Aureus
FRed Flag

CenterPoint Energy, Inc (Holdin(CNP)

F

Financial data as of Dec 31, 2025Improving · Utilities

FCF Margin-25.5%Free Cash Flow / Revenue
Cash Conversion236.3%Operating CF / Net Income
Free Cash Flow-$2.4B
Revenue$9.4B
Net Cash-$22.9BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio0.91Tight short-term liquidity
YoY FCF Growth+37.0%0 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1Current ratio below 1.0 (0.91)
→
-1Negative FCF in 4 of last 4 quarters
→
+1Strong YoY FCF growth (37.0% YoY)
→
-1Only 0 positive quarters recently
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (236%)
  • Strong YoY FCF growth (+37.0%)

Concerns

  • Negative FCF margin (-25.5%)
  • Net debt position ($22.9B)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 0 positive FCF quarters recently
Heavy CapEx — Operating cash flow is strong (27% margin) but most is reinvested

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin-25.5%
Net Margin11.2%
Operating CF Margin26.6%
CapEx Ratio52.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$22.9BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio0.91Tight liquidity
Debt / Equity2.06High leverage

Quarterly FCF Trend

+37.0% YoYImproving (+37.0%)

Free cash flow per quarter

Sector Comparison — Utilities

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameCenterPoint Energy, Inc (Holdin
SectorUtilities
Free Cash Flow-$2.4B
Revenue$9.4B
Net Income$1.1B
Operating Cash Flow$2.5B
Capital Expenditure$4.9B
FCF Margin-25.5%
Cash Conversion Rate236.3%
Net Margin11.2%
Total Debt$23.0B
Total Cash$38.0M
Net Cash-$22.9B
Current Ratio0.91
Debt / Equity2.06
Debt / FCFN/A
YoY FCF Growth+37.0%
Positive Quarters0 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

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