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CIG, Comp En De Mn Cemig ADS
A regulated utility, earning a set return on the capital it sinks into its network.
The business
What it sells, where the money comes from, the kind of company it is.
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Regulated utility. Returns are set by regulation on an approved rate base; the capital spending regulators approve becomes the growth, recovered through allowed rates.
- What moves the needle
- Gross margin has run about 23% and operating margin about 21% through the cycle, a thin spread, but one where almost nothing separates the gross and operating lines — the mark of cost-plus or fixed-price program work, so the contract structure and the order book set the result more than unit volume against a price. On a spread this thin the operating result swings hard on small moves in cost or volume — it has ranged from 1.0% to 28% over the years, so the cost line is where the needle moves. Read this kind of business on rate base and the allowed return. On its own account, the filing leans hardest on supplier & input dependence, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has run in the teens (median 14%, above 15% in 3 of 6 years). Owner earnings agree: roughly 11% of revenue reaches owners as cash, consistently. Modest returns here are the design, not a verdict: a regulated utility's prices are set by commission, so the questions are the return the regulator allows, how fast the invested base it earns that return on is growing, and the health of the relationship with the commissions that decide both — all of which live in the 10-K, not the multiple.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2015–2024
realized figures from each filing · older years to the left| 2015’15 | 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | TTMTTMDec 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| R$21.9B | R$18.8B | R$21.7B | R$22.3B | R$25.5B | R$25.2B | R$33.6B | R$34.5B | R$36.9B | R$39.8B | R$39.8B | RevenueRevenue |
| R$6.1B | R$4.3B | R$4.2B | R$4.6B | R$5.9B | R$5.4B | — | — | R$8.4B | — | — | Gross profitGross prof. |
| 28% | 23% | 19% | 21% | 23% | 21% | — | — | 23% | — | — | Gross marginGross mgn |
| R$5.6B | R$2.8B | R$3.4B | R$4.5B | R$252M | R$5.3B | R$7.8B | R$7.2B | R$8.5B | R$11.3B | R$11.3B | Operating incomeOp. inc. |
| 25.5% | 15.2% | 15.9% | 20.4% | 1.0% | 20.9% | 23.2% | 20.8% | 23.1% | 28.4% | 28.4% | Operating marginOp. mgn |
| R$2.5B | R$334M | R$1.0B | R$1.7B | (R$3.2B) | R$2.9B | R$3.8B | R$4.1B | R$5.8B | R$7.1B | R$7.1B | Net incomeNet inc. |
| 27% | 9% | 39% | 26% | — | — | 20% | 1% | 16% | 24% | 24% | Effective tax rateTax rate |
| Cash flow & returns | |||||||||||
| R$3.0B | R$1.2B | R$580M | R$1.0B | R$2.0B | R$8.6B | R$3.7B | R$6.5B | R$6.6B | R$5.5B | R$5.5B | Operating cash flowOp. cash |
| R$811M | R$802M | R$787M | R$761M | R$815M | R$865M | R$947M | R$1.2B | R$1.3B | R$1.4B | R$1.4B | DepreciationDeprec. |
| (R$272M) | R$77M | (R$1.2B) | (R$1.5B) | R$4.4B | R$4.9B | (R$1.0B) | R$1.3B | (R$392M) | (R$3.0B) | (R$3.0B) | Working capital & otherWC & other |
| R$126M | R$120M | R$83M | R$77M | R$70M | R$132M | R$182M | R$173M | R$1.1B | R$671M | R$671M | CapexCapex |
| 0.6% | 0.6% | 0.4% | 0.3% | 0.3% | 0.5% | 0.5% | 0.5% | 2.9% | 1.7% | 1.7% | Capex / revenueCapex/rev |
| R$2.9B | R$1.1B | R$497M | R$931M | R$2.0B | R$8.5B | R$3.5B | R$6.4B | R$5.6B | R$4.8B | R$4.8B | Owner earningsOwner earn. |
| 13.2% | 5.8% | 2.3% | 4.2% | 7.7% | 33.6% | 10.4% | 18.5% | 15.1% | 12.1% | 12.1% | Owner earnings marginOE mgn |
| R$2.9B | R$1.1B | R$497M | R$931M | R$2.0B | R$8.5B | R$3.5B | R$6.4B | R$5.6B | R$4.8B | R$4.8B | Free cash flowFCF |
