Centerpoint Energy (CNP) AI Stock Analysis

• Market Cap: $24.68B
• Dividend Yield: 2.33%
• Average Volume (3M): 4.66M
• Price to Earnings (P/E): 24.0
• 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): 0.50
• Shares Outstanding: 652,868,300
• 10 Day Avg. Volume: 5,584,804
• 30 Day Avg. Volume: 4,661,623
• PEG Ratio: 1.31
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 2.36
• P/FCF Ratio: -8.60
• Enterprise Value/Market Cap: 1.95
• Enterprise Value/Revenue: 5.31
• Enterprise Value/Gross Profit: 11.85
• Enterprise Value/Ebitda: 13.60
• 1Y Price Target: $41.82
• Price Target Upside: 10.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.76
• Revenue Forecast (FY): $9.12B

• Rating: 63 Neutral
• Price Target: $41.00 ▲(7.98% Upside)

CenterPoint Energy's strong earnings growth and ambitious investment plans are significant positives. However, liquidity challenges and bearish technical indicators weigh on the overall score.

Positive Factors

Capital Investment Plan

The ambitious 10-year capital investment plan supports economic development and enhances infrastructure, driving long-term growth.

EPS Growth

Strong EPS growth indicates robust financial performance and effective management, enhancing investor confidence and future profitability.

Ohio Gas LDC Sale

The sale of the Ohio gas LDC provides significant capital for reinvestment, supporting strategic growth and operational focus.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, which could hinder the company's ability to finance operations and investments.

Higher Interest Expenses

Increased interest expenses can reduce profitability and cash flow, impacting financial flexibility and long-term growth potential.

Operational Challenges in Indiana

Operational challenges in Indiana, including project cancellations, may affect growth prospects and strategic execution in that region.

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

CenterPoint Energy demonstrates stable revenue growth and profitability with a strong equity position. However, challenges with negative free cash flow and potential liquidity issues need addressing.

Income Statement

Centerpoint Energy's income statement shows a stable financial performance with a consistent increase in revenue, as evidenced by a 1.17% revenue growth rate in the TTM period. The company maintains healthy profitability margins, with a gross profit margin of 44.94% and a net profit margin of 11.37% in the TTM. However, the slight decline in gross profit margin from the previous year indicates potential cost pressures.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.26 in the TTM, significantly improved from the previous year. The return on equity remains stable at around 9.49%, indicating efficient use of equity. However, the high total debt level in previous years poses a potential risk if not managed carefully.

Cash Flow

The cash flow statement reveals challenges with negative free cash flow in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio of 0.45 suggests moderate cash generation relative to net income. The negative free cash flow growth rate highlights the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.09B	8.64B	8.70B	9.32B	8.35B	7.42B
Gross Profit	4.07B	3.98B	3.69B	3.40B	3.21B	2.93B
EBITDA	3.54B	3.49B	3.19B	3.23B	2.62B	2.28B
Net Income	995.00M	1.02B	917.00M	1.06B	1.49B	-773.00M
Balance Sheet
Total Assets	45.05B	43.77B	39.72B	38.55B	37.68B	33.47B
Cash, Cash Equivalents and Short-Term Investments	646.00M	585.00M	631.00M	584.00M	1.67B	1.02B
Total Debt	22.94B	20.96B	18.62B	16.86B	16.10B	13.44B
Total Liabilities	34.01B	33.10B	30.05B	28.50B	28.26B	25.12B
Stockholders Equity	11.04B	10.67B	9.67B	10.04B	9.41B	8.35B
Cash Flow
Free Cash Flow	-2.80B	-2.37B	-524.00M	-2.61B	-3.14B	-601.00M
Operating Cash Flow	2.60B	2.14B	3.88B	1.81B	22.00M	2.00B
Investing Cash Flow	-4.53B	-4.49B	-4.23B	-1.63B	-1.85B	-1.26B
Financing Cash Flow	1.85B	2.27B	374.00M	-345.00M	1.92B	-834.00M

Centerpoint Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 37.97 is below the 20-day moving average (MA) of 38.44, below the 50-day MA of 38.93, and above the 200-day MA of 37.38, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 47.67 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
AEE	72 Outperform	$26.90B	19.11	11.47%	2.86%	22.71%	22.86%
CMS	67 Neutral	$21.23B	20.21	12.34%	3.10%	10.96%	-0.77%
FE	67 Neutral	$25.66B	19.39	10.54%	3.94%	7.64%	48.61%
ES	66 Neutral	$24.78B	18.24	8.65%	4.56%	13.12%	―
PPL	66 Neutral	$25.37B	23.33	7.65%	3.13%	8.42%	32.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CNP	63 Neutral	$24.68B	23.97	9.61%	2.33%	6.43%	5.07%

Centerpoint Energy Corporate Events

CenterPoint Energy Reports Strong Q3 2025 Results

On October 23, 2025, CenterPoint Energy reported strong third-quarter results with a net income of $293 million, or $0.45 per diluted share on a GAAP basis, and $0.50 on a non-GAAP basis, marking a significant increase from the previous year. The growth was driven by regulatory recovery and reduced operational costs, with industrial demand in Houston Electric showing a notable increase. The company reiterated its non-GAAP EPS guidance for 2025 and 2026, indicating continued growth expectations. CenterPoint’s strategic focus on infrastructure investments and resilience initiatives in the Greater Houston area is expected to bolster its market position and stakeholder value.

CenterPoint Energy Sells Ohio Gas Business for $2.62B

On October 20, 2025, CenterPoint Energy announced the sale of its Ohio natural gas business, Vectren Energy Delivery of Ohio, to National Fuel Gas Company for $2.62 billion. The transaction, expected to close in the fourth quarter of 2026, will allow CenterPoint to focus on its core electric and natural gas operations across multiple states, supporting its $65 billion capital plan and enhancing its earnings growth strategy. The deal includes a $1.42 billion cash payment and a $1.2 billion seller promissory note, with proceeds aimed at general corporate purposes and capital investment optimization.

CenterPoint Energy Appoints Jason P. Wells as Board Chair

On October 8, 2025, CenterPoint Energy’s Board of Directors, following the Corporate Governance and Nominating Committee’s recommendation, appointed Jason P. Wells as Chair of the Board, leveraging his extensive utility industry experience and stakeholder relationships to guide the company’s long-term strategy, including a new 10-year $65 billion capital plan. Additionally, Christopher H. Franklin was appointed as the Lead Director due to his leadership experience and communication skills, enhancing the Board’s governance structure and strategic oversight.

CenterPoint Energy Announces $700M Notes Offering

On September 30, 2025, CenterPoint Energy, Inc. entered into an Underwriting Agreement with several financial institutions for a public offering of $700 million in 5.950% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, Series D, due 2056. This strategic financial move allows CenterPoint Energy to raise substantial capital, potentially impacting its financial flexibility and market position, while also affecting stakeholders through the terms of the Notes, which include interest deferral options and subordination to senior indebtedness.

CenterPoint Energy Unveils $65 Billion Investment Plan

On September 29, 2025, CenterPoint Energy announced a significant 10-year capital investment plan worth $65 billion, aimed at enhancing customer experience and supporting economic growth, particularly in Texas. The company also raised its non-GAAP EPS guidance for 2025 and introduced guidance for 2026, reflecting its commitment to delivering consistent value to stakeholders and addressing the anticipated increase in electric demand over the next decade.