CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
NYSE:CNP - US15189T1079 - Common Stock
37.94 USD
+0.23 (+0.61%)
37.94 USD
0 (0%)
Taking everything into account, CNP scores 2 out of 10 in our fundamental rating. CNP was compared to 25 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 is quite expensive at the moment. 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.
Of the past 5 years CNP 4 years were profitable.
CNP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CNP (2.12%) is worse than 80.00% of its industry peers.
The Return On Equity of CNP (8.49%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.06%, CNP perfoms like the industry average, outperforming 60.00% 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 3.82%.
The 3 year average ROIC (4.06%) for CNP is below the current ROIC(4.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 8.49% | ||
| ROIC | 4.06% |
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 of 10.42%. This is in the lower half of the industry: CNP underperforms 60.00% of its industry peers.
CNP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.97%, CNP is in line with its industry, 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 | 21.97% | ||
| PM (TTM) | 10.42% | ||
| 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
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.
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 0.84. This is a bad value and indicates that CNP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.84, CNP is in line with its industry, outperforming 48.00% of the companies in the same industry.
CNP has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
CNP's Debt to Equity ratio of 1.91 is on the low side compared to the rest of the industry. CNP is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
ROIC/WACC0.63
WACC6.45%
2.3 Liquidity
CNP has a Current Ratio of 0.79. This is a bad value and indicates that CNP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CNP (0.79) is worse than 64.00% of its industry peers.
A Quick Ratio of 0.61 indicates that CNP may have some problems paying its short term obligations.
CNP has a Quick ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
CNP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.13%.
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.
The Revenue has been growing slightly by 4.84% in the past year.
The Revenue has been growing slightly by 2.70% on average over the past years.
EPS 1Y (TTM)-6.13%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%-19.44%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y1.15%
Revenue growth 5Y2.7%
Sales Q2Q%2.05%
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 9.02% on average per year.
The Revenue is expected to grow by 5.19% on average over the next years.
EPS Next Y9.49%
EPS Next 2Y8.74%
EPS Next 3Y9.02%
EPS Next 5Y9.02%
Revenue Next Year1.76%
Revenue Next 2Y2.77%
Revenue Next 3Y3.38%
Revenue Next 5Y5.19%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.80, 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 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.90, CNP is valued at the same level.
With a Price/Forward Earnings ratio of 19.80, CNP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CNP is valued more expensive than 84.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. CNP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.8 | ||
| Fwd PE | 19.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNP indicates a slightly more expensive valuation: CNP is more expensive than 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y8.74%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, CNP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.67, CNP's dividend is way lower than its industry peers. On top of this 96.00% of the companies listed in the same industry pay a better dividend than CNP!
Compared to an average S&P500 Dividend Yield of 2.32, CNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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
59.29% of the earnings are spent on dividend by CNP. This is a bit on the high side, but may be sustainable.
DP59.29%
EPS Next 2Y8.74%
EPS Next 3Y9.02%
37.94
+0.23 (+0.61%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners106.49%
Inst Owner Change-0.35%
Ins Owners0.15%
Ins Owner Change2.86%
Market Cap24.77B
Analysts73.33
Price Target40.99 (8.04%)
Short Float %4.95%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend0.81
Dividend Growth(5Y)-10.1%
DP59.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.75%
Min EPS beat(2)-5.7%
Max EPS beat(2)-1.8%
EPS beat(4)0
Avg EPS beat(4)-2.96%
Min EPS beat(4)-5.7%
Max EPS beat(4)-1.37%
EPS beat(8)3
Avg EPS beat(8)1.57%
EPS beat(12)6
Avg EPS beat(12)1.82%
EPS beat(16)9
Avg EPS beat(16)4.74%
Revenue beat(2)2
Avg Revenue beat(2)6.34%
Min Revenue beat(2)2.32%
Max Revenue beat(2)10.36%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-9.77%
Max Revenue beat(4)10.36%
Revenue beat(8)2
Avg Revenue beat(8)-4.63%
Revenue beat(12)5
Avg Revenue beat(12)0.32%
Revenue beat(16)9
Avg Revenue beat(16)3.55%
PT rev (1m)2.96%
PT rev (3m)4.67%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)1.72%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.24%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.8 | ||
| Fwd PE | 19.8 | ||
| P/S | 2.76 | ||
| P/FCF | N/A | ||
| P/OCF | 12.42 | ||
| P/B | 2.25 | ||
| P/tB | 3.5 | ||
| EV/EBITDA | 13.04 |
EPS(TTM)1.53
EY4.03%
EPS(NY)1.92
Fwd EY5.05%
FCF(TTM)-5.18
FCFYN/A
OCF(TTM)3.06
OCFY8.05%
SpS13.76
BVpS16.88
TBVpS10.84
PEG (NY)2.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 8.49% | ||
| ROCE | 4.88% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 4.59% | ||
| OM | 21.97% | ||
| PM (TTM) | 10.42% | ||
| 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-Score3
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.2 | ||
| Cap/Depr | 378.07% | ||
| Cap/Sales | 59.9% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 58.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.84 |
F-Score3
WACC6.45%
ROIC/WACC0.63
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)-6.13%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%-19.44%
EPS Next Y9.49%
EPS Next 2Y8.74%
EPS Next 3Y9.02%
EPS Next 5Y9.02%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y1.15%
Revenue growth 5Y2.7%
Sales Q2Q%2.05%
Revenue Next Year1.76%
Revenue Next 2Y2.77%
Revenue Next 3Y3.38%
Revenue Next 5Y5.19%
EBIT growth 1Y2.65%
EBIT growth 3Y13.45%
EBIT growth 5Y13.19%
EBIT Next Year87.69%
EBIT Next 3Y31.41%
EBIT Next 5Y23.69%
FCF growth 1Y-128.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-39.8%
OCF growth 3Y359.83%
OCF growth 5Y5.48%