Rio Paranapanema EnergiaBSP:GEPA4 -0.05%48 ROE % is 33.87% as of Mar. 2026, which is 120% above its 10-year median of 15.42. GuruFocus rates BSP:GEPA4 with a GF Score™ of 48/100 and a GF Value™ of R$2.15 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 503 Utilities - Regulated companies, Rio Paranapanema Energia ranks worse than 86.08% on this metric.
The historical rank and industry rank for Rio Paranapanema Energia's ROE % or its related term are showing as below:
BSP:GEPA4'
s ROE % Range Over the Past 10 Years
Min: -0.46 Med: 15.42 Max: 40.54
Current: 1.07
During the past 13 years, Rio Paranapanema Energia's highest ROE % was 40.54%. The lowest was -0.46%. And the median was 15.42%.
BSP:GEPA4's ROE % is ranked worse than 86.08% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs BSP:GEPA4: 1.07
Rio Paranapanema Energia (BSP:GEPA4) 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.
* 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, Rio Paranapanema 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.
Rio Paranapanema Energia ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Rio Paranapanema Energia's ROE % distribution charts can be found below:
* The bar in red indicates where Rio Paranapanema 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.
Rio Paranapanema Energia (BSP:GEPA4) has a ROE % of 33.87% 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 Rio Paranapanema Energia and its competitors. This is 120% above median its historical median of 15.42. According to the industry distribution chart, Rio Paranapanema Energia ranks #433 out of 503 companies in the Utilities - Regulated industry, placing it in the top 86.1%.
Is Rio Paranapanema Energia's ROE % too high?
Rio Paranapanema Energia's current ROE % of 33.87% is 120% above median its 10-year median of 15.42. The Utilities - Regulated industry median ROE % is 8.62. Rio Paranapanema Energia's value of 33.87% is 292.9% above this industry median. Based on the distribution chart, Rio Paranapanema Energia ranks #433 out of 503 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Rio Paranapanema Energia has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rio Paranapanema Energia's ROE % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Rio Paranapanema Energia ranks #433 out of 503 companies for ROE %. This places Rio Paranapanema Energia in the lower half of its industry. The industry median ROE % is 8.62. Rio Paranapanema Energia's value of 33.87% is 292.9% above this benchmark. While the company's 10-year median is 15.42 vs. the industry median of 8.62, Rio Paranapanema 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 8.62, 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. Rio Paranapanema Energia's current ROE % of 33.87% is 292.9% 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 Rio Paranapanema Energia and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rio Paranapanema Energia's current ROE % is 33.87%, which is 120% above median its own 10-year median of 15.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rio Paranapanema Energia stock overvalued right now?
Based on GuruFocus' analysis, Rio Paranapanema Energia (BSP:GEPA4) is currently considered Significantly Overvalued. The stock's GF Value™ is R$2.15, compared to a current price of R$38.92 — trading 1710.2% above its estimated fair value. The current ROE % is 33.87%, which is 120% above median its 10-year median of 15.42 and 292.9% above the Utilities - Regulated industry median of 8.62. Rio Paranapanema Energia's overall GF Score™ is 48/100 with 6 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 Rio Paranapanema Energia (BSP:GEPA4), the current ROE % is 33.87% 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 Rio Paranapanema Energia (BSP:GEPA4) Overvalued in 2026?
Based on GuruFocus' analysis, Rio Paranapanema Energia stock appears to be overvalued.
The current stock price of R$38.92 is trading 1710.2% above its estimated GF Value™ of R$2.15.
GuruFocus considers Rio Paranapanema Energia to be Significantly Overvalued.
Key valuation signals for BSP:GEPA4:
ROE %: 33.87% (120% above median its 10-year median of 15.42)
GF Value™: R$2.15 vs. price of R$38.92 (1710.2% above fair value)
Industry Position: 292.9% above the Utilities - Regulated median (#433 of 503)
No single metric tells the full story. See the BSP:GEPA4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rio Paranapanema Energia SA is involved in the energy sector. The company is engaged in the generation and commercialization of electric energy for industrial, residential and commercial consumption, among others. In addition to generating, the company also markets electricity in the Free and Regulated (ACL) and Free Contracting Environments. It also provides for online energy monitoring using real-time technology.
48GF Score
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