Centerpoint Energy Inc
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Electric
CenterPoint Energy, Inc. is a multi-state electric and natural gas delivery company serving approximately 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. The company is headquartered in Houston and is the only Texas-domiciled investor-owned utility. As of September 30, 2025, the company had approximately $45 billion in assets. With approximately 8,300 employees, CenterPoint Energy and its predecessor companies have been serving customers for more than 150 years.
Did you know?
Net income compounded at 4.9% annually over 6 years.
Current Price
$43.71
+1.06%GoodMoat Value
$20.83
52.3% overvaluedProfile
Valuation (TTM)
Market Cap$28.54B
P/E27.13
EV$50.26B
P/B2.56
Shares Out652.87M
P/Sales3.05
Revenue$9.36B
EV/EBITDA14.00
Centerpoint Energy Inc (CNP) Stock Analysis
GoodMoat Analysis
Centerpoint Energy is a regulated electric utility that appears to lack the durable competitive advantages and financial quality required by the GoodMoat framework. Its valuation, with a P/E of 26.1x and a GoodMoat target price of $20.83, suggests the stock is unfavourable relative to its estimated intrinsic value.
Read full analysis
Centerpoint Energy Inc operates as a regulated electric utility, a business model characterized by stable demand but limited competitive advantages. Applying the GoodMoat Moat Identification framework, the company likely scores low, as regulated utilities typically derive their limited moat from regulatory barriers (criterion 5) granting them regional monopoly status, but they lack most other durable advantages like network effects, switching costs, or proprietary data. The Quality Indicators also present a mixed picture: while the operating margin of 22.5% is solid, the negative Free Cash Flow Yield of -8.7% and a high Debt/Equity ratio of 2.11 are weak signals. The ROE of 9.4% falls below the high-quality threshold of 15-20%. According to the Decision Framework, a business with a low Moat Score and multiple weak quality ratings fails the initial 'Moat & Quality Gate' (Step 1), halting further investment consideration. The valuation assessment corroborates this. The current price of $42.07 is more than double the GoodMoat target of $20.83, implying a negative margin of safety and placing it firmly in the 'Unfavourable' valuation band. The P/E of 26.1x is also high for a utility with single-digit ROE. For a value investor seeking high-quality businesses with a margin of safety, Centerpoint Energy does not meet the fundamental criteria for further investigation based on the provided data and framework. Analysis based on data as of 2024-05-15.
Market Cap$28.54B
Current Price$43.71
P/E Ratio27.13
Forward P/E—
PEG Ratio5.15
EPS$1.60
Book Value$17.08
P/B Ratio2.56
CNP Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 23.5B
Revenue
7.6B
FY19
7.4B
FY20
8.4B
FY21
9.3B
FY22
8.7B
FY23
8.6B
FY24
9.4B
FY25
Net Income
791M
FY19
—
FY20
1.5B
FY21
1.1B
FY22
917M
FY23
1.0B
FY24
1.1B
FY25
CNP 52-Week Range
$34.71
$44.14
50-Day MA: $41.97200-Day MA: $38.88
Did you know?
CNP's revenue grew at a 3.6% CAGR over the last 6 years.
Centerpoint Energy Inc (CNP) Financial Summary
Centerpoint Energy Inc (CNP) is a Utilities company in the Utilities - Regulated Electric industry, listed on NYSE. The stock currently trades at $43.71 with a market capitalization of $28.54B.
Key valuation metrics include a P/E ratio of 27.13, price-to-book ratio of 2.56, and EPS of $1.60. The company reports a profit margin of 11.2% and return on equity of 9.4%.
CNP Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $28.54B |
| P/E Ratio | 27.13 |
| EPS | $1.60 |
| P/B Ratio | 2.56 |
| P/S Ratio | 3.05 |
| EV/EBITDA | 14.00 |
| Dividend Yield | 2.01% |
| Profit Margin | 11.2% |
| Return on Equity | 9.4% |
| Debt/Equity | 2.11 |
CNP Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $7.56B | $791.00M |
| FY20 | $7.42B | $-773.00M |
| FY21 | $8.35B | $1.49B |
| FY22 | $9.32B | $1.06B |
| FY23 | $8.70B | $917.00M |
| FY24 | $8.64B | $1.02B |
| FY25 | $9.36B | $1.05B |
Centerpoint Energy Inc (CNP) Valuation
Based on GoodMoat's DCF model, Centerpoint Energy Inc has a fair value estimate of $20.83. At the current price of $43.71, the stock appears 109.8% overvalued relative to our intrinsic value estimate.
CNP Quality Indicators
Centerpoint Energy Inc maintains a profit margin of 11.2% and an operating margin of 22.5%. Return on equity stands at 9.4%. The current ratio is 0.91. Debt-to-equity ratio is 2.11.
About Centerpoint Energy Inc
CenterPoint Energy, Inc. is a multi-state electric and natural gas delivery company serving approximately 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. The company is headquartered in Houston and is the only Texas-domiciled investor-owned utility. As of September 30, 2025, the company had approximately $45 billion in assets. With approximately 8,300 employees, CenterPoint Energy and its predecessor companies have been serving customers for more than 150 years.
CNP Free Cash Flow
Centerpoint Energy Inc generated $-2.38B in trailing twelve-month free cash flow, representing an FCF yield of -8.35%. This low FCF yield may reflect heavy reinvestment or growth spending.
CNP Shares Outstanding
Centerpoint Energy Inc has 0.65 billion shares outstanding at a share price of $43.71, giving it a market capitalization of $28.54B.