CENTERPOINT ENERGY INC (CNP) Fundamental Analysis & Valuation

NYSE:CNP • US15189T1079

Current stock price

43.65 USD
+0.83 (+1.94%)
At close:
43.65 USD
0 (0%)
After Hours:

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

5

1. CNP Profitability Analysis

1.1 Basic Checks

  • In the past year CNP was profitable.
  • In the past year CNP had a positive cash flow from operations.
  • 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

  • CNP has a Return On Assets of 2.24%. This is in the lower half of the industry: CNP underperforms 73.08% of its industry peers.
  • CNP has a Return On Equity (9.35%) which is in line with its industry peers.
  • CNP's Return On Invested Capital of 4.19% 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 3.74%.
Industry RankSector Rank
ROA 2.24%
ROE 9.35%
ROIC 4.19%
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

  • CNP has a Profit Margin (11.38%) which is in line with its industry peers.
  • 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 (22.51%) than 69.23% of its industry peers.
  • CNP's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 22.51%
PM (TTM) 11.38%
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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3

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.
  • Compared to 1 year ago, CNP has about the same amount of shares outstanding.
  • CNP has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for CNP is higher compared to a year ago.
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

  • CNP has an Altman-Z score of 0.90. This is a bad value and indicates that CNP is not financially healthy and even has some risk of bankruptcy.
  • CNP's Altman-Z score of 0.90 is fine compared to the rest of the industry. CNP outperforms 61.54% of its industry peers.
  • CNP has a Debt/Equity ratio of 1.96. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of CNP (1.96) is worse than 73.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.96
Debt/FCF N/A
Altman-Z 0.9
ROIC/WACC0.62
WACC6.76%
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 1.16. This is a normal value and indicates that CNP is financially healthy and should not expect problems in meeting its short term obligations.
  • CNP has a Current ratio of 1.16. This is amongst the best in the industry. CNP outperforms 88.46% of its industry peers.
  • A Quick Ratio of 1.04 indicates that CNP should not have too much problems paying its short term obligations.
  • The Quick ratio of CNP (1.04) is better than 88.46% of its industry peers.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 1.04
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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 12.50%, which is quite good.
  • The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
  • CNP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.24%.
  • The Revenue has been growing slightly by 4.75% on average over the past years.
EPS 1Y (TTM)12.5%
EPS 3Y8.65%
EPS 5Y3.5%
EPS Q2Q%5.66%
Revenue 1Y (TTM)5.24%
Revenue growth 3Y0.13%
Revenue growth 5Y4.75%
Sales Q2Q%1.88%

3.2 Future

  • CNP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.75% yearly.
  • The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y8.9%
EPS Next 2Y8.84%
EPS Next 3Y8.89%
EPS Next 5Y8.75%
Revenue Next Year8.72%
Revenue Next 2Y6.81%
Revenue Next 3Y6.21%
Revenue Next 5Y7.54%

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.
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

  • Based on the Price/Earnings ratio of 24.25, the valuation of CNP can be described as rather expensive.
  • Based on the Price/Earnings ratio, CNP is valued more expensive than 88.46% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.77. CNP is around the same levels.
  • The Price/Forward Earnings ratio is 20.82, which indicates a rather expensive current valuation of CNP.
  • 80.77% of the companies in the same industry are cheaper than CNP, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of CNP to the average of the S&P500 Index (21.75), we can say CNP is valued inline with the index average.
Industry RankSector Rank
PE 24.25
Fwd PE 20.82
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

  • CNP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CNP is more expensive than 80.77% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.74
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.
PEG (NY)2.72
PEG (5Y)6.92
EPS Next 2Y8.84%
EPS Next 3Y8.89%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. CNP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.15%, CNP has a reasonable but not impressive dividend return.
  • With a Dividend Yield of 2.15, CNP pays less dividend than the industry average, which is at 3.39. 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 1.82, CNP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.15%

5.2 History

  • The dividend of CNP decreases each year by -2.62%.
  • 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)-2.62%
Div Incr Years4
Div Non Decr Years4
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

  • 54.25% of the earnings are spent on dividend by CNP. This is a bit on the high side, but may be sustainable.
DP54.25%
EPS Next 2Y8.84%
EPS Next 3Y8.89%
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 (4/30/2026, 8:04:00 PM)

After market: 43.65 0 (0%)

