ENERGY CO OF MINAS GERAIS

CIG
About the company

Companhia Energética de Minas Gerais - CEMIG, through its subsidiaries, engages in the generation, transmission, distribution, and sale of energy in Brazil. As of December 31, 2025, the company operated 32 hydro plants with a total capacity of 4,434 M, 2 wind farms with a total capacity of 71 MW, and 12 photovoltaic power stations with a total capacity of 169 MW; 365,577 miles of distribution lines; and 4,865 miles of transmission lines.

Price: $1.92Market Cap: $5.5B

Investment snapshot

41%positive consensus
Scored 1d ago

Positive

6

BUY / PASS

Neutral / negative

2 / 8

NEUTRAL / FAIL

Median fair value

$5.23

+172.4% vs price

Models with upside

7 / 17

Positive margin of safety

Strongest signal

CIG undervalued: all 7 models price fair value above $1.92 (median $5.23)

Key risk

7 of 8 flag CIG's growth — Graham, Lynch, Dreman +4 more

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

MetricGraham

Defensive Value

Buffett

Quality Compounder

Lynch

GARP

Greenblatt

Magic Formula

Piotroski

F-Score

Dreman

Contrarian Value

Munger

Quality Focus

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Marks

Risk-Aware Value

Ackman

Activist Value

Templeton

Global Bargain Hunter

Sleep

Scale Economies Shared

Asness

Systematic Factors

Neff

Low-P/E Total Return

Schloss

Asset-Value Discipline

O'Shaughnessy

Systematic Factor Composite

VerdictFAILFAILFAILBUY · Rank #13 (Top 0.4%)FAILPASSPASSNEUTRALFAILBUYBUYPASSFAILBUYFAILFAILNEUTRAL
Score
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Intrinsic Value (annual)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Margin of SafetyN/A+63.3%N/A+57.0%N/AN/A+61.0%+66.7%+74.6%+59.6%+66.9%N/AN/AN/AN/AN/AN/A
Financial Basis

Annual history · FY 2024

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024 · Market data at 2026-11-01

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2024

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2024

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024 · Qualitative assessment

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024 · Qualitative assessment

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024 · Market data at 2026-11-01

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024 · Price history 2025-01-01–2026-11-01

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024 · Qualitative assessment

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024 · Price history 2025-01-01–2026-11-01

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Annual history · FY 2024 · Price history 2025-01-01–2026-11-01

Latest source filing: 2025-05-01

Score computed: 2026-11-14

Where It Passes

  • Valuation models100% pass✓ 7▾

    CIG undervalued: all 7 models price fair value above $1.92 (median $5.23)

    Buffett fair value$5.23
    ✓Buffett+63.3% margin vs $1.92
    Greenblatt fair value$4.47
    ✓Greenblatt+57.0% margin vs $1.92
    Munger fair value$4.92
    ✓Munger+61.0% margin vs $1.92
    Pabrai fair value$5.77
    ✓Pabrai+66.7% margin vs $1.92
    Akre fair value$7.55
    ✓Akre+74.6% margin vs $1.92
    Marks fair value$4.75
    ✓Marks+59.6% margin vs $1.92
    Ackman fair value$5.80
    ✓Ackman+66.9% margin vs $1.92
  • Cash Flow80% pass✓ 10✗ 2▾

    8 of 10 pass — Lynch and Piotroski object

    Free Cash Flow Proxy$1.3B
    ✓BuffettPositive and growing
    FCF Positive and Growing$781.0M
    ✗LynchPositive and growing
    Operating Cash Flow$889.6M
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=9.20%, ROA=11.92%
    ✗PiotroskiCFO/Assets > ROA
    Price / (CFO / Shares)6.2x
    ✓Dreman< 8x
    P/E or FCF YieldFCF Yield=14.2%
    ✓PabraiP/E < 15 or FCF Yield > 10%
    FCF Positive10/10 years FCF positive
    ✓MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap14.2%
    ✓Ackman>= 4%
    Price / FCF per Share7.0x
    ✓Ackman<= 25
    Positive Operating Cash Flow frequency10/10 years positive
    ✓SleepPositive OCF in >= 70% of available years
    Operating Cash Flow - Capital Expenditures$781.0M
    ✓Neff> $0 (app proxy for a strong fundamental case)
    (Operating cash flow - capex) / market capitalization+14.22%; #442/4519 (top 9.8%)
    ✓OshaughnessyTop 10% of eligible cross-section

