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CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis

NYSE:CNP - New York Stock Exchange, Inc. - US15189T1079 - Common Stock - Currency: USD

34.29  +0.56 (+1.66%)

After market: 34.29 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 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 has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year CNP was profitable.
CNP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CNP reported negative net income in multiple years.
Of the past 5 years CNP 4 years had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B

1.2 Ratios

With a Return On Assets value of 2.25%, CNP is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 9.14%, CNP is in line with its industry, outperforming 44.00% of the companies in the same industry.
CNP has a Return On Invested Capital (3.72%) which is in line with its industry peers.
CNP had an Average Return On Invested Capital over the past 3 years of 3.60%. This is in line with the industry average of 3.68%.
The 3 year average ROIC (3.60%) for CNP is below the current ROIC(3.72%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.25%
ROE 9.14%
ROIC 3.72%
ROA(3y)2.83%
ROA(5y)1.51%
ROE(3y)11.26%
ROE(5y)6.1%
ROIC(3y)3.6%
ROIC(5y)3.38%
CNP Yearly ROA, ROE, ROICCNP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

CNP's Profit Margin of 11.25% is on the low side compared to the rest of the industry. CNP is outperformed by 72.00% of its industry peers.
In the last couple of years the Profit Margin of CNP has grown nicely.
With a decent Operating Margin value of 21.35%, CNP is doing good in the industry, outperforming 68.00% 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 21.35%
PM (TTM) 11.25%
GM N/A
OM growth 3Y7.04%
OM growth 5Y7.92%
PM growth 3YN/A
PM growth 5Y13.45%
GM growth 3YN/A
GM growth 5YN/A
CNP Yearly Profit, Operating, Gross MarginsCNP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

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3

2. Health

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CNP Yearly Shares OutstandingCNP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
CNP Yearly Total Debt VS Total AssetsCNP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

Based on the Altman-Z score of 0.81, we must say that CNP is in the distress zone and has some risk of bankruptcy.
CNP has a Altman-Z score (0.81) which is comparable to the rest of the industry.
CNP has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
CNP's Debt to Equity ratio of 1.87 is on the low side compared to the rest of the industry. CNP is outperformed by 92.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.87
Debt/FCF N/A
Altman-Z 0.81
ROIC/WACC0.58
WACC6.37%
CNP Yearly LT Debt VS Equity VS FCFCNP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.11 indicates that CNP should not have too much problems paying its short term obligations.
CNP has a better Current ratio (1.11) than 92.00% of its industry peers.
A Quick Ratio of 0.92 indicates that CNP may have some problems paying its short term obligations.
CNP has a Quick ratio of 0.92. This is amongst the best in the industry. CNP outperforms 92.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 0.92
CNP Yearly Current Assets VS Current LiabilitesCNP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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2

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 8.00% over the past year.
CNP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.98% yearly.
EPS 1Y (TTM)8%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%25%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.67%

3.2 Future

The Earnings Per Share is expected to grow by 7.57% on average over the next years.
CNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.41% yearly.
EPS Next Y8.86%
EPS Next 2Y8.09%
EPS Next 3Y8.17%
EPS Next 5Y7.57%
Revenue Next Year4.61%
Revenue Next 2Y3.85%
Revenue Next 3Y4.51%
Revenue Next 5Y5.41%

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.
CNP Yearly Revenue VS EstimatesCNP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
CNP Yearly EPS VS EstimatesCNP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5 2

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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.17, the valuation of CNP can be described as rather expensive.
CNP's Price/Earnings 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.
CNP is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.44 indicates a rather expensive valuation of CNP.
CNP's Price/Forward Earnings 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.
CNP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.17
Fwd PE 19.44
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

CNP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CNP is more expensive than 60.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.44
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 CNP does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.39
PEG (5Y)N/A
EPS Next 2Y8.09%
EPS Next 3Y8.17%

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3

5. Dividend

5.1 Amount

CNP has a Yearly Dividend Yield of 2.61%.
Compared to an average industry Dividend Yield of 3.78, 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 2.29, CNP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.61%

5.2 History

The dividend of CNP decreases each year by -4.96%.
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)-4.96%
Div Incr Years3
Div Non Decr Years3
CNP Yearly Dividends per shareCNP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

