CenterPoint Energy, Inc. (CNP)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable, understandable businesses bought with a margin of safety. CenterPoint is a regulated electric and natural gas utility, so demand is relatively steady and the beta is low at 0.45; that is the kind of simple business I can follow. Its moat is the regulated service territory, but utilities are capital-intensive, and the numbers show the cost of that model. In fiscal 2025, the year ended 2025-12-31, revenue was $9.3B, net income $1.1B, and diluted EPS $1.60, versus $8.6B, $1.0B, and $1.58 in fiscal 2024. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $3.0B, net income $316.0M, and EPS $0.48, versus $3.0B, $297.0M, and $0.45 in fiscal Q1 2025. That is progress, but FairStock's computed Lynch category calls it a SLOW GROWER — Shrinking: profit -8.3% a year over four years and revenue 3.1%. Financial health is the weak spot: trailing free cash flow was -$2.7B, FCF yield -10.0%, D/E 2.10, and Altman Z-score 0.61. At the 2026-10-26 close of $41.20, FairStock calculates P/E 24.52, P/B 2.32, ROE 9.83%, ROCE 3.00%, and a Graham Number of $25.93, so the price is 58.39% above that conservative value. I see a decent regulated utility, but not a bargain with a margin of safety.

In plain English: CenterPoint Energy is a regulated electric and natural gas utility serving customers in the United States. The business has steady utility demand, but it uses a lot of debt and has been burning cash. At the recent $41.20 close, the stock looks expensive compared with its earnings and accounting value.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer