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CenterPoint Energy Inc (CNP) Stock

CenterPoint Energy Inc Stock Details, Movements and Public Alerts

CenterPoint Energy (CNP): Houston Utility Powering America's Fastest-Growing Metro with $40B Grid Investment

CEO Jason Wells leads CenterPoint through Houston grid transformation after Hurricane Beryl, investing $15B in grid hardening while capitalizing on Texas population growth. CNP serves 2.7M electric customers in Greater Houston adding 100K residents annually, earning 9.8% regulated returns on infrastructure investments. The $40B capital plan targets grid modernization, renewable interconnections, and system expansion.

52-Week Range

$40.28 - $29.87

-5.19% from high · +27.85% from low

Avg Daily Volume

5,114,156

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

23.63

Near market average

Forward P/E

19.61

Earnings expected to grow

PEG Ratio

2.28

Potentially overvalued

Price to Book

2.22

EV/EBITDA

12.91

EPS (TTM)

$1.58

Price to Sales

2.67

Beta

0.56

Less volatile than market

How is CNP valued relative to its earnings and growth?
CenterPoint Energy Inc trades at a P/E ratio of 23.63, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 19.61 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.28 indicates a premium valuation even accounting for growth.
What is CNP's risk profile compared to the market?
With a beta of 0.56, CenterPoint Energy Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.22 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

11.40%

Operating Margin

24.90%

EBITDA

$3.43B

Return on Equity

9.61%

Return on Assets

2.90%

Revenue Growth (YoY)

7.10%

Earnings Growth (YoY)

50.60%

How profitable and efficient is CNP's business model?
CenterPoint Energy Inc achieves a profit margin of 11.40%, meaning it retains $11.40 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 24.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 9.61% and ROA at 2.90%, the company achieves moderate returns on invested capital.
What are CNP's recent growth trends?
CenterPoint Energy Inc's revenue grew by 7.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 50.60% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against UTILITIES - REGULATED ELECTRIC industry averages for proper context.

Dividend Information

Dividend Per Share

$0.87

Dividend Yield

2.32%

Ex-Dividend Date

Nov 20, 2025

Dividend Date

Dec 11, 2025

What dividend income can investors expect from CNP?
CenterPoint Energy Inc offers a dividend yield of 2.32%, paying $0.87 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Nov 20, 2025.
How reliable is CNP's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - CenterPoint Energy Inc pays $0.87 per share in dividends against earnings of $1.58 per share, resulting in a payout ratio of 55.06%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Dec 11, 2025.

Company Size & Market

Market Cap

$24.4B

Revenue (TTM)

$9.11B

Revenue/Share (TTM)

$13.97

Shares Outstanding

652.87M

Book Value/Share

$16.90

Asset Type

Common Stock

What is CNP's market capitalization and position?
CenterPoint Energy Inc has a market capitalization of $24.4B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 652.87M shares outstanding, the company's ownership is relatively concentrated. As a participant in the UTILITIES - REGULATED ELECTRIC industry, it competes with other firms in this sector.
How does CNP's price compare to its book value?
CenterPoint Energy Inc's book value per share is $16.90, while the current stock price is $38.19, resulting in a price-to-book (P/B) ratio of 2.26. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$42.47

11.21% upside potential

Analyst Recommendations

Strong Buy

1

Buy

5

Hold

11

Sell

0

Strong Sell

0

How reliable are analyst predictions for CNP?
17 analysts cover CNP with 35% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $42.47 implies 11.2% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on CNP?
Current analyst recommendations:1 Strong Buy, 5 Buy, 11 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:20 AM

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CenterPoint Energy (CNP) Stock Analysis 2025: Complete Investment Guide

Houston's $15B Grid Upgrade

Jason Wells responded to Hurricane Beryl with $15B grid resilience plan: underground lines, smart meters, microgrids, battery storage. Texas regulators approved with 9.8% returns, turning crisis into growth opportunity. Houston's 100K+ annual population growth requires new infrastructure, creating rare combination of defensive returns and organic expansion.

Financial Performance

  • Revenue: $10.5B with 5-6% growth
  • EPS: $1.60 growing to $2.40+ by 2030 (8-10% CAGR)
  • Dividend: $0.78/share (3.2% yield) with 10% growth target
  • Rate Base: $30B→$52B by 2030 via $40B capex

Who Is This Stock Suitable For?

Perfect For

  • Income investors (3.2% + 10% growth)
  • Texas bulls
  • Climate infrastructure plays

Less Suitable For

  • Hurricane-risk-averse
  • High-yield seekers (3.2%)
  • Traders

Conclusion

BUY for growth-income portfolios.
Bull Case
$37 (23% upside)
Base Case
$33 (10% upside)
Bear Case
$26 (13% downside)

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