NYSE:CNP

Stock Analysis Report

Executive Summary

CenterPoint Energy, Inc. operates as a public utility holding company in the United States.

Snowflake

Fundamentals

Established dividend payer with imperfect balance sheet.


Similar Companies

Share Price & News

How has CenterPoint Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

CNP

-0.6%

US Integrated Utilities

1.0%

US Market


1 Year Return

2.6%

CNP

19.6%

US Integrated Utilities

6.7%

US Market

Return vs Industry: CNP underperformed the US Integrated Utilities industry which returned 19.6% over the past year.

Return vs Market: CNP underperformed the US Market which returned 6.7% over the past year.


Share holder returns

CNPIndustryMarket
7 Day-1.9%-0.6%1.0%
30 Day-5.3%2.3%-1.8%
90 Day-2.2%4.5%-1.8%
1 Year6.7%2.6%23.8%19.6%9.1%6.7%
3 Year42.1%26.0%46.8%32.0%46.1%36.6%
5 Year49.2%20.1%75.7%41.0%66.9%48.6%

Price Volatility Vs. Market

How volatile is CenterPoint Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CenterPoint Energy undervalued based on future cash flows and its price relative to the stock market?

24.97x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: CNP ($28.27) is trading above our estimate of fair value ($25.6)

Significantly Undervalued: CNP is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: CNP is poor value based on its PE Ratio (25x) compared to the Integrated Utilities industry average (21.7x).

PE vs Market: CNP is poor value based on its PE Ratio (25x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: CNP is poor value based on its PEG Ratio (3.4x)


Price Based on Value of Assets

PB vs Industry: CNP is good value based on its PB Ratio (2.2x) compared to the US Integrated Utilities industry average (2.2x).


Next Steps

Future Growth

How is CenterPoint Energy expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CNP's forecast earnings growth (7.3% per year) is above the savings rate (2.7%).

Earnings vs Market: CNP's earnings (7.3% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: CNP's earnings are forecast to grow, but not significantly.

Revenue vs Market: CNP's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CNP's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CNP's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has CenterPoint Energy performed over the past 5 years?

25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CNP's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: CNP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CNP had negative earnings growth (-64.8%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-11.4%).


Return on Equity

High ROE: CNP's Return on Equity (7.8%) is considered low.


Return on Assets

ROA vs Industry: CNP's Return on Assets is below or equal to the Integrated Utilities industry average last year.


Return on Capital Employed

ROCE Improving: CNP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is CenterPoint Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CNP's short term assets ($3.3B) exceeds its short term liabilities ($3.0B)

Long Term Liabilities: CNP's short term assets (3.3B) do not cover its long term liabilities (22.9B)


Debt to Equity History and Analysis

Debt Level: CNP's debt to equity ratio (176.9%) is considered high

Reducing Debt: CNP's debt to equity ratio has reduced from 192.2% to 176.9% over the past 5 years.

Debt Coverage: CNP's debt is not well covered by operating cash flow (11.1%).

Interest Coverage: CNP's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: CNP has a high level of physical assets or inventory.

Debt Coverage by Assets: CNP's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is CenterPoint Energy's current dividend yield, its reliability and sustainability?

4.32%

Expected Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%1.5%markettop25%3.8%industryaverage2.7%forecastin3Years4.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CNP's dividend (4.07%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CNP's dividend (4.07%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: CNP's dividends per share have been stable in the past 10 years.

Growing Dividend: CNP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.8%), CNP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNP's dividends in 3 years are forecast to be covered by earnings (68.3% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Utilities industry.

Management

What is the CEO of CenterPoint Energy's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Scott Prochazka (53yo)

5.8yrs

Tenure

US$8,887,981

Compensation

Mr. Scott M. Prochazka serves as the Chairman, Principal Executive Officer and Manager at Centerpoint Energy Houston Electric, LLC. Mr. Prochazka has been the Chief Executive Officer and President at Cente ...


CEO Compensation Analysis

Compensation vs. Market: Scott's total compensation ($USD8.89M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.9yrs

Average Tenure

58yo

Average Age

Experienced Management: CNP's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CNP's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$587,56421 May 19
Milton Carroll
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares19,780
Max PriceUS$29.76
SellUS$1,200,80007 Mar 19
Milton Carroll
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares40,000
Max PriceUS$30.02
SellUS$2,265,75006 Mar 19
Milton Carroll
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares75,000
Max PriceUS$30.21
SellUS$60,20006 Mar 19
Joseph Vortherms
EntityIndividual
Shares2,000
Max PriceUS$30.10

Ownership Breakdown


Management Team

  • Milton Carroll (69yo)

    Executive Chairman of the Board

    • Tenure: 17.1yrs
    • Compensation: US$2.89m
  • Scott Prochazka (53yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$8.89m
  • Xia Liu (49yo)

    Executive VP & CFO

    • Tenure: 0.5yrs
  • Tracy Bridge (60yo)

    • Tenure: 0.8yrs
    • Compensation: US$2.05m
  • Kristie Colvin (55yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 5.1yrs
  • Carol Helliker (58yo)

    Chief Ethics & Compliance Officer

    • Tenure: 0yrs
  • Floyd LeBlanc (59yo)

    Vice President of Corporate Communications & Public Affairs

    • Tenure: 0yrs
  • Gary Hayes

    Chief Information Officer & Senior VP

    • Tenure: 5yrs
  • David Mordy

    Director of Investor Relations

    • Tenure: 0yrs
  • Jason Ryan

    Senior VP & General Counsel

    • Tenure: 0.5yrs

Board Members

  • Susan Rheney (59yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$245.00k
  • John Somerhalder (63yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$236.52k
  • Milton Carroll (69yo)

    Executive Chairman of the Board

    • Tenure: 17.1yrs
    • Compensation: US$2.89m
  • Scott McLean (62yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$230.00k
  • Theodore Pound (64yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$245.00k
  • Phillip Smith (67yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$250.00k
  • Peter Wareing (68yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$308.50k
  • Scott Prochazka (53yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$8.89m
  • Marty Nesbitt (57yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$198.68k
  • Leslie Biddle (52yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$198.68k

Company Information

CenterPoint Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CenterPoint Energy, Inc.
  • Ticker: CNP
  • Exchange: NYSE
  • Founded: 1882
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$14.198b
  • Shares outstanding: 502.22m
  • Website: https://www.centerpointenergy.com

Number of Employees


Location

  • CenterPoint Energy, Inc.
  • 1111 Louisiana Street
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNPNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
HOUDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0HVFLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
CNP.PRBNYSE (New York Stock Exchange)DEP RP PFD CV BUSUSDSep 2018

Biography

CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company’s Electric Transmission & Distribution segment offers electric transmission and distribution services ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:19
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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