CIGCompanhia Energética de Minas Gerais - CEMIG
Is the business good?
The checks split: margins steady and returns not propped up by debt.
Margins have held roughly steady, a stable cost structure.
A balanced mix of margins, efficiency, and leverage. ROE 17% = margin × turnover × leverage.
All from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CIG?
Companhia Energética de Minas Gerais - CEMIG earns −9.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 18 points below what the capital costs: growth destroys value
- Operating margin
- −12%
Operating margin · Utilities - Regulated Electric median 22% · fiscal year to FY2025
- R&D as % of revenue
- 0.01%
R&D as % of revenue
- Gross margin
- 17%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 15% |
| FY2021 | 20% |
| FY2022 | −8.1% |
| FY2023 | −5.0% |
| FY2024 | −0.08% |
| FY2025 | −12% |
Details›
- Gross marginfiscal year to FY2025
- 17%
- Operating marginfiscal year to FY2025
- −12%
- Net marginfiscal year to FY2025
- 11%
- Free cash flow margin
- 7.9%
- R&D as % of revenue
- 0.01%
- Revenue, trailing twelve months
- $42.8B
- Free cash flow, trailing twelve months
- $3.38B
- Net income, trailing twelve months
- $4.90B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −9.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Utilities, Regulated Electric
The closest names by size in the same industry