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Companhia Energetica de Minas Gerais CEMIG Pref ADR (CIG)



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Upturn Advisory Summary
09/16/2025: CIG (2-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $1.94
1 Year Target Price $1.94
0 | Strong Buy |
0 | Buy |
1 | Hold |
2 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -24.28% | Avg. Invested days 37 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.51B USD | Price to earnings Ratio 4.52 | 1Y Target Price 1.94 |
Price to earnings Ratio 4.52 | 1Y Target Price 1.94 | ||
Volume (30-day avg) 3 | Beta 0.52 | 52 Weeks Range 1.48 - 2.09 | Updated Date 09/16/2025 |
52 Weeks Range 1.48 - 2.09 | Updated Date 09/16/2025 | ||
Dividends yield (FY) 64.22% | Basic EPS (TTM) 0.46 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 15.5% | Operating Margin (TTM) 14.5% |
Management Effectiveness
Return on Assets (TTM) 7.82% | Return on Equity (TTM) 23.59% |
Valuation
Trailing PE 4.52 | Forward PE 9.28 | Enterprise Value 8298822090 | Price to Sales(TTM) 0.16 |
Enterprise Value 8298822090 | Price to Sales(TTM) 0.16 | ||
Enterprise Value to Revenue 1.1 | Enterprise Value to EBITDA 3.88 | Shares Outstanding 1904080000 | Shares Floating 2373107263 |
Shares Outstanding 1904080000 | Shares Floating 2373107263 | ||
Percent Insiders - | Percent Institutions 8.07 |
Upturn AI SWOT
Companhia Energetica de Minas Gerais CEMIG Pref ADR

Company Overview
History and Background
Companhia Energetica de Minas Gerais (CEMIG) was founded in 1952 in Minas Gerais, Brazil. It has evolved into one of Brazil's largest integrated utilities, involved in power generation, transmission, and distribution.
Core Business Areas
- Generation: CEMIG generates electricity through a diverse portfolio, including hydroelectric, thermal, wind, and solar power plants.
- Transmission: CEMIG operates a vast transmission network, transporting electricity across Minas Gerais and connecting to the national grid.
- Distribution: CEMIG distributes electricity to residential, commercial, and industrial customers in Minas Gerais.
Leadership and Structure
CEMIG is led by a board of directors and an executive management team. It operates through various subsidiaries and divisions, each responsible for specific business areas.
Top Products and Market Share
Key Offerings
- Electricity Generation: CEMIG generates electricity from various sources, with hydroelectric being a significant contributor. Market share data varies, but CEMIG is a major player in the Brazilian power generation market. Competitors include Eletrobras, Engie Brasil Energia.
- Electricity Distribution: CEMIG distributes electricity to millions of customers in Minas Gerais. It holds a significant market share in its concession area. Competitors include other regional distributors like Light S.A., CPFL Energia.
Market Dynamics
Industry Overview
The Brazilian electricity market is undergoing deregulation and privatization, creating both opportunities and challenges for CEMIG. There's growing demand for renewable energy sources.
Positioning
CEMIG is a well-established utility with a strong presence in Minas Gerais. Its competitive advantages include its diverse generation portfolio and extensive infrastructure.
Total Addressable Market (TAM)
The total addressable market for electricity in Brazil is estimated to be in the billions of USD annually. CEMIG is positioned to capture a significant portion of this TAM through its generation and distribution businesses.
Upturn SWOT Analysis
Strengths
- Diversified generation portfolio
- Extensive transmission and distribution network
- Strong brand recognition in Minas Gerais
- Experienced management team
Weaknesses
- Exposure to regulatory risks
- High debt levels
- Dependence on hydroelectric power (vulnerable to droughts)
- Operational inefficiencies
Opportunities
- Expansion into renewable energy
- Participation in privatization of other utilities
- Infrastructure upgrades
- Growing electricity demand in Brazil
Threats
- Increased competition from private players
- Changes in government regulations
- Economic slowdown in Brazil
- Adverse weather conditions (droughts)
Competitors and Market Share
Key Competitors
- ELET3.SA
- ENBR3.SA
- CPFE3.SA
Competitive Landscape
CEMIG faces competition from both state-owned and private utilities. Its advantages include its strong regional presence and diverse generation portfolio. Disadvantages include regulatory risks and operational inefficiencies.
Major Acquisitions
Renova Energia Assets
- Year: 2023
- Acquisition Price (USD millions): 150
- Strategic Rationale: Expanded renewable energy portfolio and generation capacity.
Growth Trajectory and Initiatives
Historical Growth: CEMIG's growth has been driven by expanding electricity demand and strategic investments. Growth data is presented as: Revenue growth: [4.0, 4.5, 5.0]
Future Projections: Analysts project continued growth for CEMIG, driven by investments in renewable energy and infrastructure. Revenue growth forecast: [3.5, 4.0, 4.5]
Recent Initiatives: CEMIG has been investing in renewable energy projects, such as wind and solar farms, and upgrading its transmission infrastructure.
Summary
CEMIG is a major Brazilian utility with a strong regional presence and diversified generation portfolio, benefiting from growing electricity demand and renewable energy investments. It faces challenges related to regulatory risks, high debt levels, and competition. CEMIG's recent initiatives in renewable energy position it well for future growth, but it needs to address operational inefficiencies and regulatory uncertainties. While a significant player, managing financial leverage and adapting to market deregulation will be key.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual research and consultation with a financial advisor. Financial data is illustrative and may not be up to date.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Companhia Energetica de Minas Gerais CEMIG Pref ADR
Exchange NYSE | Headquaters Belo Horizonte, MG, Brazil | ||
IPO Launch date 1996-11-18 | CEO, President & Member of Executive Board Mr. Reynaldo Passanezi Filho | ||
Sector Utilities | Industry Utilities - Diversified | Full time employees 5028 | Website https://www.cemig.com.br |
Full time employees 5028 | Website https://www.cemig.com.br |
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, 2024, the company operated 36 hydro plants with a total capacity of 4,449.0 MW, 2 wind farms with a total capacity of 70.8 MW, and 10 photovoltaic power stations with a total capacity of 158.99 MW; 357,044 miles of distribution lines; and 4,754 miles of transmission lines. It is also involved in the acquisition, transportation, and distribution of gas and its sub products and derivatives; sale and trading of energy; construction, implementation, operation and maintenance of electricity transmission; marketing and intermediation of energy-related business; installation, operation, maintenance and rental of solar plants; and distributed generation, account services, cogeneration, energy efficiency, and supply and storage management activities. The company was incorporated in 1952 and is headquartered in Belo Horizonte, Brazil.

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