CEMIG PN N1

CEMIG operates through subsidiaries in Brazils energy sector. It generates, transmits, distributes, and sells energy. As of 2023, it had 57 hydro plants (5,010.4 MW), 9 wind farms (175.7 MW), and 2 photovoltaic power stations (3.9 MW). The company also has distribution lines (344,006 miles) and transmission lines (4,653 miles). It is involved in gas acquisition, transportation, and distribution, as well as energy trading and marketing. CEMIG was incorporated in 1952 and is headquartered in Belo Horizonte, Brazil.

Overview

Sector

Utilities

Target Price

5.4 BRL

Current Price

10.8 BRL

Potential

-50%

Strengths

Current Price to Earnings Ratio (4.35) is lower than the sector mean (40.02).
Price to book ratio (1.13) is lower than the sector mean (1.90).
EV/EBITDA (4.12) is lower than the sector mean (12.00).
EV/EBIT (3.99) is lower than the sector mean.
Price to free cash flow (6.76) is lower than the sector mean.
Strong EBITDA Margin of 20.26%.

Weaknesses

With a depreciation Potential of -47.56%, based on our fundamental analysis, it suggests the stock may be overvalued.
Analysts expect revenues to decline in the coming year.

Key Financial Data

Indicator	Value
PER	4.3
EV/EBITDA	4.1
Price/Free Cash Flow'	6.7
ROIC	13.9%
Net Debt/EBITDA	1.0