Centerpoint Energy (CNP) AI Stock Analysis

• Market Cap: $26.13B
• Dividend Yield: 2.17%
• Average Volume (3M): 5.31M
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.21
• Revenue Growth: 4.84%
• EPS Growth: -11.24%
• Country: US
• Employees: 8,872
• Sector: Utilities
• Sector Strength: 65
• Industry: General Utilities
• EPS (TTM): 0.50
• Shares Outstanding: 652,864,870
• 10 Day Avg. Volume: 4,223,018
• 30 Day Avg. Volume: 5,307,472
• 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: 1.75
• Enterprise Value/Revenue: 5.08
• Enterprise Value/Gross Profit: 11.54
• Enterprise Value/Ebitda: 13.30
• 1Y Price Target: $42.45
• Price Target Upside: 5.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: $44.00 ▲(9.86% Upside)

Centerpoint Energy's overall stock score is driven by strong earnings growth and positive technical indicators, reflecting a bullish outlook. However, high leverage and valuation concerns temper the score. The ambitious capital investment plan and strategic asset sales are positive, but cash flow challenges and high P/E ratio remain risks.

Positive Factors

Revenue Growth

Robust revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and shareholder value.

Capital Investment Plan

The ambitious investment plan positions CenterPoint for future growth by expanding infrastructure and enhancing service reliability, supporting long-term competitive advantage.

Renewable Energy Expansion

Expanding into renewables aligns with industry trends towards sustainability, potentially opening new revenue streams and reducing regulatory risks.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Reduced cash generation and negative free cash flow highlight liquidity challenges, which may constrain operational and strategic initiatives.

Declining Profit Margins

Declining profit margins suggest rising costs or pricing pressures, potentially impacting profitability and requiring strategic cost management.

Centerpoint Energy Business Overview & Revenue Model

Company Description

CenterPoint Energy, Inc. (CNP) is a publicly traded energy company based in Houston, Texas. It operates in the utility sector, primarily providing electric and natural gas services to residential, commercial, and industrial customers. The company is involved in the generation, transmission, and distribution of electricity and natural gas, serving millions of customers across several states, including Texas, Indiana, and Louisiana. CenterPoint Energy also has a growing presence in the renewable energy sector, focusing on sustainable energy solutions.

How the Company Makes Money

CenterPoint Energy generates revenue through multiple streams, primarily by providing utility services. The main revenue sources include regulated electric and natural gas distribution, where the company charges customers based on usage and rates set by public utility commissions. Additionally, CenterPoint earns money from the sale of electric generation and transmission services, as well as natural gas procurement and transportation. The company also participates in infrastructure projects, such as the development of renewable energy sources, which can provide additional revenue through long-term contracts and partnerships. Key partnerships with energy suppliers and investments in technology for smart grids further enhance its revenue potential. Regulatory approvals and rate adjustments are critical factors that influence its financial performance.

Centerpoint Energy Financial Statement Overview

Summary

Centerpoint Energy shows strong revenue growth and solid operational efficiency with healthy EBIT and EBITDA margins. However, declining profit margins and high leverage pose potential risks. The balance sheet reflects significant debt levels, necessitating careful management to maintain financial stability. Cash flow challenges persist, with negative free cash flow and reduced operating cash flow coverage, indicating a need for strategic improvements in cash management.

Income Statement

Centerpoint Energy shows a strong revenue growth rate of 43.6% in the TTM, indicating robust top-line expansion. However, the gross profit margin has decreased from 46% in 2024 to 33.7% in the TTM, suggesting increased cost pressures. The net profit margin also declined slightly from 11.8% to 10.4%, reflecting some challenges in maintaining profitability. Despite these pressures, the EBIT and EBITDA margins remain healthy at 22.7% and 38.5%, respectively, indicating efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.96, indicating significant leverage, which could pose risks if not managed carefully. Return on equity has decreased from 9.5% in 2024 to 8.7% in the TTM, showing a slight decline in shareholder returns. The equity ratio stands at 25%, suggesting a moderate level of financial stability. Overall, the balance sheet reflects a need for cautious debt management to ensure long-term financial health.

