Centerpoint Energy (CNP) AI Stock Analysis

• Market Cap: $23.46B
• Dividend Yield: 2.46%
• Average Volume (3M): 5.47M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.26
• Revenue Growth: 4.76%
• EPS Growth: 4.08%
• Country: US
• Employees: 8,872
• Sector: Utilities
• Sector Strength: 66
• Industry: General Utilities
• EPS (TTM): 0.53
• Shares Outstanding: 652,728,400
• 10 Day Avg. Volume: 5,480,756
• 30 Day Avg. Volume: 5,468,178
• PEG Ratio: -4.26
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.66
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 11.01
• Enterprise Value/Ebitda: 3.22
• 1Y Price Target: $38.90
• Price Target Upside: 8.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 62 Neutral
• Price Target: $38.00 ▲(5.73%Upside)

Centerpoint Energy's overall stock score is driven by a stable financial performance with strong margins but hindered by cash flow challenges and high P/E valuation. Positive strategic developments and a favorable earnings call outlook provide some upside potential. However, technical indicators suggest caution due to bearish momentum.

Positive Factors

Capital Expenditure

Centerpoint Energy Inc is poised to detail at least $2Bn of incremental electric-transmission capex, indicating potential growth opportunities.

Regulatory Approval

A major regulatory milestone with the approval of three 765kV import paths in Texas supports Centerpoint Energy Inc's upside capex assumption, positioning the company to benefit significantly.

Negative Factors

Balance Sheet

Analyst maintains a Neutral rating on CNP given leading valuation and comparatively weak balance sheet, despite attractive organic growth.

Operational Costs

The ~$0.03 decline year-over-year is driven by higher O&M including storms, higher OpEx, drag from transition bonds rolling off, and higher drag at Parent/Other largely driven by higher debt balances as well as dilution.

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 its electric and natural gas utility operations. The company's electric transmission and distribution segment earns money by charging regulated fees for delivering electricity to customers, maintaining the grid infrastructure, and ensuring reliable service. Similarly, the natural gas distribution segment collects revenue by providing natural gas services, which include delivery, system maintenance, and customer service, to residential, commercial, and industrial customers. These segments operate under regulatory frameworks that allow the company to recover costs and earn an approved return on investment. Additionally, CenterPoint Energy may engage in strategic partnerships and investments to enhance its service offerings and operational efficiency, contributing to its overall profitability.

Centerpoint Energy Financial Statement Overview

Summary

CenterPoint Energy demonstrates a solid income statement with stable margins but faces challenges in revenue growth. The balance sheet is strong with low leverage, although asset data is incomplete for TTM. Cash flow issues persist due to high capital expenditures, impacting free cash flow negatively. Overall, the company maintains stable operations but needs to address cash flow and growth concerns.

Income Statement

Centerpoint Energy has experienced fluctuating revenues with a recent decline in the TTM period. The gross profit margin is healthy at approximately 47.34% for TTM. Net profit margin is also strong at 16.03% in TTM. However, there is a noticeable drop in revenue and net income compared to the previous year, indicating a potential concern in revenue growth. The EBIT margin and EBITDA margin are stable, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio stands at 0.17 in TTM, indicating a relatively low leverage. Return on equity is modest at 8.82% in TTM, suggesting reasonable profitability. The equity ratio is not calculable due to missing total assets in the TTM period, but historical data shows a steady equity position. Overall, the balance sheet reflects a stable financial structure with manageable debt levels.

