Centerpoint Energy Stock Return On Equity

CNP Stock

USD 32.66 0.13 0.40%

CenterPoint Energy fundamentals help investors to digest information that contributes to CenterPoint Energy's financial success or failures. It also enables traders to predict the movement of CenterPoint Stock. The fundamental analysis module provides a way to measure CenterPoint Energy's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to CenterPoint Energy stock.

		Last Reported	Projected for Next Year
	Return On Equity	0.09	0.10

As of 11/28/2024, Return On Equity is likely to grow to 0.1.

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

CenterPoint Energy Company Return On Equity Analysis

CenterPoint Energy's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current CenterPoint Energy Return On Equity

0.0957

Most of CenterPoint Energy's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, CenterPoint Energy is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

CenterPoint Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for CenterPoint Energy is extremely important. It helps to project a fair market value of CenterPoint Stock properly, considering its historical fundamentals such as Return On Equity. Since CenterPoint Energy's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of CenterPoint Energy's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of CenterPoint Energy's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Current Deferred Revenue	Net Debt	Retained Earnings	Accounts Payable	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Common Stock	Long Term Debt	Short Term Investments	Intangible Assets	Property Plant Equipment	Good Will	Deferred Long Term Liab	Net Tangible Assets	Long Term Debt Total	Long Term Investments	Short Long Term Debt	Capital Surpluse	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.93	-0.01	0.92	0.05	0.75	0.61	0.99	0.6	0.45	-0.51	0.96	0.03	-0.75	0.71	0.84	0.1	-0.48	0.89	-0.78	0.42	0.9	-0.08	0.88	-0.06	-0.47
Total Stockholder Equity	0.93		0.08	0.78	0.18	0.8	0.48	0.86	0.62	0.35	-0.25	0.89	0.01	-0.63	0.69	0.83	-0.1	-0.36	0.88	-0.72	0.38	0.91	0.14	0.84	0.08	-0.4
Current Deferred Revenue	-0.01	0.08		0.01	0.2	-0.15	-0.21	-0.04	-0.1	-0.02	0.14	0.05	-0.46	0.35	0.05	0.16	-0.11	0.83	0.08	0.21	-0.01	0.05	0.06	0.05	0.03	-0.02
Net Debt	0.92	0.78	0.01		0.11	0.52	0.41	0.94	0.3	0.49	-0.39	0.96	0.06	-0.57	0.74	0.87	0.07	-0.39	0.92	-0.75	0.49	0.84	-0.45	0.88	-0.31	-0.55
Retained Earnings	0.05	0.18	0.2	0.11		0.17	-0.09	-0.01	-0.06	-0.2	0.39	0.22	-0.24	0.13	0.42	0.13	-0.24	0.23	0.34	-0.09	-0.17	0.27	-0.03	0.36	0.0	-0.59
Accounts Payable	0.75	0.8	-0.15	0.52	0.17		0.76	0.7	0.84	0.25	-0.46	0.65	0.05	-0.82	0.54	0.47	0.06	-0.51	0.59	-0.7	0.24	0.72	0.32	0.66	0.3	-0.44
Net Receivables	0.61	0.48	-0.21	0.41	-0.09	0.76		0.64	0.64	0.34	-0.87	0.44	-0.21	-0.87	0.27	0.18	0.43	-0.48	0.26	-0.44	0.24	0.4	0.22	0.38	0.05	-0.25
