CENTERPOINT ENERGY INC (CNP) Fundamental Analysis & Valuation

NYSE:CNP • US15189T1079

Current stock price

42.085 USD
+0.06 (+0.15%)
Last:

This CNP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. CNP Profitability Analysis

1.1 Basic Checks

  • In the past year CNP was profitable.
  • CNP had a positive operating cash flow in the past year.
  • Each year in the past 5 years CNP has been profitable.
  • Each year in the past 5 years CNP had a positive operating cash flow.
CNP Yearly Net Income VS EBIT VS OCF VS FCFCNP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.26%, CNP is doing worse than 73.08% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 9.43%, CNP is in line with its industry, outperforming 46.15% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 4.35%, CNP belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
  • CNP had an Average Return On Invested Capital over the past 3 years of 4.22%. This is in line with the industry average of 3.74%.
  • The last Return On Invested Capital (4.35%) for CNP is above the 3 year average (4.22%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.26%
ROE 9.43%
ROIC 4.35%
ROA(3y)2.26%
ROA(5y)2.62%
ROE(3y)9.32%
ROE(5y)10.55%
ROIC(3y)4.22%
ROIC(5y)3.99%
CNP Yearly ROA, ROE, ROICCNP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

1.3 Margins

  • With a Profit Margin value of 11.24%, CNP perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CNP has remained more or less at the same level.
  • CNP has a better Operating Margin (22.55%) than 69.23% of its industry peers.
  • In the last couple of years the Operating Margin of CNP has grown nicely.
Industry RankSector Rank
OM 22.55%
PM (TTM) 11.24%
GM N/A
OM growth 3Y10.31%
OM growth 5Y6.45%
PM growth 3Y1.3%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
CNP Yearly Profit, Operating, Gross MarginsCNP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

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2

2. CNP Health Analysis

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 remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for CNP has been increased compared to 5 years ago.
  • Compared to 1 year ago, CNP has a worse debt to assets ratio.
CNP Yearly Shares OutstandingCNP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
CNP Yearly Total Debt VS Total AssetsCNP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • Based on the Altman-Z score of 0.86, we must say that CNP is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of CNP (0.86) is better than 61.54% of its industry peers.
  • CNP has a Debt/Equity ratio of 1.89. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of CNP (1.89) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.89
Debt/FCF N/A
Altman-Z 0.86
ROIC/WACC0.65
WACC6.69%
CNP Yearly LT Debt VS Equity VS FCFCNP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B

2.3 Liquidity

  • CNP has a Current Ratio of 0.91. 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 Current ratio of 0.91. This is comparable to the rest of the industry: CNP outperforms 57.69% of its industry peers.
  • A Quick Ratio of 0.79 indicates that CNP may have some problems paying its short term obligations.
  • With a decent Quick ratio value of 0.79, CNP is doing good in the industry, outperforming 69.23% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.79
CNP Yearly Current Assets VS Current LiabilitesCNP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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5

3. CNP Growth Analysis

3.1 Past

  • CNP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.26%, which is quite good.
  • Measured over the past 5 years, CNP shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
  • Looking at the last year, CNP shows a quite strong growth in Revenue. The Revenue has grown by 8.26% in the last year.
  • CNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.75% yearly.
EPS 1Y (TTM)9.26%
EPS 3Y8.65%
EPS 5Y3.5%
EPS Q2Q%12.5%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y0.13%
Revenue growth 5Y4.75%
Sales Q2Q%10.74%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.70% on average over the next years. This is quite good.
  • Based on estimates for the next years, CNP will show a small growth in Revenue. The Revenue will grow by 7.64% on average per year.
EPS Next Y8.94%
EPS Next 2Y8.98%
EPS Next 3Y8.85%
EPS Next 5Y8.7%
Revenue Next Year8.42%
Revenue Next 2Y6.58%
Revenue Next 3Y5.87%
Revenue Next 5Y7.64%

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.
  • 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.
CNP Yearly Revenue VS EstimatesCNP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
CNP Yearly EPS VS EstimatesCNP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3

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1

4. CNP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 23.78, CNP is valued on the expensive side.
  • Based on the Price/Earnings ratio, CNP is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
  • CNP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • CNP is valuated rather expensively with a Price/Forward Earnings ratio of 21.83.
  • CNP's Price/Forward Earnings ratio is rather expensive when compared to the industry. CNP is more expensive than 88.46% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.42, CNP is valued at the same level.
Industry RankSector Rank
PE 23.78
Fwd PE 21.83
CNP Price Earnings VS Forward Price EarningsCNP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CNP is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.44
CNP Per share dataCNP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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.
  • CNP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.66
PEG (5Y)6.79
EPS Next 2Y8.98%
EPS Next 3Y8.85%

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3

5. CNP Dividend Analysis

5.1 Amount

  • CNP has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 3.49, 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 comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.13%

5.2 History

  • The dividend of CNP decreases each year by -2.62%.
  • 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)-2.62%
Div Incr Years3
Div Non Decr Years3
CNP Yearly Dividends per shareCNP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 54.56% of the earnings are spent on dividend by CNP. This is a bit on the high side, but may be sustainable.
DP54.56%
EPS Next 2Y8.98%
EPS Next 3Y8.85%
CNP Yearly Income VS Free CF VS DividendCNP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B -3B
CNP Dividend Payout.CNP Dividend Payout, showing the Payout Ratio.CNP Dividend Payout.PayoutRetained Earnings