Cash Flow

Operating cash flow has decreased significantly in the TTM, with a coverage ratio of 0.46, down from 0.53 in 2024, indicating reduced cash generation relative to net income. Free cash flow remains negative, with a concerning free cash flow to net income ratio of -1.84, highlighting ongoing cash flow challenges. While there was a 15.7% growth in free cash flow, the overall cash flow position requires improvement to support sustainable operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.98B	8.64B	8.70B	9.32B	8.35B	7.42B
Gross Profit	3.95B	3.98B	3.69B	3.40B	3.21B	2.93B
EBITDA	3.43B	3.49B	3.19B	3.23B	2.62B	2.28B
Net Income	936.00M	1.02B	917.00M	1.06B	1.49B	-773.00M
Balance Sheet
Total Assets	44.10B	43.77B	39.72B	38.55B	37.68B	33.47B
Cash, Cash Equivalents and Short-Term Investments	776.00M	585.00M	631.00M	584.00M	1.67B	1.02B
Total Debt	21.62B	20.96B	18.62B	16.86B	16.10B	13.44B
Total Liabilities	33.08B	33.10B	30.05B	28.50B	28.26B	25.12B
Stockholders Equity	11.02B	10.67B	9.67B	10.04B	9.41B	8.35B
Cash Flow
Free Cash Flow	-3.03B	-2.37B	-524.00M	-2.61B	-3.14B	-601.00M
Operating Cash Flow	2.00B	2.14B	3.88B	1.81B	22.00M	2.00B
Investing Cash Flow	-4.23B	-4.49B	-4.23B	-1.63B	-1.85B	-1.26B
Financing Cash Flow	2.25B	2.27B	374.00M	-345.00M	1.92B	-834.00M

Centerpoint Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 40.05 is above the 20-day moving average (MA) of 39.27, above the 50-day MA of 38.48, and above the 200-day MA of 36.18, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 62.97 is Neutral, neither overbought nor oversold. The STOCH value of 86.64 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	75 Outperform	$28.37B	23.04	10.29%	2.66%	17.32%	3.35%
FE	75 Outperform	$27.18B	20.78	10.33%	3.68%	6.44%	49.07%
CNP	70 Outperform	$26.13B	27.90	8.76%	2.17%	4.84%	-11.24%
CMS	69 Neutral	$22.48B	22.16	12.48%	2.85%	8.25%	4.37%
PPL	67 Neutral	$27.75B	28.21	6.96%	2.85%	6.62%	17.35%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ES	64 Neutral	$27.04B	31.35	5.63%	4.06%	14.44%	―

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.

The most recent analyst rating on (CNP) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

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.

The most recent analyst rating on (CNP) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

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.

The most recent analyst rating on (CNP) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

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.

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.

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.

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.

CenterPoint Energy Completes $1 Billion Convertible Notes Sale

On July 31, 2025, CenterPoint Energy, Inc. completed the sale of $1 billion in 3.00% Convertible Senior Notes due 2028. The Notes were sold in a private offering and are convertible under certain conditions, with a conversion rate initially set at 21.4477 shares of common stock per $1,000 principal amount of Notes. The Notes will mature on August 1, 2028, unless converted or repurchased earlier.

The most recent analyst rating on (CNP) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

CenterPoint Energy Reports Strong Q2 2025 Results

CenterPoint Energy Inc., a Texas-based energy delivery company, operates in electric transmission, distribution, power generation, and natural gas distribution, serving over 7 million customers across several states. In its latest earnings report, CenterPoint Energy announced a solid performance for the second quarter of 2025, with earnings of $0.30 per diluted share on a GAAP basis and $0.29 on a non-GAAP basis. The company also reiterated its full-year guidance and increased its 10-year capital investment plan by $500 million, bringing the total to $53 billion through 2030.

CenterPoint Energy’s Earnings Call Highlights Growth and Challenges

CenterPoint Energy’s recent earnings call reflects a generally positive outlook, buoyed by strong growth in the Houston Electric service territory and significant increases in the capital investment plan. Despite facing challenges such as a decrease in year-over-year non-GAAP EPS and increased interest expenses, the sentiment remains balanced with expectations of improved operating cash flows and positive EPS guidance.

CenterPoint Energy Reports Q2 2025 Earnings

On July 24, 2025, CenterPoint Energy reported its second quarter 2025 earnings, highlighting a net income of $198 million, or $0.30 per diluted share on a GAAP basis, compared to $0.36 in the same period of 2024. The company increased its 10-year capital investment plan by $500 million, reaching a total of $53 billion through 2030, and reiterated its 2025 non-GAAP EPS guidance. CenterPoint also accomplished all commitments related to Phase II of the Greater Houston Resiliency Initiative ahead of schedule, resulting in a significant reduction in outage minutes for customers.

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.