CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
USA - NYSE:CNP - US15189T1079 - Common Stock
39.74 USD
+0.16 (+0.4%)
39.74 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to CNP. CNP was compared to 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. CNP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNP was profitable.
In the past year CNP had a positive cash flow from operations.
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
CNP has a Return On Assets of 2.30%. This is in the lower half of the industry: CNP underperforms 73.08% of its industry peers.
CNP has a Return On Equity (9.39%) which is in line with its industry peers.
CNP's Return On Invested Capital of 4.34% is amongst the best of 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 last Return On Invested Capital (4.34%) for CNP is above the 3 year average (4.06%), which is a sign of increasing profitability.
| 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 of 11.37%. This is comparable to the rest of the industry: CNP outperforms 42.31% of its industry peers.
CNP's Profit Margin has improved in the last couple of years.
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
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.
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
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's Altman-Z score of 0.80 is in line compared to the rest of the industry. CNP outperforms 50.00% of 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 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
WACC6.46%
2.3 Liquidity
CNP has a Current 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.
With a Current ratio value of 0.51, CNP is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
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.
Looking at the last year, CNP shows a small growth in Revenue. The Revenue has grown by 6.43% in the last year.
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.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.10, the valuation of CNP can be described as rather expensive.
Based on the Price/Earnings ratio, CNP is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 25.89, CNP is valued at the same level.
With a Price/Forward Earnings ratio of 20.61, CNP is valued on the expensive side.
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.
When comparing the Price/Forward Earnings ratio of CNP to the average of the S&P500 Index (34.59), we can say CNP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 20.61 |
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 | 13.18 |
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)2.33
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%.
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!
CNP's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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%
39.74
+0.16 (+0.4%)
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 Cap25.94B
Revenue(TTM)9.11B
Net Income(TTM)1.04B
Analysts72.73
Price Target43.4 (9.21%)
Short Float %5.2%
Short Ratio6.63
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 | 23.1 | ||
| Fwd PE | 20.61 | ||
| P/S | 2.85 | ||
| P/FCF | N/A | ||
| P/OCF | 9.97 | ||
| P/B | 2.35 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 13.18 |
EPS(TTM)1.72
EY4.33%
EPS(NY)1.93
Fwd EY4.85%
FCF(TTM)-4.84
FCFYN/A
OCF(TTM)3.98
OCFY10.03%
SpS13.96
BVpS16.9
TBVpS10.86
PEG (NY)2.33
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
WACC6.46%
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 23.1 and the Price/Book (PB) ratio is 2.35.
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.