9.9%26.0%27.6%
Payout Ratio79.4%79.4%60.3%31.6%51.2%7.0%20.9%22.0%29.9%53.9%201.9%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield10.8%65.5%107.3%83.1%79.5%63.0%58.1%68.8%33.0%26.5%3.6%
FCF Yield——47.0%38.7%66.2%20.5%93.3%2.4%2.6%——
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%100.0%0.0%
Total Shareholder Yield8.6%52.4%64.7%26.3%40.7%5.7%15.8%15.2%9.9%100.0%27.6%
Shares Outstanding—$2.9B$2.9B$2.9B$2.2B$2.2B$2.2B$2.3B$2.5B$2.2B$1.9B

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetHealthy
Cash FlowBurning
Top Statement Risk

Regulatory and hydrological volatility

Valuation Anchored by Political Risk

According to current market data, CIG-C trades at a forward P/E of 2.52, reflecting a significant discount compared to private peers, which suggests that investors are heavily discounting the stock due to persistent concerns regarding state-level political interference and the long-term sustainability of its dividend yield.

The valuation gap between CIG-C and private sector peers like Equatorial Energia appears to be a structural feature rather than a temporary mispricing. Investors should monitor whether the current 8.6% dividend yield is a sustainable return component or a signal of market skepticism regarding the company's ability to maintain capital discipline while navigating state-mandated infrastructure priorities.

ROE Volatility Reflects Regulatory Lag

Based on quarterly financial data, CIG-C's ROE has fluctuated between 0.7% and 12.0% over the last ten quarters, indicating that the company frequently struggles to achieve its authorized regulatory returns due to the combined impact of hydrological variability and the timing of tariff adjustments within the ANEEL framework.

The wide variance in earned ROE suggests that the utility's profitability is highly sensitive to external factors beyond management's direct control. This inconsistency warrants further investigation into whether the current regulatory environment in Minas Gerais provides sufficient protection against the operational shocks inherent in the company's hydroelectric-heavy generation portfolio.

Conservative Leverage Masks Hidden Obligations

As reported in recent financial statements, the company maintains a debt-to-capital ratio of approximately 0.41, which appears deceptively healthy for a state-controlled utility, yet this figure may obscure significant off-balance-sheet liabilities, including pension fund obligations and potential decommissioning costs that could impact future financial flexibility.

While the reported leverage metrics suggest a strong balance sheet, the disconnect between low debt levels and inconsistent cash flow generation is concerning. Analysts should scrutinize the company's interest coverage ratios, which have shown extreme volatility, suggesting that the utility's debt-servicing capacity is more fragile than the headline debt-to-capital ratio implies.

Dividend Sustainability Remains Highly Questionable

Based on the provided financial figures, dividend payout ratios have reached as high as 149.5% in recent periods, indicating that distributions are frequently funded through external financing or asset divestments rather than consistent operational cash flow, which raises significant questions regarding the long-term viability of the current policy.

The tendency to pay out more than 100% of earnings in certain quarters suggests a capital allocation strategy that prioritizes short-term shareholder returns over the internal funding of necessary CAPEX. Investors should monitor whether this payout trend forces the company to increase its debt burden to maintain its infrastructure, potentially undermining its long-term credit quality.

Misapplication of Standard P/E Multiples

The most commonly misapplied metric for CIG-C is the standard P/E ratio, which fails to account for the distortive effects of IFRIC 12 construction revenue and regulatory accounting adjustments that frequently inflate or deflate net income, thereby obscuring the true earnings power of the regulated utility business.

Using a standard P/E ratio to value CIG-C ignores the reality that utility earnings are often a function of regulatory asset base growth rather than organic demand expansion. Analysts should instead focus on the Price-to-Regulatory-Asset-Base (P/RAB) or adjusted cash flow metrics to better understand the company's valuation relative to its actual regulated infrastructure footprint.

Download Financial Ratios Data

Includes 30+ ratios · 26 years · Updated daily

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CIG-C — Frequently Asked Questions

Quick answers to the most common questions about buying CIG-C stock.

What is Companhia Energética de Minas Gerais's P/E ratio?

Companhia Energética de Minas Gerais's current P/E ratio is 9.3x. The historical average is 3.4x. This places it at the 95th percentile of its historical range.

What is Companhia Energética de Minas Gerais's EV/EBITDA?

Companhia Energética de Minas Gerais's current EV/EBITDA is 8.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 3.5x.

What is Companhia Energética de Minas Gerais's ROE?

Companhia Energética de Minas Gerais's return on equity (ROE) is 17.5%. The historical average is 15.9%.

Is CIG-C stock overvalued?

Based on historical data, Companhia Energética de Minas Gerais is trading at a P/E of 9.3x. This is at the 95th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Companhia Energética de Minas Gerais's dividend yield?

Companhia Energética de Minas Gerais's current dividend yield is 8.62% with a payout ratio of 79.4%.

What are Companhia Energética de Minas Gerais's profit margins?

Companhia Energética de Minas Gerais has 16.9% gross margin and 14.8% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Companhia Energética de Minas Gerais have?

Companhia Energética de Minas Gerais's Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.