What Can We Learn From CenterPoint Energy Inc.(CNP)’s Valuation Ratios?

CenterPoint Energy Inc. (NYSE:CNP) finished Tuesday with an addition of $0.32 to close at $25.79, an upside of 1.26 percent. An average of 5,617,540 shares of common stock have been traded in the last five days. There was a gain of $0.68 in the past week. The last 20 days have seen an average of 7,183,590 shares traded, while the 50-day average volume stands at 5,831,596.

CNP stock has decreased by -0.04% in the last month. The company shares reached their 1-month lowest point of $24.33 on 09/20/21. With the stock rallying to its 52-week high on 08/16/21, shares of the company touched a low of $19.31 and a high of $27.19 in 52 weeks. In spite of this, the price is down -5.17% from the 52-week high.


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Insider Transactions

217 days have passed since CenterPoint Energy Inc. (CNP) last reported insider trading activity. Biddle Leslie D., who is Director, most recently acquired $35,000 shares at $19.94 per share on Mar 04.

Valuation Metrics

CenterPoint Energy Inc. (CNP) has a trailing price-to-earnings (P/E) ratio of 19.66, which compares with the 17.20 for the broader industry and 23.39 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, CenterPoint Energy Inc.’s PE ratio has ranged between 48.67 and 6.123. The stock’s beta is 0.97. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.90, the price-to-book (PB) ratio at 2.12.

CenterPoint Energy Inc. pays a $0.64 dividend per share annually. It offers a dividend yield of 2.48%. The company has a payout ratio of 44.80%. The company’s most recent quarterly dividend payment was $0.17 a share, representing a up of 5.88 from $0.16 last year. Its dividend has been increased for the last 2 consecutive years with the latest increase dividend $0.01 reported on Thursday September 30 2021. Dividends have grown by -30.84% each year over the last three years.

CenterPoint Energy Inc. will next go ex-dividend on 17-Nov-2021. The next dividend payment CenterPoint Energy Inc. will make is expected to be $0.17.

The quick ratio of CenterPoint Energy Inc. for the three months ended June 29 was 1.40, and the current ratio was 1.50, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.22 and a total debt to equity ratio of 2.26 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin 5-year average of 35.3%. CenterPoint Energy Inc.’s EBITDA margin for the year ending June 29 is 32.56%, while its operating margin for the same period stands at 16.80%. Its gross profit as reported stood at $1.04 billion compared to revenue of $7.42 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, CenterPoint Energy Inc.’s return on assets was 2.20%, compared to 2.2% over the last five years. In the past year, the return on investment has been 6.80%, and the 5-year average is 5.8%. Meanwhile, the return on equity (ROE) for the past 12 months has been 12.20% and the 5-year average holds at 11.6%. For the broader industry, ROE averaged 9.87 over the past year.

Earnings Surprise

For the three-month period that ended June 29, CenterPoint Energy Inc. had $923.0 million in cash. The analyst consensus anticipated CenterPoint Energy Inc.’s latest quarter earnings to come in at $0.24 per share, but it turned out to be $0.36, a 50.00% surprise. For the quarter, EBITDA amounted to $631.0 million. Shareholders own equity worth $592.89 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at CenterPoint Energy Inc. (CNP) price momentum. RSI 9-day as of the close on 05 October was 60.16%, suggesting the stock is Neutral, with historical volatility in this time frame at 23.88%.

As of today, CNP’s price is $25.25 +2.71% or $0.68 from its 5-day moving average. CNP is currently trading -2.57% lower than its 20-day SMA and +3.08% higher than its 100-day SMA. However, the stock’s current price level is +0.39% above the SMA50 and +17.92% above the SMA200.

The stochastic %K and %D were 78.93% and 58.91%, respectively, and the average true range (ATR) was 0.64. With the 14-day stochastic at 89.60% and the average true range at 0.60, the RSI (14) stands at 55.41%. The stock has reached 0.35 on the 9-day MACD Oscillator while the 14-day reading was at 0.54.

Analyst Ratings

Barclays upgraded CenterPoint Energy Inc. (NYSE: CNP) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a an Equal weight.The consensus rating for CenterPoint Energy Inc. (CNP) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell CNP, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 10 others rate it as a “buy”.

What is CNP’s price target for the next 12 months?

Analysts predict a range of price targets between $26.00 and $30.00, with a median target of $28.00. Taking a look at these predictions, the average price target given by analysts for CenterPoint Energy Inc. (CNP) stock is $27.92.

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