CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
NYSE:CNP - New York Stock Exchange, Inc. - US15189T1079 - Common Stock
CNP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years CNP had a positive operating cash flow.
1.2 Ratios
CNP has a Return On Assets of 2.25%. This is amonst the worse of the industry: CNP underperforms 84.00% of its industry peers.
CNP's Return On Equity of 9.14% is in line compared to the rest of the industry. CNP outperforms 44.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.72%, CNP is in line with its industry, outperforming 60.00% of the companies in the same industry.
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 last Return On Invested Capital (3.72%) for CNP is above the 3 year average (3.60%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of CNP (11.25%) is worse than 76.00% of its industry peers.
CNP's Profit Margin has improved in the last couple of years.
CNP's Operating Margin of 21.35% is fine compared to the rest of the industry. CNP outperforms 64.00% of its industry peers.
In the last couple of years the Operating Margin of CNP has grown nicely.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNP is destroying value.
Compared to 1 year ago, CNP has more shares outstanding
The number of shares outstanding for CNP has been increased compared to 5 years ago.
CNP has a worse debt/assets ratio than last year.
2.2 Solvency
CNP has an Altman-Z score of 0.80. This is a bad value and indicates that CNP is not financially healthy and even has some risk of bankruptcy.
CNP has a Altman-Z score (0.80) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.87 is on the high side and indicates that CNP has dependencies on debt 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 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.58
WACC6.42%
2.3 Liquidity
CNP has a Current Ratio of 1.11. This is a normal value and indicates that CNP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CNP (1.11) is better than 80.00% of its industry peers.
A Quick Ratio of 0.92 indicates that CNP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.92, CNP belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
CNP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.48%.
CNP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.28% yearly.
Looking at the last year, CNP shows a decrease in Revenue. The Revenue has decreased by -7.18% in the last year.
CNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.74% yearly.
EPS 1Y (TTM)5.48%
EPS 3Y0.22%
EPS 5Y-1.28%
EPS Q2Q%-22.5%
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y5.44%
Revenue growth 5Y6.74%
Sales Q2Q%-0.22%
3.2 Future
CNP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.96% yearly.
CNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.61% yearly.
EPS Next Y8.93%
EPS Next 2Y8.36%
EPS Next 3Y7.98%
EPS Next 5Y7.96%
Revenue Next Year-3.55%
Revenue Next 2Y-0.22%
Revenue Next 3Y0.72%
Revenue Next 5Y3.61%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.47, CNP is valued on the expensive side.
Based on the Price/Earnings ratio, CNP is valued a bit more expensive than 68.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. CNP is valued slightly cheaper when compared to this.
CNP is valuated rather expensively with a Price/Forward Earnings ratio of 18.77.
68.00% of the companies in the same industry are cheaper than CNP, based on the Price/Forward Earnings ratio.
CNP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 18.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNP indicates a slightly more expensive valuation: CNP is more expensive than 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.31 |
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)2.4
PEG (5Y)N/A
EPS Next 2Y8.36%
EPS Next 3Y7.98%
5. Dividend
5.1 Amount
CNP has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.68, CNP pays less dividend than the industry average, which is at 3.82. 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 2.28, CNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
The dividend of CNP decreases each year by -4.96%.
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)-4.96%
Div Incr Years3
Div Non Decr Years3
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 2Y8.36%
EPS Next 3Y7.98%
CENTERPOINT ENERGY INC
NYSE:CNP (1/21/2025, 8:04:00 PM)
After market: 33.06 0 (0%)33.06
+0.5 (+1.54%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.97%
Inst Owner Change-0.13%
Ins Owners0.15%
Ins Owner Change0.11%
Market Cap21.55B
Analysts70.43
Price Target32.76 (-0.91%)
Short Float %3.64%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend0.85
Dividend Growth(5Y)-4.96%
DP53.06%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)2.86%
PT rev (3m)8.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)32.1%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 18.77 | ||
| P/S | 2.52 | ||
| P/FCF | N/A | ||
| P/OCF | 10.47 | ||
| P/B | 2.05 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)1.54
EY4.66%
EPS(NY)1.76
Fwd EY5.33%
FCF(TTM)-2.33
FCFYN/A
OCF(TTM)3.16
OCFY9.55%
SpS13.14
BVpS16.16
TBVpS10.11
PEG (NY)2.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.8 |
F-Score6
WACC6.42%
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)5.48%
EPS 3Y0.22%
EPS 5Y-1.28%
EPS Q2Q%-22.5%
EPS Next Y8.93%
EPS Next 2Y8.36%
EPS Next 3Y7.98%
EPS Next 5Y7.96%
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y5.44%
Revenue growth 5Y6.74%
Sales Q2Q%-0.22%
Revenue Next Year-3.55%
Revenue Next 2Y-0.22%
Revenue Next 3Y0.72%
Revenue Next 5Y3.61%
EBIT growth 1Y1.95%
EBIT growth 3Y12.87%
EBIT growth 5Y15.19%
EBIT Next Year93.9%
EBIT Next 3Y31.42%
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%