CPL Cpfl Energia S.a.

Exchange

NYSE

Sector

Public Utilities

Industry

Electric Utilities: Central

Market Cap.

10.585B

Poor Cash Return on Invested Capital over the past 5 years

CPL has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CPL has only created $8.30 of cash for every $100 invested.

Figures in BRL. Fiscal year ends in December

	2007	2008	2009	2010	2011
Free Cash Flow	1.11B	779.19M	1.19B	1.39B	583.88M
divided by
Invested Capital	10.45B	11.23B	10.77B	14.02B	20.17B
Cash ROIC	10.67%	6.94%	11.03%	9.94%	2.90%

Excellent Return on Equity over the past 5 years

Over the past 5 years, CPL has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

CPL has generated $25.85 of Earnings for every $100 of Shareholders' Equity.

Figures in BRL. Fiscal year ends in December

	2007	2008	2009	2010	2011
Net Income	1.64B	1.28B	1.29B	1.54B	1.53B
divided by
Stockholders' Equity	4.95B	5.02B	5.08B	6.49B	7.07B
Return on Equity	33.17%	25.42%	25.31%	23.69%	21.66%

Excellent Business Performance over the past 10 years

CPL has been able to maintain profitability in good times and bad. This could mean CPL has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

CPL has created positive free cash flow for 9 or more of the past 10 years.

Figures in BRL. Fiscal year ends in December

	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Free Cash Flow	-593.97M	380.65M	160.78M	961.36M	1.50B	1.11B	779.19M	1.19B	1.39B	583.88M