Upside case
Bull case
$78+83.5%
CNP would need investors to value it at roughly 41x earnings — about 19x more generous than today's 22x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
CenterPoint Energy, Inc. (CNP) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
30
analysts
12 bullish · 1 bearish · 30 covering CNP
Strong Buy
0
Buy
12
Hold
17
Sell
1
Strong Sell
0
Consensus Target
$44
+2.8% vs today
Scenario Range
$26 – $78
Model bear to bull value window
Coverage
30
Published analyst ratings
Valuation Context
22.2x
Forward P/E · Market cap $27.6B
CNP price targets
Three scenarios for where CNP stock could go
Current
~$42
Confidence
51 / 100
Updated
May 1, 2026
Where we are now
Current · $42
Bear
$26
Base
$47
Bull
$78
Market caseClosest to today
Base case
$47+11.4%
This is close to how the market is already pricing CNP — at roughly 25x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$26-39.7%
If investor confidence fades or macro conditions deteriorate, a 9x multiple contraction could push CNP down roughly 40% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
CenterPoint Energy, Inc.
CNP · NYSEUtilitiesGeneral UtilitiesDecember year-end
CenterPoint Energy is a regulated utility holding company that provides electricity transmission and distribution services, along with natural gas distribution and related services. It generates revenue primarily through regulated rate structures for its electric (roughly 60% of operating income) and natural gas (roughly 40%) segments, with earnings tied to its rate base investments. The company's moat stems from its regulated monopoly status in its service territories, providing stable, predictable returns through cost-of-service regulation.
Market Cap
$27.6B
Revenue TTM
$9.4B
Net Income TTM
$1.1B
Net Margin
11.4%
CNP Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
33%Exceptional
12 quarters tracked
Revenue Beat Rate
33%Exceptional
vs consensus estimates
Avg EPS Surprise
+0.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 2 of 4Q3 2025
EPS
$0.29/$0.38
Revenue
$1.9B/$2.2B
Q4 2025
EPS
$0.50/$0.45
Revenue
$2.0B/$2.1B
Q1 2026
EPS
$0.45/$0.45
Revenue
$2.5B/$2.2B
Q2 2026
EPS
$0.56/$0.58
Revenue
$3.0B/$2.9B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.29/$0.38 | -24.5% | $1.9B/$2.2B | -11.8% |
| Q4 2025 | $0.50/$0.45 | +10.9% | $2.0B/$2.1B | -6.1% |
| Q1 2026 | $0.45/$0.45 | +0.0% | $2.5B/$2.2B | +11.0% |
| Q2 2026 | $0.56/$0.58 | -3.4% | $3.0B/$2.9B | +4.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$9.9B
+5.5% YoY
FY2
$10.4B
+4.9% YoY
EPS Outlook
FY1
$1.74
+7.3% YoY
FY2
$1.78
+2.3% YoY
Trailing FCF (TTM)-$2.7B
FCF Margin: -28.4%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
CNP beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
CNP Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $9.4B
Product Mix
Latest annual revenue by segment or product family
Electric Transmission & Distribution
51.9%
+6.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Electric Transmission & Distribution is the largest disclosed segment at 51.9% of FY 2025 revenue, up 6.0% YoY.
CNP Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Overvalued
Fair value est. $32 — implies -25.6% from today's price.
