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Centerpoint Energy (CNP)
NYSE:CNP
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Centerpoint Energy (CNP) AI Stock Analysis

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CNP

Centerpoint Energy

(NYSE:CNP)

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Neutral 70 (OpenAI - 4o)
Rating:70Neutral
Price Target:
$43.00
▲(10.65% Upside)
CenterPoint Energy's strong earnings call and stable financial performance are key strengths, offset by valuation concerns and cash flow challenges. The technical indicators support a positive outlook, contributing to a moderately favorable stock score.
Positive Factors
Revenue Growth
Steady revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.
Capital Investment Plan
The significant capital investment plan positions CenterPoint Energy for future growth, enhancing infrastructure and expanding service capabilities.
Debt Management
Improved debt-to-equity ratio indicates effective debt management, enhancing financial flexibility and reducing risk associated with high leverage.
Negative Factors
Cash Flow Challenges
Negative free cash flow suggests difficulties in generating sufficient cash from operations, which could impact the company's ability to fund investments and manage debt.
Interest Expenses
Rising interest expenses can strain profitability and cash flow, potentially limiting financial flexibility and increasing vulnerability to interest rate fluctuations.
Operational Challenges
Operational challenges in Indiana, including project cancellations, may hinder growth and affect the company's ability to meet renewable energy targets.

Centerpoint Energy (CNP) vs. SPDR S&P 500 ETF (SPY)

Centerpoint Energy Business Overview & Revenue Model

Company DescriptionCenterPoint Energy, Inc. (CNP) is a publicly traded energy company based in Houston, Texas. It operates in the utility sector, primarily providing electric and natural gas services to residential, commercial, and industrial customers. The company is involved in the generation, transmission, and distribution of electricity and natural gas, serving millions of customers across several states, including Texas, Indiana, and Louisiana. CenterPoint Energy also has a growing presence in the renewable energy sector, focusing on sustainable energy solutions.
How the Company Makes MoneyCenterPoint Energy generates revenue through multiple streams, primarily by providing utility services. The main revenue sources include regulated electric and natural gas distribution, where the company charges customers based on usage and rates set by public utility commissions. Additionally, CenterPoint earns money from the sale of electric generation and transmission services, as well as natural gas procurement and transportation. The company also participates in infrastructure projects, such as the development of renewable energy sources, which can provide additional revenue through long-term contracts and partnerships. Key partnerships with energy suppliers and investments in technology for smart grids further enhance its revenue potential. Regulatory approvals and rate adjustments are critical factors that influence its financial performance.

Centerpoint Energy Key Performance Indicators (KPIs)

Any
Any
Net Income by Segment
Net Income by Segment
Analyzes profitability across various segments, providing insight into which areas are most financially successful and where cost management or investment is needed.
Chart InsightsCenterPoint Energy's net income from the Electric segment shows a recovery trend post-2021, while the Natural Gas segment experiences volatility. The earnings call highlights a strategic shift with increased capital investments to support Texas growth, particularly in the Houston Electric service territory. Despite these investments, challenges like increased interest expenses and regulatory hurdles persist. The proposed sale of Ohio Gas LDC aims to recycle capital for Texas, aligning with the company's focus on strengthening its core operations in high-growth areas.
Data provided by:Main Street Data

Centerpoint Energy Earnings Call Summary

Earnings Call Date:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
CenterPoint Energy's earnings call reflected a strong financial performance with significant EPS growth and an ambitious capital investment plan. The sale of the Ohio gas LDC is expected to generate substantial proceeds for reinvestment. However, challenges such as higher interest expenses and operational adjustments in Indiana were noted. Overall, the positive achievements outweigh the challenges.
Q3-2025 Updates
Positive Updates
Record Non-GAAP EPS Growth
CenterPoint Energy reported a non-GAAP EPS of $0.50 for Q3 2025, representing a 60% increase over the same period last year. This robust growth reflects strong financial performance and confidence in achieving revised 2025 EPS guidance.
Ambitious 10-Year Capital Investment Plan
The company announced a $65 billion capital investment plan focused on supporting economic development and delivering strong customer outcomes, with potential incremental capital investment opportunities of at least $10 billion, particularly in Texas.
Strong Throughput Growth
Houston Electric business throughput increased by 9% year-to-date, with industrial customer class throughput up over 17% quarter-over-quarter and up over 11% year-to-date, showcasing significant demand growth.
Ohio Gas LDC Sale
CenterPoint Energy announced the sale of its Ohio gas LDC, expected to generate $2.6 billion in gross proceeds, representing a strong valuation of approximately 1.9x 2024 rate base, and plans to redeploy proceeds into higher growth jurisdictions.
Revised 2025 and 2026 Non-GAAP EPS Guidance
The company reiterated its full-year 2025 non-GAAP EPS guidance range of $1.75 to $1.77, representing 9% growth over 2024, and initiated 2026 guidance targeting at least the midpoint of $1.89 to $1.91, representing an 8% increase.
Negative Updates
Higher Interest Expenses
The company experienced a $0.04 increase in interest expense and financing costs, primarily due to incremental debt issuances since Q3 2024.
Operational Challenges in Indiana
CenterPoint Energy is addressing affordability issues in Indiana, having canceled $1 billion of renewable projects and delaying the retirement of its final coal facility to moderate rate increases.
Company Guidance
In the third quarter of 2025, CenterPoint Energy reported a non-GAAP earnings per share (EPS) of $0.50, marking a 60% increase compared to the previous year. The company reiterated its full-year 2025 non-GAAP EPS guidance range of $1.75 to $1.77, representing a 9% growth from 2024. CenterPoint's ambitious 10-year plan includes a capital investment of at least $65 billion, with an additional $10 billion of potential investments, particularly in Texas, driven by rapid demand growth. The company forecasts peak load demand in its Houston Electric service territory to increase by 10 gigawatts by 2031, nearly a 50% rise over six years. The plan anticipates a rate base compound annual growth rate (CAGR) of over 11% through the decade's end, with double-digit growth potential extending into the next decade. Additionally, CenterPoint expects its non-GAAP EPS to grow at the mid to high end of its 7% to 9% annual guidance range from 2026 through 2028, and 7% to 9% annually through 2035. The recent sale of its Ohio gas LDC, expected to generate approximately $2.6 billion, supports CenterPoint's strategy to finance growth and enhance its investment profile.

