CPFL Energia (Brazil) Buy Hold or Sell Recommendation

CPFE3 Stock  BRL 34.81  0.31  0.88%   
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding CPFL Energia SA is 'Hold'. Macroaxis provides CPFL Energia buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CPFE3 positions. The advice algorithm takes into account all of CPFL Energia's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting CPFL Energia's buy or sell advice are summarized below:
Real Value
35.39
Hype Value
34.81
Market Value
34.81
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell CPFL Energia SA given historical horizon and risk tolerance towards CPFL Energia. When Macroaxis issues a 'buy' or 'sell' recommendation for CPFL Energia SA, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out CPFL Energia Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as CPFL and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards CPFL Energia SA. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

Execute CPFL Energia Buy or Sell Advice

The CPFL recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on CPFL Energia SA. Macroaxis does not own or have any residual interests in CPFL Energia SA or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute CPFL Energia's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell CPFL EnergiaBuy CPFL Energia
Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon CPFL Energia SA has a Mean Deviation of 0.7813, Standard Deviation of 0.9855 and Variance of 0.9711
Our advice module can be used to complement CPFL Energia investment recommendation provided by average analyst sentiment. It analyzes the company's potential to grow using fundamental, technical, data market data available today. To make sure CPFL Energia is not overpriced, please confirm all CPFL Energia SA fundamentals, including its operating margin, shares outstanding, shares owned by institutions, as well as the relationship between the current valuation and shares owned by insiders .

CPFL Energia Trading Alerts and Improvement Suggestions

CPFL Energia SA generated a negative expected return over the last 90 days
The company has accumulated 18.38 B in total debt with debt to equity ratio (D/E) of 1.91, which is about average as compared to similar companies. CPFL Energia SA has a current ratio of 0.92, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist CPFL Energia until it has trouble settling it off, either with new capital or with free cash flow. So, CPFL Energia's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like CPFL Energia SA sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for CPFL to invest in growth at high rates of return. When we think about CPFL Energia's use of debt, we should always consider it together with cash and equity.
About 84.0% of CPFL Energia shares are held by company insiders

CPFL Energia Returns Distribution Density

The distribution of CPFL Energia's historical returns is an attempt to chart the uncertainty of CPFL Energia's future price movements. The chart of the probability distribution of CPFL Energia daily returns describes the distribution of returns around its average expected value. We use CPFL Energia SA price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of CPFL Energia returns is essential to provide solid investment advice for CPFL Energia.
Mean Return
-0.12
Value At Risk
-2.08
Potential Upside
1.36
Standard Deviation
0.99
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of CPFL Energia historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

CPFL Energia Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to CPFL Energia or Electric Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that CPFL Energia's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a CPFL stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.18
β
Beta against NYSE Composite0.37
σ
Overall volatility
1.01
Ir
Information ratio -0.26

CPFL Energia Volatility Alert

CPFL Energia SA exhibits very low volatility with skewness of -0.27 and kurtosis of -0.32. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CPFL Energia's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact CPFL Energia's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

CPFL Energia Fundamentals Vs Peers

Comparing CPFL Energia's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze CPFL Energia's direct or indirect competition across all of the common fundamentals between CPFL Energia and the related equities. This way, we can detect undervalued stocks with similar characteristics as CPFL Energia or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of CPFL Energia's fundamental indicators could also be used in its relative valuation, which is a method of valuing CPFL Energia by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare CPFL Energia to competition
FundamentalsCPFL EnergiaPeer Average
Return On Equity0.34-0.31
Return On Asset0.0853-0.14
Profit Margin0.13 %(1.27) %
Operating Margin0.22 %(5.51) %
Current Valuation56.69 B16.62 B
Shares Outstanding1.15 B571.82 M
Shares Owned By Insiders83.70 %10.09 %
Shares Owned By Institutions9.69 %39.21 %
Price To Earning10.67 X28.72 X
Price To Book2.26 X9.51 X
Price To Sales0.90 X11.42 X
Revenue39.21 B9.43 B
Gross Profit8.31 B27.38 B
EBITDA9.02 B3.9 B
Net Income4.75 B570.98 M
Cash And Equivalents1.28 B2.7 B
Cash Per Share3.56 X5.01 X
Total Debt18.38 B5.32 B
Debt To Equity1.91 %48.70 %
Current Ratio0.94 X2.16 X
Book Value Per Share13.39 X1.93 K
Cash Flow From Operations3.86 B971.22 M
Earnings Per Share4.55 X3.12 X
Price To Earnings To Growth1.20 X4.89 X
Target Price37.73
Number Of Employees3718.84 K
Beta0.41-0.15
Market Capitalization35.13 B19.03 B
Total Asset66.12 B29.47 B
Retained Earnings2.06 B9.33 B
Working Capital3.21 B1.48 B
Current Asset10.37 B9.34 B
Current Liabilities7.16 B7.9 B

CPFL Energia Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as CPFL . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About CPFL Energia Buy or Sell Advice

When is the right time to buy or sell CPFL Energia SA? Buying financial instruments such as CPFL Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having CPFL Energia in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Gold ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Gold ETFs theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Gold ETFs Theme or any other thematic opportunities.
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Check out CPFL Energia Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the CPFL Energia SA information on this page should be used as a complementary analysis to other CPFL Energia's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running CPFL Energia's price analysis, check to measure CPFL Energia's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CPFL Energia is operating at the current time. Most of CPFL Energia's value examination focuses on studying past and present price action to predict the probability of CPFL Energia's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CPFL Energia's price. Additionally, you may evaluate how the addition of CPFL Energia to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between CPFL Energia's value and its price as these two are different measures arrived at by different means. Investors typically determine if CPFL Energia is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CPFL Energia's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.