Education
About Us
Working with TipRanks
Follow Us
Centerpoint Energy (CNP)
NYSE:CNP
Top Page
Centerpoint Energy
(NYSE:CNP)66Neutral
Positive Factors
Growth Opportunities
Further upside growth opportunities exist from an additional $3B of incremental capital not in its plan.
Regulatory Developments
The long-awaited settlement in the Houston Electric rate case is viewed as a positive development.
Negative Factors
Earnings Quality
Analyst views the earnings from TEEEF assets as lower-quality earnings.
Centerpoint Energy (CNP) vs. S&P 500 (SPY)
Market Cap
$21.77B
Dividend Yield2.42%
Average Volume (3M)4.44M
Price to Earnings (P/E)21.1
Beta (1Y)0.42
Revenue Growth-0.61%
EPS Growth15.54%
CountryUS
Employees8,872
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)1.58
Shares Outstanding651,729,060
10 Day Avg. Volume4,837,016
30 Day Avg. Volume4,435,615
Financial Highlights & Ratios
PEG Ratio1.36
Price to Book (P/B)N/A
Price to Sales (P/S)2.52
Price to Cash Flow (P/CF)6.10
P/FCF Ratio6.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.75Price Target Upside-1.49% Downside
Rating ConsensusHold
Number of Analyst Covering11
Centerpoint Energy Business Overview & Revenue Model
Company DescriptionCenterPoint Energy, Inc. (CNP) is a public utility holding company headquartered in Houston, Texas. It operates in the utilities sector, primarily focusing on electricity and natural gas distribution. CenterPoint Energy provides electric transmission and distribution services, as well as natural gas distribution services across several U.S. states, including Texas, Indiana, Ohio, and Minnesota. The company is committed to delivering reliable energy services to residential, commercial, and industrial customers while prioritizing safety, innovation, and sustainability in its operations.
How the Company Makes MoneyCenterPoint Energy makes money through its electric and natural gas utility operations. The company earns revenue by charging customers for the distribution of electricity and natural gas, which includes fixed service fees and variable charges based on usage. As a regulated utility, its rates are determined and approved by state regulatory commissions, ensuring a stable revenue stream. Additionally, CenterPoint Energy may generate income from infrastructure investments and energy-related services, such as construction and maintenance of utility infrastructure. Key partnerships with local governments and regulatory bodies, alongside strategic investments in grid modernization and renewable energy initiatives, also contribute to its earnings by enhancing operational efficiency and expanding service offerings.
Centerpoint Energy Financial Statement Overview
Summary
CenterPoint Energy's financial performance shows resilience with strong EBIT margins but faces challenges with inconsistent revenue growth and negative free cash flow. The balance sheet is stable with moderate leverage, but increased liabilities and high capital expenditures need careful management.Income Statement
The income statement shows a mixed performance. While the company has maintained a strong EBIT margin, the net profit margin has been volatile, with a recent strong recovery from negative profits in 2020. Revenue growth has been inconsistent, showing fluctuations over the years. The gross profit margin is notably missing for the latest period, which impacts the clarity of profitability analysis.55
Neutral
Balance Sheet
The balance sheet reflects a relatively stable financial structure. The debt-to-equity ratio indicates moderate leverage, typical for a regulated utility company. Stockholders' equity has been growing, which is a positive sign. However, the equity ratio is not available for the most recent period, limiting a full analysis. The company's liabilities have increased, which could pose risks if not managed carefully.60
Neutral
Cash Flow
Cash flows reveal some concerns, particularly with negative free cash flow over multiple years due to high capital expenditures. The operating cash flow to net income ratio suggests solid cash generation relative to profits, but the negative free cash flow to net income ratio highlights ongoing cash usage for investments, which could affect liquidity if not balanced with financing activities.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 8.70B | 9.32B | 8.35B | 7.42B | Gross Profit |
| -3.00M | 3.69B | 3.40B | 3.21B | 2.93B | EBIT |
| 1.99B | 1.76B | 1.57B | 1.36B | -168.00M | EBITDA |
| 3.49B | 3.19B | 3.23B | 2.62B | 2.28B | Net Income Common Stockholders |
| 1.02B | 917.00M | 1.06B | 668.00M | -591.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 585.00M | 631.00M | 584.00M | 1.67B | 147.00M | Total Assets |
| 43.77B | 39.72B | 38.55B | 37.68B | 33.47B | Total Debt |
| 564.00M | 18.62B | 16.86B | 16.10B | 13.44B | Net Debt |
| 564.00M | 18.53B | 16.78B | 15.87B | 13.29B | Total Liabilities |
| 33.10B | 30.05B | 28.50B | 28.26B | 25.12B | Stockholders Equity |
| 10.67B | 9.67B | 10.04B | 9.41B | 8.35B |
| Cash Flow | Free Cash Flow | |||
| -2.37B | -524.00M | -2.61B | -3.14B | -601.00M | Operating Cash Flow |
| 2.14B | 3.88B | 1.81B | 22.00M | 2.00B | Investing Cash Flow |
| -4.49B | -4.23B | -1.63B | -1.85B | -1.26B | Financing Cash Flow |
| 2.27B | 374.00M | -345.00M | 1.92B | -834.00M |
Centerpoint Energy Technical Analysis
Positive
34.26
Price Trends
32.56
Positive
31.52
Positive
29.92
Positive
Market Momentum
0.45
Positive
59.99
Neutral
34.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNP, the sentiment is Positive. The current price of 34.26 is above the 20-day moving average (MA) of 33.56, above the 50-day MA of 32.56, and above the 200-day MA of 29.92, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNP.
