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CNP
ACCE-researched

CenterPoint Energy Inc (Holding Co) Common Stock (CNP) fair value

Utilities · Utilities - Regulated Electric · NYSE · United States
$41.07-0.32%
Market cap $27.1BNext earnings 2026-10-27Updated Oct 21, 2026
Add earnings to calendarGoogle
Our verdict
Trades 17% above our fair value
Price
$41.07
Model fair valueConfidence: medium
$35.00
Only one of our models could value this stock with confidence, so use it as a guide.
Not used by alerts or posts.
Valued as a utility: P/E comparison and EV/EBITDA comparison.
ACCE opinionCenterPoint Energy Inc (Holding Co) Common Stock (CNP)
Fair value (3 models)
Not available
ACCE price target
$41.20
Rating
Not rated
Horizon
12 months
ACCE price target published on 18 Oct 2026, 00:00 CEST; previously $46.00 since 20 May 2026, 00:00 CEST.
Price used: $41.07 at the close on 23 Oct 2026, 22:00 CEST.
Models: EV/EBITDA comparison and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Full methodology
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
55
out of 100
Analysts
47% buy
19 covering
P/E
24.3x
forward 19.7x
1-year return
+3.7%
Dividend yield
2.33%

CenterPoint Energy Inc (Holding Co) Common Stock in four questions

Plain answers, details below
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OverviewAsk ACCEValuationQualityAnalystsSmart MoneyCompareNews and Record

Overview

ACCE thesis

CenterPoint Energy runs regulated electric transmission and distribution in Houston, plus natural gas distribution in Minnesota, Indiana, Ohio and other states, so its earnings come mostly from rate-base investment that regulators allow it to earn a return on. That regulated structure, with a 47.0% gross margin and a 24.5% operating margin, gives it a predictable earnings stream, and Houston's rapid load growth from data centers and industrial demand supports a long run of grid capital spending. Revenue grew 10.7% over the last year, and the forward P/E of 17.7 sits well below the trailing 24.0, which points to earnings expected to rise as the rate base expands. The trailing ROE of 9.8% is modest for the sector and leaves room to improve if approved rate cases lift returns, but it also means the thesis depends on regulators granting the increases the company is requesting. With a $26.7B market cap, the name is a reasonable candidate for a closer look at the rate case calendar and the Houston load forecast, though the 55/100 score reflects that the balance sheet and returns are not yet strong enough to make it a clear standout.

AI-assisted·How I use AIWritten Oct 18, 2026
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
  • high
    Negative free cash flow
    FCF of -$5.2B signals the company is burning cash despite positive earnings. Unsustainable for a utility with 2.1x debt/equity.
  • high
    Severe quarterly deceleration
    Revenue contracted 27.7% QoQ after 10.7% YoY growth. Sharp reversal warrants clarification on sustainability.
  • moderate
    Elevated leverage with weak cash generation
    Debt/equity of 2.1x combined with negative FCF limits financial flexibility and dividend sustainability.
  • moderate
    Valuation premium to fair value
    Trading at $38.60 vs ACCE fair value of $46.00 suggests limited upside; forward P/E of 18.5 elevated for utilities.

AI research notes

AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
  • Recent earnings beat expectations by 8.1% and revenue grew 10.7% year over year, signaling operational momentum.
  • Analyst consensus targets $44.53, implying 15.4% upside from current price with nearly half rated Buy or Strong Buy.
  • Forward P/E of 18.5x trades below the sector median of 19.8x despite 2.5% dividend yield and stable utility cash generation.
Why it could disappoint
  • Negative free cash flow of 5.2 billion dollars over the last twelve months with a negative 20.4% free cash flow yield.
  • Debt to equity of 2.10 is elevated, and share dilution of 1.8% last year will continue funding the capital program.
  • Return on invested capital of 2.5% and ROE of 9.8% lag the cost of capital, destroying shareholder value over time.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.

Next results

Oct 27, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle

Walk me through this stock

Plain-English pros, cons, and what to watch. Pro feature.

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Valuation

INVESTOR
Where CNP's valuation models land
Price
$41.07
Model fair valueConfidence: medium
$35.00
Model
Fair value
Upside
EV/EBITDA comparison
P/E comparison
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Quality

INVESTOR
Quality and conviction INVESTOR FEATURE

The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.

  • +A plain reason under every score
  • +Conviction breakdown and growth / value / quality / momentum scores
  • +Score history: how each score moved over time

Analysts

Wall Street consensus

Mixed47% buy · 19 covering analysts
● Strong buy 7● Buy 2● Hold 10● Sell 0● Strong sell 0
Analyst intelligence INVESTOR FEATURE

The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.

  • +Price-target low / average / high vs the current price, with implied upside
  • +Forward revenue and EPS consensus by fiscal year
  • +ACCE fair-value models lined up against the Street

Smart Money

PRO

In one line

Trades are only made public after a delay. We show the delay so you know how old the news is.

