Centerpoint Energy Intrinsic Value Calculation – CENTERPOINT ENERGY Reports Profitable Q2 Earnings for FY2023
August 26, 2023
☀️Earnings Overview
CENTERPOINT ENERGY ($NYSE:CNP) released their earnings report for the second quarter of the financial year 2023, for the period ending June 30 2023, on July 27 2023. Total revenue for Q2 was USD 1875.0 million, a 3.5% decrease from the same period in the previous year. Net income in the quarter was USD 118.0 million, representing a 37.9% decrease from the year prior.
Share Price
On Thursday, CENTERPOINT ENERGY reported its second quarter earnings for FY2023, and the results proved to be profitable. The stock opened at $31.2 and closed at $30.4, down by 2.7% from the last closing price of 31.2. This decrease in stock prices is likely due to investors reacting to the news that CENTERPOINT ENERGY’s profits were lower than expected for the quarter. This shows that the company has maintained a steady growth despite the volatile energy market. The company attributes its success to its ability to manage its operations efficiently and cost-effectively. This has resulted in improved cost containment and operational efficiencies.
Additionally, the company has been able to reduce operating costs, which has helped to increase its bottom line. This strategy has enabled CENTERPOINT ENERGY to maintain a healthy profit margin even in a turbulent market. Overall, CENTERPOINT ENERGY’s Q2 earnings report is a sign that the company is on a positive trajectory despite current market conditions. The company’s ability to contain costs and operate efficiently has enabled CENTERPOINT ENERGY to generate steady profits in a volatile market. Investors should be encouraged by this news and may want to consider investing in the company for the long-term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Centerpoint Energy. More…
| Total Revenues | Net Income | Net Margin |
| 9.27k | 730 | 8.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Centerpoint Energy. More…
| Operations | Investing | Financing |
| 3.31k | -4.72k | 1.06k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Centerpoint Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 38.1k | 27.73k | 16.43 |
Key Ratios Snapshot
Some of the financial key ratios for Centerpoint Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -8.6% | 4.1% | 17.7% |
| FCF Margin | ROE | ROA |
| -16.0% | 9.9% | 2.7% |
Analysis – Centerpoint Energy Intrinsic Value Calculation
At GoodWhale, we analyzed the financials of CENTERPOINT ENERGY and used our proprietary Valuation Line to arrive at a fair value of $29.8 per share. Currently, CENTERPOINT ENERGY is trading at $30.4, making it slightly overvalued by 2.1%. We believe that this provides investors with a good opportunity to buy into the stock at a fair price. However, investors should keep in mind the risk associated with stock market investing before making any decisions. We advise investors to do their due diligence and research on the company’s fundamentals as well as its track record of performance before investing in CENTERPOINT ENERGY. More…
Peers
CenterPoint Energy Inc is an American electric and natural gas utility company based in Houston, Texas. It is the largest such company in Texas and its service territory covers approximately 46,000 square miles in 27 states. The company’s competitors include Alliant Energy Corp, Ameren Corp, American Electric Power Co Inc, among others.
– Alliant Energy Corp ($NASDAQ:LNT)
Alliant Energy Corporation is a publicly traded utility holding company headquartered in Madison, Wisconsin. The company’s primary subsidiaries are Wisconsin Power and Light Company, an electric and natural gas utility serving nearly one million customers in Wisconsin and Upper Michigan, and Interstate Power and Light Company, an electric utility serving nearly 500,000 customers in Iowa. Alliant Energy’s other subsidiaries include Alliant Energy Resources, Inc., a competitive generation and energy services business, and Alliant Energy Corporate Services, Inc., the company’s non-utility operations and holding company. Alliant Energy Corporation is traded on the New York Stock Exchange under the ticker symbol LNT.
Alliant Energy’s market cap is $13.09 billion as of 2022. The company has a return on equity of 10.02%. Alliant Energy Corporation is a publicly traded utility holding company headquartered in Madison, Wisconsin. The company’s primary subsidiaries are Wisconsin Power and Light Company, an electric and natural gas utility serving nearly one million customers in Wisconsin and Upper Michigan, and Interstate Power and Light Company, an electric utility serving nearly 500,000 customers in Iowa.
– Ameren Corp ($NYSE:AEE)
Ameren Corp is a utility company that provides electricity and natural gas to customers in Missouri and Illinois. The company has a market cap of 21.06B as of 2022 and a ROE of 10.16%. Ameren Corp is a regulated utility company, meaning it is subject to government regulation. The company operates in two segments: electric utility and gas utility. The electric utility segment provides electricity to customers in Missouri. The gas utility segment provides natural gas to customers in Illinois.
– American Electric Power Co Inc ($NASDAQ:AEP)
American Electric Power Company, Inc. (AEP) is a public utility holding company that engages in the generation, transmission, and distribution of electricity in the United States. AEP also owns and operates a diverse fleet of power plants. The company has a market capitalization of $45.18 billion and a return on equity of 17.51%. AEP’s operations are organized into five segments: Transmission, Distribution, Generation & Marketing, AEP Renewables, and Corporate & Other.
Summary
CenterPoint Energy reported its financial results for the second quarter of 2023, as of June 30 2023. Total revenue for the quarter was USD 1875.0 million, 3.5% lower than the same period last year. Net income decreased by 37.9% to USD 118.0 million during the quarter.
From an investment perspective, this is not a positive sign, especially considering the decrease in revenues and profits in comparison to the previous year. Investors may want to watch future earnings reports and gauge whether the company is able to reverse this trend in order to assess future potential returns.
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