CenterPoint Energy IncFind Ratings Reports
CENTERPOINT ENERGY INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. CENTERPOINT ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.74 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 14.44% 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||Q3 FY16||Q3 FY15|
|Net Sales ($mil)||1889.0||1630.0|
|Net Income ($mil)||179.0||-391.0|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||1084.0||1053.0|
|Total Assets ($mil)||21286.0||21778.0|
|Total Debt ($mil)||8551.0||8649.0|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||32.19||32.7|
|Return on Assets||-0.83||-0.03|
|Return on Equity||-5.12||-0.17|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||430.68||430.26|
|Div / share||0.26||0.25|
|Book value / share||8.06||9.43|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3414887.0||4567593.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 2.97 indicates valuation on par with the S&P 500 average of 2.81 and a premium versus the industry average of 2.16. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, CENTERPOINT ENERGY INC proves to trade at a premium to investment alternatives within the industry.
|CNP NM||Peers 19.27||CNP 5.74||Peers 7.85|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
CNP's P/E is negative making this valuation measure meaningless.
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 19.50||Peers 17.00||CNP NA||Peers 1.41|
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.
Ratio not available.
|CNP 2.97||Peers 2.16||CNP -2000.00||Peers -57.97|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CNP is trading at a significant premium 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 1.43||Peers 2.37||CNP -9.16||Peers -4.27|
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