CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
USA - NYSE:CNP - US15189T1079 - Common Stock
39.99 USD
-0.19 (-0.47%)
39.99 USD
0 (0%)
CNP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, CNP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CNP had positive earnings in the past year.
In the past year CNP had a positive cash flow from operations.
CNP had positive earnings in 4 of the past 5 years.
In the past 5 years CNP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.30%, CNP is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
With a Return On Equity value of 9.39%, CNP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.34%, CNP belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
CNP had an Average Return On Invested Capital over the past 3 years of 4.06%. This is in line with the industry average of 3.96%.
The 3 year average ROIC (4.06%) for CNP is below the current ROIC(4.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 9.39% | ||
| ROIC | 4.34% |
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 Profit Margin (11.37%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CNP has grown nicely.
CNP's Operating Margin of 22.50% is fine compared to the rest of the industry. CNP outperforms 61.54% of its industry peers.
CNP's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.5% | ||
| PM (TTM) | 11.37% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNP is destroying value.
Compared to 1 year ago, CNP has more shares outstanding
CNP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNP has a worse debt to assets ratio.
2.2 Solvency
CNP has an Altman-Z score of 0.80. This is a bad value and indicates that CNP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CNP (0.80) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.80 is on the high side and indicates that CNP has dependencies on debt financing.
CNP has a Debt to Equity ratio of 1.80. This is comparable to the rest of the industry: CNP outperforms 42.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.67
WACC6.47%
2.3 Liquidity
A Current Ratio of 0.51 indicates that CNP may have some problems paying its short term obligations.
The Current ratio of CNP (0.51) is worse than 92.31% of its industry peers.
CNP has a Quick Ratio of 0.51. This is a bad value and indicates that CNP is not financially healthy enough and could expect problems in meeting its short term obligations.
CNP has a Quick ratio of 0.38. This is amonst the worse of the industry: CNP underperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
CNP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.69%, which is quite good.
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.
CNP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.43%.
The Revenue has been growing slightly by 2.70% on average over the past years.
EPS 1Y (TTM)11.69%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%61.29%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y1.15%
Revenue growth 5Y2.7%
Sales Q2Q%7.11%
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 8.90% on average per year.
The Revenue is expected to grow by 5.97% on average over the next years.
EPS Next Y9.93%
EPS Next 2Y9.11%
EPS Next 3Y9.12%
EPS Next 5Y8.9%
Revenue Next Year1.6%
Revenue Next 2Y3.73%
Revenue Next 3Y4.08%
Revenue Next 5Y5.97%
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 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 23.25, which indicates a rather expensive current valuation of CNP.
Compared to the rest of the industry, the Price/Earnings ratio of CNP indicates a rather expensive valuation: CNP more expensive than 88.46% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. CNP is around the same levels.
Based on the Price/Forward Earnings ratio of 20.74, the valuation of CNP can be described as rather expensive.
88.46% of the companies in the same industry are cheaper than CNP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.98. CNP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 20.74 |
4.2 Price Multiples
CNP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CNP is more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.26 |
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.
The decent profitability rating of CNP may justify a higher PE ratio.
PEG (NY)2.34
PEG (5Y)N/A
EPS Next 2Y9.11%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, CNP has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.22, CNP pays less dividend than the industry average, which is at 4.19. 96.15% of the companies listed in the same industry pay a better dividend than CNP!
Compared to an average S&P500 Dividend Yield of 2.44, CNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
The dividend of CNP decreases each year by -10.10%.
CNP has been paying a dividend for at least 10 years, so it has 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
54.92% of the earnings are spent on dividend by CNP. This is a bit on the high side, but may be sustainable.
