CNP CenterPoint Energy

utility · 2026-10-13

N/A

too hard · 34

Owner-earnings value$25.78

Price$39.03

Margin of safety -33.9%

Returns on capital 0/30

Consistency 17.2/22

Margins / pricing power 12.7/16

Balance sheet 0.7/16

Cash conversion 0/10

Capital allocation 3.3/6

⚠ sub-hurdle returns (median roic 5% < 9%) · over-levered (net debt/EBITDA 5.7x > 4x)

Median ROIC5.4%

Gross margin46.7%

Net debt / EBITDA5.7x

FCF conversion-195%

Share count / yr+1.2%

Profitable years4/4

Owner earnings (TTM)	1.12B
Owner-earnings yield	4.3%
Free-cash-flow yield	-10.5%
Growth used (normalized)	0.1%
Market-implied growth (reverse DCF)	10.1%
Terminal growth	3.0%
Discount rate (hurdle)	9.0%

Yr	Owner earnings	Growth	PV
1	1.12B	0.1%	1.03B
2	1.12B	0.4%	945.58M
3	1.13B	0.8%	874.15M
4	1.14B	1.1%	810.68M
5	1.16B	1.4%	754.19M
6	1.18B	1.7%	703.85M
7	1.20B	2.0%	658.92M
8	1.23B	2.4%	618.80M
9	1.27B	2.7%	582.92M
10	1.30B	3.0%	550.84M

⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~10%/yr owner-earnings growth over 10y (reverse DCF); model credits 0%.

Date	Quality	Price	Value	MoS	Rating
2026-10-13	34	$39.03	$25.78	-33.9%	N/A
2026-09-01	34	$39.60	$25.78	-34.9%	N/A
2026-07-21	34	$42.99	$24.89	-42.1%	N/A
2026-07-02	34	$43.73	$24.89	-43.1%	N/A
2026-06-25	34	$43.86	$24.89	-43.2%	N/A
2026-06-23	34	$43.50	$24.89	-42.8%	N/A