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

FairStock Score: 90/100 — HIGH CONVICTION

Key Financials

Strengths

• Solid return on equity of 17.5% above cost of capital
• Revenue growth of 23.4% demonstrates strong top-line momentum
• Attractive 5.8% dividend yield providing steady income returns
• FairStock composite score of 90/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Comp En De Mn Cemig ADS American Depositary Shares is a small-cap utilities company valued at $7.6 billion. The business generates $42.8 billion in annual revenue with a 4.4% net margin. From a quality standpoint, Comp shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.4 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 7.5x, with offers a 70% margin of safety vs Graham Number of $9. Growth dynamics show revenue growing at 23.4% and profit growth of 88.1%. The 5.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 90/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

Comp's 23% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the utilities space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer