CENTERPOINT ENERGY INC (CNP) Fundamental Analysis & Valuation

NYSE:CNP • US15189T1079

Current stock price

42.82 USD
-0.31 (-0.72%)
At close:
42.82 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.
  • In the past 5 years CNP has always been profitable.
  • In the past 5 years CNP always reported a positive cash flow from operatings.
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 2.24%, CNP is doing worse than 73.08% of the companies in the same industry.
  • CNP has a Return On Equity (9.35%) which is in line with its industry peers.
  • CNP has a Return On Invested Capital of 4.19%. 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 3.74%.
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

  • The Profit Margin of CNP (11.38%) is comparable to the rest of the industry.
  • CNP's Profit Margin has been stable in the last couple of years.
  • With a decent Operating Margin value of 22.51%, CNP is doing good in the industry, outperforming 69.23% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CNP has grown nicely.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNP is destroying value.
  • The number of shares outstanding for CNP remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, CNP has more shares outstanding
  • CNP has a worse debt/assets ratio than last year.
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 0.90, we must say that CNP is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.90, CNP is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
  • A Debt/Equity ratio of 1.96 is on the high side and indicates that CNP has dependencies on debt financing.
  • CNP has a Debt to Equity ratio of 1.96. This is in the lower half of the industry: CNP underperforms 73.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.96
Debt/FCF N/A
Altman-Z 0.9
ROIC/WACC0.63
WACC6.7%
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 better Current ratio (1.16) than 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

  • The Earnings Per Share has grown by an nice 12.50% over the past year.
  • 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 small growth in Revenue. The Revenue has grown by 5.24% in the last year.
  • Measured over the past years, CNP shows a small growth in Revenue. The Revenue has been growing by 4.75% on average per year.
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

  • The Earnings Per Share is expected to grow by 8.75% 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 7.54% on average per year.
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

  • 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

  • Based on the Price/Earnings ratio of 23.79, the valuation of CNP can be described as rather expensive.
  • CNP's Price/Earnings ratio is rather expensive when compared to the industry. CNP is more expensive than 80.77% of the companies in the same industry.
  • CNP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 20.42 indicates a rather expensive valuation of CNP.
  • 80.77% of the companies in the same industry are cheaper than CNP, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, CNP is valued at the same level.
Industry RankSector Rank
PE 23.79
Fwd PE 20.42
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 76.92% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.79
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 an expensive valuation of the company.
PEG (NY)2.67
PEG (5Y)6.79
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

  • CNP has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
  • With a Dividend Yield of 2.13, CNP pays less dividend than the industry average, which is at 3.37. 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 2.13%

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

  • CNP pays out 54.25% of its income as dividend. 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 (4/29/2026, 4:15:00 PM)

After market: 42.82 0 (0%)

42.82

-0.31 (-0.72%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Industry Strength48.45
Industry Growth42.86
Earnings (Last)04-23
Earnings (Next)07-22
Inst Owners101.81%
Inst Owner Change-0.08%
Ins Owners0.22%
Ins Owner Change7.16%
Market Cap28.01B
Revenue(TTM)9.41B
Net Income(TTM)1.07B
Analysts74.55
Price Target46.57 (8.76%)
Short Float %6.34%
Short Ratio7.91
Dividend
Industry RankSector Rank
Dividend Yield 2.13%
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 23.79
Fwd PE 20.42
P/S 2.98
P/FCF N/A
P/OCF 11.88
P/B 2.45
P/tB 3.55
EV/EBITDA 13.79
EPS(TTM)1.8
EY4.2%
EPS(NY)2.1
Fwd EY4.9%
FCF(TTM)-4.08
FCFYN/A
OCF(TTM)3.6
OCFY8.42%
SpS14.39
BVpS17.5
TBVpS12.08
PEG (NY)2.67
PEG (5Y)6.79
Graham Number26.6238 (-37.82%)
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
WACC6.7%
ROIC/WACC0.63
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 23.79 and the Price/Book (PB) ratio is 2.45.


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

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