Centerpoint Energy (CNP)
NYSE:CNP
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Centerpoint Energy
(NYSE:CNP)
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Rating:57Neutral
Price Target:
$44.00
â–²(2.33% Upside)
Action:ReiteratedDate:04/23/26
The score is anchored by mixed financial performance—stable utility profitability but constrained by elevated leverage and consistently negative free cash flow. The latest earnings call meaningfully improves the outlook with reiterated above-average EPS growth targets for a utility, accelerating Houston load commitments, and progress derisking financing and regulatory recovery. Offsetting this, technical signals remain weak (below key moving averages with negative MACD), and valuation is only average given the ~23.8 P/E and ~2.1% yield.
Positive Factors
Regulatory recovery & trackers
High reliance on capital trackers (≈85% recovery) and timely rate actions make capital spending more earnings‑accretive and predictable. Over the medium term this reduces regulatory lag risk, supports return on rate base growth and stabilizes cash flow recovery for large grid investments.
Negative Factors
Elevated leverage & negative FCF
Sustained heavy capital program and persistent negative FCF increase reliance on external funding and heighten sensitivity to interest rates. Over several quarters this can compress credit metrics, force higher-cost financings, and constrain discretionary investment flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulatory recovery & trackers
High reliance on capital trackers (≈85% recovery) and timely rate actions make capital spending more earnings‑accretive and predictable. Over the medium term this reduces regulatory lag risk, supports return on rate base growth and stabilizes cash flow recovery for large grid investments.
Read all positive factors
Centerpoint Energy (CNP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.36B
Dividend Yield2.33%
Average Volume (3M)4.08M
Price to Earnings (P/E)22.3
Beta (1Y)0.18
Revenue Growth5.24%
EPS Growth10.10%
CountryUS
Employees8,872
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.63
Shares Outstanding654,169,500
10 Day Avg. Volume3,955,043
30 Day Avg. Volume4,082,651
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 Cap1.85
Enterprise Value/Revenue5.57
Enterprise Value/Gross Profit13.48
Enterprise Value/Ebitda13.76
Forecast
1Y Price Target
$46.00Price Target Upside6.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.91
Revenue Forecast (FY)$9.99B
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 makes money primarily through regulated utility operations. The largest revenue streams come from: (1) Natural gas distribution—charging customers for gas delivery service (distribution rates) and recovering approved costs throu...
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:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial outlook driven by materially accelerated load commitments in Houston (12.2 GW committed, ~8 GW to be energized by 2029), reiterated 2026 guidance with an 8% midpoint growth target, solid progress on capital deployment ($1.2B in Q1 toward $6.8B plan), successful regulatory tracker outcomes, and significant progress derisking the financing plan. Lowlights were largely timing and execution uncertainties (short‑term credit metric pressure from pulled‑forward financings, pending transmission investments needed to support the surge in load, and modest quarter‑specific EPS headwinds from weather, interest expense and divestitures). Overall, the positives — particularly the sizable and diversified load pipeline, regulatory recoveries, and financing progress — materially outweigh the manageable near‑term challenges.Positive Updates
Strong Quarterly and Full‑Year Earnings Position
Q1 2026 non‑GAAP EPS of $0.56 (GAAP $0.48). Reiterated 2026 non‑GAAP EPS guidance of $1.89–$1.91, with the midpoint implying ~8% growth versus 2025. Long‑term non‑GAAP EPS growth target maintained at 7%–9% annually through 2035.
Negative Updates
Minor EPS Headwinds in Q1
Q1 non‑GAAP EPS faced headwinds vs prior year: milder weather and usage (~$0.02 per share unfavorable), higher interest expense (~$0.04 unfavorable) and loss of earnings from divested Louisiana/Mississippi businesses (~$0.05 unfavorable).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly and Full‑Year Earnings Position
Q1 2026 non‑GAAP EPS of $0.56 (GAAP $0.48). Reiterated 2026 non‑GAAP EPS guidance of $1.89–$1.91, with the midpoint implying ~8% growth versus 2025. Long‑term non‑GAAP EPS growth target maintained at 7%–9% annually through 2035.
