CENTERPOINT ENERGY INC (CNP) Stock Fundamental Analysis
USA - NYSE:CNP - US15189T1079 - Common Stock
39.49 USD
+0.3 (+0.77%)
39.49 USD
0 (0%)
Overall CNP gets a fundamental rating of 2 out of 10. We evaluated CNP against 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 is quite expensive at the moment. It does show a decent growth rate.
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
With a Return On Assets value of 2.12%, CNP is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
CNP has a Return On Equity of 8.49%. This is comparable to the rest of the industry: CNP outperforms 48.00% of its industry peers.
CNP has a Return On Invested Capital of 4.06%. This is comparable to the rest of the industry: CNP outperforms 60.00% 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 3.82%.
The last Return On Invested Capital (4.06%) for CNP is above the 3 year average (4.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 8.49% | ||
| ROIC | 4.06% |
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
CNP has a Profit Margin of 10.42%. This is in the lower half of the industry: CNP underperforms 60.00% of its industry peers.
CNP's Profit Margin has improved in the last couple of years.
CNP has a Operating Margin (21.97%) which is in line with its industry peers.
CNP's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.97% | ||
| PM (TTM) | 10.42% | ||
| 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.
The number of shares outstanding for CNP has been increased compared to 1 year ago.
CNP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CNP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that CNP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.86, CNP is in line with its industry, outperforming 52.00% of the companies in the same industry.
CNP has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.91, CNP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.63
WACC6.4%
2.3 Liquidity
CNP has a Current Ratio of 0.79. This is a bad value and indicates that CNP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.79, CNP is doing worse than 64.00% of the companies in the same industry.
CNP has a Quick Ratio of 0.79. 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's Quick ratio of 0.61 is in line compared to the rest of the industry. CNP outperforms 52.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
CNP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.13%.
Measured over the past years, CNP shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.98% on average per year.
CNP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.84%.
CNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
EPS 1Y (TTM)-6.13%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%-19.44%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y1.15%
Revenue growth 5Y2.7%
Sales Q2Q%2.05%
3.2 Future
The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
Based on estimates for the next years, CNP will show a small growth in Revenue. The Revenue will grow by 5.44% on average per year.
EPS Next Y9.49%
EPS Next 2Y8.77%
EPS Next 3Y9.02%
EPS Next 5Y8.75%
Revenue Next Year1.8%
Revenue Next 2Y2.88%
Revenue Next 3Y3.5%
Revenue Next 5Y5.44%
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
CNP is valuated quite expensively with a Price/Earnings ratio of 25.81.
Compared to the rest of the industry, the Price/Earnings ratio of CNP indicates a rather expensive valuation: CNP more expensive than 88.00% of the companies listed in the same industry.
CNP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.50.
With a Price/Forward Earnings ratio of 20.60, CNP is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNP indicates a rather expensive valuation: CNP more expensive than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. CNP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 20.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNP is valued a bit more expensive than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.38 |
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)2.72
PEG (5Y)N/A
EPS Next 2Y8.77%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
CNP has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.25, CNP pays less dividend than the industry average, which is at 4.79. 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 2.44, CNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of CNP decreases each year by -10.10%.
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)-10.1%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
CNP pays out 59.29% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP59.29%
EPS Next 2Y8.77%
EPS Next 3Y9.02%
39.49
+0.3 (+0.77%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change0.03%
Ins Owners0.18%
Ins Owner Change3.47%
Market Cap25.78B
Analysts73
Price Target41.01 (3.85%)
Short Float %5.14%
Short Ratio6.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend0.81
Dividend Growth(5Y)-10.1%
DP59.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.75%
Min EPS beat(2)-5.7%
Max EPS beat(2)-1.8%
EPS beat(4)0
Avg EPS beat(4)-2.96%
Min EPS beat(4)-5.7%
Max EPS beat(4)-1.37%
EPS beat(8)3
Avg EPS beat(8)1.8%
EPS beat(12)6
Avg EPS beat(12)1.97%
EPS beat(16)9
Avg EPS beat(16)4.85%
Revenue beat(2)2
Avg Revenue beat(2)6.34%
Min Revenue beat(2)2.32%
Max Revenue beat(2)10.36%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-9.77%
Max Revenue beat(4)10.36%
Revenue beat(8)2
Avg Revenue beat(8)-4.69%
Revenue beat(12)5
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)3.52%
PT rev (1m)-0.15%
PT rev (3m)3.54%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)15.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 20.6 | ||
| P/S | 2.87 | ||
| P/FCF | N/A | ||
| P/OCF | 12.92 | ||
| P/B | 2.34 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 13.38 |
EPS(TTM)1.53
EY3.87%
EPS(NY)1.92
Fwd EY4.85%
FCF(TTM)-5.18
FCFYN/A
OCF(TTM)3.06
OCFY7.74%
SpS13.76
BVpS16.88
TBVpS10.84
PEG (NY)2.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 8.49% | ||
| ROCE | 4.88% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 4.59% | ||
| OM | 21.97% | ||
| PM (TTM) | 10.42% | ||
| 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%
ROICexcg growth 3Y3.86%
ROICexcg 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-Score3
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.2 | ||
| Cap/Depr | 378.07% | ||
| Cap/Sales | 59.9% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 58.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.86 |
F-Score3
WACC6.4%
ROIC/WACC0.63
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)-6.13%
EPS 3Y-0.41%
EPS 5Y-1.98%
EPS Q2Q%-19.44%
EPS Next Y9.49%
EPS Next 2Y8.77%
EPS Next 3Y9.02%
EPS Next 5Y8.75%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y1.15%
Revenue growth 5Y2.7%
Sales Q2Q%2.05%
Revenue Next Year1.8%
Revenue Next 2Y2.88%
Revenue Next 3Y3.5%
Revenue Next 5Y5.44%
EBIT growth 1Y2.65%
EBIT growth 3Y13.45%
EBIT growth 5Y13.19%
EBIT Next Year87.54%
EBIT Next 3Y31.11%
EBIT Next 5Y24.75%
FCF growth 1Y-128.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-39.8%
OCF growth 3Y359.83%
OCF growth 5Y5.48%