Centerpoint Energy (CNP) AI Stock Analysis

• Market Cap: $28.40B
• Dividend Yield: 2.33%
• Average Volume (3M): 5.98M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.16
• Revenue Growth: 6.43%
• EPS Growth: 5.07%
• Country: US
• Employees: 8,872
• Sector: Utilities
• Sector Strength: 65
• Industry: General Utilities
• EPS (TTM): 0.45
• Shares Outstanding: 652,871,600
• 10 Day Avg. Volume: 7,232,021
• 30 Day Avg. Volume: 5,983,975
• PEG Ratio: 12.53
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 2.68
• P/FCF Ratio: -10.50
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 5.56
• Enterprise Value/Gross Profit: 19.36
• Enterprise Value/Ebitda: 14.22
• 1Y Price Target: $43.10
• Price Target Upside: -0.92% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.91
• Revenue Forecast (FY): $9.81B

• Rating: 64 Neutral
• Price Target: $46.00 ▲(5.75% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by a strong, positive forward outlook from the latest earnings call (reaffirmed EPS growth guidance, accelerated Houston load growth, and improved funding/tax profile), supported by constructive price trends. Offsetting this are structurally negative free cash flow and elevated leverage that increase reliance on external financing, while valuation is only moderately attractive for a utility.

Positive Factors

Large Regulated CapEx & Rate‑Base Growth

A >$65 billion ten‑year investment program with anticipated >11% rate‑base growth and ~85% recoverability via trackers provides durable earnings visibility. Regulated recoveries and expanding rate base convert infrastructure spending into predictable returns and sustained EPS growth over the medium term.

Accelerated Houston Load Growth

A structural 10 GW increase in peak load by 2029 with multi‑GW committed/under construction materially raises long‑term distribution demand. Higher utilization strengthens unit economics, supports faster rate‑base deployment, and deepens customer relationships across industrial and tech segments.

Improved Cash Tax & Financing Catalysts

A favorable AMT ruling that could reduce cash tax materially through 2035, combined with targeted securitizations and expected Ohio sale proceeds, strengthens cash flow and credit metrics. This durable improvement lowers funding costs and expands capacity to finance customer‑driven capex without near‑term equity.

Negative Factors

Persistent Negative Free Cash Flow

Free cash flow has been negative across most recent years while leverage sits around ~2.0x equity, implying continued reliance on external financing. Ongoing negative FCF amid heavy capex increases refinancing risk and constrains internal funding for dividends or incremental investments absent market access.

Pressure on Credit Metrics & Higher Interest Costs

Adjusted FFO-to-debt near 13.8% (below target) and prior incremental debt issuance driving higher interest expense erode rating cushions. Prolonged pressure on these metrics raises the cost of capital and could limit the company’s flexibility to fund the sizeable investment program without further mitigation.

Reliance on Market Financing & Dilution Risk

Use of convertible securities and repeated capital transactions highlights dependence on capital markets. While lower‑cost, convertibles create potential shareholder dilution and tie funding stability to market conditions, complicating long‑term capital structure management if equity conversion or refinancings occur.

Centerpoint Energy Business Overview & Revenue Model

Company Description

CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company operates through Electric and Natural Gas segments. The Electric segment includes electric transmission and distribution services to electric customers and electric generation assets, as well as assets in the wholesale power market. The Natural Gas segment provides natural gas distribution services, as well as home appliance maintenance and repair services to customers in Minnesota; and home repair protection plans to natural gas customers in Arkansas, Indiana, Mississippi, Ohio, Oklahoma, and Texas and Louisiana through a third party. This segment also engages in the sale of regulated intrastate natural gas, and transportation and storage of natural gas for residential, commercial, industrial, and transportation customers. As of December 31, 2021, it served approximately 2.7 million metered customers; owned 239 substation sites with a total installed rated transformer capacity of 71,241 megavolt amperes; operated approximately 1,00,000 linear miles of natural gas distribution and transmission mains; and owned and operated 285 miles of intrastate pipeline in Louisiana, Texas, and Oklahoma. The company was founded in 1866 and is headquartered in Houston, Texas.

How the Company Makes Money

CenterPoint Energy generates revenue primarily through the sale of electricity and natural gas. The company's Electric Transmission & Distribution segment earns money by delivering electricity to residential, commercial, and industrial customers, with revenue derived from regulated rates set by state utility commissions. The Natural Gas Distribution segment similarly earns revenue through the sale and distribution of natural gas, following a regulated pricing model. Additionally, the Energy Services segment provides energy efficiency services and solutions, contributing to revenues through consulting and project implementation fees. CenterPoint also benefits from partnerships with local governments and regulatory bodies, which can lead to opportunities for infrastructure investments and enhancements, further supporting its revenue streams.

Centerpoint Energy Financial Statement Overview

Summary

Stable utility profitability and consistent positive net income are tempered by elevated leverage (~2.0x debt/equity) and persistently negative free cash flow, implying ongoing external funding needs. Data gaps in TTM figures reduce confidence in the most recent trend read-through.

Income Statement

Profitability looks steady for a regulated utility, with net margins generally in the low-teens and EBIT/EBITDA margins holding up across 2022–2024. Net income improved versus the 2020 loss and has remained consistently positive since. The main weakness is growth: revenue has been essentially flat to down in recent years (negative in 2023–2024), and the TTM (Trailing-Twelve-Months) revenue data appears inconsistent (reported as zero), which limits confidence in the latest trend read-through.

