ScoreWhy is CenterPoint Energy, Inc. ?
1
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
2
Flat results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at USD 1,995 MM
- RAW MATERIAL COST(Y) Grown by 10.58% (YoY)
3
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 18.85%, its profits have risen by 4.9% ; the PEG ratio of the company is 14.9
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to CenterPoint Energy, Inc. should be less than 10%
- Overall Portfolio exposure to Power should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is CenterPoint Energy, Inc. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
CenterPoint Energy, Inc.
20.42%
1.36
16.69%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.75%
EBIT Growth (5y)
11.51%
EBIT to Interest (avg)
2.58
Debt to EBITDA (avg)
5.65
Net Debt to Equity (avg)
1.92
Sales to Capital Employed (avg)
0.28
Tax Ratio
17.01%
Dividend Payout Ratio
54.85%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
6.04%
ROE (avg)
8.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
2.48
EV to EBIT
24.01
EV to EBITDA
13.92
EV to Capital Employed
1.48
EV to Sales
5.41
PEG Ratio
3.62
Dividend Yield
203.03%
ROCE (Latest)
6.18%
ROE (Latest)
9.75%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 7.08
RAW MATERIAL COST(Y)
Fallen by 0.42% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 10.53 times
NET SALES(Q)
Highest at USD 2,975 MM
OPERATING PROFIT(Q)
Highest at USD 1,081 MM
EPS(Q)
Highest at USD 0.48
-4What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 210.31 %
INTEREST(Q)
Highest at USD 279 MM
Here's what is working for CenterPoint Energy, Inc.
Dividend per share
Highest at USD 7.08 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 2,975 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 1,081 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
EPS
Highest at USD 0.48
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 10.53 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.42% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 423 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for CenterPoint Energy, Inc.
Interest
At USD 279 MM has Grown at 22.91%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 279 MM
in the last five periods and Increased by 22.91% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 210.31 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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