CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNP - US15189T1079 - Common Stock
37.6 USD
-0.64 (-1.67%)
37.6 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to CNP. CNP was compared to 26 industry peers in the Multi-Utilities industry. While CNP is still in line with the averages on profitability rating, there are concerns on its financial health. CNP is valied quite expensively at the moment, while it does show a decent growth rate.
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.
CNP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CNP's Return On Assets of 2.30% is on the low side compared to the rest of the industry. CNP is outperformed by 73.08% of its industry peers.
The Return On Equity of CNP (9.39%) is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 4.34%, CNP belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
CNP had an Average Return On Invested Capital over the past 3 years of 4.06%. This 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.
In the last couple of years the Profit Margin of CNP has grown nicely.
CNP's Operating Margin of 22.50% is fine compared to the rest of the industry. CNP outperforms 61.54% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNP is destroying value.
The number of shares outstanding for CNP has been increased compared to 1 year ago.
The number of shares outstanding for CNP has been increased compared to 5 years ago.
The debt/assets ratio for CNP is higher compared to a year ago.
2.2 Solvency
CNP has an Altman-Z score of 0.77. This is a bad value and indicates that CNP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.77, CNP perfoms like the industry average, 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.
CNP has a Debt to Equity ratio of 1.80. This is comparable to the rest of the industry: CNP outperforms 42.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.68
WACC6.4%
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.
The Current ratio of CNP (0.51) is worse than 92.31% of its industry peers.
A Quick Ratio of 0.38 indicates that CNP may have some problems paying 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
CNP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.69%, which is quite good.
CNP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.98% yearly.
CNP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.43%.
The Revenue has been growing slightly by 2.70% on average over the past years.
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 Y9.93%
EPS Next 2Y9.11%
EPS Next 3Y9.13%
EPS Next 5Y8.92%
Revenue Next Year1.61%
Revenue Next 2Y3.62%
Revenue Next 3Y4.12%
Revenue Next 5Y5.99%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 21.86 indicates a rather expensive valuation of CNP.
Based on the Price/Earnings ratio, CNP is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 26.38. CNP is around the same levels.
With a Price/Forward Earnings ratio of 19.50, CNP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CNP is valued expensively inside the industry as 88.46% of the companies are valued cheaper.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, CNP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 19.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNP is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.78 |
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.
The decent profitability rating of CNP may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)N/A
EPS Next 2Y9.11%
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.
With a Dividend Yield of 2.41, CNP pays less dividend than the industry average, which is at 3.57. 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 1.87.
| 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 2Y9.11%
EPS Next 3Y9.13%
37.6
-0.64 (-1.67%)
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 Cap24.55B
Revenue(TTM)9.11B
Net Income(TTM)1.04B
Analysts72.73
Price Target43.43 (15.51%)
Short Float %5.81%
Short Ratio8.13
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)1.89%
EPS beat(12)6
Avg EPS beat(12)2.53%
EPS beat(16)9
Avg EPS beat(16)4.58%
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)-3.91%
Revenue beat(12)4
Avg Revenue beat(12)-0.67%
Revenue beat(16)8
Avg Revenue beat(16)2.91%
PT rev (1m)0.07%
PT rev (3m)5.76%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-6.94%
EPS NY rev (1m)0%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)-1.73%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 19.5 | ||
| P/S | 2.69 | ||
| P/FCF | N/A | ||
| P/OCF | 9.44 | ||
| P/B | 2.22 | ||
| P/tB | 3.46 | ||
| EV/EBITDA | 12.78 |
EPS(TTM)1.72
EY4.57%
EPS(NY)1.93
Fwd EY5.13%
FCF(TTM)-4.84
FCFYN/A
OCF(TTM)3.98
OCFY10.6%
SpS13.96
BVpS16.9
TBVpS10.86
PEG (NY)2.2
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 | 0.77 |
F-Score7
WACC6.4%
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 Y9.93%
EPS Next 2Y9.11%
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 Year1.61%
Revenue Next 2Y3.62%
Revenue Next 3Y4.12%
Revenue Next 5Y5.99%
EBIT growth 1Y12.2%
EBIT growth 3Y13.45%
EBIT growth 5Y13.19%
EBIT Next Year84.67%
EBIT Next 3Y32.37%
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 of CENTERPOINT ENERGY INC (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.
What is the valuation of CENTERPOINT ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CENTERPOINT ENERGY INC (CNP) is 21.86 and the Price/Book (PB) ratio is 2.22.
What is the earnings growth outlook for CENTERPOINT ENERGY INC?
The Earnings per Share (EPS) of CENTERPOINT ENERGY INC (CNP) is expected to grow by 9.93% in the next year.