CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CNP • US15189T1079
39.255 USD
-0.34 (-0.85%)
Last: Jan 30, 2026, 11:58 AM
CNP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, CNP is valued expensive at the moment.
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
- CNP has a worse Return On Assets (2.30%) than 73.08% of its industry peers.
- CNP has a Return On Equity of 9.39%. This is comparable to the rest of the industry: CNP outperforms 50.00% of its industry peers.
- With an excellent Return On Invested Capital value of 4.34%, CNP belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CNP is in line with the industry average of 3.94%.
- The 3 year average ROIC (4.06%) for CNP is below the current ROIC(4.34%), indicating increased profibility in the last year.
| 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 (11.37%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of CNP has grown nicely.
- CNP has a better Operating Margin (22.50%) than 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
- 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
- Compared to 5 years ago, CNP has more shares outstanding
- Compared to 1 year ago, CNP has a worse debt to assets ratio.
2.2 Solvency
- CNP has an Altman-Z score of 0.79. This is a bad value and indicates that CNP is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.79, CNP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.80 is on the high side and indicates that CNP has dependencies on debt financing.
- CNP's Debt to Equity ratio of 1.80 is in line compared 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 | 0.79 |
ROIC/WACC0.66
WACC6.53%
2.3 Liquidity
- A Current Ratio of 0.51 indicates that CNP may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.51, CNP is doing worse than 92.31% of the companies in the same industry.
- A Quick Ratio of 0.38 indicates that CNP may have some problems paying its short term obligations.
- With a Quick ratio value of 0.38, CNP is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.69% over the past 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 6.43% in the last year.
- CNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
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
- CNP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.93% yearly.
- Based on estimates for the next years, CNP will show a small growth in Revenue. The Revenue will grow by 6.04% on average per year.
EPS Next Y9.93%
EPS Next 2Y9.07%
EPS Next 3Y9.13%
EPS Next 5Y8.93%
Revenue Next Year1.4%
Revenue Next 2Y3.59%
Revenue Next 3Y4.01%
Revenue Next 5Y6.04%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.82, which indicates a rather expensive current valuation of CNP.
- Compared to the rest of the industry, the Price/Earnings ratio of CNP indicates a rather expensive valuation: CNP more expensive than 84.62% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CNP to the average of the S&P500 Index (28.39), we can say CNP is valued inline with the index average.
- CNP is valuated rather expensively with a Price/Forward Earnings ratio of 20.37.
- Based on the Price/Forward Earnings ratio, CNP is valued more expensive than 84.62% of the companies in the same industry.
- CNP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 20.37 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.15 |
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.
- The decent profitability rating of CNP may justify a higher PE ratio.
PEG (NY)2.3
PEG (5Y)N/A
EPS Next 2Y9.07%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
- CNP has a Yearly Dividend Yield of 2.37%.
- Compared to an average industry Dividend Yield of 3.77, 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 a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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
- 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 2Y9.07%
EPS Next 3Y9.13%
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 for 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.
How financially healthy is CENTERPOINT ENERGY INC?
The financial health rating of CENTERPOINT ENERGY INC (CNP) is 0 / 10.
Can you provide the dividend sustainability for CNP stock?
The dividend rating of CENTERPOINT ENERGY INC (CNP) is 4 / 10 and the dividend payout ratio is 54.92%.