CMIG4:BMFBOVESPACompanhia Energetica de Minas Gerais SA Pfd Analysis
Data as of 2026-06-13 - not real-time
Latest Price
Risk Level: Medium
Executive Summary
CMIG4 trades at R$10.73, modestly above its DCF‑derived fair value of R$9.85, yet its trailing P/E of 6.27 is dramatically below the utilities industry average of 20.5, hinting at a potential value edge. The stock carries an eye‑catching dividend yield of 11.8% but a payout ratio of 99% and negative free cash flow raise sustainability concerns. Technicals show the price sitting just above the nearest support (R$10.65) with a neutral trend, an RSI of 33 indicating oversold conditions, and a bullish MACD histogram, suggesting short‑term upside potential. Volatility remains elevated at ~22% over the past 30 days, while a low beta (~0.41) points to limited systematic risk, though Brazil‑specific regulatory and currency factors add moderate headwinds.
Market Outlook
Short Term
< 1 yearKey Factors
- Oversold RSI below 35
- Bullish MACD histogram
- Price near support with upside to R$11.68 resistance
Medium Term
1–3 yearsKey Factors
- Low P/E relative to industry suggests value
- High dividend yield offset by near‑100% payout and negative free cash flow
- Stable regulated revenue with modest 6% growth
Long Term
> 3 yearsKey Factors
- Utilities sector offers defensive cash flow stability
- Regulatory and currency exposure in Brazil
- Dividend sustainability concerns may pressure total return
Key Metrics & Analysis
Financial Health
Technical Analysis
Valuation
Risk Assessment
Similar Tickers
This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.