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Centerpoint Energy
(NYSE:CNP)
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Rating:59Neutral
Price Target:
$44.00
â–¼(-1.26% Downside)
Action:Reiterated
Date:08/01/26
The score is driven down primarily by weak cash-flow quality (persistently negative free cash flow and low cash conversion) and a high-leverage balance sheet, despite steady utility profitability. Offsetting these are constructive earnings-call takeaways (reiterated EPS guidance, long-term growth targets, and a large-load pipeline with improving credit metrics). Near-term technicals are a modest headwind (below 20/50/100-day averages), and valuation appears somewhat elevated for the sector (P/E 24.7) with only a moderate dividend yield.
Positive Factors
Large-load pipeline
A ~14 GW eligible large-load pipeline is a durable structural demand opportunity that can materially raise system utilization and regulated delivery revenue over years. As loads energize, predictable demand-charge cash flows and higher rate base support sustained earnings growth and capital recovery.
Negative Factors
Negative free cash flow
Persistently negative FCF reflects heavy, ongoing capital intensity and weak conversion of reported earnings into distributable cash. Over time this raises reliance on external financing, constrains self-funded growth, and increases vulnerability to interest-rate or liquidity stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Large-load pipeline
A ~14 GW eligible large-load pipeline is a durable structural demand opportunity that can materially raise system utilization and regulated delivery revenue over years. As loads energize, predictable demand-charge cash flows and higher rate base support sustained earnings growth and capital recovery.
Read all positive factors
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 (CNP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.69B
Dividend Yield2.14%
Average Volume (3M)6.62M
Price to Earnings (P/E)24.7
Beta (1Y)0.10
Revenue Growth7.10%
EPS Growth18.86%
CountryUS
Employees8,794
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.70
Shares Outstanding658,720,300
10 Day Avg. Volume6,108,439
30 Day Avg. Volume6,618,431
Financial Highlights & Ratios
PEG Ratio12.54
Price to Book (P/B)2.24
Price to Sales (P/S)2.68
P/FCF Ratio-10.50
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$46.33Price Target Upside3.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)1.91
Revenue Forecast (FY)$9.92B
Centerpoint Energy Business Overview & Revenue Model
Company Description
CenterPoint Energy, Inc. operates as a public utility holding enterprise across the United States, primarily through its Electric and Natural Gas divisions. The Electric segment manages power generation assets, alongside the transmission and distr...
How the Company Makes Money
CenterPoint Energy primarily makes money through regulated utility operations and, to a lesser extent, through non-utility energy infrastructure and service activities.
1) Regulated utility revenues (core earnings driver)
- Electric Transmission ...
Centerpoint Energy Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution, a sizable pipeline of large-load opportunities (14 GW eligible), upgraded capital plan ($1.2B) and improving credit metrics, while acknowledging manageable near-term headwinds including ERCOT study approvals for ~3 GW, regulatory/timing risk on transmission routing, and Moody’s negative outlook. Overall the positives — material new load commitments, financing derisking, and reaffirmed guidance — outweigh the uncertainties, though some allocations and permitting timelines remain uncertain.Positive Updates
Solid Quarterly Results and Reiterated Guidance
Reported GAAP EPS $0.37 and non-GAAP EPS $0.40 for Q2; management reiterated full-year 2026 non-GAAP EPS guidance of $1.89–$1.91 (midpoint = $1.90), representing ~8% growth versus 2025 at the midpoint.
Negative Updates
ERCOT Study Approvals Pending for ~3 GW and Timing Uncertainty
About 3 GW of batch-zero submissions remain pending because required studies were not approved by ERCOT; the path to energization for these projects is unclear and could delay some capacity coming online.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Quarterly Results and Reiterated Guidance
Reported GAAP EPS $0.37 and non-GAAP EPS $0.40 for Q2; management reiterated full-year 2026 non-GAAP EPS guidance of $1.89–$1.91 (midpoint = $1.90), representing ~8% growth versus 2025 at the midpoint.
