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Comp En De Mn Cemig (CIG) Stock Analysis

SellVALUE-TRAP 2/5Moderate Confidence

Utilities · Utilities - Regulated Electric

Sell if holding. Engine safety override at $2.25: Quality below floor (3.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Elevated put/call ratio: 2.17; Below-average business quality.

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... Read more

$2.25+19.6% A.UpsideScore 5.3/10#18 of 40 Utilities - Regulated Electric
QualityF-score4 / 9FCF yield-56.29%
IncomeYield7.13%(5y avg 8.07%)Payout96.83%at-risk
Stop $2.11Target $2.69(resistance)A.R:R -2.8:1
Analyst target$2.20-2.2%2 analysts
$2.69our TP
$2.25price
$2.20mean
$2
$3

Sell if holding. Engine safety override at $2.25: Quality below floor (3.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Elevated put/call ratio: 2.17; Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.3/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 86d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.

Recent Developments — Comp En De Mn Cemig

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
No bull case signals
Risks
Target reached (-16.9% upside)
Quality below floor (3.8 < 4.0)
Value-trap signals (2/5): High leverage (D/E 1.9), Negative free cash flow

Key Metrics

P/E (TTM)6.6
P/E (Fwd)15.0
Mkt Cap$6.4B
EV/EBITDA3.2
Profit Mgn11.2%
ROE17.0%
Rev Growth6.3%
Beta0.19
Dividend7.13%
Rating analysts18

Quality Signals

Piotroski F4/9MoatNarrow

Options Flow

P/C2.17bearish
IV27%low

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
0.8
Revenue Growth
4.1

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Gross Margin
0.0
Fcf Quality
0.0
Current Ratio
3.7
Roa
4.0
Piotroski F
4.4
Operating Margin
5.0
Moat
5.5
Net Margin
5.6
Roe
5.7
Earnings quality RED FLAG: -75% FCF/NI
GatesMomentum 4.2<4.5A.R:R -2.8=NEGATIVEInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 86d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
27 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $2.17Resistance $2.74

Price Targets

$2
$3
A.Upside+19.6%
A.R:R-2.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-16.9% upside)
! Quality below floor (3.8 < 4.0)
! Value-trap signals (2/5): High leverage (D/E 1.9), Negative free cash flow

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-13 (86d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CIG stock a buy right now?

Sell if holding. Engine safety override at $2.25: Quality below floor (3.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Elevated put/call ratio: 2.17; Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $2.11. Score 5.3/10, moderate confidence.

What is the CIG stock price target?

Take-profit target: $2.69 (+19.6% upside). Prior stop was $2.11. Stop-loss: $2.11.

What are the risks of investing in CIG?

Target reached (-16.9% upside); Quality below floor (3.8 < 4.0); Value-trap signals (2/5): High leverage (D/E 1.9), Negative free cash flow.

Is CIG overvalued or undervalued?

Comp En De Mn Cemig trades at a P/E of 6.6 (forward 15.0). TrendMatrix value score: 8.7/10. Verdict: Sell.

What do analysts say about CIG?

18 analysts cover CIG with a consensus score of 2.4/5. Average price target: $2.

What does Comp En De Mn Cemig do?Companhia Energética de Minas Gerais - CEMIG, through its subsidiaries, engages in the generation, transmission,...

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. 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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