Centerpoint Energy Inc (CNP)
NYSE:CNP
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Centerpoint Energy
(NYSE:CNP)
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Rating:64Neutral
Price Target:
$46.00
▲(6.02% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Centerpoint Energy (CNP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.33B
Dividend Yield2.33%
Average Volume (3M)4.24M
Price to Earnings (P/E)23.8
Beta (1Y)0.18
Revenue Growth6.43%
EPS Growth5.07%
CountryUS
Employees8,872
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.45
Shares Outstanding652,871,600
10 Day Avg. Volume3,294,679
30 Day Avg. Volume4,237,787
Financial Highlights & Ratios
PEG Ratio12.53
Price to Book (P/B)2.24
Price to Sales (P/S)2.68
P/FCF Ratio-10.50
Enterprise Value/Market Cap1.82
Enterprise Value/Revenue5.51
Enterprise Value/Gross Profit19.18
Enterprise Value/Ebitda14.08
Forecast
1Y Price Target
$44.78Price Target Upside3.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.91
Revenue Forecast (FY)$9.87B
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 c...
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, ...
Centerpoint Energy Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business units, highlighting which segments are driving growth and which may need strategic adjustments.
Breaks down revenue across different business units, highlighting which segments are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyCenterpoint Energy Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook driven by strong 2025 execution (9% EPS growth), accelerated and sizable load growth in Houston (50% peak increase, +10 GW), reaffirmed and increased capital plans (>$65B ten-year plan with $500M incremental for a 765 kV line), favorable financing actions (priced $1.2B securitization, expected $800M Ohio proceeds) and materially improved cash tax outlook (near-zero AMT cash tax through 2035 with a 60–70 bps credit benefit). Near-term headwinds include modestly higher O&M from accelerated resiliency work, increased interest expense from incremental debt, and adjusted FFO-to-debt metrics that were slightly below target, but management provided concrete actions and catalysts to restore credit metrics. Overall, the positives (earnings growth, load acceleration, funding and tax improvements, strong capital execution, and reliability gains) materially outweigh the manageable near-term challenges.Positive Updates
Strong Earnings and Growth
Reported 2025 non-GAAP EPS of $1.76 and Q4 non-GAAP EPS of $0.45; GAAP EPS of $1.60 for the full year and $0.40 for Q4. Delivered 9% non-GAAP EPS growth in 2025 versus 2024 and 9% dividend per share growth for the year.
Negative Updates
Near-Term O&M and Accelerated Work
O&M was $0.02 unfavorable in Q4 as certain reliability and resiliency work was accelerated (some 2026 work pulled into 2025), increasing near-term operating spend.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Earnings and Growth
Reported 2025 non-GAAP EPS of $1.76 and Q4 non-GAAP EPS of $0.45; GAAP EPS of $1.60 for the full year and $0.40 for Q4. Delivered 9% non-GAAP EPS growth in 2025 versus 2024 and 9% dividend per share growth for the year.
Read all positive updates
Company Guidance
Management reaffirmed 2026 consolidated non‑GAAP EPS guidance of $1.89–$1.91 (midpoint ~+8% vs. 2025 delivered non‑GAAP EPS of $1.76) after reporting 2025 GAAP EPS $1.60 (Q4 GAAP $0.40) and non‑GAAP EPS $1.76 (Q4 non‑GAAP $0.45), reflecting 9% EPS growth and 9% dividend growth year‑over‑year; they invested $5.4B in 2025 (above the $5.3B plan), reaffirm a 2026 CapEx plan of $6.8B, and increased their ten‑year plan to >$65B (adding $500M for a third 765 kV import line) with >$10B of additional upside, expecting >11% rate‑base growth through 2030 and ~85% of capital recoverable via trackers; Houston peak load is now forecast to rise 50% (+10 GW) by 2029 (2.5 GW under construction, 5 GW firmly committed to be energized by 2028, plus ~3 GW ordinary growth) — energizing 5 GW could reduce average residential delivery charges by >2% on the 2025 bill — and long‑term non‑GAAP EPS is targeted to grow at the mid‑to‑high end of 7%–9% through 2028 and 7%–9% annually through 2035; balance‑sheet actions include pricing ~$1.2B of securitization bonds, planned extinguishment of a $500M term loan, expected ~$800M net proceeds from the Ohio sale, an adjusted FFO/debt of ~13.8% at year end (projected toward ~15% with AMT changes), and a Treasury guidance‑driven reduction of an estimated ~$150M annual AMT cash tax to near zero through 2035 (improving credit metrics by ~60–70 bps and potentially enabling an incremental $1B of customer‑driven CapEx without new equity).Centerpoint Energy Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
41
Neutral
| 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
Positive
43.39
Price Trends
42.49
Positive
40.60
Positive
39.25
Positive
Market Momentum
0.32
Negative
54.50
Neutral
69.77
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 43.39 is above the 20-day moving average (MA) of 43.11, above the 50-day MA of 42.49, and above the 200-day MA of 39.25, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 54.50 is Neutral, neither overbought nor oversold. The STOCH value of 69.77 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 14 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $31.36B | 18.55 | 11.48% | 2.86% | 22.71% | 22.86% | |
67 Neutral | $29.79B | 21.95 | 8.16% | 3.13% | 8.42% | 32.48% | |
66 Neutral | $24.45B | 19.63 | 12.33% | 3.10% | 10.96% | -0.77% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $28.33B | 23.80 | 9.53% | 2.33% | 6.43% | 5.07% | |
64 Neutral | $29.72B | 25.33 | 8.04% | 3.94% | 7.64% | 48.61% | |
56 Neutral | $26.27B | 14.75 | 10.71% | 4.54% | 13.12% | ― |
* Utilities Sector Average
CNP
Centerpoint Energy
43.39
6.80
18.58%
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113.45
17.22
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51.43
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ES
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69.97
14.08
25.19%
PPL
PPL
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5.29
15.40%
Centerpoint Energy Corporate Events
Private Placements and Financing
CenterPoint Energy Raises $650 Million via Convertible Notes
Positive
Feb 26, 2026
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 milli...
Business Operations and StrategyFinancial Disclosures
CenterPoint Energy Posts Strong Q4 Results, Lifts Investment Plan
Positive
Feb 19, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.