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CPFL EnergiaBSP:CPFE3 +0.77%76 ROE % is 31.29% as of Mar. 2026, which is 19% above its 10-year median of 26.22. 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 503 Utilities - Regulated companies, CPFL Energia ranks better than 91.85% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. CPFL Energia's annualized net income for the quarter that ended in Mar. 2026 was R$7,321 Mil. CPFL Energia's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was R$23,394 Mil. Therefore, CPFL Energia's annualized ROE % for the quarter that ended in Mar. 2026 was 31.29%.
The historical rank and industry rank for CPFL Energia's ROE % or its related term are showing as below:
BSP:CPFE3'
s ROE % Range Over the Past 10 Years
Min: 11.52 Med: 26.22 Max: 32.65
Current: 25.46
During the past 13 years, CPFL Energia's highest ROE % was 32.65%. The lowest was 11.52%. And the median was 26.22%.
BSP:CPFE3's ROE % is ranked better than 91.85% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.69
vs BSP:CPFE3: 25.46
CPFL Energia (BSP:CPFE3) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
CPFL Energia ROE % Related Terms
CPFL Energia ROE % Historical Data
* Premium members only.
The historical data trend for CPFL Energia's ROE % 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.
For the Utilities - Regulated Electric subindustry, CPFL Energia's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, CPFL Energia's ROE % distribution charts can be found below:
* The bar in red indicates where CPFL Energia's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
CPFL Energia (BSP:CPFE3) has a ROE % of 31.29% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on CPFL Energia and its competitors. This is 19% above median its historical median of 26.22. Over the past decade, CPFL Energia's ROE % has ranged from 11.52 to 32.65. According to the industry distribution chart, CPFL Energia ranks #41 out of 503 companies in the Utilities - Regulated industry, placing it in the top 8.2%.
Is CPFL Energia's ROE % too high?
CPFL Energia's current ROE % of 31.29% is 19% above median its 10-year median of 26.22. Over the past 10 years, this metric has ranged from a low of 11.52 to a high of 32.65. The Utilities - Regulated industry median ROE % is 8.69. CPFL Energia's value of 31.29% is 260.1% above this industry median. Based on the distribution chart, CPFL Energia ranks #41 out of 503 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 ROE % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, CPFL Energia ranks #41 out of 503 companies for ROE %. This places CPFL Energia in the top 8% of its industry — outperforming the majority of peers. The industry median ROE % is 8.69. CPFL Energia's value of 31.29% is 260.1% above this benchmark. Historically, CPFL Energia's own ROE % has ranged from 11.52 to 32.65 over the past decade. While the company's 10-year median is 26.22 vs. the industry median of 8.69, 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 ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.69, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CPFL Energia's current ROE % of 31.29% is 260.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on CPFL Energia and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CPFL Energia's current ROE % is 31.29%, which is 19% above median its own 10-year median of 26.22. 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 ROE % is 31.29%, which is 19% above median its 10-year median of 26.22 and 260.1% above the Utilities - Regulated industry median of 8.69. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For CPFL Energia (BSP:CPFE3), the current ROE % is 31.29% 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:
ROE %: 31.29% (19% above median its 10-year median of 26.22)
GF Value™: R$38.15 vs. price of R$47.20 (23.7% above fair value)
Industry Position: 260.1% above the Utilities - Regulated median (#41 of 503)
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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