CenterPoint Energy, Inc. (CNP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-225.7%

-$53.44

vs $42.53 price

Levered DCF

-$144.21

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.9

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	23.81×	20.08×	20.85×	18.74×	11.88×	-12.09×	20.35×	38.15×
P/B	2.24×	1.91×	1.86×	1.88×	1.76×	1.38×	1.64×	1.57×
P/S	2.68×	2.36×	2.07×	2.03×	1.98×	1.55×	1.81×	2.02×
EV / EBITDA	13.22×	11.84×	11.46×	11.04×	12.36×	10.87×	12.22×	7.95×
Gross margin	28.7%	46.0%	42.4%	36.4%	38.4%	39.5%	36.6%	39.9%
Operating margin	22.5%	23.0%	20.2%	16.8%	16.3%	14.0%	14.2%	13.8%
Net margin	11.2%	11.8%	10.5%	11.3%	17.8%	-10.4%	10.5%	5.9%
Current ratio	0.91×	1.08×	0.78×	0.92×	1.72×	0.61×	0.99×	2.13×
Debt / equity	2.12×	1.97×	1.93×	1.68×	1.71×	1.61×	1.81×	1.14×
Interest coverage	2.34×	2.37×	2.51×	2.99×	2.58×	1.96×	1.89×	2.07×
Dividend yield	2.3%	2.6%	3.0%	2.6%	3.0%	4.6%	5.1%	7.2%
Payout ratio	54.6%	51.2%	58.3%	46.3%	33.1%	-68.4%	87.9%	246.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.4%	9.6%	9.5%	10.5%	15.8%	-9.3%	9.5%	4.6%
Return on invested capital	4.0%	4.1%	4.0%	3.3%	3.4%	2.9%	3.1%	2.6%
Return on assets	2.2%	2.3%	2.3%	2.7%	3.9%	-2.3%	2.2%	1.4%
Free cash flow yield	-9.5%	-11.6%	-2.9%	-13.8%	-19.0%	-5.2%	-6.3%	3.8%
Earnings yield	4.2%	5.0%	5.1%	5.6%	9.0%	-6.7%	5.8%	2.9%
Enterprise value	$48.7B	$41.3B	$36.6B	$35.7B	$32.4B	$24.8B	$28.6B	$17.6B
Net debt / EBITDA	6.42×	6×	5.81×	5.2×	6.05×	5.83×	6.36×	2.23×
Cash conversion cycle (days)	25	10	45	36	11	33	30	9