CENTERPOINT ENERGY INC (CNP)
US15189T1079 - Common Stock
Taking everything into account, CNP scores 2 out of 10 in our fundamental rating. CNP was compared to 26 industry peers in the Multi-Utilities industry. CNP has a medium profitability rating, but doesn't score so well on its financial health evaluation. CNP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CNP was profitable.
CNP had a positive operating cash flow in the past year.
CNP had positive earnings in 4 of the past 5 years.
CNP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CNP has a Return On Assets of 2.18%. This is in the lower half of the industry: CNP underperforms 76.92% of its industry peers.
CNP's Return On Equity of 8.97% is on the low side compared to the rest of the industry. CNP is outperformed by 65.38% of its industry peers.
The Return On Invested Capital of CNP (3.90%) is better than 61.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNP is in line with the industry average of 3.73%.
The last Return On Invested Capital (3.90%) for CNP is above the 3 year average (3.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 8.97% | ||
| ROIC | 3.9% |
ROA(3y)2.83%
ROA(5y)1.51%
ROE(3y)11.26%
ROE(5y)6.1%
ROIC(3y)3.6%
ROIC(5y)3.38%
1.3 Margins
Looking at the Profit Margin, with a value of 9.97%, CNP is doing worse than 73.08% of the companies in the same industry.
In the last couple of years the Profit Margin of CNP has grown nicely.
CNP's Operating Margin of 20.24% is in line compared to the rest of the industry. CNP outperforms 57.69% of its industry peers.
CNP's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.24% | ||
| PM (TTM) | 9.97% | ||
| GM | N/A |
OM growth 3Y7.04%
OM growth 5Y7.92%
PM growth 3YN/A
PM growth 5Y13.45%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CNP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CNP has been increased compared to 1 year ago.
Compared to 5 years ago, CNP has more shares outstanding
Compared to 1 year ago, CNP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.73, we must say that CNP is in the distress zone and has some risk of bankruptcy.
CNP has a Altman-Z score (0.73) which is in line with its industry peers.
CNP has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
CNP's Debt to Equity ratio of 1.82 is on the low side compared to the rest of the industry. CNP is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.63
WACC6.15%
2.3 Liquidity
A Current Ratio of 0.78 indicates that CNP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, CNP is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that CNP may have some problems paying its short term obligations.
The Quick ratio of CNP (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
CNP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.70%, which is quite good.
The Earnings Per Share has been decreasing by -1.28% on average over the past years.
The Revenue has decreased by -6.71% in the past year.
CNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.74% yearly.
EPS 1Y (TTM)8.7%
EPS 3Y0.22%
EPS 5Y-1.28%
EPS growth Q2Q14.29%
Revenue 1Y (TTM)-6.71%
Revenue growth 3Y5.44%
Revenue growth 5Y6.74%
Revenue growth Q2Q-19.51%
3.2 Future
The Earnings Per Share is expected to grow by 7.99% on average over the next years.
CNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.64% yearly.
EPS Next Y9.01%
EPS Next 2Y8.17%
EPS Next 3Y8%
EPS Next 5Y7.99%
Revenue Next Year-0.62%
Revenue Next 2Y1.34%
Revenue Next 3Y2.01%
Revenue Next 5Y4.64%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.02, which indicates a rather expensive current valuation of CNP.
Based on the Price/Earnings ratio, CNP is valued a bit more expensive than the industry average as 73.08% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of CNP to the average of the S&P500 Index (24.76), we can say CNP is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.45, the valuation of CNP can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNP indicates a slightly more expensive valuation: CNP is more expensive than 76.92% of the companies listed in the same industry.
CNP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 17.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNP does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.11
PEG (5Y)N/A
EPS Next 2Y8.17%
EPS Next 3Y8%
5. Dividend
5.1 Amount
CNP has a Yearly Dividend Yield of 2.90%.
Compared to an average industry Dividend Yield of 4.45, CNP's dividend is way lower than its industry peers. On top of this 96.15% of the companies listed in the same industry pay a better dividend than CNP!
CNP's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of CNP decreases each year by -4.96%.
CNP has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CNP decreased in the last 3 years.
Dividend Growth(5Y)-4.96%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CNP pays out 61.71% of its income as dividend. This is not a sustainable payout ratio.
DP61.71%
EPS Next 2Y8.17%
EPS Next 3Y8%
CENTERPOINT ENERGY INC
NYSE:CNP (4/19/2024, 7:04:00 PM)
After market: 28.53 0 (0%)28.53
+0.58 (+2.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 17.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 8.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.24% | ||
| PM (TTM) | 9.97% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.7%
EPS 3Y0.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.71%
Revenue growth 3Y5.44%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y