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 ($mil)||1532.0||1884.0|
|Net Income ($mil)||77.0||107.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||1205.0||1015.0|
|Total Assets ($mil)||22602.0||21920.0|
|Total Debt ($mil)||8565.0||8507.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||27.74||23.46|
|Return on Assets||2.33||2.53|
|Return on Equity||11.58||12.56|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||430.26||429.8|
|Div / share||0.25||0.24|
|Book value / share||10.58||10.3|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3799863.0||3780930.0|
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.
|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.
|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.
|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.
|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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