Premium to Fair Value
25.6%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
CNP
26.5x
vs
S&P 500
25.2x
In line with benchmark
vs Utilities Trailing P/E
CNP
26.5x
vs
Utilities
19.7x
+34% premium
vs CNP 5Y Avg P/E
Today
26.5x
vs
5Y Average
19.2x
+38% premium
Forward PE
22.2x
S&P 500
19.1x
+16%
Utilities
17.2x
+29%
5Y Avg
—
—
Trailing PE
26.5x
S&P 500
25.2x
+5%
Utilities
19.7x
+34%
5Y Avg
19.2x
+38%
PEG Ratio
—
S&P 500
1.75x
—
Utilities
1.73x
—
5Y Avg
—
—
EV/EBITDA
14.1x
S&P 500
15.3x
-8%
Utilities
11.5x
+22%
5Y Avg
12.4x
+14%
Price/FCF
—
S&P 500
21.3x
—
Utilities
15.4x
—
5Y Avg
—
—
Price/Sales
3.0x
S&P 500
3.1x
-6%
Utilities
2.2x
+35%
5Y Avg
2.2x
+32%
Dividend Yield
2.07%
S&P 500
1.88%
+10%
Utilities
3.07%
-33%
5Y Avg
2.42%
-15%
| Metric | CNP | S&P 500 | Utilities | 5Y Avg CNP |
|---|---|---|---|---|
| Forward PE | 22.2x | 19.1x+16% | 17.2x+29% | — |
| Trailing PE | 26.5x | 25.2x | 19.7x+34% | 19.2x+38% |
| PEG Ratio | — | 1.75x | 1.73x | — |
| EV/EBITDA | 14.1x | 15.3x | 11.5x+22% | 12.4x+14% |
| Price/FCF | — | 21.3x | 15.4x | — |
| Price/Sales | 3.0x | 3.1x | 2.2x+35% | 2.2x+32% |
| Dividend Yield | 2.07% | 1.88% | 3.07% | 2.42% |
CNP trades above S&P 500 benchmarks on 1 of 4 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolCNP Financial Health
Verdict
Exceptional
CNP earns 22.5% operating margin on regulated earnings, 2.1% dividend yield. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$9.4B
Revenue Growth
TTM vs prior year
+5.2%
Operating Margin
Operating income divided by revenue
22.5%
Net Margin
Net income divided by revenue
11.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$1.63
Operating Margin
Operating income over revenue — primary regulated earnings signal
22.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
4.8%
ROA
Return on assets, trailing twelve months
2.3%
Cash & Equivalents
Liquid assets on the balance sheet
$49M
Net Debt
Total debt minus cash
$23.6B
Debt Serviceability
Net debt as a multiple of annual free cash flow
—
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
9.6%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
2.1%
Dividend
2.1%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$0.88
Payout Ratio
Share of earnings distributed as dividends
54.6%
Shares Outstanding
Current diluted share count
653M
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pageCNP Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Inflation & Interest Rate Impact
Rising inflation and higher interest rates increase material and service costs, raising operational expenses. They also raise financing costs for capital expenditures and existing debt, potentially compressing margins.
High Risk
Supply Chain & Material Scarcity
Global supply chain disruptions and scarcity of essential components such as transformers and poles can delay projects and cause cost overruns. These delays hinder the execution of capital plans and may erode projected returns.
High Risk
High Debt-to-Equity Ratio
CNP’s relatively high debt-to-equity ratio limits financial flexibility, especially during economic downturns. Rising interest rates could increase debt servicing costs, impacting profitability and dividend sustainability.
Medium
Regulatory & Legislative Risk
As a regulated utility, changes in regulations or unfavorable rulings can increase operational costs and delay the realization of capital investments. Regulatory lag may postpone earnings and cash flow benefits.
Medium
Severe Weather & Climate Events
Extreme weather events raise operational costs that may not be fully recoverable through regulated rates. Repeated events could strain the company’s financial condition and affect service reliability.
Medium
Cybersecurity Threats
Cybersecurity incidents could compromise operational systems, damage reputation, and result in financial losses. The company’s reliance on digital infrastructure heightens exposure to such risks.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why CNP Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Robust Demand Growth in Texas Data Centers
CenterPoint is seeing a 700% surge in data center interconnection requests in Texas, with data centers making up roughly two‑thirds of new load growth in Houston. This momentum is projected to add 10 GW of new electric demand by the end of 2029.
Decade‑Long Capital Expenditure Plan
The company has committed about $65.5 B in capex through 2035 to modernize the grid, improve reliability, and support economic growth. An extra $500 M has been added to fund a new transmission project.
Strong EPS Growth Outlook
CenterPoint reaffirmed its 2026 non‑GAAP earnings guidance, forecasting an 8 % rise over 2025. Long‑term, it expects non‑GAAP EPS to grow at the mid‑ to high‑end of its 7 %‑9 % annual guidance range through 2035, driven by capex and investments.
