CPFL Energia Stock Analysis, Valuation (NYSE:CPL)

Add to My Stocks
$10.99 $0.11 (0.99%) CPL stock closing price Aug 17, 2018 (Closing)

Investors can watch the Amigobulls CPFL Energia stock analysis video here. This is our analyst opinion covering the buy and sell arguments for CPL stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

CPFL Energia S.A. (ADR) Stock Rating 3.3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for CPL stock analysis. CPFL Energia valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at CPFL Energia stock rating which is indicative of the company's financial performance.

Should you buy CPL stock?

  • CPFL Energia's revenue growth came in at 11.5% in 2018-03.
  • The price to earnings multiple of 12.9 is attractive when compared with the sector average PE ratio of 20.
  • The lower PS ratio 0.6 for CPL stock versus Utilities sector average of 2.1 is a positive for the company.
  • CPFL Energia generates a high return on invested capital of 7.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for CPFL Energia at 12.4.

Should you sell CPL stock?

  • Over the last 5 years, the company registered a poor revenue growth of 2.1.
  • CPFL Energia's Net margins were poor at 5% in the last twelve months.
  • CPFL Energia has a debt/equity ratio of 1.8, which is worse than the average in the Utilities sector.
  • Operating cash flows are negative.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -8.1.

Comments on this video and CPFL Energia stock

Amigobulls CPFL Energia stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, CPFL Energia revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of CPL technical analysis to check whether the fundamental story is reflected in the market sentiment.