CenterPoint Energy, Inc. (CNP) AI Stock Analysis

NYSE: CNPAI research summary: business, growth, valuation, analysts, bull and bear case.

CNP AI stock analysis summary

AI Research

CenterPoint Energy, Inc. (CNP) is a regulated public utility holding company delivering electric and natural gas services to approximately 2.7 million metered customers. For the trailing twelve months, revenue reached $9.62B with an operating margin of 24.5%. The company maintains high capital expenditures of $4.87B in FY2025, contributing to negative free cash flow of -$2.38B.

Market cap
$26.71B
Revenue (TTM)
$9.62B
P/E
24.0x
fwd 17.7x
1Y return
4.5%
S&P 500 16.8%
Avg. target
$44.12
8.8% vs last close

Bull case

  • Trailing twelve-month operating margin of 24.5% exceeds the S&P 500 Utilities peer median of 23.0%.
  • Latest quarterly revenue increased 10.7% year-over-year, outpacing the peer median growth rate of 4.3%.
  • The company has paid dividends for 57 consecutive years with a sustainable payout ratio of 48.2%.

Bear case

  • Capital expenditures of $4.87B in FY2025 resulted in negative free cash flow of -$2.38B.
  • The balance sheet carries $25.09B in total debt, producing a high debt-to-equity ratio of 2.14.
  • Trailing P/E of 24.0x sits at a premium to the S&P 500 Utilities peer median of 20.9x.

What CenterPoint does

CenterPoint Energy, Inc. operates as a public utility holding company through two primary segments: Electric and Natural Gas. The Electric segment provides electric transmission and distribution services to residential and commercial customers, manages generation assets, and participates in wholesale power markets. The Natural Gas segment provides regulated natural gas distribution, transportation, and storage, serving residential, commercial, industrial, and transportation customers across multiple states, including Texas, Minnesota, Indiana, Ohio, Louisiana, Arkansas, Mississippi, and Oklahoma. Headquartered in Houston, Texas, and founded in 1866, the company serves roughly 2.7 million metered customers through over 1,00,000 linear miles of gas distribution and transmission mains alongside electric transmission and substation infrastructure.

Growth and profitability

Between FY2020 and FY2025, revenue expanded at a five-year compound annual growth rate of 4.8%, rising from $8.35B in FY2021 to $9.36B in FY2025. In FY2025, revenue grew 8.3%, operating margin was 22.5%, and net income reached $1.05B, or $1.77 per share. Over the trailing twelve months, revenue totaled $9.62B with a net profit margin of 11.6%. In the latest quarter ended June 30, 2026, quarterly revenue grew 10.7% year-over-year, while quarterly earnings grew 23.3% year-over-year, exceeding the S&P 500 Utilities median quarterly revenue growth of 4.3%.

CNP income statement →

Balance sheet and cash flow

As of June 30, 2026, CenterPoint Energy held $475.0M in cash and short-term investments against $25.09B in total debt, leading to net debt of $24.62B. Total assets stood at $48.25B and shareholders' equity was $11.72B, resulting in a debt-to-equity ratio of 2.14 and a current ratio of 1.12. In FY2025, operating cash flow was $2.49B, while capital expenditures of $4.87B yielded free cash flow of -$2.38B. The company paid $574.0M in dividends in FY2025, while its share count increased 9.4% over five years.

CNP balance sheet →

Valuation and performance

At $40.55 per share, CenterPoint Energy trades at a trailing price-to-earnings multiple of 24.0x and a forward P/E of 17.7x, compared to the median of its S&P 500 Utilities peers of 20.9x trailing and 16.0x forward. Its enterprise value-to-EBITDA stands at 12.2x, matching the peer median of 12.2x. Over the past year, the stock returned 4.5% compared to 16.8% for the S&P 500 (SPY), and its five-year return was 72.0% versus 83.0% for the index. The stock carries a low beta of 0.46.

CNP key metrics →

CNP dividend

CenterPoint Energy pays a quarterly dividend totaling $0.96 annually, representing a dividend yield of 2.37% and a payout ratio of 48.2%. The company has paid dividends for 57 consecutive years and achieved an annualized dividend growth rate of 3.5% over the past five years. Its last ex-dividend date is November 19, 2026.

CNP dividend history →

What analysts expect

Wall Street coverage includes 7 Strong Buy, 2 Buy, and 10 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $44.12, which is 8.8% above the last close of $40.55. For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.91 on revenue of $9.83B. CenterPoint beat EPS estimates in 3 of the last 4 quarters, and its next earnings release is scheduled for October 27, 2026.

CNP forecast and price target →

Key risks and what to watch

  • Heavy capital intensity resulted in negative free cash flow in each year from FY2021 through FY2025.
  • Net debt of $24.62B as of June 30, 2026, requires continuous cash generation and debt refinancing.
  • Gross margin fell from 46.0% in FY2024 to 28.7% in FY2025.
  • Dilution risk remains present after a 9.4% increase in the share count over five years.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this CNP AI stock analysis

This page is an AI-written research summary of CenterPoint Energy, Inc. (CNP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: CNP income statement, CNP balance sheet, CNP key metrics, CNP analyst forecast, CNP chart. See the CNP stock overview for the latest quote and news.

CNP AI stock analysis FAQ

What dividend does CenterPoint Energy pay?

CenterPoint Energy pays an annualized forward dividend of $0.96 per share, which equates to a 2.37% dividend yield and a payout ratio of 48.2%. It has paid consecutive dividends for 57 years.

How much debt does CenterPoint Energy have?

As of June 30, 2026, CenterPoint Energy held $25.09B in total debt and $475.0M in cash, resulting in net debt of $24.62B and a debt-to-equity ratio of 2.14.

What is the consensus analyst target for CNP?

Analysts have a mean price target of $44.12, representing an 8.8% upside compared to the last close of $40.55. The stock holds 9 Buy or Strong Buy ratings and 10 Hold ratings.

When is CenterPoint Energy's next earnings report?

The company's next earnings report date is scheduled for October 27, 2026.

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