CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNP - US15189T1079 - Common Stock
38.34 USD
-0.27 (-0.7%)
38.34 USD
0 (0%)
Overall CNP gets a fundamental rating of 3 out of 10. We evaluated CNP against 26 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNP was profitable.
CNP had a positive operating cash flow in the past year.
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 worse Return On Assets (2.30%) than 73.08% of its industry peers.
The Return On Equity of CNP (9.39%) is comparable to the rest of the industry.
The Return On Invested Capital of CNP (4.34%) is better than 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 11.37%, CNP is in line with its industry, outperforming 42.31% of the companies in the same industry.
In the last couple of years the Profit Margin of CNP has grown nicely.
Looking at the Operating Margin, with a value of 22.50%, CNP is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Operating Margin of CNP has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNP is destroying value.
CNP has more shares outstanding than it did 1 year ago.
CNP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNP has a worse debt to assets ratio.
2.2 Solvency
CNP has an Altman-Z score of 0.78. This is a bad value and indicates that CNP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.78, CNP is in line with its industry, outperforming 50.00% of the companies in the same industry.
CNP has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.80, CNP perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.68
WACC6.42%
2.3 Liquidity
A Current Ratio of 0.51 indicates that CNP may have some problems paying 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.
CNP has a worse Quick ratio (0.38) 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.
The Earnings Per Share has been decreasing by -1.98% on average over the past years.
The Revenue has been growing slightly by 6.43% in the past 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 8.92% yearly.
Based on estimates for the next years, CNP will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
EPS Next Y9.95%
EPS Next 2Y9.07%
EPS Next 3Y9.13%
EPS Next 5Y8.92%
Revenue Next Year1.44%
Revenue Next 2Y3.53%
Revenue Next 3Y4.03%
Revenue Next 5Y5.99%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CNP is valuated rather expensively with a Price/Earnings ratio of 22.29.
Compared to the rest of the industry, the Price/Earnings ratio of CNP indicates a rather expensive valuation: CNP more expensive than 88.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, CNP is valued at the same level.
With a Price/Forward Earnings ratio of 19.89, CNP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CNP is valued more expensive than 88.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, CNP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 19.89 |
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 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.97 |
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)2.24
PEG (5Y)N/A
EPS Next 2Y9.07%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
CNP has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.62, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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%
38.34
-0.27 (-0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners101.28%
Inst Owner Change1.59%
Ins Owners0.18%
Ins Owner Change2.95%
Market Cap25.03B
Revenue(TTM)9.11B
Net Income(TTM)1.04B
Analysts72.73
Price Target43.14 (12.52%)
Short Float %5.64%
Short Ratio7.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend0.81
Dividend Growth(5Y)-10.1%
DP54.92%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.47%
Min EPS beat(2)-5.7%
Max EPS beat(2)12.65%
EPS beat(4)1
Avg EPS beat(4)0.94%
Min EPS beat(4)-5.7%
Max EPS beat(4)12.65%
EPS beat(8)3
Avg EPS beat(8)1.8%
EPS beat(12)6
Avg EPS beat(12)2.47%
EPS beat(16)9
Avg EPS beat(16)4.53%
Revenue beat(2)1
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)2.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-9.77%
Max Revenue beat(4)10.36%
Revenue beat(8)2
Avg Revenue beat(8)-4.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)8
Avg Revenue beat(16)2.85%
PT rev (1m)-0.83%
PT rev (3m)5.05%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-6.94%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)-1.73%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 19.89 | ||
| P/S | 2.75 | ||
| P/FCF | N/A | ||
| P/OCF | 9.62 | ||
| P/B | 2.27 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 12.97 |
EPS(TTM)1.72
EY4.49%
EPS(NY)1.93
Fwd EY5.03%
FCF(TTM)-4.84
FCFYN/A
OCF(TTM)3.98
OCFY10.39%
SpS13.96
BVpS16.9
TBVpS10.86
PEG (NY)2.24
PEG (5Y)N/A
Graham Number25.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 9.39% | ||
| ROCE | 5.22% | ||
| ROIC | 4.34% | ||
| ROICexc | 4.4% | ||
| ROICexgc | 4.9% | ||
| OM | 22.5% | ||
| PM (TTM) | 11.37% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.38%
ROA(5y)1.6%
ROE(3y)9.52%
ROE(5y)6.39%
ROIC(3y)4.06%
ROIC(5y)3.84%
ROICexc(3y)4.13%
ROICexc(5y)3.94%
ROICexgc(3y)4.67%
ROICexgc(5y)4.54%
ROCE(3y)4.87%
ROCE(5y)4.59%
ROICexgc growth 3Y3.86%
ROICexgc growth 5Y5.87%
ROICexc growth 3Y5.33%
ROICexc growth 5Y7.4%
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
F-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 388.79% | ||
| Cap/Sales | 63.18% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 73.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 0.78 |
F-Score7
WACC6.42%
ROIC/WACC0.68
Cap/Depr(3y)323.61%
Cap/Depr(5y)285.85%
Cap/Sales(3y)50.08%
Cap/Sales(5y)44.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.69%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%61.29%
EPS Next Y9.95%
EPS Next 2Y9.07%
EPS Next 3Y9.13%
EPS Next 5Y8.92%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y1.15%
Revenue growth 5Y2.7%
Sales Q2Q%7.11%
Revenue Next Year1.44%
Revenue Next 2Y3.53%
Revenue Next 3Y4.03%
Revenue Next 5Y5.99%
EBIT growth 1Y12.2%
EBIT growth 3Y13.45%
EBIT growth 5Y13.19%
EBIT Next Year85.41%
EBIT Next 3Y32.36%
EBIT Next 5Y24.26%
FCF growth 1Y-184.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-26.81%
OCF growth 3Y359.83%
OCF growth 5Y5.48%
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%.