CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
NYSE:CNP - New York Stock Exchange, Inc. - US15189T1079 - Common Stock - Currency: USD
Overall CNP gets a fundamental rating of 3 out of 10. We evaluated CNP against 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of CNP while its profitability can be described as average. CNP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CNP had positive earnings in the past year.
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 2.17%. This is amonst the worse of the industry: CNP underperforms 80.00% of its industry peers.
CNP has a Return On Equity of 8.82%. This is in the lower half of the industry: CNP underperforms 60.00% of its industry peers.
The Return On Invested Capital of CNP (4.20%) is better than 68.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNP is in line with the industry average of 3.83%.
The last Return On Invested Capital (4.20%) for CNP is above the 3 year average (4.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 8.82% | ||
| ROIC | 4.2% |
ROA(3y)2.38%
ROA(5y)1.6%
ROE(3y)9.52%
ROE(5y)6.39%
ROIC(3y)4.06%
ROIC(5y)3.84%
1.3 Margins
CNP has a worse Profit Margin (10.80%) than 76.00% of its industry peers.
In the last couple of years the Profit Margin of CNP has grown nicely.
With a Operating Margin value of 22.62%, CNP perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CNP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.62% | ||
| PM (TTM) | 10.8% | ||
| GM | N/A |
OM growth 3Y12.16%
OM growth 5Y10.21%
PM growth 3Y-10.88%
PM growth 5Y5.76%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNP is destroying value.
CNP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CNP has been increased compared to 5 years ago.
CNP has a worse debt/assets ratio than last year.
2.2 Solvency
CNP has an Altman-Z score of 0.84. This is a bad value and indicates that CNP is not financially healthy and even has some risk of bankruptcy.
CNP's Altman-Z score of 0.84 is in line compared to the rest of the industry. CNP outperforms 52.00% of its industry peers.
A Debt/Equity ratio of 1.90 is on the high side and indicates that CNP has dependencies on debt financing.
CNP has a worse Debt to Equity ratio (1.90) than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
ROIC/WACC0.64
WACC6.56%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CNP may have some problems paying its short term obligations.
CNP has a Current ratio of 0.93. This is in the better half of the industry: CNP outperforms 68.00% of its industry peers.
A Quick Ratio of 0.79 indicates that CNP may have some problems paying its short term obligations.
CNP's Quick ratio of 0.79 is fine compared to the rest of the industry. CNP outperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
CNP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.23%.
Measured over the past years, CNP shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.98% on average per year.
Looking at the last year, CNP shows a small growth in Revenue. The Revenue has grown by 4.76% in the last year.
CNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
EPS 1Y (TTM)3.23%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%-3.64%
Revenue 1Y (TTM)4.76%
Revenue growth 3Y1.15%
Revenue growth 5Y2.7%
Sales Q2Q%11.45%
3.2 Future
Based on estimates for the next years, CNP will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.08% on average per year.
The Revenue is expected to grow by 5.37% on average over the next years.
EPS Next Y8.97%
EPS Next 2Y8.35%
EPS Next 3Y8.38%
EPS Next 5Y8.08%
Revenue Next Year4.21%
Revenue Next 2Y3.84%
Revenue Next 3Y3.92%
Revenue Next 5Y5.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.34, which indicates a rather expensive current valuation of CNP.
Based on the Price/Earnings ratio, CNP is valued expensively inside the industry as 88.00% of the companies are valued cheaper.
CNP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
A Price/Forward Earnings ratio of 19.64 indicates a rather expensive valuation of CNP.
88.00% of the companies in the same industry are cheaper than CNP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, CNP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 19.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNP is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.6 |
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)2.6
PEG (5Y)N/A
EPS Next 2Y8.35%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
CNP has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.36, CNP pays less dividend than the industry average, which is at 3.67. 96.00% of the companies listed in the same industry pay a better dividend than CNP!
CNP's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
The dividend of CNP decreases each year by -10.10%.
CNP has paid a dividend for at least 10 years, which is a reliable track record.
