Companhia Energética de Minas Gerais cash flow to debt ratio of 20.11% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Companhia Energética de Minas Gerais's free cash flow has decreased -27.66% from $4.58G last year to $3.31G, signaling decreasing performance

Companhia Energética de Minas Gerais's debt to equity ratio is 0.69, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Companhia Energética de Minas Gerais's debt has increased relative to shareholder equity from 0.46 last year to 0.69 today, signaling weakened financials

Companhia Energética de Minas Gerais has a net debt to EBITDA ratio of 2.06x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Companhia Energética de Minas Gerais's interest coverage ratio of 2.76 indicates that earnings with margin can cover interest payments on company debt

Companhia Energética de Minas Gerais's profit margin has decreased (-37.59%) in the last year from 17.87% to 11.15%, signaling decreasing performance

Companhia Energética de Minas Gerais's short-term assets of $14.47G exceed its short-term liabilities of $14.46G

Companhia Energética de Minas Gerais's return on assets of 7.10% is higher than the 5.00% threshold, indicating efficient asset utilization

Companhia Energética de Minas Gerais's return on equity of 16.88%, is higher than 15.00%, indicating good performance

Companhia Energética de Minas Gerais's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Companhia Energética de Minas Gerais had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Companhia Energética de Minas Gerais has positive free cash flow, indicating the company generates cash after capital expenditures

Companhia Energética de Minas Gerais has a free cash flow yield of 37.99%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Companhia Energética de Minas Gerais's yearly earnings has decreased -31.19% since last year from $7.12G to $4.90G, signaling decreasing performance

Companhia Energética de Minas Gerais's yearly revenue has increased 5.25% since last year from $39.82G to $41.91G, signaling increasing performance

ROIC 7.79% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Companhia Energética de Minas Gerais's 3-year revenue CAGR of 7.45% is positive, indicating growing revenue over the past 3 years

Companhia Energética de Minas Gerais had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance

Companhia Energética de Minas Gerais had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Companhia Energética de Minas Gerais has insufficient data to evaluate this check.

Companhia Energética de Minas Gerais has an earnings yield of 55.45%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Companhia Energética de Minas Gerais is undervalued relative to its fair value price of 11.85 based on EBITDA multiple model

Companhia Energética de Minas Gerais has an EV/EBITDA ratio of 9.90x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Companhia Energética de Minas Gerais is undervalued relative to its fair value price of 53.33 based on Earnings Fair Value model

Companhia Energética de Minas Gerais has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Companhia Energética de Minas Gerais has a price-to-book ratio of 1.54x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Companhia Energética de Minas Gerais has a price-to-sales ratio of 1.03x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue