Comp En De Mn Cemig ADS American Depositary Shares (CIG)

FairStock Score: 90/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a patient value investor, and CIG is the kind of utility that initially attracts me: an essential service in Brazil, with regulated distribution and generation assets across hydro, wind, and solar. At the close on 2026-10-13, the ADS trades at $2.34, a market cap of $7.6B. FairStock's calculations show a P/E of 7.55, P/B of 1.18, EV/EBITDA of 3.20, and a 24.2% FCF yield on $1.8B trailing free cash flow. The dividend yield is 8.27%, and the Graham Number is $8.43, leaving a 72.24% margin of safety. Revenue growth of 23.37% and profit growth of 88.11% are striking, and the latest reported quarter, the second quarter of 2026, had $11.0B of revenue and $945M of net income, an 8.58% margin. ROE is 15.94%, but ROCE is only 5.94%, so returns are not uniformly wonderful. The regulated utility model can be a moat, but in Brazil it is exposed to politics, tariffs, hydrology, and currency. The balance sheet carries D/E of 0.78, and FairStock's Altman Z-Score of 0.40 is a genuine warning, while the Piotroski F-Score of 5/9 is merely average. The Lynch category is none because only 0 years of filed results are available under FairStock's rules. The statistical cheapness is real, with PEG 0.09 and beta 0.05, but Graham would demand proof that the cash flows and dividend are durable.

In plain English: CEMIG is a Brazilian electric utility that generates, transmits, distributes, and sells power. The business looks profitable and generates a lot of cash, and it pays a high dividend. At $2.34, the shares look cheap compared with its profits, assets, cash flow, and an asset-based estimate, but there are real risks around debt and Brazil's regulations.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer