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CPFL EnergiaBSP:CPFE3 +0.77%76 Interest Coverage is 4.40 as of Mar. 2026, which is 1% below its 10-year median of 4.43. GuruFocus rates BSP:CPFE3 with a GF Score™ of 76/100 and a GF Value™ of R$38.15 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 449 Utilities - Regulated companies, CPFL Energia ranks better than 52.78% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. CPFL Energia's
Operating Income
for the
three
months ended in Mar. 2026 was R$3,303 Mil. CPFL Energia's Interest Expense for the
three
months ended in Mar. 2026 was R$-751 Mil.
CPFL Energia's interest coverage for the quarter that ended in Mar. 2026 was 4.40.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for CPFL Energia's Interest Coverage or its related term are showing as below:
BSP:CPFE3'
s Interest Coverage Range Over the Past 10 Years
Min: 1.5 Med: 4.43 Max: 8.11
Current: 4.15
BSP:CPFE3's Interest Coverage is ranked better than 52.78% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs BSP:CPFE3: 4.15
CPFL Energia (BSP:CPFE3) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
CPFL Energia Interest Coverage Related Terms
CPFL Energia Interest Coverage Historical Data
* Premium members only.
The historical data trend for CPFL Energia's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
BSP:CPFE3 vs NEE, SO, DUK: Interest Coverage Comparison
For the Utilities - Regulated Electric subindustry, CPFL Energia's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CPFL Energia Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, CPFL Energia's Interest Coverage distribution charts can be found below:
* The bar in red indicates where CPFL Energia's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CPFL Energia (BSP:CPFE3) has a Interest Coverage of 4.40 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on CPFL Energia and its competitors. This is near median its historical median of 4.43. Over the past decade, CPFL Energia's Interest Coverage has ranged from 1.50 to 8.11. According to the industry distribution chart, CPFL Energia ranks #212 out of 449 companies in the Utilities - Regulated industry, placing it in the top 47.2%.
Is CPFL Energia's Interest Coverage too high?
CPFL Energia's current Interest Coverage of 4.40 is near median its 10-year median of 4.43. Over the past 10 years, this metric has ranged from a low of 1.50 to a high of 8.11. The Utilities - Regulated industry median Interest Coverage is 3.78. CPFL Energia's value of 4.40 is 16.4% above this industry median. Based on the distribution chart, CPFL Energia ranks #212 out of 449 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, CPFL Energia has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CPFL Energia's Interest Coverage compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, CPFL Energia ranks #212 out of 449 companies for Interest Coverage. This puts CPFL Energia in the upper half of its industry. The industry median Interest Coverage is 3.78. CPFL Energia's value of 4.40 is 16.4% above this benchmark. Historically, CPFL Energia's own Interest Coverage has ranged from 1.50 to 8.11 over the past decade. While the company's 10-year median is 4.43 vs. the industry median of 3.78, CPFL Energia has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CPFL Energia's current Interest Coverage of 4.40 is 16.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on CPFL Energia and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CPFL Energia's current Interest Coverage is 4.40, which is near median its own 10-year median of 4.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CPFL Energia stock overvalued right now?
Based on GuruFocus' analysis, CPFL Energia (BSP:CPFE3) is currently considered Modestly Overvalued. The stock's GF Value™ is R$38.15, compared to a current price of R$47.20 — trading 23.7% above its estimated fair value. The current Interest Coverage is 4.40, which is near median its 10-year median of 4.43 and 16.4% above the Utilities - Regulated industry median of 3.78. CPFL Energia's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For CPFL Energia (BSP:CPFE3), the current Interest Coverage is 4.40 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CPFL Energia (BSP:CPFE3) Overvalued in 2026?
Based on GuruFocus' analysis, CPFL Energia stock appears to be overvalued.
The current stock price of R$47.20 is trading 23.7% above its estimated GF Value™ of R$38.15.
GuruFocus considers CPFL Energia to be Modestly Overvalued.
Key valuation signals for BSP:CPFE3:
Interest Coverage: 4.40 (near median its 10-year median of 4.43)
GF Value™: R$38.15 vs. price of R$47.20 (23.7% above fair value)
Industry Position: 16.4% above the Utilities - Regulated median (#212 of 449)
No single metric tells the full story. See the BSP:CPFE3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CPFL Energia SA operates as a holding company. Along with its subsidiaries, the company is engaged in distribution, generation, transmission and commercialization activities of electric energy in Brazil. It also provides energy-related services through its solutions division, including energy management and trading, energy efficiency services, distributed generation, energy infrastructure development, and consulting services. The company's operating segments are (i) electric energy distribution activities, (ii) electric energy generation, (iii) electric energy transmission, (iv) energy commercialization, (v) service activities, and (vi) other activities not listed in the previous items. The majority of the company's revenue is derived from the electric energy distribution segment.
76GF Score
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