CENTERPOINT ENERGY INC's gross profit margin for the first 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 0.64 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 3.62% 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||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||2433.0||3163.0|
|Net Income ($mil)||131.0||185.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||1147.0||1116.0|
|Total Assets ($mil)||22670.0||22264.0|
|Total Debt ($mil)||8572.0||8563.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||19.44||16.76|
|Return on Assets||2.45||1.56|
|Return on Equity||12.17||7.9|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||430.21||429.75|
|Div / share||0.25||0.24|
|Book value / share||10.63||10.27|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3846232.0||4012660.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 20.14 for the Multi-Utilities industry and a discount compared to the S&P 500 average of 20.83. For additional comparison, its price-to-book ratio of 1.93 indicates a discount versus the S&P 500 average of 2.88 and a discount versus the industry average of 2.38. 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.
|CNP 15.90||Peers 20.14||CNP 5.24||Peers 8.26|
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.
|CNP 17.68||Peers 17.39||CNP NM||Peers 1.62|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
CNP is trading at a premium to 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.
|CNP 1.93||Peers 2.38||CNP 59.25||Peers -7.56|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
CNP is expected to have an earnings growth rate that significantly exceeds its peers.
|CNP 1.04||Peers 2.25||CNP -4.34||Peers -1.48|
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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