Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Companhia Energética de Minas Gerais

DB:CID
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CID
DB
R$12B
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The last earnings update was 17 days ago. More info.


Add to Portfolio Compare Print
  • Companhia Energética de Minas Gerais has significant price volatility in the past 3 months.
CID Share Price and Events
7 Day Returns
-13%
DB:CID
0.2%
Europe Electric Utilities
-0.6%
DE Market
1 Year Returns
-57.6%
DB:CID
-2.6%
Europe Electric Utilities
-20.9%
DE Market
CID Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Companhia Energética de Minas Gerais (CID) -13% -46.6% -54.2% -57.6% -50.5% -68.1%
Europe Electric Utilities 0.2% -18.2% -13.1% -2.6% 19.9% -3%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • CID underperformed the Electric Utilities industry which returned -2.6% over the past year.
  • CID underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
CID
Industry
5yr Volatility vs Market

Value

 Is Companhia Energética de Minas Gerais undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Companhia Energética de Minas Gerais to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Companhia Energética de Minas Gerais.

DB:CID Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:CID
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 9.3%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.245 (1 + (1- 34%) (120.59%))
0.625
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 9.25%)
7.01%

Discounted Cash Flow Calculation for DB:CID using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Companhia Energética de Minas Gerais is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:CID DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (BRL, Millions) Source Present Value
Discounted (@ 7.01%)
2020 2,244.00 Analyst x1 2,097.00
2021 1,843.50 Analyst x2 1,609.88
2022 1,809.00 Analyst x1 1,476.27
2023 1,784.86 Est @ -1.33% 1,361.15
2024 1,766.10 Est @ -1.05% 1,258.62
2025 1,751.04 Est @ -0.85% 1,166.14
2026 1,738.54 Est @ -0.71% 1,081.97
2027 1,727.82 Est @ -0.62% 1,004.86
2028 1,718.34 Est @ -0.55% 933.88
2029 1,709.73 Est @ -0.5% 868.33
Present value of next 10 years cash flows R$12,858.00
DB:CID DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= R$1,709.73 × (1 + -0.39%) ÷ (7.01% – -0.39%)
R$23,014.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= R$23,014.34 ÷ (1 + 7.01%)10
R$11,688.39
DB:CID Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= R$12,858.00 + R$11,688.39
R$24,546.39
Equity Value per Share
(BRL)
= Total value / Shares Outstanding
= R$24,546.39 / 1,458.19
R$16.83
DB:CID Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:CID represents 0.16471x of BOVESPA:CMIG4
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.16471x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (BRL) x Listing Adjustment Factor
= R$ 16.83 x 0.16471
€2.77
Value per share (EUR) From above. €2.77
Current discount Discount to share price of €1.40
= -1 x (€1.40 - €2.77) / €2.77
49.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Companhia Energética de Minas Gerais is available for.
Intrinsic value
50%
Share price is €1.4 vs Future cash flow value of €2.77
Current Discount Checks
For Companhia Energética de Minas Gerais to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Companhia Energética de Minas Gerais's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Companhia Energética de Minas Gerais's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Companhia Energética de Minas Gerais's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Companhia Energética de Minas Gerais's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:CID PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in BRL R$1.99
BOVESPA:CMIG4 Share Price ** BOVESPA (2020-04-06) in BRL R$8.5
Europe Electric Utilities Industry PE Ratio Median Figure of 76 Publicly-Listed Electric Utilities Companies 10.33x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Companhia Energética de Minas Gerais.

DB:CID PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BOVESPA:CMIG4 Share Price ÷ EPS (both in BRL)

= 8.5 ÷ 1.99

4.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Companhia Energética de Minas Gerais is good value based on earnings compared to the Europe Electric Utilities industry average.
  • Companhia Energética de Minas Gerais is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Companhia Energética de Minas Gerais's expected growth come at a high price?
Raw Data
DB:CID PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-3.8%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 37 Publicly-Listed Electric Utilities Companies 1.51x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

DB:CID PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.27x ÷ -3.8%

-1.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Companhia Energética de Minas Gerais earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Companhia Energética de Minas Gerais's assets?
Raw Data
DB:CID PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in BRL R$10.89
BOVESPA:CMIG4 Share Price * BOVESPA (2020-04-06) in BRL R$8.5
Europe Electric Utilities Industry PB Ratio Median Figure of 87 Publicly-Listed Electric Utilities Companies 0.76x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:CID PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BOVESPA:CMIG4 Share Price ÷ Book Value per Share (both in BRL)

