CENTERPOINT ENERGY INC's gross profit margin for the second quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. CENTERPOINT ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.61 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 5.58% 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 FY14||Q2 FY13|
|Net Sales ($mil)||1884.0||1894.0|
|Net Income ($mil)||107.0||-100.0|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||1015.0||1132.0|
|Total Assets ($mil)||21920.0||21658.0|
|Total Debt ($mil)||8507.0||8604.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||23.46||25.13|
|Return on Assets||2.53||0.88|
|Return on Equity||12.56||4.55|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||429.8||428.61|
|Div / share||0.24||0.21|
|Book value / share||10.3||9.78|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3078001.0||4258405.0|
BUY. CENTERPOINT ENERGY INC's P/E ratio indicates a discount compared to an average of 19.14 for the Multi-Utilities industry and a value on par with the S&P 500 average of 19.49. Conducting a second comparison, its price-to-book ratio of 2.33 indicates a discount versus the S&P 500 average of 2.70 and a premium versus the industry average of 2.28. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, CENTERPOINT ENERGY INC seems to be trading at a discount to investment alternatives within the industry.
|CNP 18.56||Peers 19.14||CNP 6.70||Peers 8.95|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
CNP is trading at a valuation on par with 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 19.38||Peers 17.32||CNP 0.29||Peers 1.91|
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.
Discount. 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 trades at a significant discount to its peers.
|CNP 2.33||Peers 2.28||CNP 193.18||Peers 229.00|
Average. 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 valuation on par with its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CNP is expected to trail its peers on the basis of its earnings growth rate.
|CNP 1.16||Peers 1.99||CNP 9.18||Peers 6.88|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CNP has a sales growth rate that significantly exceeds its peers.
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