CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
USA - NYSE:CNP - US15189T1079 - Common Stock
38.24 USD
0 (0%)
38.24 USD
0 (0%)
We assign a fundamental rating of 2 out of 10 to CNP. CNP was compared to 25 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 valied quite expensively at the moment, while 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.
CNP has a Return On Equity of 8.49%. This is comparable to the rest of the industry: CNP outperforms 48.00% of its industry peers.
CNP has a Return On Invested Capital (4.06%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNP is in line with the industry average of 3.82%.
The last Return On Invested Capital (4.06%) for CNP is above the 3 year average (4.06%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 10.42%, CNP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of CNP has grown nicely.
CNP has a Operating Margin (21.97%) which is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNP is destroying value.
Compared to 1 year ago, CNP has more shares outstanding
The number of shares outstanding for CNP has been increased compared to 5 years ago.
The debt/assets ratio for CNP is higher compared to a year ago.
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.
Looking at the Debt to Equity ratio, with a value of 1.91, CNP is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
ROIC/WACC0.64
WACC6.37%
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.
CNP has a Current ratio of 0.79. This is in the lower half of the industry: CNP underperforms 64.00% of its industry peers.
CNP has a Quick 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.
CNP's Quick ratio of 0.61 is in line compared to the rest of the industry. CNP outperforms 52.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for CNP have decreased by -6.13% in the last year.
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 4.84% in the last 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)-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 8.82% on average per year.
CNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.26% yearly.
EPS Next Y9.49%
EPS Next 2Y8.74%
EPS Next 3Y9.02%
EPS Next 5Y8.82%
Revenue Next Year1.75%
Revenue Next 2Y2.74%
Revenue Next 3Y3.38%
Revenue Next 5Y5.26%
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.
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
A Price/Earnings ratio of 24.99 indicates a rather expensive valuation of CNP.
88.00% of the companies in the same industry are cheaper than CNP, based on the Price/Earnings ratio.
CNP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.96, the valuation of CNP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CNP is valued more expensive than 88.00% of the companies in the same industry.
CNP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.99 | ||
| Fwd PE | 19.96 |
4.2 Price Multiples
CNP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CNP is more expensive than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.14 |
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)2.63
PEG (5Y)N/A
EPS Next 2Y8.74%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
CNP has a Yearly Dividend Yield of 2.30%.
Compared to an average industry Dividend Yield of 3.64, 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 2.38, CNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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
CNP pays out 59.29% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP59.29%
EPS Next 2Y8.74%
EPS Next 3Y9.02%
38.24
0 (0%)
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 Change2.95%
Market Cap24.97B
Analysts73.33
Price Target41.07 (7.4%)
Short Float %4.95%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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)1.8%
EPS beat(12)6
Avg EPS beat(12)1.97%
EPS beat(16)9
Avg EPS beat(16)4.85%
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)-4.69%
Revenue beat(12)5
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)3.52%
PT rev (1m)0.19%
PT rev (3m)3.7%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)12.79%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.99 | ||
| Fwd PE | 19.96 | ||
| P/S | 2.78 | ||
| P/FCF | N/A | ||
| P/OCF | 12.51 | ||
| P/B | 2.27 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 13.14 |
EPS(TTM)1.53
EY4%
EPS(NY)1.92
Fwd EY5.01%
FCF(TTM)-5.18
FCFYN/A
OCF(TTM)3.06
OCFY7.99%
SpS13.76
BVpS16.88
TBVpS10.84
PEG (NY)2.63
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
WACC6.37%
ROIC/WACC0.64
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 5Y8.82%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y1.15%
Revenue growth 5Y2.7%
Sales Q2Q%2.05%
Revenue Next Year1.75%
Revenue Next 2Y2.74%
Revenue Next 3Y3.38%
Revenue Next 5Y5.26%
EBIT growth 1Y2.65%
EBIT growth 3Y13.45%
EBIT growth 5Y13.19%
EBIT Next Year87.69%
EBIT Next 3Y31.41%
EBIT Next 5Y24.03%
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%