-0.94%
3.43%
13.96%
20.32%
16.53%
15.01%
23.65%
AI Spotlight on CNP
Company Description
CenterPoint Energy, Inc.operates as a public utility holding company in the United States.The company operates through Electric and Natural Gas segments.
The Electric segment includes electric transmission and distribution services to electric customers and electric generation assets, as well as assets in the wholesale power market.The Natural Gas segment provides natural gas distribution services, as well as home appliance maintenance and repair services to customers in Minnesota; and home repair protection plans to natural gas customers in Arkansas, Indiana, Mississippi, Ohio, Oklahoma, and Texas and Louisiana through a third party.This segment also engages in the sale of regulated intrastate natural gas, and transportation and storage of natural gas for residential, commercial, industrial, and transportation customers.
As of December 31, 2021, it served approximately 2.7 million metered customers; owned 239 substation sites with a total installed rated transformer capacity of 71,241 megavolt amperes; operated approximately 1,00,000 linear miles of natural gas distribution and transmission mains; and owned and operated 285 miles of intrastate pipeline in Louisiana, Texas, and Oklahoma.The company was founded in 1866 and is headquartered in Houston, Texas.
Market Data
| Last Price | 32.57 |
| Change Percentage | -0.94% |
| Open | 32.75 |
| Previous Close | 32.88 |
| Market Cap ( Millions) | 21227 |
| Volume | 3489652 |
| Year High | 33.12 |
| Year Low | 25.41 |
| M A 50 | 31.99 |
| M A 200 | 29.78 |
Financial Ratios
| FCF Yield | -7.17% |
| Dividend Yield | 2.49% |
| ROE | 9.50% |
| Debt / Equity | 188.68% |
| Net Debt / EBIDTA | 603.70% |
| Price To Book | 2.0 |
| Price Earnings Ratio | 21.92 |
| Price To FCF | -13.96 |
| Price To sales | 2.48 |
| EV / EBITDA | 12.52 |
News
- Jan -31 - CenterPoint Energy announces multi-year Systemwide Resiliency Plan to benefit communities and combat extreme weather threats, outages, and other hazards across Greater Houston
- Jan -30 - CenterPoint Energy reaches settlement agreement with parties to lower bills for customers in its 2024 Houston Electric Rate Case
- Jan -23 - SecurePay(TM) Gateway, a Product of OLB Group, Launches 3D Secure (3DS) Access Control to Enhance Security for Card-Not-Present (CNP) Debit and Credit Card Fraud
- Jan -22 - Final Winter Storm Enzo Update: More than 99 percent of CenterPoint Energy customers maintained power through extreme winter weather; Company deactivates emergency operations center
- Jan -22 - CenterPoint Energy Winter Storm Enzo Update: More than 99.9 percent of customers continue to have power across Greater Houston area; Crews continuing to respond to scattered customer outages and prepare for coldest overnight temperatures of the year
- Jan -21 - XEL vs. CNP: Which Stock Is the Better Value Option?
- Jan -20 - As temperatures drop, CenterPoint Energy continues mobilizing response efforts for Winter Storm Enzo projected to impact the Greater Houston area Monday evening
- Jan -18 - CenterPoint Energy mobilizes to respond to winter storm projected to impact the Greater Houston area
- Jan -18 - As weather models start to align toward freezing precipitation and ERCOT issues Weather Watch, CenterPoint Energy continues preparations and secures additional mutual aid support
- Jan -16 - CenterPoint Energy, Inc. to Host Webcast of Fourth Quarter & Full Year 2024 Earnings Conference Call
- Jan -15 - CenterPoint readies for second major cold snap of 2025 and is deploying its cold weather readiness plan
- Jan -14 - To better serve customers and local communities in 2025, CenterPoint Energy launches state-specific social media accounts to provide tailored experience across its multi-state service territory
- Jan -08 - Responding to Texas Governor's State of Emergency Declaration for Approaching Winter Storm, CenterPoint Energy Continues to Vigilantly Monitor Forecasts, Deploy Cold Weather Mitigations and Remains Ready to Respond to Potential Severe Weather Impacts
- Jan -07 - NI or CNP: Which Is a Better Utility Electric Power Stock?
- Jan -03 - CenterPoint Energy makes preparations for first major cold snap of 2025
- Jan -02 - 5 Of UBS Highest Conviction 2025 Picks Are Also Dividend Superstars
- Dec -31 - CenterPoint Energy shares New Year's resolution checklist to help customers save energy and money while staying safe
- Dec -19 - CenterPoint Energy proposes solution to help mitigate ERCOT's regional energy shortfall in Central Texas while lowering Greater Houston-area customer bills
- Dec -16 - CenterPoint Energy announces senior leadership changes
- Dec -16 - CenterPoint Energy appoints Dean Seavers as new Board member
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Electric
Expected Growth : 2.5 %
What the company do ?