Where It Falls Short

  • Growth13% pass✓ 3✗ 10▾

    7 of 8 flag CIG's growth — Graham, Lynch, Dreman +4 more

    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthN/A (no inventory)
    ✓LynchInventory growth < Revenue growth
    EPS Growth Direction
    ✗DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    Positive Net Income Frequency9/10 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth8.0%
    ✓Ackman>= 5%
    Positive EPS Growth Frequency
    ✗AckmanPositive EPS growth in >= 3 of last 5 years
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Revenue growth vs. gross and operating margin trend
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR0.3%
    ✗SleepCAGR > 7%
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
  • Efficiency13% pass✓ 1✗ 10▾

    7 of 8 flag CIG's efficiency — Graham, Buffett, Piotroski +4 more

    Current Ratio0.86
    ✗Graham>= 2.0
    ROIC (3-5 yr avg)
    ✗Buffett> 10%
    ROIC - WACC
    ✗BuffettPositive (WACC = 10%)
    EBIT / (NWC + Net Fixed Assets)297.1%
    ✓Greenblatt> 25%
    Current Ratio Change YoY0.91 -> 0.86
    ✗PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY0.67x -> 0.67x
    ✗PiotroskiImproved YoY
    Current Assets / Current Liabilities0.86
    ✗Dreman> 1.5
    Return on Invested Capital
    ✗Munger> 15%
    ROIC (high and growing)FY2022: ROIC=unavailable; FY2023: ROIC=unavailable; FY2024: ROIC=unavailable
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)
    ✗SleepROIC > 12% in a majority of years
  • Profitability31% pass✓ 17✗ 18▾

    11 of 16 flag CIG's profitability — Graham, Buffett, Lynch +8 more

    Positive EPS (10 years)1/11 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Net Income Positive (10+ years)9/11 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)20.8%
    ✓Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)
    ✗BuffettStable or rising over 10 years
    Free Cash Flow Proxy$1.3B
    ✓BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    ROE26.0%
    ✓Lynch> 15%
    EBIT / Enterprise Value24.9%
    ✓Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=24.9%, ROC=297.1%
    ✓GreenblattBoth EY > 10% and ROC > 25%
    Net Income / Total Assets11.92%
    ✓PiotroskiROA > 0
    ROA Change YoY10.48% -> 11.92% (delta: +1.44%)
    ✓PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=9.20%, ROA=11.92%
    ✗PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY22.8% -> 20.5%
    ✗PiotroskiImproved YoY
    Pre-Tax Income / Revenue23.5%
    ✓Dreman>= 8%
    Net Income / Shareholders' Equity26.0%
    ✓Dreman> 12%
    Margin of SafetyP/B=1.2x
    ✓PabraiP/B < 1.5 or P/E < 15
    Return on Equity22.7% (3-yr avg)
    ✓AkreROE > 20% (3-year avg)
    Discount to Intrinsic Value
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency9/10 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue
    ✗Ackman>= 15%
    Net Income / Shareholders Equity26.0%
    ✓Ackman>= 15%
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend
    ✗TempletonNon-negative operating-margin trend over 3 years
    Revenue growth vs. gross and operating margin trend
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    Net income / market capitalization+20.97%; #260/6340 (top 4.1%)
    ✓AsnessTop 30% of eligible cross-section✓OshaughnessyTop 10% of eligible cross-section
    Gross profit / total assets+13.66%; #2517/3702 (top 68.0%)
    ✗AsnessTop 30% of eligible cross-section
    Net income / positive book equity+26.00%; #558/5226 (top 10.7%)
    ✓AsnessTop 30% of eligible cross-section
    Negative 5-year standard deviation of ROA-0.0238; #1641/5884 (top 27.9%)
    ✓AsnessTop 30% of eligible cross-section
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
    Positive Diluted-EPS Years
    ✗Schloss>= 70% positive over 5-10 observed years (app rule)
  • Valuation38% pass✓ 14✗ 14▾

