Companhia Energética de Minas Gerais (CMIG4.SA) stock analysis

In our weekly check, Companhia Energética de Minas Gerais is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 8, red flags: 4.

About Companhia Energética de Minas Gerais

Companhia Energética de Minas Gerais is an Utilities company (Regulated Electric) based in Brazil, listed on SAO as CMIG4.SA.

What our checks show for CMIG4.SA

Red flags

• The gross margin fell by 5.5 points, to 14.5%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 7% a year.
• The stock has fallen as much as 84% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 9.8 years.

Warning signs

• Net debt is 3.1x a year of EBITDA (debt/equity 0.78). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2.8 times: a weak year could make the payments hard.
• The net margin fell by 0.6 points over 5 years, to 10.5%: the company keeps less of each sale as profit.
• Operating cash flow is only 0.74x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 8.2% a year.
• Analysts expect the net margin to shrink by 0.3 points from today's 10.5%.
• The dividend takes 79% of profit: little cushion if profit falls.
• Return on capital (ROCE) is only 9.3%.

Strengths

• The price is 10.2 times earnings (P/E), reasonable for its growth.
• Beta 0.06: the stock usually moves less than the market.
• Actively traded: about 17.8 million shares a day.
• Pay in shares is only 0% of free cash flow.

Next earnings report: 2026-11-12

Similar companies

EXC · ELE.MC · XEL · ED · CPLE3.SA

Questions

What grade does Companhia Energética de Minas Gerais (CMIG4.SA) have?

In our weekly check, Companhia Energética de Minas Gerais is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 8, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CMIG4.SA stock?

This week's biggest flags for Companhia Energética de Minas Gerais: Gross margin falling, Weak revenue forecast, Deep past fall. In total 12 of 25 checks show a warning or a red flag.

What does Companhia Energética de Minas Gerais do?

Companhia Energética de Minas Gerais is an Utilities company (Regulated Electric) based in Brazil, listed on SAO as CMIG4.SA.

When does Companhia Energética de Minas Gerais report earnings next?

The next earnings report is expected on 2026-11-12. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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