(CIG) Companhia Energetica de - Ratings and Ratios

Companhia Energética de Minas Gerais - CEMIG, a leading Brazilian utility company, operates in the generation, transmission, distribution, and sale of energy. As of December 31, 2023, CEMIG manages 57 hydroelectric plants with a combined capacity of 5,010.4 MW, 9 wind farms totaling 175.7 MW, and 2 photovoltaic stations at 3.9 MW. The companys network includes 344,006 miles of distribution lines and 4,653 miles of transmission lines, serving approximately 8.5 million customers. Beyond energy, CEMIG is involved in gas distribution, energy trading, transmission infrastructure, and services like distributed generation and energy efficiency. Established in 1952, CEMIG is headquartered in Belo Horizonte, Brazil.

Over the next three months, CEMIGs stock is expected to show sideways movement with potential slight upward bias. Technically, the stock is trading above its 50-day SMA but below its 200-day SMA, indicating a neutral trend. Low volatility, with an ATR of 0.06, suggests price fluctuations will remain minimal. Fundamentally, Brazils growing energy demand, particularly in renewables, may boost CEMIGs outlook. However, reliance on hydroelectric power and potential regulatory changes pose risks. The stocks low P/E ratio of 5 and forward P/E of 9.05, along with a P/B ratio of 1.05, suggest undervaluation, though investors should consider sector-specific challenges.