    8 of 13 flag CIG's valuation — Graham, Lynch, Dreman +5 more

    Price / Book Value per Share1.2x
    ✗Dreman< 1.2x✓Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
    Price / 3-yr avg EPS
    ✗Graham<= 15x
    Price-to-Book Ratio1.2x
    ✓Graham<= 1.5x
    P/E x P/B
    ✗Graham<= 22.5
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    EBIT / Enterprise Value24.9%
    ✓Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=24.9%, ROC=297.1%
    ✓GreenblattBoth EY > 10% and ROC > 25%
    Price / EPS
    ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
    Price / (CFO / Shares)6.2x
    ✓Dreman< 8x
    Valuation ReasonablenessOE Yield=23.1%
    ✓MungerP/E < 25 or Owner Earnings Yield > 5%
    P/E or FCF YieldFCF Yield=14.2%
    ✓PabraiP/E < 15 or FCF Yield > 10%
    P/B or P/E vs. Historical AverageP/B=1.2x
    ✓MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic Value
    ✗Marks>= 20% below intrinsic value
    Price / FCF per Share7.0x
    ✓Ackman<= 25
    Price vs. Trailing Low109% of trailing low ($1.76)
    ✓Templeton<= 120% of trailing low (certified split-adjusted live window)
    Net income / market capitalization+20.97%; #260/6340 (top 4.1%)
    ✓AsnessTop 30% of eligible cross-section✓OshaughnessyTop 10% of eligible cross-section
    Positive book equity / market capitalization+0.8068; #1907/6449 (top 29.6%)
    ✓AsnessTop 30% of eligible cross-section
    Price / Diluted EPS
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / Tangible Book Value per Share3.21x
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change-80.9%
    ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Revenue / market capitalization+1.1735; #1598/5247 (top 30.5%)
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization+14.22%; #442/4519 (top 9.8%)
    ✓OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date-10.70%; #3478/6202 (top 56.1%)
    ✗OshaughnessyTop 10% of eligible cross-section
  • Debt & Leverage42% pass✓ 7✗ 8▾

    7 of 12 flag CIG's debt & leverage — Graham, Lynch, Piotroski +4 more

    Debt Levels0.45
    ✓MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
    LT Debt vs Net Current AssetsLT Debt $1.5B vs NCA $-309.8M
    ✗GrahamLT Debt <= Net Current Assets
    Debt/Equity & Interest CoverageD/E: 0.45, IC: 5.8x
    ✓BuffettD/E < 0.5 AND Interest Coverage > 5x
    Total Debt / Equity0.45
    ✗Lynch< 0.33
    Cash - Long-term Debt$-1.4B
    ✗LynchPositive preferred
    LT Debt / Total Assets Change13.09% -> 15.74%
    ✗PiotroskiDecreased YoY
    Current Assets / Current Liabilities0.86
    ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)
    Total Debt / Shareholders' Equity0.45
    ✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x
    Interest Coverage & Debt/EBITDAIC=5.8x, D/EBITDA=1.0x
    ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity0.45
    ✓Ackman<= 1.0
    Negative debt-to-equity (higher means less debt)-0.4486; #2362/4210 (top 56.1%)
    ✗AsnessTop 30% of eligible cross-section
  • Verdicts47% pass✓ 7✗ 8▾

    Split decision: 8 FAIL · 3 PASS · 3 BUY · 2 NEUTRAL

    Overall verdict
    ✗GrahamFAIL (2/9)✗BuffettFAIL (3/9)✗LynchFAIL (2/7)✓GreenblattRank #13✗PiotroskiFAIL (F-Score 3)✓DremanPASS (5/11)✓MungerPASS (2/4)•PabraiNEUTRAL (2/3)✗AkreFAIL (2/6)✓MarksBUY (4/5)✓AckmanBUY (7/9)✓TempletonPASS (4/8)✗SleepFAIL (2/6)✓AsnessBUY (Rank #485/2370 (Top 20.5%))✗NeffFAIL (2/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)

Business & financials

Financial snapshot: annual FY 2024. Current investor scores may use newer quarterly data.

