CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNP - US15189T1079 - Common Stock
39.98 USD
+0.03 (+0.08%)
39.98 USD
0 (0%)
Taking everything into account, CNP scores 3 out of 10 in our fundamental rating. CNP was compared to 26 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNP was profitable.
CNP had a positive operating cash flow in the past year.
Of the past 5 years CNP 4 years were profitable.
Each year in the past 5 years CNP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CNP (2.30%) is worse than 73.08% of its industry peers.
CNP has a Return On Equity of 9.39%. This is comparable to the rest of the industry: CNP outperforms 50.00% of its industry peers.
CNP has a Return On Invested Capital of 4.34%. This is amongst the best in the industry. CNP outperforms 80.77% 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 3.96%.
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
The Profit Margin of CNP (11.37%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CNP has grown nicely.
With a decent Operating Margin value of 22.50%, CNP is doing good in the industry, outperforming 61.54% 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 | 22.5% | ||
| 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
CNP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, CNP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that CNP is in the distress zone and has some risk of bankruptcy.
CNP has a Altman-Z score (0.80) which is in line with its industry peers.
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 (1.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.68
WACC6.39%
2.3 Liquidity
A Current Ratio of 0.51 indicates that CNP may have some problems paying its short term obligations.
CNP has a worse Current ratio (0.51) 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.
The Quick ratio of CNP (0.38) is worse than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.69% over the past year.
The Earnings Per Share has been decreasing by -1.98% on average over the past years.
The Revenue has been growing slightly by 6.43% in the past year.
Measured over the past years, CNP shows a small growth in Revenue. The Revenue has been growing by 2.70% on average per year.
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.
CNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.97% yearly.
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
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
With a Price/Earnings ratio of 23.24, CNP is valued on the expensive side.
CNP's Price/Earnings ratio is rather expensive when compared to the industry. CNP is more expensive than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, CNP is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.73, the valuation of CNP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CNP is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
CNP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 20.73 |
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 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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
CNP has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.44, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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
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%
39.98
+0.03 (+0.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change1.57%
Ins Owners0.18%
Ins Owner Change2.95%
Market Cap26.10B
Revenue(TTM)9.11B
Net Income(TTM)1.04B
Analysts72.73
Price Target43.5 (8.8%)
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)6.08%
PT rev (3m)6.13%
EPS NQ rev (1m)-6.87%
EPS NQ rev (3m)-5.99%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 20.73 | ||
| P/S | 2.86 | ||
| P/FCF | N/A | ||
| P/OCF | 10.04 | ||
| P/B | 2.37 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 13.22 |
EPS(TTM)1.72
EY4.3%
EPS(NY)1.93
Fwd EY4.82%
FCF(TTM)-4.84
FCFYN/A
OCF(TTM)3.98
OCFY9.97%
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
WACC6.39%
ROIC/WACC0.68
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 23.24 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.