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CPFL EnergiaBSP:CPFE3 -0.78%76 Return-on-Tangible-Equity is 43.91% as of Mar. 2026, which is 48% below its 10-year median of 84.34. 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 497 Utilities - Regulated companies, CPFL Energia ranks better than 85.71% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. CPFL Energia's annualized net income for the quarter that ended in Mar. 2026 was R$7,321 Mil. CPFL Energia's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$16,673 Mil. Therefore, CPFL Energia's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 43.91%.
The historical rank and industry rank for CPFL Energia's Return-on-Tangible-Equity or its related term are showing as below:
BSP:CPFE3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 37.07 Med: 84.34 Max: 120.84
Current: 37.07
During the past 13 years, CPFL Energia's highest Return-on-Tangible-Equity was 120.84%. The lowest was 37.07%. And the median was 84.34%.
BSP:CPFE3's Return-on-Tangible-Equity is ranked better than 85.71% of 497
companies
in the Utilities - Regulated industry
Industry Median: 10.92
vs BSP:CPFE3: 37.07
CPFL Energia (BSP:CPFE3) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
CPFL Energia Return-on-Tangible-Equity Related Terms
CPFL Energia Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for CPFL Energia's Return-on-Tangible-Equity 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.
BSP:CPFE3 vs NEE, SO, DUK: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Electric subindustry, CPFL Energia's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, CPFL Energia's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where CPFL Energia's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 43.91% mean?
CPFL Energia (BSP:CPFE3) has a Return-on-Tangible-Equity of 43.91% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CPFL Energia and its competitors. This is 48% below median its historical median of 84.34. Over the past decade, CPFL Energia's Return-on-Tangible-Equity has ranged from 37.07 to 120.84. According to the industry distribution chart, CPFL Energia ranks #71 out of 497 companies in the Utilities - Regulated industry, placing it in the top 14.3%.
Is CPFL Energia's Return-on-Tangible-Equity too high?
CPFL Energia's current Return-on-Tangible-Equity of 43.91% is 48% below median its 10-year median of 84.34. Over the past 10 years, this metric has ranged from a low of 37.07 to a high of 120.84. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.92. CPFL Energia's value of 43.91% is 302.1% above this industry median. Based on the distribution chart, CPFL Energia ranks #71 out of 497 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, CPFL Energia ranks #71 out of 497 companies for Return-on-Tangible-Equity. This places CPFL Energia in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.92. CPFL Energia's value of 43.91% is 302.1% above this benchmark. Historically, CPFL Energia's own Return-on-Tangible-Equity has ranged from 37.07 to 120.84 over the past decade. While the company's 10-year median is 84.34 vs. the industry median of 10.92, 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 Return-on-Tangible-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.92, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CPFL Energia's current Return-on-Tangible-Equity of 43.91% is 302.1% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CPFL Energia and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CPFL Energia's current Return-on-Tangible-Equity is 43.91%, which is 48% below median its own 10-year median of 84.34. 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$46.83 — trading 22.8% above its estimated fair value. The current Return-on-Tangible-Equity is 43.91%, which is 48% below median its 10-year median of 84.34 and 302.1% above the Utilities - Regulated industry median of 10.92. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For CPFL Energia (BSP:CPFE3), the current Return-on-Tangible-Equity is 43.91% 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$46.83 is trading 22.8% above its estimated GF Value™ of R$38.15.
GuruFocus considers CPFL Energia to be Modestly Overvalued.
Key valuation signals for BSP:CPFE3:
Return-on-Tangible-Equity: 43.91% (48% below median its 10-year median of 84.34)
GF Value™: R$38.15 vs. price of R$46.83 (22.8% above fair value)
Industry Position: 302.1% above the Utilities - Regulated median (#71 of 497)
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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