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CenterPoint Energy Inc
CNP : NYSE : Utilities
$18.54 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 3,791,100
10/12/15 - 4:01 PM ET

Financial Analysis

CENTERPOINT ENERGY INC's gross profit margin for the second quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. CENTERPOINT ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.82% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)1532.01884.0
EBITDA ($mil)425.0442.0
EBIT ($mil)186.0186.0
Net Income ($mil)77.0107.0

Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)1205.01015.0
Total Assets ($mil)22602.021920.0
Total Debt ($mil)8565.08507.0
Equity ($mil)4550.04425.0

Profitability Q2 FY15 Q2 FY14
Gross Profit Margin27.7423.46
EBITDA Margin27.7423.46
Operating Margin12.149.87
Sales Turnover0.360.4
Return on Assets2.332.53
Return on Equity11.5812.56
Debt Q2 FY15 Q2 FY14
Current Ratio0.80.84
Interest Expense118.0122.0
Interest Coverage1.581.52

Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)430.26429.8
Div / share0.250.24
Book value / share10.5810.3
Institutional Own % n/a n/a
Avg Daily Volume3799863.03780930.0


HOLD. This stock's P/E ratio indicates a discount compared to an average of 18.91 for the Multi-Utilities industry and a discount compared to the S&P 500 average of 21.21. For additional comparison, its price-to-book ratio of 1.77 indicates a discount versus the S&P 500 average of 2.68 and a discount versus the industry average of 2.34. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CENTERPOINT ENERGY INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CNP 15.36 Peers 18.91   CNP 4.46 Peers 7.81

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CNP is trading at a discount to its peers.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CNP is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CNP 16.88 Peers 17.00   CNP NM Peers 1.57

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

CNP is trading at a valuation on par with its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

CNP's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CNP 1.77 Peers 2.34   CNP -5.43 Peers 7.18

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CNP is trading at a discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CNP is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CNP 0.99 Peers 2.31   CNP -8.20 Peers -3.75

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CNP is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CNP significantly trails its peers on the basis of sales growth



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