= 8.5 ÷ 10.89

0.78x

* Primary Listing of Companhia Energética de Minas Gerais.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Companhia Energética de Minas Gerais is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess Companhia Energética de Minas Gerais's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. Companhia Energética de Minas Gerais has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Companhia Energética de Minas Gerais expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-3.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Companhia Energética de Minas Gerais expected to grow at an attractive rate?
  • Companhia Energética de Minas Gerais's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Companhia Energética de Minas Gerais's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Companhia Energética de Minas Gerais's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:CID Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:CID Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -3.8%
DB:CID Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 0.5%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:CID Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in BRL Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:CID Future Estimates Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 26,510 1
2022-12-31 26,359 3,607 2,706 2
2021-12-31 24,435 3,667 2,489 7
2020-12-31 24,203 3,646 2,000 2
2020-04-06
DB:CID Past Financials Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income *
2019-12-31 25,390 2,037 2,903
2019-09-30 24,473 1,381 3,121
2019-06-30 24,654 2,100 3,857
2019-03-31 23,244 1,997 1,710
2018-12-31 22,266 1,008 1,378
2018-09-30 23,352 -787 1,266
2018-06-30 22,236 -1,196 952
2018-03-31 21,834 -322 1,123
2017-12-31 21,712 580 1,001
2017-09-30 19,820 3,128 91
2017-06-30 19,579 2,867 608
2017-03-31 19,132 2,589 672

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Companhia Energética de Minas Gerais's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Companhia Energética de Minas Gerais's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:CID Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Companhia Energética de Minas Gerais Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CID Future Estimates Data
Date (Data in BRL Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 1.86 1.98 1.73 2.00
2021-12-31 1.71 2.07 1.36 6.00
2020-12-31 1.37 1.45 1.33 4.00
2020-04-06
DB:CID Past Financials Data
Date (Data in BRL Millions) EPS *
2019-12-31 1.99
2019-09-30 2.14
2019-06-30 2.65
2019-03-31 1.17
2018-12-31 0.94
2018-09-30 0.79
2018-06-30 0.61
2018-03-31 0.74
2017-12-31 0.69
2017-09-30 0.07
2017-06-30 0.48
2017-03-31 0.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Companhia Energética de Minas Gerais is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Companhia Energética de Minas Gerais's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Companhia Energética de Minas Gerais has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Companhia Energética de Minas Gerais performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Companhia Energética de Minas Gerais's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Companhia Energética de Minas Gerais's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Companhia Energética de Minas Gerais's 1-year earnings growth exceeds its 5-year average (110.8% vs -3.8%)
  • Companhia Energética de Minas Gerais's earnings growth has exceeded the Europe Electric Utilities industry average in the past year (110.8% vs 7.2%).
Earnings and Revenue History
Companhia Energética de Minas Gerais's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Companhia Energética de Minas Gerais Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CID Past Revenue, Cash Flow and Net Income Data
Date (Data in BRL Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 25,390.31 2,903.33 935.63
2019-09-30 24,472.72 3,121.24 969.05
2019-06-30 24,654.22 3,857.34 937.21
2019-03-31 23,243.96 1,710.16 1,010.90
2018-12-31 22,266.22 1,377.53 1,004.45
2018-09-30 23,352.16 1,266.29 1,040.44
2018-06-30 22,235.70 952.42 975.27
2018-03-31 21,834.19 1,122.81 1,096.07
2017-12-31 21,711.69 1,000.95 1,076.79
2017-09-30 19,819.70 90.52 1,096.43
2017-06-30 19,579.48 607.75 1,215.91
2017-03-31 19,132.08 671.81 1,123.47
2016-12-31 18,772.66 334.33 1,151.54
2016-09-30 19,666.28 923.59 1,183.05
2016-06-30 19,643.54 657.05 1,131.58
2016-03-31 20,472.07 989.14 1,100.35
2015-12-31 21,867.84 2,468.50 989.37
2015-09-30 22,639.29 3,302.10 949.82
2015-06-30 21,563.57 3,164.29 936.64
2015-03-31 20,678.85 3,371.03 898.24
2014-12-31 19,539.58 3,136.64 900.51
2014-09-30 17,173.38 2,852.45 975.69
2014-06-30 16,922.13 3,612.23 828.10
2014-03-31 15,659.70 3,488.60 900.88
2013-12-31 14,627.28 3,103.86 1,056.66
2013-09-30 14,471.65 4,370.36 953.99
2013-06-30 14,598.90 4,518.65 1,047.11

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Companhia Energética de Minas Gerais has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Companhia Energética de Minas Gerais used its assets more efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • Companhia Energética de Minas Gerais's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Companhia Energética de Minas Gerais's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Companhia Energética de Minas Gerais has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Companhia Energética de Minas Gerais's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Companhia Energética de Minas Gerais's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Companhia Energética de Minas Gerais is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Companhia Energética de Minas Gerais's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Companhia Energética de Minas Gerais's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Companhia Energética de Minas Gerais Company Filings, last reported 3 months ago.

