CenterPoint Energy, Inc. (CNP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Edison International

Ameren Corp.

Eversource Energy

Entergy Corp.

FirstEnergy Corp.

WEC Energy Group, Inc.

Consolidated Edison, Inc.

PPL Corp.

Public Service Enterprise Group, Inc.

CenterPoint Energy, Inc.

DTE Energy Co.

Why is CenterPoint Energy, Inc. ?

Weak Long Term Fundamental Strength with a -1.29% CAGR growth in Net Sales over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.65 times
The company has been able to generate a Return on Equity (avg) of 8.72% signifying low profitability per unit of shareholders funds

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 1,995 MM
RAW MATERIAL COST(Y) Grown by 10.58% (YoY)

With ROCE of 6.33%, it has a very expensive valuation with a 1.41 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 19.45%, its profits have risen by 4.9% ; the PEG ratio of the company is 14.9

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is CenterPoint Energy, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

CenterPoint Energy, Inc.

19.32%

1.56

16.76%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.29%

EBIT Growth (5y)

9.49%

EBIT to Interest (avg)

2.58

Debt to EBITDA (avg)

5.65

Net Debt to Equity (avg)

1.92

Sales to Capital Employed (avg)

0.29

Tax Ratio

17.01%

Dividend Payout Ratio

51.20%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.04%

ROE (avg)

8.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.18

EV to EBIT

22.19

EV to EBITDA

12.96

EV to Capital Employed

1.41

EV to Sales

5.02

PEG Ratio

14.90

Dividend Yield

224.51%

ROCE (Latest)

6.33%

ROE (Latest)

9.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 7.66

CASH AND EQV(HY)

Highest at USD 2,681 MM

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,995 MM

RAW MATERIAL COST(Y)

Grown by 10.58% (YoY

Here's what is working for CenterPoint Energy, Inc.

Dividend per share

Highest at USD 7.66 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Cash and Eqv

Highest at USD 2,681 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for CenterPoint Energy, Inc.

Operating Cash Flow

Lowest at USD 1,995 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Raw Material Cost

Grown by 10.58% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.12 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income