CENTERPOINT ENERGY INC (CNP)
US15189T1079 - Common Stock
Taking everything into account, CNP scores 3 out of 10 in our fundamental rating. CNP was compared to 25 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year CNP was profitable.
In the past year CNP had a positive cash flow from operations.
CNP had positive earnings in 4 of the past 5 years.
In the past 5 years CNP always reported a positive cash flow from operatings.
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.
The Return On Equity of CNP (9.14%) is comparable to the rest of the industry.
CNP's Return On Invested Capital of 3.72% is in line compared to the rest of the industry. CNP outperforms 60.00% 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 3.68%.
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
CNP has a worse Profit Margin (11.25%) than 76.00% of its industry peers.
In the last couple of years the Profit Margin of CNP has grown nicely.
CNP has a better Operating Margin (21.35%) than 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.
CNP has more shares outstanding than it did 1 year ago.
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 0.78. 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 (0.78) which is in line with its industry peers.
A Debt/Equity ratio of 1.87 is on the high side and indicates that CNP has dependencies on debt financing.
CNP has a worse Debt to Equity ratio (1.87) than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.58
WACC6.37%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CNP should not have too much problems paying its short term obligations.
CNP's Current ratio of 1.11 is fine compared to the rest of the industry. CNP outperforms 80.00% 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 better Quick ratio (0.92) than 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.48% over the past year.
CNP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.28% yearly.
The Revenue has decreased by -7.18% in the past year.
Measured over the past years, CNP shows a small growth in Revenue. The Revenue has been growing by 6.74% on average per year.
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
Based on estimates for the next years, CNP will show a small growth in Earnings Per Share. The EPS will grow by 7.96% on average per year.
The Revenue is expected to grow by 3.61% on average over the next years.
EPS Next Y8.73%
EPS Next 2Y8.15%
EPS Next 3Y7.86%
EPS Next 5Y7.96%
Revenue Next Year-3.78%
Revenue Next 2Y-0.26%
Revenue Next 3Y0.62%
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 21.13, CNP is valued on the expensive side.
CNP's Price/Earnings ratio is rather expensive when compared to the industry. CNP is more expensive than 80.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. CNP is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.55, which indicates a rather expensive current valuation of CNP.
Based on the Price/Forward Earnings ratio, CNP is valued a bit more expensive than the industry average as 76.00% of the companies are valued more cheaply.
CNP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 18.55 |
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 | 12.05 |
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)2.42
PEG (5Y)N/A
EPS Next 2Y8.15%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
CNP has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.92, 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!
CNP's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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
CNP pays out 53.06% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP53.06%
EPS Next 2Y8.15%
EPS Next 3Y7.86%
CENTERPOINT ENERGY INC
NYSE:CNP (12/20/2024, 8:04:00 PM)
After market: 32.54 0 (0%)32.54
+0.78 (+2.46%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.97%
Inst Owner Change2.2%
Ins Owners0.15%
Ins Owner Change0.11%
Market Cap21.21B
Analysts69.09
Price Target31.85 (-2.12%)
Short Float %2.8%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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)3.08%
PT rev (3m)4.85%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)32.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)-2.5%
Revenue NQ rev (3m)9.59%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 18.55 | ||
| P/S | 2.48 | ||
| P/FCF | N/A | ||
| P/OCF | 10.3 | ||
| P/B | 2.01 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 12.05 |
EPS(TTM)1.54
EY4.73%
EPS(NY)1.75
Fwd EY5.39%
FCF(TTM)-2.33
FCFYN/A
OCF(TTM)3.16
OCFY9.7%
SpS13.14
BVpS16.16
TBVpS10.11
PEG (NY)2.42
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 | 0.78 |
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)5.48%
EPS 3Y0.22%
EPS 5Y-1.28%
EPS Q2Q%-22.5%
EPS Next Y8.73%
EPS Next 2Y8.15%
EPS Next 3Y7.86%
EPS Next 5Y7.96%
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y5.44%
Revenue growth 5Y6.74%
Sales Q2Q%-0.22%
Revenue Next Year-3.78%
Revenue Next 2Y-0.26%
Revenue Next 3Y0.62%
Revenue Next 5Y3.61%
EBIT growth 1Y1.95%
EBIT growth 3Y12.87%
EBIT growth 5Y15.19%
EBIT Next Year92.51%
EBIT Next 3Y31.1%
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%