CenterPoint Energy Inc.Find Ratings Reports
CENTERPOINT ENERGY INC's gross profit margin for the first quarter of its fiscal year 2018 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 0.86 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 37.31% 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 FY18||Q1 FY17|
|Net Sales ($mil)||3155.0||2735.0|
|Net Income ($mil)||165.0||192.0|
|Balance Sheet||Q1 FY18||Q1 FY17|
|Cash & Equiv. ($mil)||1163.0||1251.0|
|Total Assets ($mil)||22410.0||21931.0|
|Total Debt ($mil)||8789.0||8679.0|
|Profitability||Q1 FY18||Q1 FY17|
|Gross Profit Margin||17.91||18.9|
|Return on Assets||7.87||2.14|
|Return on Equity||36.33||13.28|
|Debt||Q1 FY18||Q1 FY17|
|Share Data||Q1 FY18||Q1 FY17|
|Shares outstanding (mil)||431.47||430.96|
|Div / share||0.28||0.27|
|Book value / share||11.26||8.21|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5334442.0||3408482.0|
BUY. CENTERPOINT ENERGY INC's P/E ratio indicates a significant discount compared to an average of 30.75 for the Multi-Utilities industry and a significant discount compared to the S&P 500 average of 24.78. Conducting a second comparison, its price-to-book ratio of 2.37 indicates a discount versus the S&P 500 average of 3.22 and a premium versus the industry average of 1.88. 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 6.55||Peers 30.75||CNP 7.24||Peers 7.71|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
CNP is trading at a significant discount to 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.
|CNP 15.83||Peers 16.08||CNP NM||Peers 0.83|
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 2.37||Peers 1.88||CNP 280.37||Peers 27.74|
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.
|CNP 1.15||Peers 2.18||CNP 21.19||Peers 5.31|
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.