43.65

+0.83 (+1.94%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Industry Strength49.07
Industry Growth42.24
Earnings (Last)04-23
Earnings (Next)07-22
Inst Owners101.81%
Inst Owner Change-0.08%
Ins Owners0.22%
Ins Owner Change7.16%
Market Cap28.55B
Revenue(TTM)9.41B
Net Income(TTM)1.07B
Analysts74.55
Price Target46.57 (6.69%)
Short Float %6.34%
Short Ratio7.91
Dividend
Industry RankSector Rank
Dividend Yield 2.15%
Yearly Dividend0.88
Dividend Growth(5Y)-2.62%
DP54.25%
Div Incr Years4
Div Non Decr Years4
Ex-Date05-21
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.78%
Min EPS beat(2)-1.06%
Max EPS beat(2)-0.51%
EPS beat(4)1
Avg EPS beat(4)1.34%
Min EPS beat(4)-5.7%
Max EPS beat(4)12.65%
EPS beat(8)2
Avg EPS beat(8)1.44%
EPS beat(12)5
Avg EPS beat(12)2.19%
EPS beat(16)8
Avg EPS beat(16)3%
Revenue beat(2)2
Avg Revenue beat(2)7.34%
Min Revenue beat(2)3.98%
Max Revenue beat(2)10.69%
Revenue beat(4)3
Avg Revenue beat(4)2.83%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)10.69%
Revenue beat(8)4
Avg Revenue beat(8)0.81%
Revenue beat(12)5
Avg Revenue beat(12)-2.42%
Revenue beat(16)8
Avg Revenue beat(16)1.61%
PT rev (1m)1.24%
PT rev (3m)4.95%
EPS NQ rev (1m)-3.3%
EPS NQ rev (3m)0.8%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)2.49%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)2.82%
Valuation
Industry RankSector Rank
PE 24.25
Fwd PE 20.82
P/S 3.03
P/FCF N/A
P/OCF 12.11
P/B 2.49
P/tB 3.61
EV/EBITDA 13.74
EPS(TTM)1.8
EY4.12%
EPS(NY)2.1
Fwd EY4.8%
FCF(TTM)-4.08
FCFYN/A
OCF(TTM)3.6
OCFY8.26%
SpS14.39
BVpS17.5
TBVpS12.08
PEG (NY)2.72
PEG (5Y)6.92
Graham Number26.6238 (-39.01%)
Profitability
Industry RankSector Rank
ROA 2.24%
ROE 9.35%
ROCE 4.98%
ROIC 4.19%
ROICexc 4.31%
ROICexgc 4.72%
OM 22.51%
PM (TTM) 11.38%
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-Score6
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 1.96
Debt/FCF N/A
Debt/EBITDA 6.06
Cap/Depr 316.35%
Cap/Sales 53.44%
Interest Coverage 2.11
Cash Conversion 63.58%
Profit Quality N/A
Current Ratio 1.16
Quick Ratio 1.04
Altman-Z 0.9
F-Score6
WACC6.76%
ROIC/WACC0.62
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)12.5%
EPS 3Y8.65%
EPS 5Y3.5%
EPS Q2Q%5.66%
EPS Next Y8.9%
EPS Next 2Y8.84%
EPS Next 3Y8.89%
EPS Next 5Y8.75%
Revenue 1Y (TTM)5.24%
Revenue growth 3Y0.13%
Revenue growth 5Y4.75%
Sales Q2Q%1.88%
Revenue Next Year8.72%
Revenue Next 2Y6.81%
Revenue Next 3Y6.21%
Revenue Next 5Y7.54%
EBIT growth 1Y4.75%
EBIT growth 3Y10.45%
EBIT growth 5Y11.51%
EBIT Next Year94.93%
EBIT Next 3Y34.05%
EBIT Next 5Y25.04%
FCF growth 1Y-88.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.73%
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.


What is the profitability of CNP stock?

CENTERPOINT ENERGY INC (CNP) has a profitability rating of 5 / 10.


What are the PE and PB ratios of CENTERPOINT ENERGY INC (CNP) stock?

The Price/Earnings (PE) ratio for CENTERPOINT ENERGY INC (CNP) is 24.25 and the Price/Book (PB) ratio is 2.49.


What is the financial health of CENTERPOINT ENERGY INC (CNP) stock?

The financial health rating of CENTERPOINT ENERGY INC (CNP) is 3 / 10.