DB:CID Past Debt and Equity Data
Date (Data in BRL Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 15,890.87 14,776.03 1,510.86
2019-09-30 17,211.64 15,184.31 1,774.45
2019-06-30 18,860.29 13,876.39 1,529.17
2019-03-31 16,735.70 14,136.82 1,378.03
2018-12-31 15,939.33 14,771.83 1,664.00
2018-09-30 14,972.85 15,394.06 2,111.79
2018-06-30 14,678.82 14,604.05 1,228.97
2018-03-31 14,739.44 13,698.82 860.84
2017-12-31 14,330.14 14,397.70 2,088.64
2017-09-30 13,287.21 14,055.58 1,273.37
2017-06-30 13,370.87 14,606.65 2,047.32
2017-03-31 13,293.00 14,727.94 1,683.26
2016-12-31 12,934.37 15,179.28 2,009.32
2016-09-30 14,255.89 16,269.05 2,604.06
2016-06-30 13,821.04 15,447.76 2,432.74
2016-03-31 12,977.78 15,299.56 1,988.96
2015-12-31 12,987.68 15,166.54 3,351.38
2015-09-30 14,302.85 13,852.33 2,650.66
2015-06-30 14,112.42 13,036.97 1,274.93
2015-03-31 12,783.00 13,055.83 1,066.03
2014-12-31 11,284.95 13,508.74 1,881.14
2014-09-30 12,903.16 11,805.72 2,314.40
2014-06-30 12,868.24 11,553.83 3,226.82
2014-03-31 13,887.03 9,434.65 1,970.99
2013-12-31 12,638.36 9,457.36 3,135.40
2013-09-30 13,197.93 9,538.39 4,549.61
2013-06-30 12,408.52 9,463.18 4,286.15
  • Companhia Energética de Minas Gerais's level of debt (93%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (119.5% vs 93% today).
  • Debt is not well covered by operating cash flow (13.8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Companhia Energética de Minas Gerais's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Companhia Energética de Minas Gerais has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Companhia Energética de Minas Gerais's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.12%
Current annual income from Companhia Energética de Minas Gerais dividends. Estimated to be 9.17% next year.
If you bought €2,000 of Companhia Energética de Minas Gerais shares you are expected to receive €122 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Companhia Energética de Minas Gerais's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.69%).
  • Companhia Energética de Minas Gerais's dividend is above the markets top 25% of dividend payers in Germany (4.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:CID Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 51 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 315 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:CID Future Dividends Estimate Data
Date (Data in R$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.94 2.00
2021-12-31 0.79 7.00
2020-12-31 0.69 4.00
2020-04-06
DB:CID Past Annualized Dividends Data
Date (Data in R$) Dividend per share (annual) Avg. Yield (%)
2020-03-20 0.520 5.974
2019-04-01 0.590 4.232
2018-03-29 0.510 5.420
2017-04-12 0.460 5.839
2016-03-30 1.010 12.535
2015-03-27 0.634 7.905
2014-03-21 1.320 8.926
2013-04-17 3.592 24.337
2013-03-28 3.592 22.449
2012-03-28 1.708 8.793
2010-12-20 0.949 5.752
2010-04-05 0.740 5.026
2010-03-24 0.740 5.036

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Companhia Energética de Minas Gerais's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Companhia Energética de Minas Gerais's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Companhia Energética de Minas Gerais afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Companhia Energética de Minas Gerais has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Companhia Energética de Minas Gerais's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Reynaldo Filho
AGE 54
TENURE AS CEO 0.3 years
CEO Bio

Mr. Reynaldo Passanezi Filho has been Chief Executive Officer at Companhia Energ?tica de Minas Gerais since 2020. He served as the Chairman of Executive Board at CTEEP - Companhia de Transmissão de Energia Elétrica Paulista since November 1, 2013 until 2019 and its Chief Executive Officer, President and Member of Executive Board until 2019. Mr. Passanezi Filho served as Chief Finance and Investor Relations Officer of CTEEP - Companhia de Transmissão de Energia Elétrica Paulista since March 2019 until 2019. Mr. Passanezi Filho previously served as Chief Finance and Investor Relations Officer of CTEEP - Companhia de Transmissão de Energia Elétrica Paulista until November 30, 2013 and also served as its Financial & Investor Relations Director until March 2019.