Read all positive updates
Company Guidance
Management reiterated 2026 non‑GAAP EPS guidance of $1.89–$1.91 (midpoint $1.90, ~8% above 2025), reported Q1 GAAP EPS $0.48 and non‑GAAP EPS $0.56, and maintained long‑term non‑GAAP EPS growth of 7–9% annually through 2028 and through 2035; they plan $6.8 billion of capital deployment in 2026 (Q1 spend $1.2B), remain on a $65.5B 10‑year base plan with >$10B incremental upside, and expect ~85% of investments to be recovered via capital trackers (DCRF request ≈$108M, TCOS ≈$36M approved, Texas Gas GRIP ≈$62M pending). Key operational drivers cited include 12.2 GW of firmly committed Houston load (3.2 GW ERCOT‑approved, 2.5 GW approved since the last call in <80 days, 9 GW to be filed soon), about 8 GW positioned to be energized by 2029, use of roughly 10 GW of existing capacity to deliver an estimated $4B of Texas customer savings over 10 years and delivery charges ~11% below the national average, plus a potential Indiana opportunity of ~1.5 GW and ~$1B incremental CapEx that could enable ~$250M of residential savings over 15 years. On financing and credit, adjusted FFO/debt (Moody’s method) was 12.5% in Q1, nearly 70% of 2026 financing is complete (including a $650M convertible issued in February), parent commercial paper was $0 vs a ~ $1B normal balance, management expects tax refunds this year and to exit 2026 at the high end of its targeted Moody’s cushion (~150 bps).Centerpoint Energy Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.41B | 9.36B | 8.64B | 8.70B | 9.32B | 8.35B |
| Gross Profit | 3.89B | 2.69B | 3.98B | 3.69B | 3.40B | 3.21B |
| EBITDA | 3.81B | 3.68B | 3.49B | 3.19B | 3.23B | 2.62B |
| Net Income | 1.07B | 1.05B | 1.02B | 917.00M | 1.06B | 1.49B |
Balance Sheet | ||||||
| Total Assets | 47.84B | 48.25B | 43.77B | 39.72B | 38.55B | 37.68B |
| Cash, Cash Equivalents and Short-Term Investments | 1.19B | 559.00M | 585.00M | 631.00M | 584.00M | 1.67B |
| Total Debt | 24.68B | 23.66B | 20.96B | 18.62B | 16.86B | 16.10B |
| Total Liabilities | 36.39B | 37.09B | 33.10B | 30.05B | 28.50B | 28.26B |
| Stockholders Equity | 11.45B | 11.15B | 10.67B | 9.67B | 10.04B | 9.41B |
Cash Flow | ||||||
| Free Cash Flow | -2.67B | -2.38B | -2.37B | -524.00M | -2.61B | -3.14B |
| Operating Cash Flow | 2.36B | 2.49B | 2.14B | 3.88B | 1.81B | 22.00M |
| Investing Cash Flow | -4.97B | -4.02B | -4.49B | -4.23B | -1.63B | -1.85B |
| Financing Cash Flow | 2.99B | 1.55B | 2.27B | 374.00M | -345.00M | 1.92B |
Centerpoint Energy Technical Analysis
Positive
43.00
Price Trends
42.79
Positive
40.76
Positive
39.42
Positive
Market Momentum
0.11
Positive
50.30
Neutral
26.48
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 is above the 20-day moving average (MA) of 42.91, above the 50-day MA of 42.79, and above the 200-day MA of 39.42, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 50.30 is Neutral, neither overbought nor oversold. The STOCH value of 26.48 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 | $31.42B | 18.55 | 11.48% | 2.86% | 15.43% | 21.50% | |
67 Neutral | $28.28B | 21.95 | 8.16% | 3.13% | 6.85% | 32.89% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $27.14B | 18.07 | 8.38% | 3.94% | 11.30% | -1.99% | |
63 Neutral | $23.49B | 17.15 | 11.24% | 3.10% | 13.31% | 6.97% | |
57 Neutral | $28.36B | 22.30 | 9.59% | 2.33% | 5.24% | 10.10% | |
56 Neutral | $26.71B | 14.75 | 10.71% | 4.54% | 13.83% | 97.95% |
* Utilities Sector Average
CNP
Centerpoint Energy
43.32
5.11
13.37%
AEE
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112.39
15.64
16.16%
CMS
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75.69
4.79
6.76%
FE
FirstEnergy
46.78
5.38
12.99%
ES
Eversource Energy
69.44
12.78
22.55%
PPL
PPL
37.80
2.64
7.50%
Centerpoint Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
CenterPoint Energy Posts Strong Q1 Results, Reaffirms Outlook
Positive
Apr 23, 2026
CenterPoint Energy reported strong first-quarter 2026 results on April 23, 2026, posting GAAP earnings of $0.48 per diluted share and non-GAAP earnings of $0.56, up from $0.45 and $0.53, respectively, a year earlier. Management attributed the impr...
Regulatory Filings and ComplianceShareholder Meetings
CenterPoint Energy Shareholders Approve Governance Amendments and Elections
Positive
Apr 17, 2026
At CenterPoint Energy’s April 16, 2026 annual shareholders’ meeting, investors approved an amendment and restatement of the company’s Articles of Incorporation to add limited officer exculpation permitted under Texas law and to m...
Financial DisclosuresRegulatory Filings and Compliance
CenterPoint Energy Issues Southern Indiana Subsidiary Financial Disclosure
Neutral
Mar 20, 2026
CenterPoint Energy has released audited consolidated financial statements for its indirect subsidiary Southern Indiana Gas and Electric Company for the years ended December 31, 2025 and 2024, along with supplementary financial and operational data...
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.