CPFL Energia EBITDA vs. Net Income

CPFE3 Stock  BRL 32.62  0.65  1.95%   
Based on the key profitability measurements obtained from CPFL Energia's financial statements, CPFL Energia SA may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess CPFL Energia's ability to earn profits and add value for shareholders.
For CPFL Energia profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CPFL Energia to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CPFL Energia SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CPFL Energia's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CPFL Energia SA over time as well as its relative position and ranking within its peers.
  
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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.

CPFL Energia SA Net Income vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CPFL Energia's current stock value. Our valuation model uses many indicators to compare CPFL Energia value to that of its competitors to determine the firm's financial worth.
CPFL Energia SA is rated fourth in ebitda category among its peers. It also is rated fourth in net income category among its peers making up about  0.53  of Net Income per EBITDA. The ratio of EBITDA to Net Income for CPFL Energia SA is roughly  1.90 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CPFL Energia's earnings, one of the primary drivers of an investment's value.

CPFL Net Income vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

CPFL Energia

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
9.02 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

CPFL Energia

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
4.75 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

CPFL Net Income Comparison

CPFL Energia is rated third in net income category among its peers.

CPFL Energia Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CPFL Energia, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CPFL Energia will eventually generate negative long term returns. The profitability progress is the general direction of CPFL Energia's change in net profit over the period of time. It can combine multiple indicators of CPFL Energia, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
CPFL Energia S.A., through its subsidiaries, generates, transmits, distributes, and commercializes electricity to residential, industrial, and commercial customers in Brazil. CPFL Energia S.A. is a subsidiary of State Grid Brazil Power Participaes S.A. CPFL ENERGIAON is traded on Sao Paolo Stock Exchange in Brazil.

CPFL Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on CPFL Energia. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CPFL Energia position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CPFL Energia's important profitability drivers and their relationship over time.

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Additional Tools for CPFL Stock Analysis

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.