Latest Ratios: P/E Ratio 23.2x · EV/EBITDA 13.2x · ROE 9.6%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $24.5B | $25.2B | $20.4B | $18.1B | $19.0B | $17.0B | $11.5B | $13.8B | $12.8B | $12.3B | $10.7B |
| Enterprise Value | $48.1B | $48.8B | $41.4B | $36.6B | $35.7B | $32.9B | $24.8B | $28.6B | $17.7B | $20.9B | $18.9B |
| P/E Ratio → | 23.23 | 23.96 | 20.08 | 20.85 | 18.86 | 12.24 | — | 20.50 | 38.15 | 6.87 | 24.64 |
| P/S Ratio | 2.62 | 2.69 | 2.36 | 2.08 | 2.03 | 2.04 | 1.55 | 1.82 | 2.03 | 1.28 | 1.42 |
| P/B Ratio | 2.19 | 2.26 | 1.92 | 1.87 | 1.89 | 1.81 | 1.38 | 1.65 | 1.59 | 2.63 | 3.09 |
| P/FCF | — | — | — | — | — | — | — | — | 26.34 | — | 20.79 |
| P/OCF | 9.85 | 10.12 | 9.56 | 4.67 | 10.48 | 773.79 | 5.76 | 8.41 | 5.98 | 8.67 | 5.54 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.21 | 4.79 | 4.21 | 3.84 | 3.94 | 3.34 | 3.79 | 2.82 | 2.17 | 2.52 |
| EV / EBITDA | 13.21 | 13.40 | 12.07 | 11.58 | 12.52 | 12.28 | 11.12 | 12.48 | 8.39 | 9.62 | 8.81 |
| EV / EBIT | 22.79 | 22.68 | 20.16 | 20.48 | 18.42 | 25.17 | 22.70 | 25.76 | 18.23 | 14.38 | 16.98 |
| EV / FCF | — | — | — | — | — | — | — | — | 36.51 | — | 36.84 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.7% | 28.7% | 46.0% | 42.4% | 36.4% | 38.4% | 39.5% | 36.6% | 39.9% | 26.7% | 33.6% |
| Operating Margin | 22.6% | 22.6% | 23.0% | 20.2% | 16.8% | 16.3% | 14.0% | 14.2% | 13.8% | 11.8% | 13.6% |
| Net Profit Margin | 11.2% | 11.2% | 11.8% | 10.5% | 11.3% | 17.8% | -10.4% | 10.5% | 5.9% | 18.6% | 5.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.6% | 9.6% | 10.0% | 9.3% | 10.9% | 16.7% | -9.3% | 9.6% | 5.8% | 44.0% | 12.5% |
| ROA | 2.3% | 2.3% | 2.4% | 2.3% | 2.8% | 4.2% | -2.2% | 2.5% | 1.5% | 8.0% | 2.0% |
| ROIC | 4.8% | 4.8% | 5.0% | 4.8% | 4.5% | 4.4% | 3.5% | 4.4% | 5.0% | 6.8% | 6.5% |
| ROCE | 5.2% | 5.2% | 5.3% | 5.1% | 4.7% | 4.4% | 3.5% | 3.9% | 4.0% | 5.9% | 5.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.12 | 2.12 | 1.97 | 1.93 | 1.68 | 1.71 | 1.61 | 1.81 | 1.14 | 1.89 | 2.48 |
| Debt / EBITDA | 6.50 | 6.50 | 6.11 | 5.89 | 5.91 | 6.01 | 6.03 | 6.58 | 4.34 | 4.07 | 4.00 |
| Net Debt / Equity | — | 2.12 | 1.96 | 1.92 | 1.67 | 1.69 | 1.59 | 1.78 | 0.61 | 1.83 | 2.38 |
| Net Debt / EBITDA | 6.49 | 6.49 | 6.11 | 5.86 | 5.88 | 5.92 | 5.97 | 6.48 | 2.34 | 3.95 | 3.84 |
| Debt / FCF | — | — | — | — | — | — | — | — | 10.17 | — | 16.05 |
| Interest Coverage | 2.38 | 2.38 | 2.45 | 2.55 | 3.70 | 2.47 | 2.06 | 1.96 | 2.31 | 3.73 | 2.60 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.91 | 0.91 | 1.08 | 0.78 | 0.92 | 1.72 | 0.61 | 0.99 | 2.13 | 1.11 | 0.95 |
| Quick Ratio | 0.79 | 0.79 | 0.91 | 0.58 | 0.75 | 1.57 | 0.50 | 0.87 | 2.01 | 0.98 | 0.85 |
| Cash Ratio | 0.09 | 0.09 | 0.14 | 0.16 | 0.11 | 0.39 | 0.21 | 0.27 | 1.44 | 0.40 | 0.42 |
| Asset Turnover | — | 0.19 | 0.20 | 0.22 | 0.24 | 0.22 | 0.22 | 0.21 | 0.23 | 0.42 | 0.34 |
| Inventory Turnover | 9.11 | 9.11 | 6.54 | 6.51 | 6.76 | 8.46 | 8.98 | 10.16 | 9.58 | 17.76 | 16.01 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | 2.3% | 2.6% | 2.7% | 2.3% | 2.3% | 3.4% | 4.2% | 7.0% | 3.7% | 5.8% |
| Payout Ratio | 54.6% | 54.6% | 51.2% | 52.9% | 41.6% | 25.9% | — | 72.9% | 243.8% | 25.7% | 143.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 4.2% | 5.0% | 4.8% | 5.3% | 8.2% | — | 4.9% | 2.6% | 14.6% | 4.1% |
| FCF Yield | — | — | — | — | — | — | — | — | 3.8% | — | 4.8% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.4% | 2.3% | 2.6% | 2.7% | 2.3% | 2.3% | 3.4% | 4.2% | 7.0% | 3.7% | 5.8% |
| Shares Outstanding | — | $656M | $644M | $633M | $632M | $610M | $531M | $505M | $452M | $434M | $434M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying CNP stock.
