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Centerpoint Energy
(NYSE:CNP)
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Rating:63Neutral
Price Target:
$44.00
â–²(13.02% Upside)
Action:Reiterated
Date:10/27/26
The score is anchored by mixed fundamentals: steady utility profitability is outweighed by high leverage and persistently negative free cash flow, implying continued dependence on external financing. Offsetting this, the latest earnings call was notably strong with raised guidance and a clearly articulated long-term growth and rate-base investment plan. Technically, momentum is constructive with the stock above key moving averages, but overextended RSI/Stoch readings temper the technical contribution, while valuation appears only fair (24.24 P/E, 2.23% yield).
Positive Factors
Regulated utility model
CenterPoint’s regulated delivery model provides recurring revenue tied to essential electric and gas infrastructure rather than commodity-price exposure. Approved rates, customer charges and recovery mechanisms can support earnings visibility and allow prudent capital investment to earn authorized returns over time.
Negative Factors
Elevated leverage
Persistent leverage near twice equity reduces financial flexibility even within a regulated utility structure. It can increase refinancing sensitivity and interest costs, while limiting the company’s ability to absorb execution or regulatory delays without relying more heavily on external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility model
CenterPoint’s regulated delivery model provides recurring revenue tied to essential electric and gas infrastructure rather than commodity-price exposure. Approved rates, customer charges and recovery mechanisms can support earnings visibility and allow prudent capital investment to earn authorized returns over time.
Read all positive factors
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 (CNP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.65B
Dividend Yield2.19%
Average Volume (3M)6.72M
Price to Earnings (P/E)24.0
Beta (1Y)0.02
Revenue Growth7.10%
EPS Growth18.86%
CountryUS
Employees8,794
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.75
Shares Outstanding658,720,300
10 Day Avg. Volume6,048,097
30 Day Avg. Volume6,722,115
Financial Highlights & Ratios
PEG Ratio12.54
Price to Book (P/B)2.24
Price to Sales (P/S)2.68
P/FCF Ratio-10.50
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue5.01
Enterprise Value/Gross Profit9.41
Enterprise Value/Ebitda11.62
Forecast
1Y Price Target
$43.80Price Target Upside12.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)1.91
Revenue Forecast (FY)$9.94B
Centerpoint Energy Business Overview & Revenue Model
Company Description
CenterPoint Energy, Inc. operates as a public utility holding enterprise across the United States, primarily through its Electric and Natural Gas divisions. The Electric segment manages power generation assets, alongside the transmission and distr...
How the Company Makes Money
CenterPoint Energy makes money primarily through regulated utility operations, where revenue is largely determined by state and local utility regulators rather than by competitive commodity sales. Its key revenue streams include: (1) Electric tran...
Centerpoint Energy Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call was strongly positive. Management reported solid third-quarter and year-to-date execution, raised 2026 guidance, provided 2027 guidance representing 9% midpoint growth, extended the 7% to 9% earnings-growth outlook through 2030 and 2035, and outlined substantial customer-driven investment opportunities. The main challenges were higher financing costs, required equity financing, some withdrawn studied load, project timing and ongoing regulatory-lag considerations, but these were presented alongside mitigating actions and continued confidence in the company's growth and financial position.Positive Updates
Strong Third-Quarter Earnings and Raised 2026 Guidance
Third-quarter 2026 GAAP EPS was $0.50 and non-GAAP EPS was $0.53. Year-to-date results reached nearly 80% of the midpoint of the original full-year guidance range of $1.89 to $1.91, supporting an increase in 2026 non-GAAP EPS guidance to $1.90 to $1.92. The midpoint represents nearly 9% growth from 2025 delivered results and would mark the fifth year of more than 8% growth since 2020.
Negative Updates
Higher Financing Costs Reduced Quarterly Earnings
Higher financing costs were $0.04 unfavorable versus the third quarter of 2025, including $0.03 from approximately $3 billion of new debt issuances net of maturities and $0.01 from dilution due to modest equity financing.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Earnings and Raised 2026 Guidance
Third-quarter 2026 GAAP EPS was $0.50 and non-GAAP EPS was $0.53. Year-to-date results reached nearly 80% of the midpoint of the original full-year guidance range of $1.89 to $1.91, supporting an increase in 2026 non-GAAP EPS guidance to $1.90 to $1.92. The midpoint represents nearly 9% growth from 2025 delivered results and would mark the fifth year of more than 8% growth since 2020.
