What Are The Risk Factors For Companhia Energetica de Minas Gerais (CIG)?


As of Wednesday close, Companhia Energetica de Minas Gerais’s (NYSE:CIG) stock was down -$0.02, moving down -0.98 percent to $2.03. The average number of shares traded per day over the past five days has been 8,756,200 shares. 3 times new highs have been achieved over the past 5 days, with a $0.09 gain in that time frame. In the last twenty days, the average volume was 8,709,040, while in the previous 50 days, it was 9,966,978.

Since last month, CIG stock retreated -4.69%. Shares of the company fell to $1.82 on 11/17/22, the lowest level in the past month. A 52-week high of $2.57 was reached on 08/24/22 after having rallying from a 52-week low of $1.62. Since the beginning of this year, CIG’s stock price has risen by 10.88% or $0.16, and marked a new high 30 times. However, the stock has declined by -20.89% since its 52-week high.

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Valuation Metrics

Right now, Companhia Energetica de Minas Gerais (CIG) has a P/E ratio of about 6.63. The stock’s beta is 0.69. Besides these, the trailing price-to-sales (P/S) ratio of 0.81, the price-to-book (PB) ratio of 0.22.

The latest dividend of $0.13 per share was paid out, which is 815.49% more than last year’s $0.0142. On Friday April 6 2018, a $0.1158 dividend increase was announced.

Financial Health

In the three months ended June 29, Companhia Energetica de Minas Gerais’s quick ratio stood at 1.20, while its current ratio was 1.20, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.51, and the total debt-to-equity ratio was 0.56. On the profitability front, the trailing twelve-month gross margin is 16.70% percent. In the year ended June 29, operating margins totaled 13.10%. Based on annual data, CIG earned $1.0 billion in gross profit and brought in $6.23 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 18.60%. Return on equity (ROE) for the past 12 months was 18.10%.

In Companhia Energetica de Minas Gerais’s quarter-end financial report for June 29, it reported total debt of $181.0 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CIG’s revenue fell -294.64% during the quarter, while net income inched up to $6.39 billion. While analysts expected Companhia Energetica de Minas Gerais to report $0.01 quarterly earnings, the actual figure was $0.22 per share. During the quarter, the company generated $5.5 million in EBITDA. The liabilities of Companhia Energetica de Minas Gerais were 6.68 billion at the end of its most recent quarter ended June 29, and its total debt was $11.41 billion.

Technical Picture

This quick technical analysis looks at Companhia Energetica de Minas Gerais’s (CIG) price momentum. With a historical volatility rate of 53.38%, the RSI 9-day stood at 47.74% on 23 November.

With respect to its five-day moving average, the current Companhia Energetica de Minas Gerais price is up by +4.64% percent or $0.09. At present, CIG shares trade +1.00% above its 20-day simple moving average and +5.73% percent above its 100-day simple moving average. However, the stock is currently trading approximately -11.35% below its SMA50 and +8.60% above its SMA200.

Stochastic coefficient K was 41.30% and Stochastic coefficient D was 33.43%, while ATR was 0.10. Given the Stochastic reading of 37.17% for the 14-day period, the RSI (14) reading has been calculated as 47.02%. As of today, the MACD Oscillator reading stands at 0.06, while the 14-day reading stands at -0.01.

Analyst Ratings

Goldman launched its rating on Companhia Energetica de Minas Gerais (NYSE: CIG) to a Buy in a note to investors on November 14, 2019. Companhia Energetica de Minas Gerais (CIG) has been rated Hold by analysts. According to 1 brokerage firm, CIG is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Companhia Energetica de Minas Gerais stock as buy, with 1 recommending it as overweight.

With a median target price of $2.14, the current consensus forecast for the stock is $2.14 – $2.14. Based on these forecasts, analysts predict Companhia Energetica de Minas Gerais (CIG) will achieve an average price target of $2.14.


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