CenterPoint Energy, Inc.CNP
NYSE•Utilities•Utilities - Regulated Electric
CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company operates through Electric; Natural Gas; and Corporate and Other segments. The Electric segment provides electric transmission and distribution services to electric customers and electric generation assets, as well as optimizes assets in the wholesale power market in Indiana Electric's service territory. The Natural Gas segment engages in the intrastate natural gas sales, and natural gas transportation and distribution for residential, commercial, and industrial customers in Indiana, Minnesota, Ohio, and Texas; permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies; and provides home appliance maintenance and repair services to customers in Minnesota and home repair protection plans to natural gas customers in Indiana, Mississippi, Ohio, and Texas through a third party. As of December 31, 2025, it served approximately 2,859,313 metered customers; owned 355 substations with transformer capacity of 81,692 megavolt amperes; and owned and operated approximately 208 miles of intrastate pipeline in Louisiana and Texas. The company was founded in 1866 and is headquartered in Houston, Texas.
as of March 2026
Are revenues and earnings expanding?
$9.41B in TTM revenue grew 5.2% YoY, reaching $2.98B last quarter. TTM EBITDA of $3.71B on operating income of $658.00M shows growth is flowing through. Net income of $1.07B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 22.1% is down 0.1% YoY — costs are rising relative to revenue. Net margin at 10.6%. ROE of 9.4% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 26.4x P/E, the stock trades in line with market averages — fairly valued. P/S of 3.0x and P/B of 2.5x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $47.84B in assets and $22.48B in long-term debt, the D/E of 2.0 reflects moderate leverage — debt is manageable but worth monitoring.
Is the business self-funding?
FCF of $-916.00M. The FCF / Net Income ratio of -0.9x shows cash consumption — the business is not yet self-funding. Cash reserves of $639.00M provide financial flexibility. Share count is stable — no dilution or buyback activity.
Competitive analysis based on 67 quarters of fundamental data
Operating margins are stable at ~22.7%, suggesting durable pricing power and cost discipline.
ROE is positive at ~9.3% on average, adequate but below the threshold typically associated with wide moats.
Data-driven red flags and warnings across 67 quarters
Margins are stable or improving at ~22.6% — no sign of cost or pricing stress.
Free cash flow has been negative in 8 of the last 8 quarters — earnings are not translating to cash.
D/E ratio is 2.0 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
The last 8 consecutive quarters had negative FCF — the company is burning cash and may need external funding.
Share count is stable — no significant dilution or buyback activity.
Only 0 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
TTM revenue has grown consistently (6 of 7 quarters up), with ~9.9% growth over the period. Strong demand durability.