Read all positive updates
Company Guidance
Management reiterated 2026 consolidated non‑GAAP EPS guidance of $1.89–$1.91 (midpoint ~$1.90, ~8% above 2025) after reporting Q2 non‑GAAP EPS of $0.40 (GAAP $0.37), and reaffirmed long‑term non‑GAAP EPS growth at the mid‑to‑high end of 7%–9% annually through 2028 and 7%–9% thereafter through 2035; the company updated its 10‑year capital plan to $66.7 billion (up $1.2 billion from $65.5B) and expects to deploy that incremental $1.2B over the next five years without issuing additional equity, maintaining a target capital structure near 47% equity / 53% debt and visibility to at least $10B of additional upside through 2035; key operational and financing metrics cited include a Houston Electric rate‑base CAGR of >18% over the next three years, planned 2026 capital spend of $6.8B (Q2 investment $1.5B; ~40% of planned H1 spend complete), adjusted FFO/debt of 13.4% (≈100 bps improvement QoQ) with an expected ~30 bps uplift from a tax refund, expected incremental cash of ~ $6M per GW per month from demand charges as roughly 14 GW of batch‑zero‑eligible load is energized (nearly all by 2030, with ~3 GW targeted for 2027), and ongoing regulatory filings to recover investments (DCRF, TCOS, and GRIP—$62M revenue requirement approved for Texas Gas).Centerpoint Energy Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
60
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.62B | 9.36B | 8.64B | 8.70B | 9.32B | 8.35B |
| Gross Profit | 5.20B | 2.69B | 3.98B | 3.69B | 3.40B | 3.21B |
| EBITDA | 3.99B | 3.68B | 3.49B | 3.19B | 3.23B | 2.62B |
| Net Income | 1.12B | 1.05B | 1.02B | 917.00M | 1.06B | 1.49B |
Balance Sheet | ||||||
| Total Assets | 48.25B | 48.25B | 43.77B | 39.72B | 38.55B | 37.68B |
| Cash, Cash Equivalents and Short-Term Investments | 475.00M | 559.00M | 585.00M | 631.00M | 584.00M | 1.67B |
| Total Debt | 25.09B | 23.66B | 20.96B | 18.62B | 16.86B | 16.10B |
| Total Liabilities | 36.53B | 37.09B | 33.10B | 30.05B | 28.50B | 28.26B |
| Stockholders Equity | 11.72B | 11.15B | 10.67B | 9.67B | 10.04B | 9.41B |
Cash Flow | ||||||
| Free Cash Flow | -2.69B | -2.38B | -2.37B | -524.00M | -2.61B | -3.14B |
| Operating Cash Flow | 2.58B | 2.49B | 2.14B | 3.88B | 1.81B | 22.00M |
| Investing Cash Flow | -5.20B | -4.02B | -4.49B | -4.23B | -1.63B | -1.85B |
| Financing Cash Flow | 2.60B | 1.55B | 2.27B | 374.00M | -345.00M | 1.92B |
Centerpoint Energy Technical Analysis
Negative
44.56
Price Trends
43.05
Negative
42.81
Negative
41.13
Negative
Market Momentum
-0.58
Positive
32.41
Neutral
9.40
Positive
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 44.56 is above the 20-day moving average (MA) of 42.94, above the 50-day MA of 43.05, and above the 200-day MA of 41.13, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 32.41 is Neutral, neither overbought nor oversold. The STOCH value of 9.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNP.
Centerpoint Energy Risk Analysis
Centerpoint Energy disclosed 15 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $22.57B | 21.30 | 11.02% | 2.98% | 9.93% | -1.74% | |
62 Neutral | $27.95B | 25.76 | 8.53% | 3.61% | 12.63% | -17.19% | |
62 Neutral | $26.92B | 18.55 | 8.91% | 4.11% | 7.75% | 66.25% | |
60 Neutral | $30.33B | 19.13 | 11.70% | 2.57% | 3.76% | 25.15% | |
60 Neutral | $26.49B | 28.65 | 8.32% | 3.08% | 7.52% | 21.81% | |
59 Neutral | $27.69B | 24.73 | 9.85% | 2.02% | 7.10% | 18.86% |
* Utilities Sector Average
CNP
Centerpoint Energy
40.67
2.66
6.99%
AEE
Ameren
108.27
8.78
8.83%
CMS
CMS Energy
71.20
-1.13
-1.56%
FE
FirstEnergy
47.37
5.19
12.32%
ES
Eversource Energy
72.06
9.02
14.30%
PPL
PPL
34.62
-0.63
-1.79%
Centerpoint Energy Corporate Events
Business Operations and StrategyPrivate Placements and Financing
CenterPoint Energy Announces $700 Million Subordinated Notes Offering
Positive
Jul 31, 2026
On July 30, 2026, CenterPoint Energy entered into an underwriting agreement with a syndicate of banks for a $700 million underwritten public offering of 6.400% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, Series E, due August 15, 2058. The...
Business Operations and StrategyFinancial Disclosures
CenterPoint Energy Reaffirms 2026 Earnings Guidance, Expands Capex
Positive
Jul 28, 2026
CenterPoint Energy reported second-quarter 2026 GAAP earnings of $244 million, or $0.37 per diluted share, up from $0.30 a year earlier, with non-GAAP EPS rising to $0.40 from $0.29. The results, driven by customer growth, regulatory recovery and ...
Business Operations and StrategyPrivate Placements and Financing
CenterPoint Energy Launches New $1 Billion ATM Program
Neutral
May 15, 2026
On May 15, 2026, CenterPoint Energy, Inc. entered into a new at-the-market equity distribution agreement with a syndicate of banks to offer and sell up to $1 billion of its common stock, replacing a prior program under which about $84.9 million of...
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.