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CPFL Energia (CPFL Energia) Operating Margin % : -106.22% (As of Dec. 2023)


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What is CPFL Energia Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. CPFL Energia's Operating Income for the three months ended in Dec. 2023 was $-2,285 Mil. CPFL Energia's Revenue for the three months ended in Dec. 2023 was $2,151 Mil. Therefore, CPFL Energia's Operating Margin % for the quarter that ended in Dec. 2023 was -106.22%.

Good Sign:

CPFL Energia SA operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for CPFL Energia's Operating Margin % or its related term are showing as below:

CPL' s Operating Margin % Range Over the Past 10 Years
Min: 3.47   Med: 15.18   Max: 25.11
Current: 3.47


CPL's Operating Margin % is ranked worse than
79.1% of 512 companies
in the Utilities - Regulated industry
Industry Median: 12.3 vs CPL: 3.47

CPFL Energia's 5-Year Average Operating Margin % Growth Rate was 13.00% per year.

CPFL Energia's Operating Income for the three months ended in Dec. 2023 was $-2,285 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $239 Mil.

Warning Sign:

CPFL Energia SA has recorded a loss in operating income at least once over the past 3 years.


CPFL Energia Operating Margin % Historical Data

The historical data trend for CPFL Energia's Operating Margin % 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.

* Premium members only.

CPFL Energia Operating Margin % Chart

CPFL Energia Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.10 15.65 17.81 22.15 25.11

CPFL Energia Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -107.80 29.71 26.09 72.19 -106.22

Competitive Comparison of CPFL Energia's Operating Margin %

For the Utilities - Regulated Electric subindustry, CPFL Energia's Operating Margin %, along with its competitors' market caps and Operating Margin % 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's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, CPFL Energia's Operating Margin % distribution charts can be found below:

* The bar in red indicates where CPFL Energia's Operating Margin % falls into.



CPFL Energia Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

CPFL Energia's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=2036.705 / 8111.186
=25.11 %

CPFL Energia's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-2284.954 / 2151.121
=-106.22 %

* 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.


CPFL Energia  (NYSE:CPL) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


CPFL Energia Operating Margin % Related Terms

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CPFL Energia (CPFL Energia) Business Description

Traded in Other Exchanges
Address
Rua Jorge Figueiredo Corrêa, No 1.632, Jardim Professora Tarcília, Campinas, Sao Paulo, SP, BRA, 13087-397
CPFL Energia SA is the holding company of the CPFL Group, operating in Brazil's electricity sector, implementing and operating projects and concessions in the energy distribution, generation, transmission, and trading segments and related activities through its subsidiaries and affiliate companies. The Group's operating segments are electric energy distribution, electric energy generation, electric energy commercialization, and services rendered activities. It derives a majority of its revenue from the distribution segment.