CenterPoint Energy, Inc. (CNP) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: CenterPoint Energy, Inc.

Updated on October 16, 2026 · accounts published on July 28, 2026

A regulated utility with improved margins, modest returns and heavy debt

CenterPoint Energy trades at a P/E of 24.3× over the last 12 months, 22 % above its ten-year median, with net debt at 6.4× EBITDA in fiscal 2025.

• Is CenterPoint Energy expensive or cheap? At a P/E of 24.3×, CenterPoint Energy trades 22 % above its ten-year median and 17 % above its sector median.
• How is the business doing? Operating margin reached 23 % over the last 12 months, well above the 16 % average of fiscal 2014-2025.
• How strong is the balance sheet? Net debt of $36.76 per share in fiscal 2025 equals 87 % of the current share price.
• Is the dividend sustainable with this debt? The fiscal 2025 payout of 55 % is comfortable, but the dividend shrank 1.9 % a year over fiscal 2015-2025.
• What to expect from the next earnings? Analysts expect EPS of $0.49 on October 27, 2026; the fiscal 2026 consensus has held at $1.91 for 30 days.

Is CenterPoint Energy expensive or cheap?

Over the last 12 months CenterPoint Energy trades at a P/E of 24.3×. That is 22 % above its ten-year median of 19.9× and 14 % above the 20.7× median of 122 utilities. Over the past decade the stock has traded at a lower P/E 74 % of the time, in a range from 7.9× to 38.0×. The earnings yield of 4.1 % and an EV/EBITDA of 12.3× tell the same story: investors are paying more than usual for EPS that grew 1.3 % over the last 12 months. The share price sits 6 % below its 52-week high of $45.04 and is up 2 % over 12 months.

How is the business doing?

Revenue grew 8 % over the last 12 months while EPS rose only 1.3 %, so sales are growing much faster than profit per share. Margins look better: the operating margin of 23 % over the last 12 months is in line with fiscal 2025 and well above the 16 % average of fiscal 2014-2025. Returns on capital are modest. ROIC of 4.1 % over the last 12 months sits 0.1 points above the sector median of 4.0 %, and it has not passed 10 % in any of the last 10 fiscal years. ROE of 9.9 % falls inside the 8 % to 12 % range typical of regulated utilities.

How strong is the balance sheet?

Debt is what defines this balance sheet. Net debt in fiscal 2025 was $36.76 per share, equal to 87 % of the current share price, and debt to equity stands at 2.14 over the last 12 months. Net debt to EBITDA of 6.4× in fiscal 2025 is above the 5.5× considered healthy for a utility, and interest coverage of 2.3× falls short of the 3.0× threshold. Short-term liquidity is adequate, with a current ratio of 1.12. A Piotroski score of 5 out of 9 over the last 12 months is middling: neither a clear improvement nor a warning sign.

Is the dividend sustainable with this debt?

Utilities are regulated, slow-growing businesses that investors treat almost like bonds. What matters is debt, interest rates and whether the dividend holds, so leverage, coverage and payout history count for more than growth multiples. CenterPoint Energy paid out 55 % of earnings in fiscal 2025, well below the 80 % ceiling considered healthy, and the yield is 2.2 % over the last 12 months. The weak spot is the track record: the dividend fell 1.9 % a year over fiscal 2015-2025, against a healthy pace of 4 % or more. With net debt at 6.4× EBITDA and thin interest coverage, there is limited room for faster increases.

What to expect from the next earnings?

CenterPoint Energy reports on October 27, 2026, and analysts expect quarterly EPS of $0.49. On July 28, 2026 it reported EPS of $0.40 against $0.37 expected, a 7 % beat. Over the last eight quarters, though, it beat estimates only three times, so a single beat does not make a pattern. Among 11 analysts, the fiscal 2026 EPS consensus has stayed at $1.91 over the last 30 days, and revenue estimates have barely moved. Of 31 analysts, 13 recommend buying, 17 holding and 1 selling, a cautious consensus with little conviction either way.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.