DP54.92%
EPS Next 2Y9.11%
EPS Next 3Y9.12%
39.99
-0.19 (-0.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change1.66%
Ins Owners0.18%
Ins Owner Change6.24%
Market Cap26.11B
Revenue(TTM)9.11B
Net Income(TTM)1.04B
Analysts72.73
Price Target43.4 (8.53%)
Short Float %5.24%
Short Ratio6.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend0.81
Dividend Growth(5Y)-10.1%
DP54.92%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.47%
Min EPS beat(2)-5.7%
Max EPS beat(2)12.65%
EPS beat(4)1
Avg EPS beat(4)0.94%
Min EPS beat(4)-5.7%
Max EPS beat(4)12.65%
EPS beat(8)3
Avg EPS beat(8)1.89%
EPS beat(12)6
Avg EPS beat(12)2.53%
EPS beat(16)9
Avg EPS beat(16)4.58%
Revenue beat(2)1
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)2.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-9.77%
Max Revenue beat(4)10.36%
Revenue beat(8)2
Avg Revenue beat(8)-3.91%
Revenue beat(12)4
Avg Revenue beat(12)-0.67%
Revenue beat(16)8
Avg Revenue beat(16)2.91%
PT rev (1m)5.84%
PT rev (3m)5.89%
EPS NQ rev (1m)-7.79%
EPS NQ rev (3m)-4.99%
EPS NY rev (1m)0.4%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 20.74 | ||
| P/S | 2.86 | ||
| P/FCF | N/A | ||
| P/OCF | 10.04 | ||
| P/B | 2.37 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 13.26 |
EPS(TTM)1.72
EY4.3%
EPS(NY)1.93
Fwd EY4.82%
FCF(TTM)-4.84
FCFYN/A
OCF(TTM)3.98
OCFY9.96%
SpS13.96
BVpS16.9
TBVpS10.86
PEG (NY)2.34
PEG (5Y)N/A
Graham Number25.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 9.39% | ||
| ROCE | 5.22% | ||
| ROIC | 4.34% | ||
| ROICexc | 4.4% | ||
| ROICexgc | 4.9% | ||
| OM | 22.5% | ||
| PM (TTM) | 11.37% | ||
| 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%
ROICexgc growth 3Y3.86%
ROICexgc 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-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 388.79% | ||
| Cap/Sales | 63.18% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 73.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 0.8 |
F-Score7
WACC6.47%
ROIC/WACC0.67
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)11.69%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%61.29%
EPS Next Y9.93%
EPS Next 2Y9.11%
EPS Next 3Y9.12%
EPS Next 5Y8.9%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y1.15%
Revenue growth 5Y2.7%
Sales Q2Q%7.11%
Revenue Next Year1.6%
Revenue Next 2Y3.73%
Revenue Next 3Y4.08%
Revenue Next 5Y5.97%
EBIT growth 1Y12.2%
EBIT growth 3Y13.45%
EBIT growth 5Y13.19%
EBIT Next Year87.54%
EBIT Next 3Y31.11%
EBIT Next 5Y24.19%
FCF growth 1Y-184.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-26.81%
OCF growth 3Y359.83%
OCF growth 5Y5.48%
CENTERPOINT ENERGY INC / CNP FAQ
Can you provide the ChartMill fundamental rating for CENTERPOINT ENERGY INC?
ChartMill assigns a fundamental rating of 3 / 10 to CNP.
What is the valuation status of CENTERPOINT ENERGY INC (CNP) stock?
ChartMill assigns a valuation rating of 1 / 10 to CENTERPOINT ENERGY INC (CNP). This can be considered as Overvalued.
Can you provide the profitability details for CENTERPOINT ENERGY INC?
CENTERPOINT ENERGY INC (CNP) has a profitability rating of 6 / 10.
What is the valuation of CENTERPOINT ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CENTERPOINT ENERGY INC (CNP) is 23.25 and the Price/Book (PB) ratio is 2.37.
What is the earnings growth outlook for CENTERPOINT ENERGY INC?
The Earnings per Share (EPS) of CENTERPOINT ENERGY INC (CNP) is expected to grow by 9.93% in the next year.