Read all positive updates
Company Guidance
CenterPoint raised 2026 non-GAAP EPS guidance to $1.90 to $1.92, representing nearly 9% growth at the midpoint over 2025 results; 2027 non-GAAP EPS guidance is $2.07 to $2.09, representing 9% growth at the midpoint. Management expects non-GAAP EPS growth at the mid- to high end of the 7% to 9% annual range through 2030 and 7% to 9% annually through 2035, enterprise rate base CAGR of more than 14% through 2030, and sustained double-digit rate base growth over the course of the 10-year plan. The 10-year capital investment plan increased from $66.7 billion to $70.7 billion through 2035, with $1.5 billion accelerated into the first 5 years, $4.5 billion of incremental and accelerated investments deployed by the end of 2030, and at least $10 billion of additional investment opportunities through 2035; 2026 capital investment is expected to come in modestly below the $6.8 billion target due solely to project timing. The remaining 10-year equity financing guide increased by $1.6 billion to $4.5 billion, with approximately $4 billion expected to be issued from 2027 through 2030, including $500 million to $700 million of common equity in 2027, while O&M is expected to reduce by 1% to 2% from the prior year.Centerpoint Energy Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.82B | 9.36B | 8.64B | 8.70B | 9.32B | 8.35B |
| Gross Profit | 5.23B | 2.69B | 3.98B | 3.69B | 3.40B | 3.21B |
| EBITDA | 4.24B | 3.68B | 3.49B | 3.19B | 3.23B | 2.62B |
| Net Income | 1.16B | 1.05B | 1.02B | 917.00M | 1.06B | 1.49B |
Balance Sheet | ||||||
| Total Assets | 49.48B | 48.25B | 43.77B | 39.72B | 38.55B | 37.68B |
| Cash, Cash Equivalents and Short-Term Investments | 557.00M | 559.00M | 585.00M | 631.00M | 584.00M | 1.67B |
| Total Debt | 24.90B | 23.66B | 20.96B | 18.62B | 16.86B | 16.10B |
| Total Liabilities | 37.73B | 37.09B | 33.10B | 30.05B | 28.50B | 28.26B |
| Stockholders Equity | 11.74B | 11.15B | 10.67B | 9.67B | 10.04B | 9.41B |
Cash Flow | ||||||
| Free Cash Flow | -2.83B | -2.38B | -2.37B | -524.00M | -2.61B | -3.14B |
| Operating Cash Flow | 2.83B | 2.49B | 2.14B | 3.88B | 1.81B | 22.00M |
| Investing Cash Flow | -5.14B | -4.02B | -4.49B | -4.23B | -1.63B | -1.85B |
| Financing Cash Flow | 2.43B | 1.55B | 2.27B | 374.00M | -345.00M | 1.92B |
Centerpoint Energy Technical Analysis
Positive
38.93
Price Trends
39.03
Positive
40.81
Positive
41.20
Positive
Market Momentum
0.75
Negative
72.33
Negative
93.52
Negative
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 38.93 is below the 20-day moving average (MA) of 39.38, below the 50-day MA of 39.03, and below the 200-day MA of 41.20, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 72.33 is Negative, neither overbought nor oversold. The STOCH value of 93.52 is Negative, 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 15 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $36.31B | 21.43 | 12.19% | 3.45% | 8.93% | -0.59% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | $27.65B | 23.98 | 10.03% | 2.26% | 7.10% | 18.86% | |
63 Neutral | $21.64B | 24.22 | 8.30% | 3.34% | 9.93% | -1.74% | |
63 Neutral | $27.61B | 20.83 | 10.78% | 3.51% | 17.53% | -8.86% | |
62 Neutral | $25.52B | 17.55 | 8.91% | 4.60% | 7.75% | 66.25% | |
60 Neutral | $30.10B | 18.98 | 11.70% | 2.77% | 3.76% | 25.15% |
* Utilities Sector Average
CNP
Centerpoint Energy
41.97
3.89
10.21%
AEE
Ameren
108.74
9.29
9.34%
CMS
CMS Energy
69.00
-1.10
-1.57%
DTE
DTE Energy
132.67
-1.57
-1.17%
ES
Eversource Energy
67.76
-2.79
-3.96%
WEC
WEC Energy Group
111.43
0.64
0.57%
Centerpoint Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
CenterPoint Energy Raises 2026 Earnings Guidance and Outlook
Positive
Oct 27, 2026
On October 27, 2026, CenterPoint Energy reported third quarter 2026 net income of $331 million, or $0.50 per diluted share on a GAAP basis, up from $0.45 a year earlier, with non-GAAP EPS rising to $0.53 from $0.50. Performance was driven by custo...
Regulatory Filings and Compliance
CenterPoint Energy Announces New Material Definitive Agreement
Neutral
Oct 20, 2026
CenterPoint Energy issued a brief notice stating only that certain information was included, but without providing any substantive details, dates, or descriptions of events. As a result, no meaningful assessment can be made about the company’...
Business Operations and StrategyPrivate Placements and Financing
CenterPoint Energy Announces $700 Million Subordinated Notes Offering
Positive
Jul 31, 2026
On July 30, 2026, CenterPoint Energy entered into an underwriting agreement with a syndicate of banks for a $700 million underwritten public offering of 6.400% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, Series E, due August 15, 2058. The...
Business Operations and StrategyFinancial Disclosures
CenterPoint Energy Reaffirms 2026 Earnings Guidance, Expands Capex
Positive
Jul 28, 2026
CenterPoint Energy reported second-quarter 2026 GAAP earnings of $244 million, or $0.37 per diluted share, up from $0.30 a year earlier, with non-GAAP EPS rising to $0.40 from $0.29. The results, driven by customer growth, regulatory recovery and ...
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.