| 13.2% | 5.8% | 2.3% | 4.2% | 7.7% | 33.6% | 10.4% | 18.5% | 15.1% | 12.1% | 12.1% | Free cash flow marginFCF mgn |
| — | R$167M | R$500M | R$657M | R$701M | R$598M | — | — | R$533M | R$1.9B | R$1.9B | Dividends paidDiv. paid |
| — | 10% | 8% | 12% | — | 17% | — | — | 22% | 23% | 23% | ROICROIC |
| 19% | 3% | 7% | 12% | -20% | 16% | 19% | 19% | 23% | 26% | 26% | Return on equityROE |
| — | 1% | 3% | 7% | −25% | 13% | — | — | 21% | 19% | 19% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| — | R$995M | R$1.0B | R$891M | R$536M | R$1.7B | R$825M | R$1.4B | R$2.3B | R$2.3B | R$2.3B | Cash & investmentsCash+inv |
| — | — | R$235M | — | — | — | — | R$207M | R$261M | R$296M | R$296M | ReceivablesReceiv. |
| — | R$49M | R$38M | R$36M | R$39M | — | — | — | — | — | R$39M | InventoryInvent. |
| — | R$49M | R$273M | R$36M | R$39M | — | — | R$207M | R$261M | R$296M | R$335M | Operating working capitalOper. WC |
| — | R$8.3B | R$8.5B | R$27.8B | R$10.4B | R$15.5B | R$12.9B | R$13.5B | R$11.9B | R$12.2B | R$12.2B | Current assetsCur. assets |
| — | R$11.4B | R$8.7B | R$23.4B | R$7.9B | R$9.7B | R$10.7B | R$11.2B | R$13.1B | R$14.1B | R$14.1B | Current liabilitiesCur. liab. |
| — | 0.7× | 1.0× | 1.2× | 1.3× | 1.6× | 1.2× | 1.2× | 0.9× | 0.9× | 0.9× | Current ratioCurr. ratio |
| R$3.9B | R$3.8B | R$2.8B | R$2.7B | R$2.5B | R$2.4B | R$2.4B | R$2.4B | R$3.3B | R$3.7B | R$3.7B | Net PP&ENet PP&E |
| — | R$42.0B | R$42.2B | R$59.9B | R$50.5B | R$54.1B | R$52.0B | R$53.7B | R$55.0B | R$59.7B | R$59.7B | Total assetsAssets |
| — | R$15.2B | R$14.4B | R$14.8B | R$14.8B | R$15.0B | R$1.5B | R$955M | R$9.8B | R$12.3B | R$12.3B | Total debtDebt |
| — | R$14.2B | R$13.4B | R$13.9B | R$14.2B | R$13.3B | R$640M | (R$486M) | R$7.5B | R$10.0B | R$10.0B | Net debt / (cash)Net debt |
| 2.5× | 1.1× | 1.9× | 2.0× | 0.1× | 1.6× | 2.5× | 2.3× | 5.1× | 5.8× | 5.8× | Interest coverageInt. cov. |
| R$13.0B | R$12.9B | R$14.3B | R$14.6B | R$15.9B | R$17.5B | R$19.5B | R$21.8B | R$24.6B | R$27.4B | R$27.4B | Shareholders’ equityEquity |
| Per share | |||||||||||
| 1.26B | 1.26B | 1.46B | 1.69B | 736M | 2.20B | 2.20B | 2.86B | 2.86B | 2.86B | 2.86B | Shares out (diluted)Shares |
| R$17.38 | R$14.92 | R$14.89 | R$13.15 | R$34.63 | R$11.46 | R$15.29 | R$12.05 | R$12.88 | R$13.92 | R$13.92 | Revenue / shareRev/sh |
| R$1.96 | R$0.27 | R$0.69 | R$1.00 | R$-4.34 | R$1.30 | R$1.70 | R$1.43 | R$2.01 | R$2.49 | R$2.49 | EPS (diluted)EPS |
| R$2.29 | R$0.87 | R$0.34 | R$0.55 | R$2.67 | R$3.85 | R$1.59 | R$2.23 | R$1.95 | R$1.69 | R$1.69 | Owner earnings / shareOE/sh |
| R$2.29 | R$0.87 | R$0.34 | R$0.55 | R$2.67 | R$3.85 | R$1.59 | R$2.23 | R$1.95 | R$1.69 | R$1.69 | Free cash flow / shareFCF/sh |
| — | R$0.13 | R$0.34 | R$0.39 | R$0.95 | R$0.27 | — | — | R$0.19 | R$0.66 | R$0.66 | Dividends / shareDiv/sh |
| R$0.10 | R$0.10 | R$0.06 | R$0.05 | R$0.10 | R$0.06 | R$0.08 | R$0.06 | R$0.38 | R$0.23 | R$0.23 | Cap. spending / shareCapex/sh |
| R$10.32 | R$10.28 | R$9.82 | R$8.61 | R$21.59 | R$7.94 | R$8.84 | R$7.61 | R$8.62 | R$9.57 | R$9.57 | Book value / shareBVPS |
The diluted share count moved ×1/2.3 into 2019 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×2.99 into 2020 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | −2.4%/yr | −16.7%/yr |
| Owner earnings / share | −3.3%/yr | −8.8%/yr |
| EPS | +2.7%/yr | — |
| Dividends / share | +22.2%/yr (8-yr) | −7.1%/yr |
| Capital spending / share | +9.9%/yr | +19.8%/yr |
| Book value / share | −0.8%/yr | −15.0%/yr |
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2024 the business reported R$7.1B of profit but R$4.8B of owner earnings: R$2.3B less than the profit line, taken out by capital spending and the timing of cash.
| FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | |
|---|---|---|---|---|---|
| Reported net income | R$7.1B | R$5.8B | R$4.1B | R$3.8B | R$2.9B |
| Depreciation & amortizationnon-cash charge added back | +R$1.4B | +R$1.3B | +R$1.2B | +R$947M | +R$865M |
| Working capital & othertiming of cash in and out, other non-cash items | −R$3.0B | −R$392M | +R$1.3B | −R$1.0B | +R$4.9B |
| Cash from operations | R$5.5B | R$6.6B | R$6.5B | R$3.7B | R$8.6B |
| Capital expenditurecash put back in to keep running and to grow | −R$671M | −R$1.1B | −R$173M | −R$182M | −R$132M |
| Owner earnings | R$4.8B | R$5.6B | R$6.4B | R$3.5B | R$8.5B |
| Owner-earnings marginowner earnings ÷ revenue | 12% | 15% | 18% | 10% | 34% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
Will it survive?
- ComfortableOperating income R$11.3B ÷ interest expense R$2.0B
What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
- How heavy is the debt, net of cash? R$10.0B · 0.9× operating profitModest net debtCash R$1.9B + ST investments R$358M − debt R$12.3B
What this means
Netting R$2.3B of cash and short-term investments against R$12.3B of debt leaves R$10.0B owed, about 0.9× a year's operating profit (1.1× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Not enough data
What this means
The filing data didn't include the inputs for this check.
Is it a good business?
- Solid through the cycle6-yr median, range 8%–23%; 23% latest = NOPAT R$8.6B ÷ invested capital R$37.8BIndustry peers: median 5%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 6 years (it ran 23% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Solid through the cycle10-yr median margin, range 2%–34%; latest R$4.8B = operating cash R$5.5B − maintenance capex R$671MIndustry peers: median 12%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 12% of revenue this year, a 11% median across 10 years.
- Mostly cash-backedCash from ops R$5.5B ÷ net income R$7.1B
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Reinvests most of itDividends + buybacks R$1.9B ÷ Owner Earnings R$4.8B — this fiscal year
What this means
Of R$4.8B Owner Earnings, R$1.9B (39%) went back to shareholders, R$1.9B dividends, R$0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does. This year's proportion is 39%; across the record (2015–2024) it is 14%, the capital-allocation section below.
- Investing or harvesting? 0.49×HarvestingCapex R$671M ÷ depreciation R$1.4B
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 2 of 4 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size —Revenue ≥ $2B (a dollar floor) · R$39.8B
What this means
Big enough to weather a storm. Graham's floor is a dollar figure — about $2B of revenue as a conservative modern stand-in. This company reports in its home currency and we carry no exchange rate, so we show the figure and leave the size bar for you to apply rather than convert it with a number we don't have.
- Strong liquidity —Current ratio ≥ 2× (waived for utilities) · exempt
What this means
Graham exempted public utilities from this test: their working capital “takes care of itself” through the continuous bond-and-share financing of growth, so a thin current ratio is the industry's structure, not a warning. His substitute test — debt no more than twice book equity — is the next line.
