Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) Moves Up Smartly


Dallas, Texas 10/10/2013 (Financialstrend) – Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) is a Brazilian Electrical Utility provider which has a market cap of $7.63 billion. Over the past 12 months the company has recorded sales of $7.6 billion resulting in an income of $2.04 billion. It has ploughed in part of the profits into paying out dividends. These payouts have been made possible thanks to close to 15% increase in sales on a quarter on quarter basis while its earnings per share have gone up by 35% over the same period. For an electrical utility company Cia Energetica has managed to post gross and operating margins of 31% and 20% respectively. Its profit margins are also a healthy 26% up in comparison to past 12 month’s period.

As of close of business on October 9, the stock had settled at $8.91 per share which was down 0.11% from its previous day close. Through the day 2.7 million of Cia Energetica shares changed hands which was in line with its daily trading average of 2.4 million. Current trading price indicates a 23% dip in value over its 52 week high valuations and is 18% down from its 52 week low pricing.

 The stock has posted gains of 4.95% which was completely opposite in comparison to the close to 3.5% decrease in value over the past 90 days. Investors who had bought into the stock in October 2012 would have seen their investment go up by close to 4.7% in addition to the dividend they have been paid. In the past 12 months trailing period, it has paid out $0.13 per share which translates to a 1.46% dividend yield.

The question on top of the mind of these investors would be to predict if the company would continue to pay out relatively healthy dividends while the firm is navigating its way through a slowing down Brazilian economy.