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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
CPFL Energia's 5-Year RORE % for the quarter that ended in Mar. 2026 was 9.11%.
The industry rank for CPFL Energia's 5-Year RORE % or its related term are showing as below:
BSP:CPFE3's 5-Year RORE % is ranked better than 51.5% of 466
companies
in the Utilities - Regulated industry
Industry Median: 8.33
vs BSP:CPFE3: 9.11
CPFL Energia (BSP:CPFE3) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
CPFL Energia 5-Year RORE % Related Terms
CPFL Energia 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for CPFL Energia's 5-Year RORE % 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: 5-Year RORE % Comparison
For the Utilities - Regulated Electric subindustry, CPFL Energia's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, CPFL Energia's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where CPFL Energia's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
CPFL Energia (BSP:CPFE3) has a 5-Year RORE % of 9.11 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on CPFL Energia and its competitors. According to the industry distribution chart, CPFL Energia ranks #226 out of 466 companies in the Utilities - Regulated industry, placing it in the top 48.5%.
Is CPFL Energia's 5-Year RORE % too high?
CPFL Energia's current 5-Year RORE % is 9.11. The Utilities - Regulated industry median 5-Year RORE % is 8.33. CPFL Energia's value of 9.11 is 9.4% above this industry median. Based on the distribution chart, CPFL Energia ranks #226 out of 466 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 5-Year RORE % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, CPFL Energia ranks #226 out of 466 companies for 5-Year RORE %. This puts CPFL Energia in the upper half of its industry. The industry median 5-Year RORE % is 8.33. CPFL Energia's value of 9.11 is 9.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for an Utilities - Regulated company?
The median 5-Year RORE % among Utilities - Regulated companies is 8.33, based on 466 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CPFL Energia's current 5-Year RORE % of 9.11 is 9.4% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on CPFL Energia and its competitors. For the Utilities - Regulated industry, the median 5-Year RORE % is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CPFL Energia's current 5-Year RORE % is 9.11. 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$38.13, compared to a current price of R$46.83 — trading 22.8% above its estimated fair value. The current 5-Year RORE % is 9.11 and 9.4% above the Utilities - Regulated industry median of 8.33. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For CPFL Energia (BSP:CPFE3), the current 5-Year RORE % is 9.11 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$38.13.
GuruFocus considers CPFL Energia to be Modestly Overvalued.
Key valuation signals for BSP:CPFE3:
5-Year RORE %: 9.11
GF Value™: R$38.13 vs. price of R$46.83 (22.8% above fair value)
Industry Position: 9.4% above the Utilities - Regulated median (#226 of 466)
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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