Total Liab	0.99	0.86	-0.04	0.94	-0.01	0.7	0.64		0.56	0.47	-0.59	0.95	0.04	-0.78	0.68	0.81	0.18	-0.51	0.86	-0.77	0.42	0.85	-0.17	0.85	-0.12	-0.48
Total Current Assets	0.6	0.62	-0.1	0.3	-0.06	0.84	0.64	0.56		-0.04	-0.51	0.48	0.24	-0.69	0.26	0.27	0.14	-0.45	0.39	-0.49	-0.15	0.51	0.51	0.42	0.67	-0.26
Short Term Debt	0.45	0.35	-0.02	0.49	-0.2	0.25	0.34	0.47	-0.04		-0.27	0.35	-0.26	-0.33	0.48	0.48	0.2	-0.23	0.32	-0.47	0.9	0.39	-0.33	0.41	-0.63	-0.12
Common Stock	-0.51	-0.25	0.14	-0.39	0.39	-0.46	-0.87	-0.59	-0.51	-0.27		-0.36	0.13	0.77	-0.1	-0.1	-0.54	0.41	-0.13	0.3	-0.11	-0.22	-0.05	-0.21	-0.01	0.13
Long Term Debt	0.96	0.89	0.05	0.96	0.22	0.65	0.44	0.95	0.48	0.35	-0.36		0.04	-0.63	0.79	0.87	0.0	-0.41	0.97	-0.79	0.35	0.93	-0.21	0.94	-0.11	-0.62
Short Term Investments	0.03	0.01	-0.46	0.06	-0.24	0.05	-0.21	0.04	0.24	-0.26	0.13	0.04		-0.1	-0.07	0.1	0.11	-0.38	0.09	-0.15	-0.23	0.01	-0.23	0.01	0.26	0.09
Intangible Assets	-0.75	-0.63	0.35	-0.57	0.13	-0.82	-0.87	-0.78	-0.69	-0.33	0.77	-0.63	-0.1		-0.49	-0.41	-0.36	0.7	-0.49	0.72	-0.27	-0.61	-0.13	-0.59	-0.02	0.37
Property Plant Equipment	0.71	0.69	0.05	0.74	0.42	0.54	0.27	0.68	0.26	0.48	-0.1	0.79	-0.07	-0.49		0.76	-0.16	-0.35	0.84	-0.88	0.49	0.87	-0.24	0.94	-0.32	-0.8
Good Will	0.84	0.83	0.16	0.87	0.13	0.47	0.18	0.81	0.27	0.48	-0.1	0.87	0.1	-0.41	0.76		-0.21	-0.22	0.91	-0.68	0.54	0.81	-0.32	0.84	-0.29	-0.35
Deferred Long Term Liab	0.1	-0.1	-0.11	0.07	-0.24	0.06	0.43	0.18	0.14	0.2	-0.54	0.0	0.11	-0.36	-0.16	-0.21		-0.17	-0.13	0.04	-0.04	-0.08	-0.09	-0.07	-0.04	-0.02
Net Tangible Assets	-0.48	-0.36	0.83	-0.39	0.23	-0.51	-0.48	-0.51	-0.45	-0.23	0.41	-0.41	-0.38	0.7	-0.35	-0.22	-0.17		-0.34	0.65	-0.21	-0.43	0.0	-0.42	-0.01	0.31
Long Term Debt Total	0.89	0.88	0.08	0.92	0.34	0.59	0.26	0.86	0.39	0.32	-0.13	0.97	0.09	-0.49	0.84	0.91	-0.13	-0.34		-0.78	0.35	0.93	-0.24	0.96	-0.12	-0.64
Long Term Investments	-0.78	-0.72	0.21	-0.75	-0.09	-0.7	-0.44	-0.77	-0.49	-0.47	0.3	-0.79	-0.15	0.72	-0.88	-0.68	0.04	0.65	-0.78		-0.48	-0.88	0.14	-0.89	0.13	0.71
Short Long Term Debt	0.42	0.38	-0.01	0.49	-0.17	0.24	0.24	0.42	-0.15	0.9	-0.11	0.35	-0.23	-0.27	0.49	0.54	-0.04	-0.21	0.35	-0.48		0.42	-0.37	0.44	-0.69	-0.1
Capital Surpluse	0.9	0.91	0.05	0.84	0.27	0.72	0.4	0.85	0.51	0.39	-0.22	0.93	0.01	-0.61	0.87	0.81	-0.08	-0.43	0.93	-0.88	0.42		-0.05	0.96	-0.05	-0.7
Cash And Equivalents	-0.08	0.14	0.06	-0.45	-0.03	0.32	0.22	-0.17	0.51	-0.33	-0.05	-0.21	-0.23	-0.13	-0.24	-0.32	-0.09	0.0	-0.24	0.14	-0.37	-0.05		-0.21	0.7	0.2
Net Invested Capital	0.88	0.84	0.05	0.88	0.36	0.66	0.38	0.85	0.42	0.41	-0.21	0.94	0.01	-0.59	0.94	0.84	-0.07	-0.42	0.96	-0.89	0.44	0.96	-0.21		-0.17	-0.77
Net Working Capital	-0.06	0.08	0.03	-0.31	0.0	0.3	0.05	-0.12	0.67	-0.63	-0.01	-0.11	0.26	-0.02	-0.32	-0.29	-0.04	-0.01	-0.12	0.13	-0.69	-0.05	0.7	-0.17		0.06
Capital Stock	-0.47	-0.4	-0.02	-0.55	-0.59	-0.44	-0.25	-0.48	-0.26	-0.12	0.13	-0.62	0.09	0.37	-0.8	-0.35	-0.02	0.31	-0.64	0.71	-0.1	-0.7	0.2	-0.77	0.06

