CENTERPOINT ENERGY INC (CNP) Fundamental Analysis & Valuation

NYSE:CNP • US15189T1079

Current stock price

43.03 USD
+0.56 (+1.32%)
Last:

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

6

1. CNP Profitability Analysis

1.1 Basic Checks

  • CNP had positive earnings in the past year.
  • CNP had a positive operating cash flow in the past year.
  • Each year in the past 5 years CNP has been profitable.
  • CNP had a positive operating cash flow in each of the past 5 years.
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

  • With a Return On Assets value of 2.26%, CNP is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
  • CNP's Return On Equity of 9.43% is in line compared to the rest of the industry. CNP outperforms 46.15% of its industry peers.
  • The Return On Invested Capital of CNP (4.35%) is better than 84.62% of its industry peers.
  • CNP had an Average Return On Invested Capital over the past 3 years of 4.22%. This is in line with the industry average of 3.75%.
  • The last Return On Invested Capital (4.35%) for CNP is above the 3 year average (4.22%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.26%
ROE 9.43%
ROIC 4.35%
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 (11.24%) which is comparable to the rest of the industry.
  • CNP's Profit Margin has been stable in the last couple of years.
  • The Operating Margin of CNP (22.55%) is better than 69.23% of its industry peers.
  • In the last couple of years the Operating Margin of CNP has grown nicely.
Industry RankSector Rank
OM 22.55%
PM (TTM) 11.24%
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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1

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.
  • CNP has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CNP has more shares outstanding
  • Compared to 1 year ago, CNP has a worse debt to assets ratio.
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 0.87, we must say that CNP is in the distress zone and has some risk of bankruptcy.
  • CNP has a Altman-Z score (0.87) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.89 is on the high side and indicates that CNP has dependencies on debt financing.
  • CNP has a Debt to Equity ratio of 1.89. This is comparable to the rest of the industry: CNP outperforms 42.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.89
Debt/FCF N/A
Altman-Z 0.87
ROIC/WACC0.65
WACC6.66%
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

  • A Current Ratio of 0.91 indicates that CNP may have some problems paying its short term obligations.
  • CNP has a Current ratio (0.91) which is in line with its industry peers.
  • A Quick Ratio of 0.79 indicates that CNP may have some problems paying its short term obligations.
  • CNP has a better Quick ratio (0.79) than 73.08% of its industry peers.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.79
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.
  • CNP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
  • Looking at the last year, CNP shows a quite strong growth in Revenue. The Revenue has grown by 8.26% in the last year.
  • CNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.75% yearly.
EPS 1Y (TTM)12.5%
EPS 3Y8.65%
EPS 5Y3.5%
EPS Q2Q%5.66%
Revenue 1Y (TTM)8.26%
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.
  • CNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
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.
  • 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 23.91, the valuation of CNP can be described as rather expensive.
  • 80.77% of the companies in the same industry are cheaper than CNP, based on the Price/Earnings ratio.
  • CNP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.42.
  • A Price/Forward Earnings ratio of 20.52 indicates a rather expensive valuation of CNP.
  • Based on the Price/Forward Earnings ratio, CNP is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
  • CNP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.29.
Industry RankSector Rank
PE 23.91
Fwd PE 20.52
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

  • 73.08% of the companies in the same industry are cheaper than CNP, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.52
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.
  • CNP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.69
PEG (5Y)6.82
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 2.17%, CNP has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 3.38, 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 1.81.
Industry RankSector Rank
Dividend Yield 2.17%

5.2 History

  • The dividend of CNP decreases each year by -2.62%.
  • 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)-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 54.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.56%
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 (4/27/2026, 11:49:06 AM)

43.03

+0.56 (+1.32%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)04-23
Earnings (Next)07-22
Inst Owners101.81%
Inst Owner Change-0.08%
Ins Owners0.22%
Ins Owner Change7.16%
Market Cap28.15B
Revenue(TTM)9.36B
Net Income(TTM)1.05B
Analysts74.55
Price Target45.28 (5.23%)
Short Float %6.28%
Short Ratio7.62
Dividend
Industry RankSector Rank
Dividend Yield 2.17%
Yearly Dividend0.88
Dividend Growth(5Y)-2.62%
DP54.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date05-21
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.79%
Min EPS beat(2)-1.06%
Max EPS beat(2)12.65%
EPS beat(4)1
Avg EPS beat(4)1.02%
Min EPS beat(4)-5.7%
Max EPS beat(4)12.65%
EPS beat(8)3
Avg EPS beat(8)1.81%
EPS beat(12)6
Avg EPS beat(12)2.63%
EPS beat(16)8
Avg EPS beat(16)2.85%
Revenue beat(2)1
Avg Revenue beat(2)2.5%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)10.69%
Revenue beat(4)3
Avg Revenue beat(4)4.42%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)10.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)4
Avg Revenue beat(12)-2.77%
Revenue beat(16)8
Avg Revenue beat(16)1.76%
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 23.91
Fwd PE 20.52
P/S 3.01
P/FCF N/A
P/OCF 11.32
P/B 2.52
P/tB 3.7
EV/EBITDA 13.52
EPS(TTM)1.8
EY4.18%
EPS(NY)2.1
Fwd EY4.87%
FCF(TTM)-4.19
FCFYN/A
OCF(TTM)3.8
OCFY8.83%
SpS14.3
BVpS17.05
TBVpS11.62
PEG (NY)2.69
PEG (5Y)6.82
Graham Number26.2773 (-38.93%)
Profitability
Industry RankSector Rank
ROA 2.26%
ROE 9.43%
ROCE 5.24%
ROIC 4.35%
ROICexc 4.41%
ROICexgc 4.84%
OM 22.55%
PM (TTM) 11.24%
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-Score5
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 1.89
Debt/FCF N/A
Debt/EBITDA 5.79
Cap/Depr 341.63%
Cap/Sales 55.86%
Interest Coverage 2.15
Cash Conversion 68.3%
Profit Quality N/A
Current Ratio 0.91
Quick Ratio 0.79
Altman-Z 0.87
F-Score5
WACC6.66%
ROIC/WACC0.65
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)8.26%
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 1Y6.03%
EBIT growth 3Y10.45%
EBIT growth 5Y11.51%
EBIT Next Year94.93%
EBIT Next 3Y34.05%
EBIT Next 5Y25.04%
FCF growth 1Y-15.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.22%
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 3 / 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 6 / 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 23.91 and the Price/Book (PB) ratio is 2.52.


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

The financial health rating of CENTERPOINT ENERGY INC (CNP) is 1 / 10.