Cash Flow

Free cash flow is negative at -$2.695 billion in TTM, marking a concern for cash flow stability. Operating cash flow to net income ratio is 2.08 in TTM, showing strong cash generation relative to net income. However, the significant capital expenditures impact cash reserves negatively. The free cash flow to net income ratio is also negative, highlighting challenges in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.94B	8.64B	8.70B	9.32B	8.35B	7.42B
Gross Profit	4.02B	3.98B	3.69B	3.40B	3.21B	2.93B
EBITDA	3.51B	3.49B	3.19B	3.23B	2.62B	2.28B
Net Income	966.00M	1.02B	917.00M	1.06B	668.00M	-591.00M
Balance Sheet
Total Assets	44.49B	43.77B	39.72B	38.55B	37.68B	33.47B
Cash, Cash Equivalents and Short-Term Investments	1.89B	585.00M	631.00M	584.00M	1.67B	147.00M
Total Debt	22.19B	20.96B	18.62B	16.86B	16.10B	13.44B
Total Liabilities	33.53B	33.10B	30.05B	28.50B	28.26B	25.12B
Stockholders Equity	10.96B	10.67B	9.67B	10.04B	9.41B	8.35B
Cash Flow
Free Cash Flow	-2.69B	-2.37B	-524.00M	-2.61B	-3.14B	-601.00M
Operating Cash Flow	2.01B	2.14B	3.88B	1.81B	22.00M	2.00B
Investing Cash Flow	-3.88B	-4.49B	-4.23B	-1.63B	-1.85B	-1.26B
Financing Cash Flow	2.95B	2.27B	374.00M	-345.00M	1.92B	-834.00M

Centerpoint Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNP, the sentiment is Negative. The current price of 35.94 is below the 20-day moving average (MA) of 36.25, below the 50-day MA of 37.06, and above the 200-day MA of 33.19, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 40.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNP.

Centerpoint Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	73 Outperform	$24.99B	25.24	7.00%	3.25%	5.62%	30.02%
FE	72 Outperform	$22.95B	21.15	8.69%	4.48%	7.92%	1.54%
CMS	71 Outperform	$20.85B	20.62	12.53%	3.11%	5.87%	3.59%
ES	71 Outperform	$23.71B	27.87	5.63%	4.67%	10.82%	―
EIX	67 Neutral	$20.22B	7.46	17.93%	6.30%	5.36%	209.92%
CNP	62 Neutral	$23.46B	24.16	9.22%	2.46%	4.76%	4.08%
Sector *	61 Neutral	C$4.82B	-11.45	-12.21%	4.50%	11.13%	-68.91%

Centerpoint Energy Corporate Events

Centerpoint Energy Invests in Renewable Energy Projects

Centerpoint Energy announced a strategic initiative to enhance its infrastructure by investing in renewable energy projects. This move is expected to bolster the company’s commitment to sustainability and improve its competitive position in the energy market.

The most recent analyst rating on (CNP) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

CenterPoint Energy Finalizes Major Stock Sale Agreement

On May 27, 2025, CenterPoint Energy entered into an Underwriting Agreement with BofA Securities, Mizuho Securities, and J.P. Morgan Securities, involving the sale of 21,621,622 shares of its common stock, with an option for an additional 3,243,243 shares, which was exercised on May 28, 2025. The agreements, including forward sale agreements with forward purchasers, allow for settlement by February 2027 and involve potential impacts on the company’s earnings per share and market price, depending on how the forward sale agreements are settled.

The most recent analyst rating on (CNP) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

CenterPoint Energy Enters Forward Sale Agreements

On May 27, 2025, CenterPoint Energy entered into forward sale agreements with Bank of America, Mizuho Markets Americas, and JPMorgan Chase, involving 21,621,622 shares of its common stock. This strategic move, which includes an underwriting agreement with major financial institutions, is aimed at enhancing liquidity and potentially impacting the company’s earnings per share due to potential dilution. The agreements allow for flexible settlement options, including physical, net share, or cash settlement, and could influence the market price of the company’s stock depending on future stock valuations.

The most recent analyst rating on (CNP) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

CenterPoint Energy Reports Q1 2025 Earnings and Growth Plans

CenterPoint Energy announced its first quarter 2025 earnings, reporting a net income of $297 million, or $0.45 per diluted share on a GAAP basis, and $0.53 per share on a non-GAAP basis. Despite a slight decrease from the previous year due to the sale of its Louisiana and Mississippi gas distribution businesses, the company reiterated its full-year guidance and increased its 10-year capital investment plan by $1 billion to $48.5 billion. The company highlighted significant growth in electric load demand in Houston, supporting its forecast for a 50% load growth by 2031. CenterPoint is committed to expanding its electric infrastructure under the Greater Houston Resiliency Initiative, aiming to build a resilient coastal grid and maintain its financial performance for the benefit of stakeholders.