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The Screen · Utilities · Utilities - Regulated Electric
CenterPoint Energy
CNP · a US exchange · USD · Market cap $26.2B · 8,794 employees
CenterPoint Energy, Inc.
FAIL · Does not pass the screen
39.77 USD
At the last full screen 2026-09-09
Screened 2026-09-09 · the tape above runs as of 11:00 UTC · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its distribution label.
CenterPoint Energy holds its Distribution at $39.77. The statistical read favours the sellers, held for 1 days.
As held on the ledger · 2026-09-09
Phase
Distribution · caution
Quantitative state
The statistical read favours the sellers, held for 1 days
Price at the screen
$39.77
Valuation
23.67 trailing · 19.06 forward price to earnings
Values screen
FAIL· score 10.0
Beta
0.45
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
49.38%
Below 33%
Interest-bearing debt is 49.4% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
1.10%
Below 33%
Cash held in interest-bearing accounts and securities is 1.1% of assets, under the one-third limit.
Pass
Receivables
1.81%
Below 49%
Money owed to the company is 1.8% of assets, under the 49% limit.
Pass
Revenue purity
0.00%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
What the Numbers Say It Is Worth
The Fair Value Range
Our framework reads AVOID: it trades above our $38.65 fair value estimate, narrow competitive moat, 10.70% revenue growth.
Fair value range in USD, drawn from the 2026-09-09 screen. The gold marker is the market price at the same screen. The price runs 2.8% above the base estimate.
Third-party analyst targets: 16 covering, consensus None. The average target sits +16% from the screen price.
Reading the gap · Our more conservative model reads it as roughly fairly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-09 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Lights stay on but debt weighs heavy
Picture a power bill that arrives every month without fail. CenterPoint Energy delivers electricity across the US yet its balance sheet carries too much debt for our ethical screen to clear. The shares trade at $43 against a fair value of $39, revenue inches forward just 2 percent a year, and the forward multiple sits at 20.7 times.
We pass because the numbers do not add up on either valuation or ethics. Profit margins of 11 percent and a 10 percent return on equity look ordinary for a narrow-moat regulated utility, while the debt ratio breach rules the name out regardless of what sixteen analysts say.
The real risk is that steady cash flows mask leverage that could bite if rates stay high or regulators push back on returns. Peak earnings at a high multiple often signal a value trap rather than a bargain.
The risks · The things to watch: it carries a real debt load, which raises the stakes if revenue slips.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
CNP trades on a US exchange. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 10.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 8% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 21%. Our forward projection puts the odds of a 10% gain over the next month near 13%. The street (16 analysts) rates it buy, with a mean price target of $46.
2026-07-25Markup$43.13+1.0%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 1.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 8% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 21%. Our forward projection puts the odds of a 10% gain over the next month near 13%. The street (16 analysts) rates it buy, with a mean price target of $46.
2026-07-18Markup$42.69+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 8% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 21%. Our forward projection puts the odds of a 10% gain over the next month near 13%. The street (16 analysts) rates it buy, with a mean price target of $46.
2026-07-03Markup$42.69+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$42.69Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
