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Key Info

Cia Energetica de Minas Gerais Web - www.cemig.com.br

Tel - 55-31-3506-5024

Next Reporting Date - 15.05.2019

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    Cia Energetica de Minas Gerais

    Utilities

    BRAZIL


    DCF Model Assumptions

    Risk Free Rate

    5.92%

    Country Equity Risk Premium

    6.00%

    Cost of Debt

    5.33%

    Cost of Debt

    5.33%

    Long Term Growth

    2.00%

    Beta Assumption

    1.23

    Current Market Cap mln$

    5,673.71

    Net Debt mln$

    3,717.07

    WACC Estimate

    10.15%

    Ordinary Current Price $

    3.66

    DCF Model

    DCF20152016201720182019F2020F2021F2022F2023F2024F2025F2026F2027F2028F2029F
    Revenue6662.915421.286802.186130.946372.016658.156956.397272.207604.857949.448309.648686.169079.759491.179921.22
    EBITDA Costs5095.574571.895629.075181.405191.315365.955547.995740.745943.786149.906363.166583.826812.147048.377292.80
    EBITDA1567.34849.391173.11949.551180.701292.191408.401531.461661.071799.541946.482102.342267.612442.792628.43
    EBITDA Margin23.5215.6717.2515.4918.5319.4120.2521.0621.8422.6423.4224.2024.9725.7426.49
    Operating Costs5349.944812.825895.305415.195442.165621.735808.896007.086215.836427.506646.396872.727106.777348.787599.03
    Operating Profit1312.97608.46906.88715.75929.851036.421147.501265.121389.021521.931663.251813.441972.982142.392322.19
    Operating Margin19.7111.2213.3311.6714.5915.5716.5017.4018.2619.1520.0220.8821.7322.5723.41
    Pretax Costs5638.675315.036286.545586.475769.815923.306083.286252.696431.136609.916793.666982.517176.627376.127581.17
    PTP1024.24106.25515.64544.48602.21734.85873.111019.511173.721339.531515.981703.651903.132115.052340.06
    Pretax Margin15.371.967.588.889.4511.0412.5514.0215.4316.8518.2419.6120.9622.2823.59
    Net Income Costs5903.625141.036488.585661.615897.326137.086386.986651.606930.337216.917515.347826.128149.748486.758837.69
    Net Income759.29280.26313.59469.33474.69521.07< /td>569.41620.60674.52732.53794.30860.05930.011004.421083.53
    Net Margin11.405.174.617.667.457.838.198.538.879.219.569.9010.2410.5810.92
    Revenue Less Capex6701.215455.896828.206152.146401.896687.656985.517300.907633.127977.098336.578712.259104.859515.159943.94
    Capex-38.30-34.61-26.02-21.20-29.88-29.51-29.11-28.70-28.27-27.65-26.93-26.08-25.10-23.98-22.71
    Capex to Revenues-0.57-0.64-0.38-0.35-0.47-0.44-0.42-0.39-0.37-0.35-0.32-0.30-0.28-0.25-0.23
    Revenue less FCF5784.945105.486646.625874.655955.686205.516465.916741.657032.097331.407643.457968.788307.968661.579030.24
    FCF877.97315.80155.55256.30416.34452.64490.48530.55572.76618.04666.19717.38771.79829.59890.99
    FCF to Revenue13.185.832.294.186.536.807.057.307.537.778.028.268.508.748.98

    BRAZIL Comparables

    tickercompanycountry Market Cap
    2019
    PE RATIO
    2019
    PE RATIO
    2020
    EV/EBITDA
    2019
    EV/EBITDA
    2020
    P/S
    2019
    DIVIDEND YIELD
    2019
    EBITDA Margin
    2019
    P/B
    2019
    ROE
    2019
    6 month return
    2019
    ELET3 BZCentrais Eletricas Brasileiras SABRAZIL 11500.2513.538.197.987.701.362.8034.660.892.5532.15
    ELET6 BZCentrais Eletricas Brasileiras SABRAZIL 11500.2514.548.807.987.701.363.5634.660.962.5527.41
    SBSP3 BZCia de Saneamento Basico do Estado de Sao PauloBRAZIL 7634.5710.279.426.556.121.942.4239.611.3814.1547.78
    CPFE3 BZCPFL Energia SABRAZIL 7468.0612.8212.829.118.551.23-23.03-19.506.67
    CMIG4 BZCia Energetica de Minas GeraisBRAZIL 5673.7110.458.778.537.571.003.9119.151.3112.7313.04
    ENBR3 BZEDP - Energias do Brasil SABRAZIL 2680.7211.6410.566.786.190.824.3319.111.2210.3619.44
    CPLE6 BZCia Paranaense de EnergiaBRAZIL 2602.387.566.945.875.460.664.9321.670.668.8149.33
    TAEE11 BZTransmissora Alianca de Energia Eletrica SABRAZIL 2267.7711.7512.3910.4010.036.058.1279.432.0619.9413.39
    CESP6 BZCia Energetica de Sao PauloBRAZIL 2116.8739.7625.6211.128.765.393.7947.351.232.8430.41
    CSMG3 BZCia de Saneamento de Minas Gerais-COPASABRAZIL 2109.1113.5711.376.886.171.833.8336.201.319.3516.14
    ENEV3 BZEneva SABRAZIL 1568.5612.2110.006.606.221.860.0045.250.946.4032.44
    GETI4 BZAES Tiete SABRAZIL ------68.57-30.00#N/A N/A
    MPXE3 BZEneva SABRAZIL ------45.25-6.40#N/A N/A
    TBLE3 BZEngie Brasil Energia SABRAZIL ------54.76-37.98#N/A N/A

    International Comparables

    tickercompanycountry Market Cap
    2019
    PE RATIO
    2019
    PE RATIO
    2020
    EV/EBITDA
    2019
    EV/EBITDA
    2020
    P/S
    2019
    DIVIDEND YIELD
    2019
    EBITDA Margin
    2019
    P/B
    2019
    ROE
    2019
    6 month return
    2019
    NEE USNextEra Energy IncUNITED STATES 91227.6022.6420.9713.5912.524.962.6253.642.3210.7713.58
    DUK USDuke Energy CorpUNITED STATES 65815.5418.3217.3611.9911.262.594.1940.531.468.0212.82
    ENEL IMEnel SpAITALY 63084.0111.9411.027.046.720.725.8322.111.6012.6627.62
    D USDominion Energy IncUNITED STATES 61193.9418.1917.3411.8610.953.424.7846.242.2421.449.34
    IBE SMIberdrola SASPAIN 58373.4415.8014.659.508.871.414.5626.371.318.1727.36
    SO USSouthern Co/TheUNITED STATES 54581.2917.2816.6512.2711.742.424.7137.881.9611.5119.86
    EXC USExelon CorpUNITED STATES 48875.8916.0115.949.499.361.502.8727.761.469.4517.28
    AEP USAmerican Electric Power Co IncUNITED STATES 41858.1420.5519.2912.0211.212.553.1934.712.0910.4818.67
    EDF FPElectricite de France SAFRANCE 41653.3017.0013.064.353.960.532.9122.750.855.21-15.30
    3 HKHong Kong & China Gas Co LtdHONG KONG 36678.2132.4130.0626.8124.737.202.0430.284.1713.7325.59
    SRE USSempra EnergyUNITED STATES 34914.3721.1217.9814.2913.002.793.0435.981.9410.0014.70
    PEG USPublic Service Enterprise Group IncUNITED STATES 29794.9718.1016.8011.5610.762.853.1837.331.9511.1110.25
    XEL USXcel Energy IncUNITED STATES 28816.2021.4620.0611.5910.672.362.8932.522.2210.7217.14
    2 HKCLP Holdings LtdHONG KONG 28695.7617.9517.3511.4311.062.453.4527.551.8710.976.38
    ED USConsolidated Edison IncUNITED STATES 27633.5219.5018.5311.1110.432.183.5033.671.558.1612.78
    WEC USWEC Energy Group IncUNITED STATES 24542.0422.1420.8514.2213.243.103.0232.372.4111.2114.72
    EOAN GRE.ON SEGERMANY 23708.7514.0412.875.353.640.634.7314.743.2121.6911.83
    DTE USDTE Energy CoUNITED STATES 22749.7419.9218.8712.7211.661.603.0720.922.0010.4511.76
    PPL USPPL CorpUNITED STATES 22206.3612.6712.1210.229.662.765.3953.041.7216.365.50
    FE USFirstEnergy CorpUNITED STATES 21868.8515.9216.5110.7010.331.873.7033.572.9319.4514.28
    EIX USEdison InternationalUNITED STATES 20715.0814.3413.528.097.531.573.8635.841.8613.16-4.81
    AWK USAmerican Water Works Co IncUNITED STATES 19229.8429.7227.3615.1214.035.301.8650.473.1810.7921.94
    NTPC INNTPC LtdINDIA 18947.4311.769.899.608.361.373.2727.081.2210.388.26
    ETR USEntergy CorpUNITED STATES 18134.6517.9717.3010.589.751.573.8629.461.8610.6217.93
    AEE USAmeren CorpUNITED STATES 17733.9722.0420.5911.3410.452.792.7037.282.2010.2213.70
    TNB MKTenaga Nasional BhdMALAYSIA 16680.0812.3611.766.776.641.374.5630.591.119.50-11.19
    VER AVVerbund AGAUSTRIA 16498.4627.6320.7514.9312.284.491.7035.802.659.5810.64
    384 HKChina Gas Holdings LtdHONG KONG 16304.4416.2013.9512.9611.071.951.8518.373.7024.263.74
    FTS CNFortis Inc/CanadaCANADA 15746.9218.8317.8512.4411.722.383.6844.361.437.1113.61
    RWE GRRWE AGGERMANY 15639.1125.4512.1010.164.611.043.4610.931.173.5229.68