Risk factor
Very high price volatility
Profitability factor
Very strong margins and returns
About
Companhia Distribuidora de Gás do Rio de Janeiro - CEG is actively engaged in the supply of natural gas and its derivatives throughout Brazil. Its operations span several key sectors, including residential, commercial, industrial, thermoelectric power generation, automotive, and construction. The company provides a range of products such as piped gas, compressed natural gas (CNG), and natural gas for vehicles (NGVs). Additionally, it offers related equipment like heaters and various accessories. Its service portfolio also encompasses construction, gas network distribution, and maintenance activities. CEG serves a broad customer base, including households, businesses, and industrial clients, across numerous municipalities within the state of Rio de Janeiro. These municipalities include Rio de Janeiro itself, along with Belford Roxo, Duque de Caxias, Guapimirim, Itaboraí, Itaguaí, Japeri, Magé, Mangaratiba, Maricá, Nilópolis, Niterói, Nova Iguaçu, Paracambi, Queimados, São Gonçalo, Tanguá, Seropédica, and São João de Meriti. Established in 1854, the company was initially known as Companhia Estadual de Gás before adopting its current name, Companhia Distribuidora de Gás do Rio de Janeiro - CEG, in 1998. Its headquarters are situated in Rio de Janeiro, Brazil, and it currently operates as a subsidiary of Gas Natural Fenosa.
Company Valuation
From both historical and forecast perspectives, the stock is slightly overpriced compared to similar stocks. In particular, the stock is overpriced on P/E, of fair value