CenterPoint Energy, Inc.'s current P/E ratio is 23.2x. The historical average is 16.3x. This places it at the 84th percentile of its historical range.
CenterPoint Energy, Inc.'s current EV/EBITDA is 13.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.9x.
CenterPoint Energy, Inc.'s return on equity (ROE) is 9.6%. The historical average is 8.7%.
Based on historical data, CenterPoint Energy, Inc. is trading at a P/E of 23.2x. This is at the 84th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
CenterPoint Energy, Inc.'s current dividend yield is 2.35% with a payout ratio of 54.6%.
CenterPoint Energy, Inc. has 28.7% gross margin and 22.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
CenterPoint Energy, Inc.'s Debt/EBITDA ratio is 6.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Regulatory lag and storm costs
Metrics are mathematically derived from official filings.
Premium Priced for Houston Growth
CNP trades at 24.2x trailing earnings and 21.0x forward, a premium to peers like NI (21.4x) and OGE (20.1x), reflecting market expectations of robust Houston load growth, as per current market data.
The forward P/E of 21.0x implies the market is pricing in sustained earnings growth from the multi-billion dollar capital plan, likely driven by data center and industrial demand. The dividend yield of 2.3% is below the peer average of ~3.5%, suggesting investors are accepting lower current income in exchange for growth. This premium appears justified if the company can execute on its rate base expansion without significant regulatory pushback, but it leaves little room for disappointment.
Earned ROE Trails Authorized
Quarterly ROE averaged 2.4% over the last ten quarters, implying an annualized earned ROE of roughly 9.6%, likely below the authorized ROE of 9.8-10.2%, as per reported figures, indicating regulatory lag.
The gap between earned and allowed ROE suggests that CenterPoint is not fully recovering its cost of capital in the current rate environment. This may be due to regulatory lag, storm restoration costs, or higher operating expenses. Investors should monitor whether future rate cases can close this gap, as a persistent shortfall could pressure the stock's valuation.
Operating Margin Holds Despite Pass-Throughs
Operating margin remained stable around 22-25% over the last ten quarters, with 2026Q2 at 24.8%, as reported in financial statements, indicating effective cost control despite fuel pass-throughs and inflationary pressures.
The stability of operating margin suggests that management is successfully managing O&M expenses, even as revenue growth is partly driven by pass-through fuel costs. However, the net margin of 11.3% in 2026Q2 is lower than the operating margin, reflecting higher interest and depreciation expenses from the aggressive capital program. This highlights the importance of regulatory recovery to maintain profitability.
Leverage Creeps Toward Ceiling
Debt-to-capital rose from 0.65 in 2024Q1 to 0.68 in 2026Q2, with interest coverage at 2.14x, as per balance sheet data, indicating increasing leverage that may approach regulatory limits.
The rising debt-to-capital ratio, coupled with interest coverage of just 2.14x, suggests that CenterPoint is relying heavily on debt to fund its capital plan. While this is typical for utilities, the company's FFO-to-debt of 3.75% is below the 4.0% threshold often considered adequate for a strong credit rating. If leverage continues to rise, the company may need to issue equity, which could dilute shareholders.
Payout Ratio Signals Coverage
Dividend payout ratio averaged 55% over the last ten quarters, with 2026Q2 at 62.3%, as per quarterly data, indicating a comfortable cushion for dividend sustainability despite negative free cash flow.
The payout ratio, based on earnings, is moderate and suggests that dividends are well-covered by net income. However, free cash flow is negative, meaning the dividend is ultimately funded by external capital. This is common for utilities with large capex programs, but investors should monitor whether the company can maintain this balance without increasing leverage or cutting the dividend.
P/E Misapplied to Utility Growth
Comparing CNP's P/E to industrial companies is misleading because utility earnings are regulated and tied to rate base, not market growth; instead, focus on P/E relative to allowed ROE and interest rates, as per industry practice.
The P/E ratio for a utility is anchored to the authorized ROE and the cost of equity, not to growth expectations like in other sectors. A high P/E may simply reflect low interest rates, making utility dividends more attractive. For CNP, the appropriate comparison is to its earned ROE versus allowed ROE and to the dividend yield relative to Treasury yields. Investors should use EV/EBITDA or P/B in conjunction with regulatory metrics to assess valuation.