CNP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.1%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
CNP pays out 55.80% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP55.8%
EPS Next 2Y8.35%
EPS Next 3Y8.38%
NYSE:CNP (5/21/2025, 1:00:59 PM)
37.345
-0.12 (-0.31%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.94%
Inst Owner Change1.22%
Ins Owners0.16%
Ins Owner Change3.81%
Market Cap24.38B
Analysts71.3
Price Target39.16 (4.86%)
Short Float %4.51%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend0.81
Dividend Growth(5Y)-10.1%
DP55.8%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.59%
Min EPS beat(2)-1.8%
Max EPS beat(2)-1.37%
EPS beat(4)1
Avg EPS beat(4)1.09%
Min EPS beat(4)-2.96%
Max EPS beat(4)10.48%
EPS beat(8)4
Avg EPS beat(8)2.48%
EPS beat(12)7
Avg EPS beat(12)3.46%
EPS beat(16)10
Avg EPS beat(16)7.93%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-9.77%
Max Revenue beat(2)10.36%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-9.77%
Max Revenue beat(4)10.36%
Revenue beat(8)2
Avg Revenue beat(8)-4.88%
Revenue beat(12)5
Avg Revenue beat(12)1.32%
Revenue beat(16)9
Avg Revenue beat(16)3.74%
PT rev (1m)9.04%
PT rev (3m)17.07%
EPS NQ rev (1m)-7.7%
EPS NQ rev (3m)-7.21%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)9.1%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 19.64 | ||
| P/S | 2.73 | ||
| P/FCF | N/A | ||
| P/OCF | 12.12 | ||
| P/B | 2.23 | ||
| P/tB | 3.48 | ||
| EV/EBITDA | 12.6 |
EPS(TTM)1.6
EY4.28%
EPS(NY)1.9
Fwd EY5.09%
FCF(TTM)-4.68
FCFYN/A
OCF(TTM)3.08
OCFY8.25%
SpS13.7
BVpS16.78
TBVpS10.74
PEG (NY)2.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 8.82% | ||
| ROCE | 5.05% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.4% | ||
| ROICexgc | 4.9% | ||
| OM | 22.62% | ||
| PM (TTM) | 10.8% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.38%
ROA(5y)1.6%
ROE(3y)9.52%
ROE(5y)6.39%
ROIC(3y)4.06%
ROIC(5y)3.84%
ROICexc(3y)4.13%
ROICexc(5y)3.94%
ROICexgc(3y)4.67%
ROICexgc(5y)4.54%
ROCE(3y)4.87%
ROCE(5y)4.59%
ROICexcg growth 3Y3.86%
ROICexcg growth 5Y5.87%
ROICexc growth 3Y5.33%
ROICexc growth 5Y7.4%
OM growth 3Y12.16%
OM growth 5Y10.21%
PM growth 3Y-10.88%
PM growth 5Y5.76%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.03 | ||
| Cap/Depr | 351.84% | ||
| Cap/Sales | 56.61% | ||
| Interest Coverage | 2.33 | ||
| Cash Conversion | 58.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 0.84 |
F-Score4
WACC6.56%
ROIC/WACC0.64
Cap/Depr(3y)323.61%
Cap/Depr(5y)285.85%
Cap/Sales(3y)50.08%
Cap/Sales(5y)44.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.23%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%-3.64%
EPS Next Y8.97%
EPS Next 2Y8.35%
EPS Next 3Y8.38%
EPS Next 5Y8.08%
Revenue 1Y (TTM)4.76%
Revenue growth 3Y1.15%
Revenue growth 5Y2.7%
Sales Q2Q%11.45%
Revenue Next Year4.21%
Revenue Next 2Y3.84%
Revenue Next 3Y3.92%
Revenue Next 5Y5.37%
EBIT growth 1Y10.25%
EBIT growth 3Y13.45%
EBIT growth 5Y13.19%
EBIT Next Year88.19%
EBIT Next 3Y31.09%
EBIT Next 5Y22.36%
FCF growth 1Y-74.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-31.67%
OCF growth 3Y359.83%
OCF growth 5Y5.48%