Centerpoint Energy Financial Statement Overview

Summary
CenterPoint Energy demonstrates stable revenue growth and profitability with a strong equity position. However, challenges in cash flow management and potential liquidity issues need addressing.
Income Statement
75
Positive
Centerpoint Energy's income statement shows a stable financial performance with a consistent increase in revenue, as evidenced by a 1.17% revenue growth rate in the TTM period. The company maintains healthy profitability margins, with a gross profit margin of 44.94% and a net profit margin of 11.37% in the TTM. However, the slight decline in gross profit margin from the previous year indicates potential cost pressures.
Balance Sheet
65
Positive
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.26 in the TTM, significantly improved from the previous year. The return on equity remains stable at around 9.49%, indicating efficient use of equity. However, the high total debt level in previous years poses a potential risk if not managed carefully.
Cash Flow
55
Neutral
The cash flow statement reveals challenges with negative free cash flow in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio of 0.45 suggests moderate cash generation relative to net income. The negative free cash flow growth rate highlights the need for improved cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.09B8.64B8.70B9.32B8.35B7.42B
Gross Profit4.07B3.98B3.69B3.40B3.21B2.93B
EBITDA3.55B3.49B3.19B3.23B2.62B2.28B
Net Income995.00M1.02B917.00M1.06B1.49B-773.00M
Balance Sheet
Total Assets45.05B43.77B39.72B38.55B37.68B33.47B
Cash, Cash Equivalents and Short-Term Investments646.00M585.00M631.00M584.00M1.67B1.02B
Total Debt22.94B20.96B18.62B16.86B16.10B13.44B
Total Liabilities34.01B33.10B30.05B28.50B28.26B25.12B
Stockholders Equity11.04B10.67B9.67B10.04B9.41B8.35B
Cash Flow
Free Cash Flow-2.80B-2.37B-524.00M-2.61B-3.14B-601.00M
Operating Cash Flow2.60B2.14B3.88B1.81B22.00M2.00B
Investing Cash Flow-4.53B-4.49B-4.23B-1.63B-1.85B-1.26B
Financing Cash Flow1.85B2.27B374.00M-345.00M1.92B-834.00M

Centerpoint Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price38.86
Price Trends
50DMA
38.69
Positive
100DMA
37.90
Positive
200DMA
36.57
Positive
Market Momentum
MACD
-0.04
Positive
RSI
47.32
Neutral
STOCH
35.90
Neutral
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 38.86 is below the 20-day moving average (MA) of 39.35, above the 50-day MA of 38.69, and above the 200-day MA of 36.57, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.32 is Neutral, neither overbought nor oversold. The STOCH value of 35.90 is Neutral, 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 16 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$27.56B22.3810.29%2.76%17.32%3.35%
72
Outperform
$22.20B21.0612.34%2.85%10.96%-0.77%
72
Outperform
$26.66B20.0510.54%3.81%7.64%48.61%
70
Neutral
$25.29B24.469.61%2.25%6.43%5.07%
66
Neutral
$26.81B27.256.96%2.96%6.62%17.35%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
65
Neutral
$27.40B31.774.03%13.12%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNP
Centerpoint Energy
38.86
10.21
35.64%
AEE
Ameren
101.28
17.21
20.47%
CMS
CMS Energy
72.57
8.18
12.70%
FE
FirstEnergy
45.69
5.73
14.34%
ES
Eversource Energy
72.91
14.94
25.77%
PPL
PPL
36.37
5.03
16.05%

Centerpoint Energy Corporate Events

Centerpoint Energy Inc. Demonstrates Strong Compliance and Transparency in Q3 2025 Financial Reporting
Oct 24, 2025

Centerpoint Energy Inc. has maintained effective disclosure controls and procedures as of September 30, 2025, ensuring compliance with SEC regulations for timely and accurate reporting. The company’s internal controls over financial reporting have remained stable, with no significant changes during the third quarter of 2025 that could impact their effectiveness. This stability provides assurance that management, including key executives, can make informed decisions about disclosures. As a result, Centerpoint Energy Inc. continues to uphold its commitment to transparency and regulatory compliance.

