CenterPoint Energy Inc.

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CNP : NYSE : Utilities
$27.0 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 3319700.0
02/22/18 - 4:01 PM ET

Financial Analysis


CENTERPOINT ENERGY INC's gross profit margin for the third quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. CENTERPOINT ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.63 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.20% 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 FY17 Q3 FY16
Net Sales ($mil)2098.01889.0
EBITDA ($mil)548.0608.0
EBIT ($mil)279.0284.0
Net Income ($mil)169.0179.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)1258.01084.0
Total Assets ($mil)22135.021286.0
Total Debt ($mil)8681.08551.0
Equity ($mil)3618.03472.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin26.1232.19
EBITDA Margin26.1232.18
Operating Margin13.315.03
Sales Turnover0.410.34
Return on Assets2.69-0.83
Return on Equity16.5-5.12
Debt Q3 FY17 Q3 FY16
Current Ratio0.911.05
Debt/Capital0.710.71
Interest Expense100.0108.0
Interest Coverage2.792.63


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)431.03430.68
Div / share0.270.26
EPS0.390.41
Book value / share8.398.06
Institutional Own % n/a n/a
Avg Daily Volume3421235.02716447.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 19.09 for the Multi-Utilities industry and a discount compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 3.19 indicates valuation on par with the S&P 500 average of 3.26 and a premium versus the industry average of 2.06. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CNP 19.53 Peers 19.09   CNP 7.65 Peers 7.95

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.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CNP 17.84 Peers 16.71   CNP 0.59 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CNP 3.19 Peers 2.06   CNP 426.19 Peers 23.99

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.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CNP 1.27 Peers 2.31   CNP 25.13 Peers 6.98

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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