CEO Compensation
  • Insufficient data for Reynaldo to compare compensation growth.
  • Insufficient data for Reynaldo to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Companhia Energética de Minas Gerais management team in years:

1.6
Average Tenure
57
Average Age
  • The average tenure for the Companhia Energética de Minas Gerais management team is less than 2 years, this suggests a new team.
Management Team

Reynaldo Filho

TITLE
Chief Executive Officer
AGE
54
TENURE
0.3 yrs

Cledorvino Belini

TITLE
President
AGE
69

Maurício Leonardo

TITLE
Chief Institutional Relations
TENURE
2.1 yrs

Dimas Costa

TITLE
Chief Trading Officer & Member of Executive Board
TENURE
3.6 yrs

Ronaldo de Abreu

TITLE
Chief Distribution & Sales Officer

Luciano de Araujo Ferraz

TITLE
Member of Executive Board
TENURE
0.7 yrs

Daniel Costa

TITLE
Chief Business Development & Member of Executive Board
TENURE
2.1 yrs

Paulo Henriques

TITLE
Chief Generation & Transmission Officer and Member of Executive Board
AGE
57
TENURE
1.1 yrs

Leonardo Mesquita

TITLE
Accounting Manager

Paulo Eduardo Guimarães

TITLE
Head of Corporate Finance
Board of Directors Tenure

Average tenure and age of the Companhia Energética de Minas Gerais board of directors in years:

1.1
Average Tenure
69
Average Age
  • The average tenure for the Companhia Energética de Minas Gerais board of directors is less than 3 years, this suggests a new board.
Board of Directors

Márcio Luiz Simões Utsch

TITLE
Chairman of the Board
AGE
59
TENURE
1.1 yrs

Cledorvino Belini

TITLE
President
AGE
69
TENURE
1.1 yrs

José Afonso Bicalho da Silva

TITLE
Chairman of Fiscal Council
AGE
71
TENURE
2 yrs

José Abdalla Filho

TITLE
Director
AGE
74
TENURE
6 yrs

Marcelo Gasparino da Silva

TITLE
Director
AGE
48
TENURE
3.9 yrs

Antônio Rodrigues dos Santos Junqueira

TITLE
Director
TENURE
1.1 yrs

José Magalhaes

TITLE
Director
TENURE
1.1 yrs

Romeu Rufino

TITLE
Director
TENURE
1.1 yrs

Renata Cavalcanti

TITLE
Director
TENURE
1.1 yrs

Cornélio Pereira

TITLE
Employee Representative Director
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Companhia Energética de Minas Gerais's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Companhia Energética de Minas Gerais has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. As of December 31, 2018, the company operated 80 hydroelectric, thermoelectric, and wind plants with an installed capacity of 6,000 MW; 4,134 km of transmission lines; and 333,391 km of distribution lines. It is also involved in the acquisition, transportation, and distribution of gas and its sub products and derivatives; provision of technology systems and systems for operational management of public service concessions; sale and trading of electricity; energy and technological solutions businesses; provision of telecommunications services; and operation of solar energy plants. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.

Details
Name: Companhia Energética de Minas Gerais
CID
Exchange: DB
Founded: 1952
R$2,181,502,202
1,458,191,883
Website: http://www.cemig.com.br
Address: Companhia Energética de Minas Gerais
Avenida Barbacena, 1200,
Belo Horizonte,
Minas Gerais, 30190-131,
Brazil
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BOVESPA CMIG4 Preferred Shares Bolsa de Valores de Sao Paulo BR BRL 07. Jun 1994
DB CIDA Preferred Shares Deutsche Boerse AG DE EUR 07. Jun 1994
BME XCMIG Preferred Shares Bolsas y Mercados Espanoles ES EUR 07. Jun 1994
NYSE CIG.C SPONSORED ADR New York Stock Exchange US USD 12. Jun 2007
NYSE CIG SPON ADR REPR 1 N-VTG PRF SHS(LEVEL 2) New York Stock Exchange US USD 19. Sep 2001
BOVESPA CMIG3 Common Shares Bolsa de Valores de Sao Paulo BR BRL 29. Mar 1995
DB CID SPON ADR REPR 1 N-VTG PRF SHS(LEVEL 2) Deutsche Boerse AG DE EUR 19. Sep 2001
BMV CIG N SPON ADR REPR 1 N-VTG PRF SHS(LEVEL 2) Bolsa Mexicana de Valores MX MXN 19. Sep 2001
Number of employees
Current staff
Staff numbers
5,596
Companhia Energética de Minas Gerais employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 23:24
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/03/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.