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Is this Large Market Cap Stock target price reasonable for Companhia Energetica de Minas Gerais S.A. (NYSE:CIG)?

The company in question is, Companhia Energetica de Minas Gerais S.A. (NYSE:CIG) currently with a stock price of 2.79 (1.45% today). The market cap for Companhia Energetica de Minas Gerais S.A. is 3478.2, and is in the sector Utilities, and Electric Utilities industry. The target price for Companhia Energetica de Minas Gerais S.A. is 44.68. Currently Companhia Energetica de Minas Gerais S.A. is trading with a P/E of 16.47, and a forward P/E of 7.97. Average volume for Companhia Energetica de Minas Gerais S.A. is 4426.75 and so far today it is 4947576.

Performance in the last year for Companhia Energetica de Minas Gerais S.A. has been 55.29%. For EPS growth, Companhia Energetica de Minas Gerais S.A. has seen a growth of -20.60%, and is looking to grow in the next year to 6.15%. More long term stats show that EPS growth has been 3.90% over the last five years and could be 6.50% for the next five years. Companhia Energetica de Minas Gerais S.A. has seen sales growth quarter over quarter at -11.80%, with EPS growth quarter over quarter at -62.20%. The 20-day simple moving average is 1.12%, with the 200-day simple moving average coming to 37.66%.

Since the IPO date for Companhia Energetica de Minas Gerais S.A. on the 11/18/1996, Companhia Energetica de Minas Gerais S.A. has seen performance year to date to be 98.77%. With Companhia Energetica de Minas Gerais S.A. trading at 2.79, the dividend yield is 3.64%, and the EPS is 0.17.

So could Companhia Energetica de Minas Gerais S.A., be undervalued? Well as said before P/E is 16.47. The PEG is 2.53, P/S is 0.58 and the P/B is at 0.81. The P/cash is 4.62, with P/free cash flow at 6.69.

Companhia Energetica de Minas Gerais S.A. ability to deal with debt shows that the current ratio is 0.7, and the quick ratio is 0.7. This is with long term debt/equity at 0.78, and total debt/equity at 1.12.

In terms of margins, Companhia Energetica de Minas Gerais S.A. has a gross margin of 22.20%, an operating margin of 8.60% and a profit margin of 3.50%.Payout ratio for Companhia Energetica de Minas Gerais S.A. is 93.30%. Return on assets come to 1.70% with return on investment coming to 11.50%.

Insider ownership for Companhia Energetica de Minas Gerais S.A., is at 1.00% and institutional ownership comes to 21.30%. Outstanding shares are at 1264.8. While shares float is 769.22. The float short is currently 0.38%, and short ratio is 0.66.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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