CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CNP • US15189T1079
39.43 USD
-0.26 (-0.66%)
Last: Feb 2, 2026, 11:12 AM
Taking everything into account, CNP scores 3 out of 10 in our fundamental rating. CNP was compared to 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. CNP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- CNP had positive earnings in the past year.
- In the past year CNP had a positive cash flow from operations.
- CNP had positive earnings in 4 of the past 5 years.
- CNP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.30%, CNP is doing worse than 73.08% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 9.39%, CNP is in line with its industry, outperforming 50.00% of the companies in the same industry.
- CNP has a Return On Invested Capital of 4.34%. This is amongst the best in the industry. CNP outperforms 84.62% 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 3.94%.
- The last Return On Invested Capital (4.34%) for CNP is above the 3 year average (4.06%), which is a sign of increasing profitability.
| 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
- With a Profit Margin value of 11.37%, CNP perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
- CNP's Profit Margin has improved in the last couple of years.
- The Operating Margin of CNP (22.50%) is better 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.
- CNP has more 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.
2.2 Solvency
- Based on the Altman-Z score of 0.80, we must say that CNP is in the distress zone and has some risk of bankruptcy.
- CNP has a Altman-Z score (0.80) which is in line with its industry peers.
- A Debt/Equity ratio of 1.80 is on the high side and indicates that CNP has dependencies on debt financing.
- CNP has a Debt to Equity ratio (1.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.66
WACC6.53%
2.3 Liquidity
- CNP has a Current Ratio of 0.51. This is a bad value and indicates that CNP is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.51, CNP is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
- CNP has a Quick Ratio of 0.51. This is a bad value and indicates that CNP is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of CNP (0.38) is worse than 92.31% of its industry peers.
| 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.
- The Revenue has been growing slightly by 6.43% in the past 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)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
- The Earnings Per Share is expected to grow by 8.93% on average over the next years. This is quite good.
- CNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.04% yearly.
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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.92, CNP is valued on the expensive side.
- 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.
- CNP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- CNP is valuated rather expensively with a Price/Forward Earnings ratio of 20.46.
- CNP's Price/Forward Earnings ratio is rather expensive when compared to the industry. CNP is more expensive than 84.62% of the companies in the same industry.
- CNP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 20.46 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CNP is valued a bit more expensive than the industry average as 73.08% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.17 |
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)2.31
PEG (5Y)N/A
EPS Next 2Y9.07%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
- CNP has a Yearly Dividend Yield of 2.32%.
- Compared to an average industry Dividend Yield of 3.50, 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!
- Compared to an average S&P500 Dividend Yield of 1.83, CNP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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%.