53.06% of the earnings are spent on dividend by CNP. This is a bit on the high side, but may be sustainable.
DP53.06%
EPS Next 2Y8.09%
EPS Next 3Y8.17%
CNP Yearly Income VS Free CF VS DividendCNP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B -2B -3B
CNP Dividend Payout.CNP Dividend Payout, showing the Payout Ratio.CNP Dividend Payout.PayoutRetained Earnings

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CENTERPOINT ENERGY INC

NYSE:CNP (2/21/2025, 8:10:24 PM)

After market: 34.29 0 (0%)

34.29

+0.56 (+1.66%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)04-28 2025-04-28/amc
Inst Owners97.94%
Inst Owner Change3.11%
Ins Owners0.16%
Ins Owner Change2.26%
Market Cap22.35B
Analysts69.09
Price Target33.66 (-1.84%)
Short Float %3.43%
Short Ratio5.26
Dividend
Industry RankSector Rank
Dividend Yield 2.61%
Yearly Dividend0.85
Dividend Growth(5Y)-4.96%
DP53.06%
Div Incr Years3
Div Non Decr Years3
Ex-Date02-20 2025-02-20 (0.22)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.76%
Min EPS beat(2)-2.96%
Max EPS beat(2)10.48%
EPS beat(4)2
Avg EPS beat(4)2.39%
Min EPS beat(4)-2.96%
Max EPS beat(4)10.48%
EPS beat(8)5
Avg EPS beat(8)3.1%
EPS beat(12)8
Avg EPS beat(12)5.64%
EPS beat(16)12
Avg EPS beat(16)11.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-4.92%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-7.02%
Min Revenue beat(4)-19.87%
Max Revenue beat(4)-0.05%
Revenue beat(8)2
Avg Revenue beat(8)-0.6%
Revenue beat(12)6
Avg Revenue beat(12)4.15%
Revenue beat(16)9
Avg Revenue beat(16)3.31%
PT rev (1m)2.11%
PT rev (3m)8.26%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)1.44%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)5.42%
Revenue NQ rev (3m)2.79%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 21.17
Fwd PE 19.44
P/S 2.61
P/FCF N/A
P/OCF 10.86
P/B 2.12
P/tB 3.39
EV/EBITDA 12.44
EPS(TTM)1.62
EY4.72%
EPS(NY)1.76
Fwd EY5.14%
FCF(TTM)-2.33
FCFYN/A
OCF(TTM)3.16
OCFY9.21%
SpS13.14
BVpS16.16
TBVpS10.11
PEG (NY)2.39
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.25%
ROE 9.14%
ROCE 4.68%
ROIC 3.72%
ROICexc 3.78%
ROICexgc 4.21%
OM 21.35%
PM (TTM) 11.25%
GM N/A
FCFM N/A
ROA(3y)2.83%
ROA(5y)1.51%
ROE(3y)11.26%
ROE(5y)6.1%
ROIC(3y)3.6%
ROIC(5y)3.38%
ROICexc(3y)3.71%
ROICexc(5y)3.49%
ROICexgc(3y)4.25%
ROICexgc(5y)4.06%
ROCE(3y)4.56%
ROCE(5y)4.27%
ROICexcg growth 3Y1.97%
ROICexcg growth 5Y3.28%
ROICexc growth 3Y4.12%
ROICexc growth 5Y1.74%
OM growth 3Y7.04%
OM growth 5Y7.92%
PM growth 3YN/A
PM growth 5Y13.45%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 1.87
Debt/FCF N/A
Debt/EBITDA 6.03
Cap/Depr 248.2%
Cap/Sales 41.8%
Interest Coverage 2.4
Cash Conversion 62.94%
Profit Quality N/A
Current Ratio 1.11
Quick Ratio 0.92
Altman-Z 0.81
F-Score6
WACC6.37%
ROIC/WACC0.58
Cap/Depr(3y)299.22%
Cap/Depr(5y)261.35%
Cap/Sales(3y)45.3%
Cap/Sales(5y)40.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%25%
EPS Next Y8.86%
EPS Next 2Y8.09%
EPS Next 3Y8.17%
EPS Next 5Y7.57%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.67%
Revenue Next Year4.61%
Revenue Next 2Y3.85%
Revenue Next 3Y4.51%
Revenue Next 5Y5.41%
EBIT growth 1Y1.95%
EBIT growth 3Y12.87%
EBIT growth 5Y15.19%
EBIT Next Year93.17%
EBIT Next 3Y31.4%
EBIT Next 5Y23.04%
FCF growth 1Y30.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.43%
OCF growth 3Y24.79%
OCF growth 5Y12.66%