Healthy Operations and Dividend
Year‑to‑date weather‑adjusted C&I sales rose 8 %, and the company maintains a funds‑from‑operations to debt ratio within its target range. It has also increased its quarterly dividend, yielding 2.1 %.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
CNP Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$42.33
52W Range Position
76%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$35.46
+19.4% from the low
52-Week High
$44.47
-4.8% from the high
1 Month
-2.89%
3 Month
+5.69%
YTD
+9.3%
1 Year
+8.8%
3Y CAGR
+11.9%
5Y CAGR
+11.7%
10Y CAGR
+6.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
CNP vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
22.2x
vs 19.6x median
+13% above peer median
Revenue Growth
+5.5%
vs +4.3% median
+26% above peer median
Net Margin
11.4%
vs 14.0% median
-19% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
CNP CNP CenterPoint Energy, Inc. | $27.6B | 22.2x | +5.5% | 11.4% | Hold | +2.8% |
NI NI NiSource Inc. | $22.7B | 23.1x | +8.5% | 14.1% | Buy | +4.9% |
OGE OGE OGE Energy Corp. | $9.9B | 19.6x | +5.1% | 14.0% | Hold | -1.9% |
EVR EVRG Evergy, Inc. | $18.6B | 19.1x | +3.4% | 14.6% | Hold | +9.9% |
AVA AVA Avista Corporation | $3.3B | 15.8x | +3.4% | 9.8% | Hold | +0.2% |
PNW PNW Pinnacle West Capital Corporation | $12.1B | 21.2x | +4.3% | 12.0% | Hold | +2.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
CNP Dividend and Capital Return
CNP returns 2.1% total yield, led by a 2.07% dividend.
Dividend SustainableFCF Unknown
Total Shareholder Yield
2.1%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
2.07%
Payout Ratio
54.6%
How CNP Splits Its Return
Div 2.07%
Dividend 2.07%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.88
Growth Streak
Consecutive years of dividend increases
4Y
3Y Div CAGR
7.9%
5Y Div CAGR
3.5%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
653M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.46 | — | — | — |
| 2025 | $0.88 | +8.6% | 0.0% | 2.3% |
| 2024 | $0.81 | +5.2% | 0.0% | 2.6% |
| 2023 | $0.77 | +10.0% | 0.0% | 2.7% |
| 2022 | $0.70 | +7.7% | 0.0% | 2.3% |
FAQ
7 questionsCNP Investor Questions
Common questions answered from live analyst data and company financials.
01Is CenterPoint Energy, Inc. (CNP) stock a buy or sell in 2026?
CenterPoint Energy, Inc. (CNP) is rated Hold by Wall Street analysts as of 2026. Of 30 analysts covering the stock, 12 rate it Buy or Strong Buy, 17 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $44, implying +2.8% from the current price of $42. The bear case scenario is $26 and the bull case is $78.
02What is the CNP stock price target for 2026?
The Wall Street consensus price target for CNP is $44 based on 30 analyst estimates. The high-end target is $49 (+15.8% from today), and the low-end target is $37 (-12.6%). The base case model target is $47.
03Is CenterPoint Energy, Inc. (CNP) stock overvalued in 2026?
CNP trades at 22.2x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for CenterPoint Energy, Inc. (CNP) stock in 2026?
The primary risks for CNP in 2026 are: (1) Inflation & Interest Rate Impact — Rising inflation and higher interest rates increase material and service costs, raising operational expenses. (2) Supply Chain & Material Scarcity — Global supply chain disruptions and scarcity of essential components such as transformers and poles can delay projects and cause cost overruns. (3) High Debt-to-Equity Ratio — CNP’s relatively high debt-to-equity ratio limits financial flexibility, especially during economic downturns. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is CenterPoint Energy, Inc.'s revenue and earnings forecast?
Analyst consensus estimates CNP will report consensus revenue of $9.9B (+5.5% year-over-year) and EPS of $1.74 (+7.3% year-over-year) for the upcoming fiscal year. The following year, analysts project $10.4B in revenue.
06When does CenterPoint Energy, Inc. (CNP) report its next earnings?
A confirmed upcoming earnings date for CNP is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does CenterPoint Energy, Inc. generate?
CenterPoint Energy, Inc. (CNP) had a free cash outflow of $2.7B in free cash flow over the trailing twelve months — a free cash flow margin of 28.4%. CNP returns capital to shareholders through dividends (2.1% yield) and share repurchases ($0 TTM).