CenterPoint Energy Stock Analysis, Valuation (NYSE:CNP)

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$28.29 $0.34 (1.22%) CNP stock closing price Aug 16, 2018 (Closing)

Take a look at Amigobulls CenterPoint Energy stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for CNP stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

CenterPoint Energy, Inc. Stock Rating 3.6/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for CNP stock analysis. CenterPoint Energy valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our CenterPoint Energy stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy CNP stock?

  • When compared with the Utilities sector average PS ratio of 2.1, the price-to-sales ratio of 1.2 for CNP stock is attractive.
  • CenterPoint Energy's return on invested capital of 4.5 is good.
  • The LTM ROE of 36.3 for CenterPoint Energy is attractive.
  • The company has a healthy free cash flow margin of 12.5.

Should you sell CNP stock?

  • CenterPoint Energy's TTM operating margin of 10.05 was rather poor.
  • With a debt/equity ratio of 1.77, CenterPoint Energy is highly leveraged in comparison to Utilities peers.

Comments on this video and CenterPoint Energy stock

Investors can use Amigobulls CenterPoint Energy stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

CenterPoint Energy revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of CNP technical analysis to check whether the fundamental story is reflected in the market sentiment.