Electric Services
CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company operates through Electric and Natural Gas segments. The Electric segment includes electric transmission and distribution services to electric customers and electric generation assets, as well as optimizes assets in the wholesale power market. The Natural Gas segment engages in the intrastate natural gas sales, natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas; permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies; and provision of home appliance maintenance and repair services to customers in Minnesota and home repair protection plans to natural gas customers in Indiana, Mississippi, Ohio, and Texas through a third party. As of December 31, 2022, it served approximately 2,534,730 metered customers; owned 349 substations with transformer capacity of 78,956 megavolt amperes; and owned and operated 217 miles of intrastate pipeline in Louisiana, Texas, and Oklahoma. The company was founded in 1866 and is headquartered in Houston, Texas.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | -9.4% | 5.7% | 19% | 3.1% | 5.5% | -13% | 17% | 11% | 10% | 11% |
ROA | 4.4% | 4.4% | 4.7% | 3.1% | 3.5% | 3.1% | 3.6% | 4.1% | 4.4% | 4.6% |
ROE | -20% | 12% | 38% | 4.1% | 8.1% | -11% | 15% | 10% | 9% | 9% |
The average Net Margin over the past 5 years is +5.54%.
The trend of Net Margin over the past 5 years is +2.27%.
The average ROA over the past 5 years is +3.63%.
The trend of ROA over the past 5 years is +0.26%.
The average ROE over the past 5 years is +5.77%.
The trend of ROE over the past 5 years is +1.61%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 30.82 | 16.62 | -1768.00 | 18.89 | -17.41 | -22.36 | -5.13 | -6.46 | -35.53 | -13.35 |
Debt Equity | 2.55 | 2.48 | 1.89 | 1.14 | 1.81 | 1.61 | 1.71 | 1.68 | 1.93 | 1.90 |
MIN | ||||||||||
Graham Stability | - | - | 100% | 65% | 79% | -100% | 100% | 100% | 100% | -100% |
The Debt/FCF trailing twelve month is -13.35.
The trend of Debt/FCF over the past 5 years is -6.34.
Graham’s Stability measure stands at -1.02.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 2.1% | -3.9% | 5.4% | -6.7% | 0.032% |
Net Income | 10% | 21% | - | -14% | -34% |
Stockholders Equity | 16% | 3.7% | 5% | -3.7% | -0.28% |
FCF | - | - | - | - | -960% |
The Revenue CAGR over the past 5 years is -3.86%.
The trend of Revenue growth rate over the past 5 years is +0.03%.
The Earnings CAGR over the past 5 years is +21.09%.
The trend of Earnings growth rate over the past 5 years is -34.41%.
The Equity CAGR over the past 5 years is +3.71%.
The trend of Equity growth rate over the past 5 years is -0.28%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is -963.23%.