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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Competition

Predict CenterPoint Energy

Return On Equity Over Time

CenterPoint Total Stockholder Equity

Total Stockholder Equity

5.09 Billion

At this time, CenterPoint Energy's Total Stockholder Equity is relatively stable compared to the past year.

Based on the latest financial disclosure, CenterPoint Energy has a Return On Equity of 0.0957. This is 98.36% lower than that of the Multi-Utilities sector and significantly higher than that of the Utilities industry. The return on equity for all United States stocks is 130.87% lower than that of the firm.

CenterPoint Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses CenterPoint Energy's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of CenterPoint Energy could also be used in its relative valuation, which is a method of valuing CenterPoint Energy by comparing valuation metrics of similar companies.

CenterPoint Energy is currently under evaluation in return on equity category among its peers.

CenterPoint Energy ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, CenterPoint Energy's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to CenterPoint Energy's managers, analysts, and investors.

Environmental

Governance

Social

CenterPoint Fundamentals

	Return On Equity	0.0957
	Return On Asset	0.0275
	Profit Margin	0.11 %
	Operating Margin	0.23 %
	Current Valuation	40.4 B
	Shares Outstanding	651.73 M
	Shares Owned By Insiders	0.33 %
	Shares Owned By Institutions	94.26 %
	Number Of Shares Shorted	18.19 M
	Price To Earning	21.71 X
	Price To Book	2.01 X
	Price To Sales	2.48 X
	Revenue	8.7 B
	Gross Profit	3.57 B
	EBITDA	3.19 B
	Net Income	917 M
	Cash And Equivalents	74 M
	Cash Per Share	0.95 X
	Total Debt	18.62 B
	Debt To Equity	1.56 %
	Current Ratio	0.88 X
	Book Value Per Share	16.16 X
	Cash Flow From Operations	3.88 B
	Short Ratio	3.05 X
	Earnings Per Share	1.50 X
	Price To Earnings To Growth	1.90 X
	Target Price	31.03
	Number Of Employees	8.83 K
	Beta	0.92
	Market Capitalization	21.2 B
	Total Asset	39.72 B
	Retained Earnings	1.09 B
	Working Capital	(837 M)
	Current Asset	2.36 B
	Current Liabilities	2.54 B
	Annual Yield	0.03 %
	Five Year Return	3.60 %
	Net Asset	39.72 B
	Last Dividend Paid	0.8

About CenterPoint Energy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze CenterPoint Energy's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of CenterPoint Energy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of CenterPoint Energy based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Pair Trading with CenterPoint Energy

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CenterPoint Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CenterPoint Energy will appreciate offsetting losses from the drop in the long position's value.

Moving against CenterPoint Stock

0.58	ES	Eversource Energy	Pair Corr
0.56	GNE	Genie Energy	Pair Corr
0.51	FE	FirstEnergy	Pair Corr
0.47	HE	Hawaiian Electric	Pair Corr
0.44	AEP	American Electric Power	Pair Corr

The ability to find closely correlated positions to CenterPoint Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CenterPoint Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CenterPoint Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CenterPoint Energy to buy it.

The correlation of CenterPoint Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CenterPoint Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CenterPoint Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for CenterPoint Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Additional Tools for CenterPoint Stock Analysis

When running CenterPoint Energy's price analysis, check to measure CenterPoint Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CenterPoint Energy is operating at the current time. Most of CenterPoint Energy's value examination focuses on studying past and present price action to predict the probability of CenterPoint Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CenterPoint Energy's price. Additionally, you may evaluate how the addition of CenterPoint Energy to your portfolios can decrease your overall portfolio volatility.

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