CluenexCenterPoint Energy CNP
CenterPoint Energy scores weak on business quality (3.6 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What CenterPoint Energy does
CenterPoint Energy distributes electricity and natural gas to millions of customers in regulated service territories, collecting stable utility rates approved by state commissions.
- What it does best
Regulated monopoly infrastructure provides unmatched customer lock-in across its service areas. Its operating margin of 23.2% holds steady in the middle of its peer group, trailing PEG's 23.1% slightly while beating ED's 18.0%.
- The main risk
Heavy reliance on external capital leaves it exposed to high interest rates. With total debt at $23.0 billion and interest coverage at 2.2x, servicing obligations consume a significant share of operating income.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin reaches 23.2%, but free cash flow margin is deeply negative at -28.0% due to a $5.3 billion capex program. Scale requires heavy upfront spending that currently strains cash flow.
State-granted utility franchises lock in regional consumers entirely. Sector percentile for operating margin sits at 59, reflecting standard regulated utility returns with limited differentiation.
Revenue grew 8.3% to $9.6 billion, showing a modest rebound compared to prior years where revenue hovered flat around $8.6 billion, though growth remains middle of the pack.
Debt-to-equity sits at 2.1x, and free cash flow is deeply negative at -$2.7 billion due to aggressive capital spending. The balance sheet is softening under heavy leverage.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 insider bought $41K on the open market.
Our sealed record on CNP
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
CenterPoint Energy scores weak on the Cluenex quality check (3.6 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 1 insider bought $41K on the open market.
Oct 27, 2026, before the open.
See CNP today
- Today's verdict on CNP, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “CenterPoint Energy (CNP)”, https://cluenex.com/stocks/cnp/, data as of Oct 10, 2026.