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.
Margin-driven, fat margins on slower asset turns. ROE 26% = 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 −0.07% 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% · 9.1 points below what the capital costs: growth destroys value
- Operating margin
- −0.08%
Operating margin · Utilities - Regulated Electric median 22% · fiscal year to FY2024
- R&D as % of revenue
- 0.01%
R&D as % of revenue
- Gross margin
- 20%
Gross margin
| Year | Operating margin |
|---|---|
| FY2019 | 12% |
| FY2020 | 15% |
| FY2021 | 20% |
| FY2022 | −8.1% |
| FY2023 | −5.0% |
| FY2024 | −0.08% |
Details›
- Gross marginfiscal year to FY2024
- 20%
- Operating marginfiscal year to FY2024
- −0.08%
- Net marginfiscal year to FY2024
- 18%
- Free cash flow margin
- 12%
- R&D as % of revenue
- 0.01%
- Revenue, trailing twelve months
- $39.8B
- Free cash flow, trailing twelve months
- $4.83B
- Net income, trailing twelve months
- $7.12B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −0.07%
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
Ranks #14 of 15 by RyuScore