CenterPoint Energy, Inc.'s Electric segment includes the transmission and distribution of electricity to residential, commercial, and industrial customers in Texas.
Why we expect these perspectives ?
CenterPoint Energy's 2.5% growth in electric segment is driven by increasing demand from residential and commercial customers, investments in grid modernization, and favorable weather conditions. Additionally, the company's focus on renewable energy sources and energy efficiency programs contribute to the growth.
Segment n°2 -> Natural Gas
Expected Growth : 2.8 %
What the company do ?
Natural Gas from CenterPoint Energy, Inc. is a utility company providing safe, reliable, and affordable natural gas services to residential, commercial, and industrial customers.
Why we expect these perspectives ?
CenterPoint Energy's 2.8% growth in Natural Gas is driven by increasing demand from industrial and power generation customers, coupled with infrastructure investments in pipeline expansion and modernization. Additionally, favorable weather patterns and rising LNG exports contribute to the growth. Furthermore, the company's focus on cost savings and operational efficiencies also supports the growth momentum.
Segment n°3 -> Energy Performance
Expected Growth : 3.2 %
What the company do ?
CenterPoint Energy, Inc.'s Energy Performance program helps customers track and manage their energy usage, providing personalized recommendations to reduce consumption and lower bills.
Why we expect these perspectives ?
CenterPoint Energy's 3.2% growth in Energy Performance is driven by increasing adoption of energy-efficient solutions, favorable regulatory policies, and strategic investments in grid modernization. Additionally, rising demand for renewable energy sources and growing customer focus on sustainability contribute to the segment's growth.
Centerpoint Energy, Inc. Products
| Product Range | What is it ? |
|---|---|
| Electricity Transmission and Distribution | CenterPoint Energy provides electricity transmission and distribution services to residential, commercial, and industrial customers. |
| Natural Gas Distribution | CenterPoint Energy delivers natural gas to customers through its vast network of pipelines, providing a clean and efficient source of energy. |
| Energy Efficiency Programs | CenterPoint Energy offers energy efficiency programs to help customers reduce energy consumption and lower their energy bills. |
| Home Services | CenterPoint Energy provides home services, including HVAC maintenance, repair, and installation, as well as plumbing and electrical services. |
| Infrastructure Services | CenterPoint Energy offers infrastructure services, including pipeline construction, maintenance, and repair, to support the energy industry. |
CenterPoint Energy, Inc.'s Porter Forces
Threat Of Substitutes
CenterPoint Energy, Inc. operates in a highly regulated industry, which limits the threat of substitutes. However, the increasing adoption of renewable energy sources and energy-efficient technologies poses a moderate threat to the company's traditional business model.
Bargaining Power Of Customers
CenterPoint Energy, Inc. serves a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diversified customer mix and long-term contracts further mitigate the bargaining power of customers.
Bargaining Power Of Suppliers
CenterPoint Energy, Inc. relies on a few large suppliers for its natural gas and electricity needs. While the company has diversified its supply chain, the bargaining power of suppliers remains moderate due to the concentrated nature of the industry.
Threat Of New Entrants
The energy industry is highly regulated, and significant barriers to entry exist, including high capital requirements and complex infrastructure needs. These barriers limit the threat of new entrants to CenterPoint Energy, Inc.'s business.
Intensity Of Rivalry
CenterPoint Energy, Inc. operates in a highly competitive industry, with several large players vying for market share. The company faces intense competition in terms of pricing, customer service, and innovation, which increases the intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 65.82% |
| Debt Cost | 4.46% |
| Equity Weight | 34.18% |
| Equity Cost | 8.50% |
| WACC | 5.84% |
| Leverage | 192.59% |
CenterPoint Energy, Inc. : Quality Control
CenterPoint Energy, Inc. passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| AEE | Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. It operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois … |
| LNT | Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services. It operates through three segments: Utility Electric Operations, Utility Gas Operations, and Utility … |
| CMS | CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in … |
| PNW | Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, … |
| PPL | PPL Corporation, a utility holding company, delivers electricity and natural gas in the United States and the United Kingdom. The company operates through two segments: Kentucky Regulated and Pennsylvania Regulated. … |
Peers Metrics
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Scoring Insights
Peers Group Analysis
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Pinnacle West Capital
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Ameren
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CMS Energy
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CenterPoint Energy
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Alliant Energy
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