CenterPoint Energy Reports Strong Q3 2025 Results
Oct 24, 2025

CenterPoint Energy, Inc. is a Texas-based investor-owned electric and gas utility company that provides electric transmission and distribution, power generation, and natural gas distribution services to over 7 million customers across Indiana, Minnesota, Ohio, and Texas.

CenterPoint Energy’s Earnings Call Highlights Robust Growth
Oct 24, 2025

CenterPoint Energy’s recent earnings call painted a picture of robust financial health and strategic foresight. The company reported significant earnings per share (EPS) growth and laid out an ambitious capital investment plan. While challenges such as increased interest expenses and operational adjustments in Indiana were acknowledged, the overall sentiment was positive, with achievements overshadowing the hurdles.

Business Operations and StrategyFinancial Disclosures
CenterPoint Energy Reports Strong Q3 2025 Results
Positive
Oct 23, 2025

On October 23, 2025, CenterPoint Energy reported strong third-quarter results with a net income of $293 million, or $0.45 per diluted share on a GAAP basis, and $0.50 on a non-GAAP basis, marking a significant increase from the previous year. The growth was driven by regulatory recovery and reduced operational costs, with industrial demand in Houston Electric showing a notable increase. The company reiterated its non-GAAP EPS guidance for 2025 and 2026, indicating continued growth expectations. CenterPoint’s strategic focus on infrastructure investments and resilience initiatives in the Greater Houston area is expected to bolster its market position and stakeholder value.

The most recent analyst rating on (CNP) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

Business Operations and StrategyM&A Transactions
CenterPoint Energy Sells Ohio Gas Business for $2.62B
Positive
Oct 21, 2025

On October 20, 2025, CenterPoint Energy announced the sale of its Ohio natural gas business, Vectren Energy Delivery of Ohio, to National Fuel Gas Company for $2.62 billion. The transaction, expected to close in the fourth quarter of 2026, will allow CenterPoint to focus on its core electric and natural gas operations across multiple states, supporting its $65 billion capital plan and enhancing its earnings growth strategy. The deal includes a $1.42 billion cash payment and a $1.2 billion seller promissory note, with proceeds aimed at general corporate purposes and capital investment optimization.

The most recent analyst rating on (CNP) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
CenterPoint Energy Appoints Jason P. Wells as Board Chair
Neutral
Oct 9, 2025

On October 8, 2025, CenterPoint Energy’s Board of Directors, following the Corporate Governance and Nominating Committee’s recommendation, appointed Jason P. Wells as Chair of the Board, leveraging his extensive utility industry experience and stakeholder relationships to guide the company’s long-term strategy, including a new 10-year $65 billion capital plan. Additionally, Christopher H. Franklin was appointed as the Lead Director due to his leadership experience and communication skills, enhancing the Board’s governance structure and strategic oversight.

The most recent analyst rating on (CNP) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

Private Placements and Financing
CenterPoint Energy Announces $700M Notes Offering
Neutral
Oct 1, 2025

On September 30, 2025, CenterPoint Energy, Inc. entered into an Underwriting Agreement with several financial institutions for a public offering of $700 million in 5.950% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, Series D, due 2056. This strategic financial move allows CenterPoint Energy to raise substantial capital, potentially impacting its financial flexibility and market position, while also affecting stakeholders through the terms of the Notes, which include interest deferral options and subordination to senior indebtedness.

The most recent analyst rating on (CNP) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
CenterPoint Energy Unveils $65 Billion Investment Plan
Positive
Sep 29, 2025

On September 29, 2025, CenterPoint Energy announced a significant 10-year capital investment plan worth $65 billion, aimed at enhancing customer experience and supporting economic growth, particularly in Texas. The company also raised its non-GAAP EPS guidance for 2025 and introduced guidance for 2026, reflecting its commitment to delivering consistent value to stakeholders and addressing the anticipated increase in electric demand over the next decade.

The most recent analyst rating on (CNP) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

Private Placements and Financing
CenterPoint Energy Completes $1 Billion Convertible Notes Sale
Neutral
Jul 31, 2025

On July 31, 2025, CenterPoint Energy, Inc. completed the sale of $1 billion in 3.00% Convertible Senior Notes due 2028. The Notes were sold in a private offering and are convertible under certain conditions, with a conversion rate initially set at 21.4477 shares of common stock per $1,000 principal amount of Notes. The Notes will mature on August 1, 2028, unless converted or repurchased earlier.

The most recent analyst rating on (CNP) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Centerpoint Energy stock, see the CNP Stock Forecast page.

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.Date of analysis: Oct 26, 2025