- Conservative debt PassDebt ≤ 2× equity (Graham's utility test) · R$12.3B vs R$27.4B equity
What this means
Graham's own substitution for public utilities: debt not exceeding twice the stock equity at book value, in place of the working-capital tests an industrial faces. A utility finances its plant with bonds by design; the question is whether the borrowing stays inside the equity behind it.
- Earnings stability NearA profit every year (10-yr record) · 1 loss year
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · 7 of 10 yrs
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth PassEarnings +33% over the record · +346%
What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are R$5.91/share (latest year R$7.44), the averaged base the calculator's gate runs on, and book value is R$28.62/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2015–2024
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 9 of 10
What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
- Return on capital ≥ 15% 5 of 9 yrs
What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin 19% → 24% (3-yr avg ends)
What this means
Through the cycle the operating margin widened — about 19% early to 24% lately, median 21% — pricing power intact or improving.
- Reinvestment, incremental ROIC returns capital
What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
- Owner earnings growth +11%/yr
What this means
Owner earnings grew about 11% a year over the record.
- Worst year 2019 · 1.0% op. margin
What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
- Dividend record rising
What this means
Paid and raised the dividend across the record, the continuity Graham prized.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2024Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
- Cash & short-term investmentsR$2.3B
- ReceivablesR$296M
- InventoryR$39M
- Other current assetsR$9.6B
- Debt due within a yearR$2.9B
- Other current liabilitiesR$11.3B
From the company's latest filing.
How the cash was used, 2015–2024
Over the record, the business generated R$38.8B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.
- ReinvestedR$2.7B · 7%
- DividendsR$5.0B · 13%
- Retained (debt / cash)R$31.1B · 80%
- Returned to ownersR$5.0B
14% of the owner earnings the business produced over the span, R$5.0B as dividends and R$0 as buybacks.
- Net change in share count127.3%
The diluted count rose from 1258M to 2861M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
- Dividend recordR$0.66/sh
Paid in 7 of the years on record, the per-share dividend growing about 31% a year. It was cut at least once along the way.
- Return on what it retained20%
Of the earnings it kept rather than paid out (R$20.9B over the span), annual owner earnings (first three years vs last three) grew R$4.1B, so each retained R$1 added about 0.20 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Acquisitions & goodwill
from the balance sheet & the 10-year cash-flow recordGoodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.
None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.
Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend summed across the company's full tagged history, write-downs across the 10-year record, from the company's own filings.
Peers, Electric Utilities
The same industry, side by side on owner economics. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.
| Company | Revenuelatest FY, USD | Gross marginmedian over the record | Op. marginmedian over the record | ROICmedian over the record | Owner earn. marginmedian over the record |
|---|---|---|---|---|---|
| VSTVistra | $17.6B | — | 10.8% | 7% | 17% |
| FTSFortis Inc. | $8.6B | 71% | 28.5% | 5% | 16% |
| AXIAAXIA Energia | $7.7B | 72%1y | 28.9% | 6% | 12% |
| CIGComp En De Mn Cemig ADS | $7.7B | 23% | 20.9% | 14% | 11% |
| EMAEmera Incorporated | $6.3B | — | 21.4% | 4% | 10% |
| ELPCCompanhia Paranaense de Energia (COPEL) | $4.4B | — | -6.7% | — | 11% |
| ENICEnel Chile S.A. | $4.2B | — | 20.4% | — | 19% |
| TLNTalen Energy Corporation | $2.6B | — | 3.5% | 2% | 4% |
| Group median | — | 71% | 20.7% | 6% | 12% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American Depositary Shares, each representing 1 Common”; Comp En De Mn Cemig ADS reports in BRL, so every figure in this tool is stated per ADS and translated at BRL 1 = $0.193 (2026-08-20, reference rate) so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed, in BRL.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Comp En De Mn Cemig ADS has delivered.
Through the cycle, Comp En De Mn Cemig ADS earns about $864M on its 11.3% median owner-earnings margin. This year’s 12.1% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.
—
9.0% = the 4.71% 10-year Treasury (Aug 18, 2026) + 4.29 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Prefilled with the 10-year Treasury (4.71%, as of Aug 18, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner earnings $930M on 957M shares outstanding (a weighted cover-text, the only count this filer tags); net debt $1.9B. The if-converted diluted count is 2861M, 199% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Manual order: ← CHT its page in the Manual CIGI →
Industry order: ← CEPU the Electric Utilities chapter CNP →