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CIGCompanhia Energética de Minas Gerais
$2.09$6.0B
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  4. Financial Ratios

Companhia Energética de Minas Gerais (CIG) Financial Ratios

Latest Ratios: P/E Ratio 6.4x · EV/EBITDA 6.2x · ROE 17.5%. (2000–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

CIG 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$6.0B$5.7B$5.1B$5.1B$4.5B$4.1B$4.4B$5.0B$4.4B$3.0B$2.9B
Enterprise Value$9.4B$23.7B$15.9B$13.8B$14.0B$14.9B$17.9B$19.5B$18.3B$16.4B$17.1B
P/E Ratio →6.371.180.710.891.091.101.531.552.623.008.92
P/S Ratio0.720.130.130.140.130.120.170.200.200.140.16
P/B Ratio1.080.200.180.210.200.210.250.310.280.210.23
P/FCF——1.621.901.314.401.2445.6733.90——
P/OCF7.751.430.920.770.676.030.512.444.415.182.43

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

CIG 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—0.550.400.380.400.440.710.770.820.750.91
EV / EBITDA6.233.011.791.852.031.863.154.914.914.696.49
EV / EBIT7.743.301.531.752.762.543.453.315.445.057.14
EV / FCF——5.095.164.1015.915.08178.96139.86——

CIG 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%21.3%23.1%20.7%19.5%23.1%
Operating Margin14.8%14.8%18.8%16.9%16.5%20.7%18.7%11.8%12.9%12.2%9.6%
Net Profit Margin11.5%11.5%17.9%15.6%11.9%11.1%11.4%12.5%7.7%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%19.8%11.3%7.3%2.6%
ROA7.7%7.7%12.4%10.6%7.7%7.1%5.5%5.8%3.4%2.4%0.8%
ROIC11.2%11.2%15.7%14.4%13.9%17.0%11.4%7.5%7.5%7.2%5.0%
ROCE12.9%12.9%17.1%14.7%13.6%16.2%10.8%7.6%8.2%8.2%6.2%

CIG Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.700.700.460.420.500.600.870.940.921.001.17
Debt / EBITDA2.532.531.431.371.591.452.683.793.964.125.75
Net Debt / Equity—0.630.390.350.440.550.780.900.860.931.10
Net Debt / EBITDA2.292.291.221.171.381.352.383.663.723.835.38
Debt / FCF——3.473.262.7911.513.84133.29105.96——
Interest Coverage4.774.7750.6233.0325.6925.2421.2417.222.482.031.18

CIG Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.001.000.860.911.201.211.601.301.190.990.72
Quick Ratio1.001.000.860.911.201.211.601.301.190.980.72
Cash Ratio0.180.180.240.240.380.380.550.270.110.340.24
Asset Turnover—0.640.670.670.640.650.470.500.370.510.45
Inventory Turnover———————502.51491.03460.21294.49
Days Sales Outstanding———————————

CIG 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 Yield12.6%68.0%84.8%35.8%46.9%6.4%13.7%14.1%11.5%18.0%22.9%
Payout Ratio79.4%79.4%60.3%31.6%51.2%7.0%20.9%22.0%29.5%53.9%202.1%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield15.7%85.0%140.7%112.9%91.7%91.0%65.4%64.4%38.1%33.3%11.2%
FCF Yield——61.6%52.6%76.3%22.7%80.6%2.2%2.9%——
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%69.3%0.0%
Total Shareholder Yield12.6%68.0%84.8%35.8%46.9%6.4%13.7%14.1%11.5%87.3%22.9%
Shares Outstanding—$2.9B$2.9B$2.9B$2.9B$2.9B$2.9B$2.9B$2.5B$2.9B$2.5B

Key Metrics

Growth RegimeMixed
ProfitabilityModerate
Balance SheetAdequate
Cash FlowMixed
Top Statement Risk

Federalization and asset divestment overhang

Extreme Yield Reflects Deep Political Discount

CIG's forward P/E of 1.64 and 13.0% dividend yield suggest the market is pricing in severe governance risk, as reported in recent financial statements, rather than reflecting the company's underlying regulated asset base.

The valuation metrics are extreme outliers for a regulated utility, with the forward P/E implying either a massive earnings surge or a market expectation of permanent capital impairment. The 13.0% dividend yield is likely unsustainable given the reported payout ratio of 149.8% in 2026Q2, indicating the yield is a function of a depressed share price rather than a reliable income stream. This deep discount appears to be a direct reflection of the federalization overhang and the perceived risk of minority shareholder dilution in a state-controlled entity.

Volatile Earned ROE Undermines Regulatory Predictability

CIG's quarterly ROE has swung from 1.2% to 12.0% over the past ten quarters, indicating a persistent and wide gap between its earned return and any stable authorized ROE, as shown in the ratio data.

This extreme volatility suggests the company's actual returns are being driven by non-recurring regulatory settlements, accounting adjustments, and hydrological factors rather than a consistent earned return on its rate base. For a regulated utility, this unpredictability is a significant red flag, as it obscures the true earnings power and makes it difficult to assess whether the company is meeting its regulatory compact. The lack of a stable earned ROE trajectory implies that investors cannot rely on the authorized ROE as a proxy for near-term earnings.

Leverage Rising Amid Internal Cash Deficit

The debt-to-capital ratio has climbed to 0.44 in 2026Q2 from 0.32 in 2024Q1, while FFO/Debt has collapsed from 43.16 to 4.42, signaling a rapid deterioration in credit metrics as reported in recent filings.

The rising leverage is a direct consequence of the massive CAPEX program consuming operating cash flow, forcing the company to fund its investment cycle primarily through debt issuance. The sharp decline in FFO/Debt coverage indicates that the incremental debt is not yet generating proportional cash flow, likely due to regulatory lag in recovering these investments through tariffs. This trajectory warrants close monitoring, as it may be approaching the limits of what rating agencies and regulators will tolerate for a state-controlled entity.

Dividend Payout Unsustainable and Cash-Flow Negative

The dividend payout ratio reached 149.8% in 2026Q2, meaning the company paid out more in dividends than it earned, a pattern that is clearly unsustainable without external financing.

This payout level is not being funded by core earnings or operating cash flow, but rather by a combination of debt issuance and the drawdown of cash reserves. The prior analysis confirms that operating cash flow has frequently failed to cover dividend payments, creating a structural cash deficit. For a utility in a heavy investment cycle, this policy appears to prioritize short-term shareholder returns over the long-term financial health needed to fund its regulated CAPEX program, increasing reliance on external capital markets.

The Misleading Safety of the Dividend Yield

The 13.0% dividend yield is the ratio most commonly misapplied to CIG, as it obscures the fact that the payout is not covered by cash flow and is likely a function of a distressed equity price.

Investors often screen for high-yield utilities as safe income plays, but CIG's yield is a classic value trap signal. The yield is elevated because the share price has collapsed on political risk, not because the dividend is secure. The underlying cash flow analysis shows the company is burning cash and funding dividends with debt. A more appropriate metric for assessing income sustainability would be the dividend coverage ratio from operating cash flow, which in several recent quarters has been well below 1.0x, indicating the payout is not self-funding.

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CIG — Frequently Asked Questions

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

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

Companhia Energética de Minas Gerais's current P/E ratio is 6.4x. The historical average is 4.1x. This places it at the 79th 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 6.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.6x.

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 16.8%.

Is CIG stock overvalued?

Based on historical data, Companhia Energética de Minas Gerais is trading at a P/E of 6.4x. This is at the 79th 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 12.56% 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.