Company insiders
No trades filed
Last 90 days
Congress
0 buys · 1 sell
Since Sep 15, 2026, 1 member
Average delay
0 days
From trade to public filing
Full trade list on ProDo politicians beat the market? Our backtest →
Smart money tracking PRO FEATURE

Follow the informed money: 13F position changes, insider and Congress trades, and 13D activist filings.

  • +Quarter-over-quarter institutional position changes
  • +Every insider and Congress trade, with how late it was disclosed
  • +Active 13D activist filings and top holders

Compare

Where it sits vs peers

News and Record

Press releases mentioning this company

Recent performance

1 week
+1.3%
1 month
+10.5%
3 months
-7.8%
6 months
-3.3%
YTD
+7.1%
1 year
+3.7%

SEC filings

Recommendation history, last 12 months

DateTypeNewPreviousPrice
18 Oct 2026, 00:00 CESTACCE price target$41.20$46.00$40.55
8 Oct 2026, 00:00 CESTFair value$25.71$25.22$38.56
29 Sept 2026, 00:00 CESTFair value$25.22$25.59$36.84
26 Sept 2026, 00:00 CESTFair value$25.59$26.06$36.82
19 Sept 2026, 00:00 CESTFair value$26.06$26.33$38.56
17 Sept 2026, 00:00 CESTFair value$26.33$26.65$38.65
31 Aug 2026, 00:00 CESTFair value$26.65$25.87$39.24
23 Aug 2026, 00:00 CESTFair value$25.87$26.48$39.17
20 Aug 2026, 00:00 CESTFair value$26.48$32.63$40.72
8 Aug 2026, 00:00 CESTFair value$32.63$33.17$40.92

This analysis is not personalised investment advice and does not take your situation, objectives or risk tolerance into account. ACCE Investments is not an authorised investment firm.

Investing in shares carries a risk of losing capital. The value of an investment can go down as well as up.

Valuation horizon: 12 months from the publication date.

Conflicts of interest. ACCE Investments is operated by Adrien Chantreuil, who may hold personal positions in the securities analysed. Positions are declared on each security. ACCE receives no payment from the companies analysed or from any intermediary for this analysis.

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Snapshot

Growth68Value49Quality57Momentum47Total55
Valuation
Trailing P/E
24.3x
Forward P/E
19.7x
PEG
1.02
P/B
2.09x
EV / Revenue
5.1x
Book value/sh
$17.79
Enterprise value
$48.7B
Profitability
ROE
9.8%
FCF yield
-8.78%
ROIC
2.5%
Health and risk
Debt / equity
2.12
Dividend yield
2.33%
Beta
0.46

Price

+3.9% · 1Y

Ask anything about CNP

Answered from CenterPoint Energy Inc (Holding Co) Common Stock fundamentals + recent valuations. Every number shows its source and date.

This stock Peer Peer median weaker → stronger
P/Ebetter than 17% of peers
low 16.9x24.3xhigh 24.7x
ROEbetter than 83% of peers
low 7%10%high 11%
Div yieldbetter than 0% of peers
low 2.3%2.3%high 4.6%

Peers

Prices Oct 23, 2026
CompanyPriceFair valuevs fair valueP/EROEQualityScore
CNP CenterPoint Energy Inc (Holding Co) Common Stock$41.07--24.3x9.8%5755
FE FirstEnergy Corp. Common Stock$46.49$3437% above24.7x9.5%6153
DTE DTE Energy Company Common Stock$133.06$11218% above20.9x11.0%4944
PPL PPL Corporation Common Stock$35.35$2825% above20.7x8.6%6555
ES Eversource Energy (D/B/A) Common Stock$67.84$671% above16.9x9.0%5748
FTS.TO FortisC$80.99--23.9x7.5%6956
FTS Fortis Inc. Common Shares$57.88--23.6x7.5%6956

Sector report card

Where CNP ranks against its sector peers on each metric.

Computing percentiles…
  • Business Wire•Oct 14, 2026
    CenterPoint Energy to Pay Additional Interest on its 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029
  • PR Newswire•Oct 10, 2026
    CenterPoint Energy Sending 355 Mutual Aid Workers to Help Restore Power in Areas Impacted by Hurricane Isaias
  • PR Newswire•Oct 6, 2026
    Greater Houston Resiliency Initiative (GHRI) Update: CenterPoint Energy Continues Monumental Efforts to Build the Most Resilient Coastal Grid
15 more press releases · full archive on Investor+.INVESTOR
40 filings
October 2026
Oct 20
8-KCurrent reportPeriod 2026-10-20
View on SEC →
Oct 5
Form 4Insider transactionPeriod 2026-10-01
View on SEC →
Oct 1
8-KCurrent reportPeriod 2026-10-01
View on SEC →
37 more filings + AI summaries on Investor+.INVESTOR