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CNP Fundamentals: All Metrics, Ratios and Statistics

CENTERPOINT ENERGY INC

NYSE:CNP (3/23/2026, 11:04:09 AM)

42.085

+0.06 (+0.15%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)02-19
Earnings (Next)04-22
Inst Owners102.05%
Inst Owner Change-1.3%
Ins Owners0.23%
Ins Owner Change6.62%
Market Cap27.53B
Revenue(TTM)9.36B
Net Income(TTM)1.05B
Analysts74.55
Price Target44.72 (6.26%)
Short Float %5.77%
Short Ratio6.63
Dividend
Industry RankSector Rank
Dividend Yield 2.13%
Yearly Dividend0.88
Dividend Growth(5Y)-2.62%
DP54.56%
Div Incr Years3
Div Non Decr Years3
Ex-Date02-19
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.79%
Min EPS beat(2)-1.06%
Max EPS beat(2)12.65%
EPS beat(4)1
Avg EPS beat(4)1.02%
Min EPS beat(4)-5.7%
Max EPS beat(4)12.65%
EPS beat(8)3
Avg EPS beat(8)1.81%
EPS beat(12)6
Avg EPS beat(12)2.63%
EPS beat(16)8
Avg EPS beat(16)2.85%
Revenue beat(2)1
Avg Revenue beat(2)2.5%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)10.69%
Revenue beat(4)3
Avg Revenue beat(4)4.42%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)10.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)4
Avg Revenue beat(12)-2.77%
Revenue beat(16)8
Avg Revenue beat(16)1.76%
PT rev (1m)3.27%
PT rev (3m)2.96%
EPS NQ rev (1m)4.24%
EPS NQ rev (3m)4.24%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)2.19%
Revenue NY rev (3m)2.48%
Valuation
Industry RankSector Rank
PE 23.78
Fwd PE 21.83
P/S 2.94
P/FCF N/A
P/OCF 11.07
P/B 2.47
P/tB 3.62
EV/EBITDA 13.44
EPS(TTM)1.77
EY4.21%
EPS(NY)1.93
Fwd EY4.58%
FCF(TTM)-4.19
FCFYN/A
OCF(TTM)3.8
OCFY9.03%
SpS14.3
BVpS17.05
TBVpS11.62
PEG (NY)2.66
PEG (5Y)6.79
Graham Number26.06
Profitability
Industry RankSector Rank
ROA 2.26%
ROE 9.43%
ROCE 5.24%
ROIC 4.35%
ROICexc 4.41%
ROICexgc 4.84%
OM 22.55%
PM (TTM) 11.24%
GM N/A
FCFM N/A
ROA(3y)2.26%
ROA(5y)2.62%
ROE(3y)9.32%
ROE(5y)10.55%
ROIC(3y)4.22%
ROIC(5y)3.99%
ROICexc(3y)4.28%
ROICexc(5y)4.08%
ROICexgc(3y)4.77%
ROICexgc(5y)4.61%
ROCE(3y)5.05%
ROCE(5y)4.78%
ROICexgc growth 3Y2.17%
ROICexgc growth 5Y1.49%
ROICexc growth 3Y3.77%
ROICexc growth 5Y3.45%
OM growth 3Y10.31%
OM growth 5Y6.45%
PM growth 3Y1.3%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 1.89
Debt/FCF N/A
Debt/EBITDA 5.79
Cap/Depr 341.63%
Cap/Sales 55.86%
Interest Coverage 2.15
Cash Conversion 68.3%
Profit Quality N/A
Current Ratio 0.91
Quick Ratio 0.79
Altman-Z 0.86
F-Score5
WACC6.69%
ROIC/WACC0.65
Cap/Depr(3y)323.13%
Cap/Depr(5y)310.58%
Cap/Sales(3y)52.9%
Cap/Sales(5y)48.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.26%
EPS 3Y8.65%
EPS 5Y3.5%
EPS Q2Q%12.5%
EPS Next Y8.94%
EPS Next 2Y8.98%
EPS Next 3Y8.85%
EPS Next 5Y8.7%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y0.13%
Revenue growth 5Y4.75%
Sales Q2Q%10.74%
Revenue Next Year8.42%
Revenue Next 2Y6.58%
Revenue Next 3Y5.87%
Revenue Next 5Y7.64%
EBIT growth 1Y6.03%
EBIT growth 3Y10.45%
EBIT growth 5Y11.51%
EBIT Next Year92.01%
EBIT Next 3Y31.92%
EBIT Next 5Y24.28%
FCF growth 1Y-15.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.22%
OCF growth 3Y11.16%
OCF growth 5Y4.5%

CENTERPOINT ENERGY INC / CNP Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CENTERPOINT ENERGY INC?

ChartMill assigns a fundamental rating of 4 / 10 to CNP.


What is the valuation status for 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.


How financially healthy is CENTERPOINT ENERGY INC?

The financial health rating of CENTERPOINT ENERGY INC (CNP) is 2 / 10.


Can you provide the dividend sustainability for CNP stock?

The dividend rating of CENTERPOINT ENERGY INC (CNP) is 3 / 10 and the dividend payout ratio is 54.56%.