Cia Energetica DE Minas Gerais – Cemig ADR (NYSE: CIG)’s stock price has decreased by -0.40 compared to its previous closing price of 2.47. However, the company has seen a -3.53% decrease in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-26 that The company has been delivering excellent results since its turnaround in 2019, with cost reduction, lower leverage, and prospects for further improving its EBITDA margin. Despite this, the company is traded below the multiples of its international peers, even though it is the most profitable and has the best return on equity. The discount compared to peers is due to the political risk, which increased with the news of the company’s possible federalization, but which in my view is a buying opportunity.
Is It Worth Investing in Cia Energetica DE Minas Gerais – Cemig ADR (NYSE: CIG) Right Now?
Cia Energetica DE Minas Gerais – Cemig ADR (NYSE: CIG) has a price-to-earnings ratio of 4.69x that is above its average ratio. Additionally, the 36-month beta value for CIG is 1.23. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 1 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”
The public float for CIG is 1.46B and currently, short sellers hold a 0.09% ratio of that float. The average trading volume of CIG on April 16, 2024 was 2.66M shares.
CIG’s Market Performance
CIG stock saw an increase of -3.53% in the past week, with a monthly gain of 12.90% and a quarterly increase of 1.42%. The volatility ratio for the week is 2.50%, and the volatility levels for the last 30 days are 2.47% for Cia Energetica DE Minas Gerais – Cemig ADR (CIG). The simple moving average for the last 20 days is 1.05% for CIG stock, with a simple moving average of 7.06% for the last 200 days.
Analysts’ Opinion of CIG
HSBC Securities, on the other hand, stated in their research note that they expect to see CIG reach a price target of $2.90. The rating they have provided for CIG stocks is “Buy” according to the report published on November 01st, 2023.
CIG Trading at 5.15% from the 50-Day Moving Average
After a stumble in the market that brought CIG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -5.75% of loss for the given period.
Volatility was left at 2.47%, however, over the last 30 days, the volatility rate increased by 2.50%, as shares surge +9.33% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +5.13% upper at present.
During the last 5 trading sessions, CIG fell by -3.53%, which changed the moving average for the period of 200-days by -3.53% in comparison to the 20-day moving average, which settled at $2.46. In addition, Cia Energetica DE Minas Gerais – Cemig ADR saw 7.54% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for CIG
Current profitability levels for the company are sitting at:
- 0.19 for the present operating margin
- 0.23 for the gross margin
The net margin for Cia Energetica DE Minas Gerais – Cemig ADR stands at 0.16. The total capital return value is set at 0.16. Equity return is now at value 27.27, with 10.74 for asset returns.
Based on Cia Energetica DE Minas Gerais – Cemig ADR (CIG), the company’s capital structure generated 0.3 points at debt to capital in total, while cash flow to debt ratio is standing at 0.47. The debt to equity ratio resting at 0.43. The interest coverage ratio of the stock is 6.38.
Currently, EBITDA for the company is 7.93 billion with net debt to EBITDA at 1.09. When we switch over and look at the enterprise to sales, we see a ratio of 1.05. The receivables turnover for the company is 4.57for trailing twelve months and the total asset turnover is 0.67. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.91.
Conclusion
In conclusion, Cia Energetica DE Minas Gerais – Cemig ADR (CIG) has seen better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