Centerpoint Energy Risk Analysis
Centerpoint Energy disclosed 15 risk factors in its most recent earnings report. Centerpoint Energy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Centerpoint Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $90.64B | 20.54 | 9.10% | 3.56% | 4.46% | 54.09% | |
77 Outperform | $100.25B | 22.89 | 13.61% | 3.15% | 5.83% | 10.23% | |
73 Outperform | $55.78B | 18.74 | 11.37% | 3.46% | 2.76% | 31.53% | |
71 Outperform | $47.05B | 22.65 | 7.91% | 4.83% | -10.79% | 18.04% | |
69 Neutral | $38.87B | 19.68 | 10.43% | 3.24% | -5.25% | 7.11% | |
66 Neutral | $21.77B | 21.11 | 10.02% | 2.42% | -0.61% | 15.54% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
CNP
Centerpoint Energy
34.26
6.52
23.50%
AEP
American Electric Power
104.62
24.00
29.77%
D
Dominion Energy
55.22
9.80
21.58%
DUK
Duke Energy
116.74
24.47
26.52%
SO
Southern Co
91.40
23.96
35.53%
XEL
Xcel Energy
68.00
17.05
33.46%
Centerpoint Energy Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 1.15% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
CenterPoint Energy demonstrated robust financial performance and strategic growth initiatives, including significant investments in system resiliency and strong regulatory outcomes. However, challenges remain with increased operational costs and uncertainties around mobile generation deployment.Highlights
Strong Financial Performance
CenterPoint reported non-GAAP EPS growth of 8% over 2023, with $1.62 per share for the full year 2024. This marks the fourth consecutive year of meeting or exceeding annual non-GAAP EPS guidance.
Reaffirmed Growth Guidance
CenterPoint reaffirmed its 2025 non-GAAP EPS guidance range of $1.74 to $1.76, representing 8% growth at the midpoint from 2024's non-GAAP EPS of $1.62.
Significant Investment in System Resiliency
Announced a $5.75 billion system resiliency plan for Houston Electric from 2026 through 2028, aiming to improve system resiliency with $5.5 billion related to capital expenditures.
Regulatory and Rate Case Success
Reached settlements in the Houston Electric and Minnesota Gas rate cases, with final orders received in two out of five recent rate cases, representing over 80% of the enterprise rate base.
Temporary Generation Transaction
CenterPoint proposed a transaction with ERCOT to transfer temporary generation units for up to two years, providing peak reliability in San Antonio and expecting higher market rates post-transfer.
Houston Area Load Growth
Forecasted a 50% increase in peak demand from 21 GW to nearly 31 GW by 2031 in the Greater Houston area, driven by diverse economic activities including logistics, medical, and energy sectors.
Lowlights
Increased Vegetation Management Costs
Transitioning from a five-year to a three-year vegetation management cycle, leading to near-term O&M level reset.
Uncertain Resolution on Mobile Generation
Ongoing discussions with ERCOT and stakeholders regarding the temporary generation units, with potential impacts on customer costs and company revenues.
High Capital Expenditure Needs
Increased capital investment target to $47.5 billion through 2030, requiring efficient funding and potential equity needs despite current balance sheet challenges.
Company Guidance
During CenterPoint Energy's earnings call, the company provided guidance based on non-GAAP EPS, reporting $0.40 for the fourth quarter and $1.62 for the full year 2024. This represents an 8% growth over 2023's results. The company reaffirmed its 2025 non-GAAP EPS guidance range of $1.74 to $1.76, which equates to an 8% growth at the midpoint from the 2024 results. CenterPoint also highlighted its long-term growth expectations, projecting annual non-GAAP EPS growth at the mid- to high end of a 6% to 8% range through 2030. The company plans to align dividend growth with earnings growth over the same period. Additionally, CenterPoint outlined a $5.5 billion capital investment plan to improve system resiliency from 2026 through 2028, expecting to save customers more than one billion outage minutes in extreme weather events and reduce storm-related costs by an estimated $50 million per year starting in 2029.Centerpoint Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
CenterPoint Energy Reports Strong Q4 2024 Earnings Growth
Positive
Feb 20, 2025
CenterPoint Energy reported its fourth quarter and full-year 2024 financial results, showing a 25% increase in non-GAAP earnings per share for Q4 compared to 2023. The company plans to increase its capital investment to $47.5 billion by 2030 to enhance grid resilience in the Houston region and anticipates a nearly 50% rise in electric load demand by 2031, which supports its growth strategy and positioning in the utility industry.
Executive/Board ChangesBusiness Operations and Strategy
CenterPoint Energy Appoints Dean Seavers to Board
Neutral
Dec 16, 2024
CenterPoint Energy announced the appointment of Dean Seavers as a new member of its Board of Directors, effective December 31, 2024, filling a vacancy created by a previous resignation. Seavers, who has extensive experience in the utility, safety, and security industries, is expected to contribute significantly to the company’s long-term growth strategy, governance, and operational performance. He will serve on the Board’s Governance, Environmental and Sustainability Committee, and Safety and Operations Committee. Additionally, Lynne Harkel-Rumford, the company’s Executive Vice President and Chief Human Resources Officer, has announced her retirement effective February 3, 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.