Company Profile

Industry: Utilities
SIC Sector: Electric, Gas & Sanitary Services
Size: Mid Cap($5.5B)
Revenue: $6.4B-10.5% YoY
Net Income: $1.2B+2.2% YoY

Financial Snapshot

Operating Margin--
Return on Equity26.0%
Debt / Equity0.45
Current Ratio0.86
Shares Retired−30.0% / −30.0% 2y

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Shareholder Return

Fiscal 2024

Issued 30.0% of shares last year, 30.0% issued over two.

Buybacks
—
Dividends
—

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

MetricFY 2024
Sources
  • 20-F · 2025-05-01
FY 2023
Sources
  • 20-F · 2024-04-30
FY 2022
Sources
  • 20-F · 2023-05-16
FY 2021
Sources
  • 20-F · 2022-05-17
FY 2020
Sources
  • 20-F · 2021-04-30
Market Cap$5.5Bcurrent$2.8Best.$2.5Best.$832.3Mest.$1.8Best.
Revenue$6.4B↓11%$7.2B↑10%$6.5B↑8%$6.0B↑28%$4.7B
Operating Income----------
Net Income$1.2B↑2%$1.1B↑46%$774.3M↑15%$673.4M↑25%$536.7M
EPS (Diluted)--------$0.32
Gross Margin20.5%↓10%22.8%↑15%19.8%↓1%20.0%↓6%21.3%
Operating Margin—————
ROE26.0%↑11%23.4%↑24%18.8%↓3%19.3%↑18%16.4%
Total Debt$2.0B↑3%$1.9B↓4%$2.0B↓2%$2.0B↓28%$2.8B
Shareholders' Equity$4.4B↓8%$4.8B↑17%$4.1B↑18%$3.5B↑7%$3.3B
Current Ratio0.86↓5%0.91↓25%1.20↓1%1.21↓24%1.60
Debt / Equity0.45↑12%0.40↓18%0.49↓17%0.58↓32%0.86
Operating Cash Flow$889.6M↓32%$1.3B↑5%$1.2B↑87%$661.6M↓59%$1.6B
Free Cash Flow$781.0M↓28%$1.1B↓10%$1.2B↑92%$628.9M↓60%$1.6B

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Utilities

CIG vs Peers — Financial Grading

Revenue$6.4BBottom 25%
Net Income$1.2BBottom 25%
ROE26.0%Top 25%
D/E0.45Top 25%
Op. Margin—
Curr. Ratio0.86Top 25%
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
SOUTHERN COSO$109.0B$93.59$29.6B$4.3B12.1%2.0024.7%0.652/92/92/70/3F-Score 53/11
AMERICAN ELECTRIC POWER CO INCAEP$70.3B$129.18$21.9B$3.7B11.9%1.5224.3%0.454/93/92/70/3F-Score 53/11
Cheniere Energy, Inc.LNG$63.0B$308.75$20.0B$5.3B67.3%2.8845.6%0.942/94/94/70/3F-Score 83/11
DOMINION ENERGY, INCD$59.5B$67.66$16.5B$3.0B10.3%1.6026.7%0.772/90/91/70/3F-Score 63/11
ATMOS ENERGY CORPATO$29.8B$176.30$4.7B$1.2B8.8%0.6633.2%0.773/93/92/70/3F-Score 63/11
EVERSOURCE ENERGYES$27.0B$71.73$13.5B$1.7B10.5%1.7522.1%0.652/92/92/70/3F-Score 64/11
PPL CorpPPL$26.9B$35.67$9.0B$1.2B7.9%1.2723.5%0.862/90/90/70/3F-Score 52/11
ALLIANT ENERGY CORPLNT$19.0B$73.43$4.4B$810.0M11.0%1.6423.5%0.802/92/92/70/3F-Score 62/11