BOVESPA:CPFE3

Stock Analysis Report

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Executive Summary

CPFL Energia S.A., through its subsidiaries, generates, transmits, distributes, and commercializes electricity to residential, industrial, and commercial customers in Brazil. More Details


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has CPFL Energia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPFE3 is less volatile than 75% of BR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CPFE3's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

CPFE3

-0.8%

BR Electric Utilities

-0.7%

BR Market


1 Year Return

-19.3%

CPFE3

-8.5%

BR Electric Utilities

0.8%

BR Market

Return vs Industry: CPFE3 underperformed the BR Electric Utilities industry which returned -8.5% over the past year.

Return vs Market: CPFE3 underperformed the BR Market which returned 0.8% over the past year.


Shareholder returns

CPFE3IndustryMarket
7 Day-2.6%-0.8%-0.7%
30 Day-3.6%0.6%4.9%
90 Day5.3%9.6%16.8%
1 Year-14.6%-19.3%-4.9%-8.5%3.5%0.8%
3 Year62.6%49.6%89.6%67.6%54.4%37.8%
5 Year125.6%103.6%245.3%175.8%219.0%164.3%

Long-Term Price Volatility Vs. Market

How volatile is CPFL Energia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CPFL Energia undervalued compared to its fair value and its price relative to the market?

10.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CPFE3 (R$30.92) is trading above our estimate of fair value (R$28.53)

Significantly Below Fair Value: CPFE3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CPFE3 is good value based on its PE Ratio (10.1x) compared to the BR Electric Utilities industry average (10.8x).

PE vs Market: CPFE3 is good value based on its PE Ratio (10.1x) compared to the BR market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: CPFE3 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CPFE3 is overvalued based on its PB Ratio (2.5x) compared to the BR Electric Utilities industry average (1.9x).


Next Steps

Future Growth

How is CPFL Energia forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPFE3's forecast earnings growth (6.7% per year) is below the savings rate (9.9%).

Earnings vs Market: CPFE3's earnings (6.7% per year) are forecast to grow slower than the BR market (27.3% per year).

High Growth Earnings: CPFE3's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPFE3's revenue (3.8% per year) is forecast to grow slower than the BR market (10.4% per year).

High Growth Revenue: CPFE3's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPFE3's Return on Equity is forecast to be high in 3 years time (24.1%)


Next Steps

Past Performance

How has CPFL Energia performed over the past 5 years?

29.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPFE3 has high quality earnings.

Growing Profit Margin: CPFE3's current net profit margins (11.9%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: CPFE3's earnings have grown significantly by 29.7% per year over the past 5 years.

Accelerating Growth: CPFE3's earnings growth over the past year (42.6%) exceeds its 5-year average (29.7% per year).

Earnings vs Industry: CPFE3 earnings growth over the past year (42.6%) exceeded the Electric Utilities industry 10.1%.


Return on Equity

High ROE: Whilst CPFE3's Return on Equity (24.12%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is CPFL Energia's financial position?


Financial Position Analysis

Short Term Liabilities: CPFE3's short term assets (R$15.9B) exceed its short term liabilities (R$13.0B).

Long Term Liabilities: CPFE3's short term assets (R$15.9B) do not cover its long term liabilities (R$22.9B).


Debt to Equity History and Analysis

Debt Level: CPFE3's debt to equity ratio (152.4%) is considered high.

Reducing Debt: CPFE3's debt to equity ratio has reduced from 212.1% to 152.4% over the past 5 years.

Debt Coverage: CPFE3's debt is well covered by operating cash flow (30.7%).

Interest Coverage: CPFE3's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Next Steps

Dividend

What is CPFL Energia current dividend yield, its reliability and sustainability?

5.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CPFE3's dividend (5.82%) is higher than the bottom 25% of dividend payers in the BR market (0.95%).

High Dividend: CPFE3's dividend (5.82%) is in the top 25% of dividend payers in the BR market (5%)


Stability and Growth of Payments

Stable Dividend: CPFE3's dividend payments have been volatile in the past 10 years.

Growing Dividend: CPFE3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59%), CPFE3's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CPFE3's dividends in 3 years are forecast to be covered by earnings (68.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Gustavo Estrella (46 yo)

2yrs

Tenure

Mr. Gustavo Estrella serves as Director at CPFL Geração de Energia S.A. since 2019 and has been its Member of Executive Board. He had been the Vice President of Business Development, Planning & Corporate M...


Leadership Team

NamePositionTenureCompensationOwnership
Gustavo Estrella
CEO, Senior Executive VP2yrsno datano data
Yuehui Pan
CFO & IR Officer1yrno datano data
Karin Luchesi
Chief Market Operations Officerno datano datano data
Luis Ferreira Pinto
VP of Regulated Operations & Member of the Board of Executive Officersno datano datano data
Gustavo Gachineiro
VP of Legal & Institutional Relationsno datano datano data
Vitor de Souza
VP of Business Development & Member of Board of Executive Officers1yrno datano data
Flavio Ribeiro
VP of Business Management & Member of Board of Executive Officers1yrno datano data
Sérgio Felice
Chief Accounting Officer & Controllerno datano datano data
Gisélia Silva
Secretary11.33yrsno datano data
Gustavo de Aguiar Sablewski
Secretaryno datano datano data
Valter Matta
Secretaryno datano datano data
Carlos Cyrino
Director of Investor Relationsno datano datano data

1.9yrs

Average Tenure

43yo

Average Age

Experienced Management: CPFE3's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gustavo Estrella
CEO, Senior Executive VP2yrsno datano data
Yuehui Pan
CFO & IR Officer1yrno datano data
Marcelo Moraes
Independent Director3.5yrsno datano data
Antonio Kandir
Independent Directorno datano datano data
Ricardo dos Santos
Member of Fiscal Councilno datano datano data
Ran Zhang
Member of Fiscal Councilno datano datano data
Bo Wen
Chairmanno datano datano data
Hong Li
Director1.67yrsno datano data
Anselmo Henrique Leal
Director1.67yrsno datano data
Vinicius Nishioka
Member of Fiscal Council1yrno datano data

1.7yrs

Average Tenure

50yo

Average Age

Experienced Board: CPFE3's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CPFL Energia S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CPFL Energia S.A.
  • Ticker: CPFE3
  • Exchange: BOVESPA
  • Founded: 1998
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: R$36.192b
  • Shares outstanding: 1.15b
  • Website: https://www.cpfl.com.br

Number of Employees


Location

  • CPFL Energia S.A.
  • Rua Jorge de Figueiredo Correa
  • No. 1,632, parte
  • Campinas
  • São Paulo
  • 13087-397
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPFE3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLOct 2004

Biography

CPFL Energia S.A., through its subsidiaries, generates, transmits, distributes, and commercializes electricity to residential, industrial, and commercial customers in Brazil. The company generates electric...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 22:00
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.