Balance Sheet

Leverage is elevated, with debt running at roughly ~2.0x equity in 2022–2024 and trending slightly higher into TTM (Trailing-Twelve-Months) based on the provided ratio. Returns on equity are fairly consistent around ~9–10% in recent years, which supports the stability profile, but the higher leverage level raises financing and rate-sensitivity risk. The TTM (Trailing-Twelve-Months) balance sheet also includes apparent data gaps (e.g., total assets reported as zero), which reduces transparency on the most recent snapshot.

Cash Flow

Operating cash flow is generally positive and sizable, but free cash flow is persistently negative in most years, including 2022–2024 and TTM (Trailing-Twelve-Months), pointing to heavy capital spending needs. Cash generation versus accounting earnings is mixed, with recent periods showing negative free cash flow relative to net income and sub-1.0 operating cash flow coverage in multiple years. While 2023 showed a smaller free cash outflow than other years, the overall pattern suggests ongoing external funding dependence (debt/equity issuance) to support investment and dividends.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.36B	8.64B	8.70B	9.32B	8.35B
Gross Profit	2.69B	3.98B	3.69B	3.40B	3.21B
EBITDA	3.68B	3.49B	3.19B	3.23B	2.62B
Net Income	1.05B	1.02B	917.00M	1.06B	1.49B
Balance Sheet
Total Assets	48.25B	43.77B	39.72B	38.55B	37.68B
Cash, Cash Equivalents and Short-Term Investments	559.00M	585.00M	631.00M	584.00M	1.67B
Total Debt	23.66B	20.96B	18.62B	16.86B	16.10B
Total Liabilities	37.09B	33.10B	30.05B	28.50B	28.26B
Stockholders Equity	11.15B	10.67B	9.67B	10.04B	9.41B
Cash Flow
Free Cash Flow	-2.38B	-2.37B	-524.00M	-2.61B	-3.14B
Operating Cash Flow	2.49B	2.14B	3.88B	1.81B	22.00M
Investing Cash Flow	-4.02B	-4.49B	-4.23B	-1.63B	-1.85B
Financing Cash Flow	1.55B	2.27B	374.00M	-345.00M	1.92B

Centerpoint Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 43.5 is above the 20-day moving average (MA) of 41.60, above the 50-day MA of 39.80, and above the 200-day MA of 38.26, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 72.88 is Negative, neither overbought nor oversold. The STOCH value of 83.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNP.

Centerpoint Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEE	68 Neutral	$31.31B	21.18	11.41%	2.86%	22.71%	22.86%
PPL	67 Neutral	$29.29B	24.58	8.15%	3.13%	8.42%	32.48%
CMS	66 Neutral	$23.92B	22.15	12.33%	3.10%	10.96%	-0.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CNP	64 Neutral	$28.40B	27.11	9.64%	2.33%	6.43%	5.07%
FE	64 Neutral	$29.57B	28.99	8.17%	3.94%	7.64%	48.61%
ES	63 Neutral	$28.62B	16.70	10.84%	4.54%	13.12%	―

Centerpoint Energy Corporate Events

CenterPoint Energy Raises $650 Million via Convertible Notes

On February 26, 2026, CenterPoint Energy, Inc. completed a private sale of $650 million aggregate principal amount of 2.875% Convertible Senior Notes due 2029 to qualified institutional buyers, generating net proceeds of approximately $641.5 million. The notes, issued under an indenture with The Bank of New York Mellon Trust Company as trustee, bear semiannual interest, mature on May 15, 2029, and cannot be redeemed early, while offering holders conditional conversion rights and standard protections in events of default or fundamental corporate changes.

The securities are senior unsecured obligations ranking pari passu with CenterPoint’s existing convertible notes and structurally junior to subsidiary liabilities, with an initial conversion rate equivalent to a price of about $53.61 per share, a 25% premium to the February 23, 2026 NYSE closing price. The structure gives CenterPoint relatively low-cost, flexible financing while potentially diluting common shareholders if the stock trades above the conversion price, and provides institutional investors with downside credit protection and upside equity participation tied to the company’s future performance.

The most recent analyst rating on (CNP) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

CenterPoint Energy Posts Strong Q4 Results, Lifts Investment Plan

On February 19, 2026, CenterPoint Energy reported fourth-quarter 2025 net income of $264 million, or $0.40 per diluted share on a GAAP basis, up from $0.38 a year earlier, with non-GAAP EPS rising to $0.45 from $0.40. For full-year 2025, non-GAAP EPS reached $1.76, a 9% increase over 2024, marking the fourth time in five years the company has delivered industry-leading 9% non-GAAP EPS growth.

The utility reiterated its 2026 non-GAAP EPS guidance at a midpoint of $1.90, implying roughly 8% earnings growth over 2025, and increased its 2026–2035 capital investment plan by $500 million to $65.5 billion, largely for electric transmission. Management also accelerated its outlook for a 50% increase in peak electric load in Greater Houston to 2029, two years earlier than previously forecast, highlighting faster, more cost-effective connections for industrial, life sciences and technology customers and improved reliability, including over 100 million fewer outage minutes in 2025.

CenterPoint attributed its robust quarterly performance primarily to growth and regulatory recovery, with favorable weather and usage also contributing, partly offset by higher operating and interest expenses. The company emphasized that its large, long-term investment program and “speed to power” are helping attract jobs and diverse capital to the Greater Houston area while targeting flat bill impacts for Texas residential customers, reinforcing its competitive position among U.S. regulated utilities.

The most recent analyst rating on (CNP) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.