How does rgy make money?

rgy generates $9.3B in annual revenue (annual revenue · their business grew +9.2% last year).

What is CNP's XVARY composite score?

rgy (CNP) has an XVARY composite score of 65/100, rated average. This combines growth, value, risk, and momentum factors.

CNP — rgy stock analysis · xvary snapshot

Start here if you're new

what it is

CenterPoint delivers power and gas to about 7.3 million customers across Texas and the Midwest.

how it gets paid

Last year Rgy made $9.3B in revenue. Gas utility services was the main engine at $3.8B, or 41% of sales.

why it's growing
Revenue grew 9.2% last year. Peak demand in houston is now expected to approach 42 gigawatts by the mid-2030s.

what just happened

CNP printed $0.40 in EPS, below the $0.55 bar.

At a glance

B++ balance sheet — above average — nothing keeping you up at night

65/100 earnings predictability — reasonably predictable

26.8x trailing p/e — priced about right

5.5% return on capital — nothing to write home about

xvary composite: 65/100 — average

What they do

CenterPoint delivers power and gas to about 7.3 million customers across Texas and the Midwest.

regulated utility → government-approved pricing → so what: 7.3 million customers keep paying. Houston Electric serves 2.86 million customers, while Indiana Electric serves 153,000. Leaving is painful because your house does not rewire itself to another grid.

utilities large-cap regulated-utility grid-load data-centers

How they make money

$9.3B annual revenue · their business grew +9.2% last year

Electric utility services

$3.6B

+7.0%

Gas utility services

$3.8B

+10.0%

Fuel cost recovery

$1.9B

+6.0%

Other and eliminations

$0.0B

0.0%

The products that matter

regulated power delivery

Houston Electric Utility

$9.3B revenue · 2.86M customers

it's the core business and effectively the whole story: one regulated network serving more than 2.86 million customers generated $9.3B of revenue last year.

100% of revenue

Key numbers

$11B

FY29 revenue

VL says sales reach $11B by FY2029. That is above the current $9.3B revenue base from EDGAR.

22.6%

operating margin

A 22.6% margin means about 23 cents of every revenue dollar survives before interest and taxes.

$20.6B

debt

That debt is 42% of capital. Rate hikes matter more when the balance is this large.

$47

target price

VL's 18-month target sits about 10% above $42.89. That is polite upside, not a moonshot.

Financial health

B++

strength

balance sheet grade B++ — above average financial health
risk rank 2 — safer than 80% of stocks
price stability 100 / 100
long-term debt $20.6B (42% of capital)
return on equity 11% — $0.11 profit for every $1 investors have put in

B++ — risk rank looks solid but long-term debt needs watching.

Total return vs. market

You invested $10,000 in CNP 3 years ago → it's now worth $16,110.

The index would have given you $13,880.

same period. same starting point. CNP beat the market by $2,230.

source: institutional data · total return

What just happened

missed estimates

CNP printed $0.40 in EPS, below the $0.55 bar.

That was a 27.27% miss versus consensus. Revenue was $6.9B, and the top line was not the problem.

$6.9B

revenue

$0.40

eps

n/a

the number that mattered

EPS mattered most. $0.40 came in below the $0.55 estimate, even with $6.9B of revenue behind it.

december-period share earnings clocked in at $0.40 compared to $0.38 in the year-ago period, marking a 5% vs. prior year increase.

results were primarily bolstered by accelerating load growth in the houston electric business, supported by the reshoring of advanced manufacturing and rising data center demand.
meanwhile, for the full year, per-share profit rose at a low single-digit pace to $1.60.
the utility updated its peak electric load forecast for the greater houston area.
following a 700% surge in its data center interconnection queue from one gigawatt (gw) to eight gw, cnp updated its long-term projections.

peak demand in houston is now expected to approach 42 gigawatts by the mid-2030s, roughly double current levels.
management anticipates reaching a 10-gigawatt (50%) load increase by 2029, two years ahead of prior expectations.

source: company earnings report, 2026

What could go wrong

the #1 risk is houston rate-case friction.

∘

med

regulatory pushback on grid spending

you own a monopoly, but not a blank check. if regulators resist passing through investment into customer bills, growth in the houston service area does not automatically become earnings growth.

that matters because the stock already trades at 26.8x earnings while the company carries $20.6B of long-term debt.

∘

med

data center demand that stays in the queue

the bullish narrative leans heavily on that interconnection queue moving from 1 GW to 8 GW. queues are not the same thing as built demand.

if projected load does not show up, investors are left paying a growth multiple for a standard utility.

∘

med

debt and funding pressure

utilities borrow to grow. that is normal. the constraint is timing: $20.6B of long-term debt, equal to 42% of capital, leaves less room for mistakes if spending runs ahead of recovery.

higher financing pressure would weigh on returns that are already just 5.5% on capital.

if houston demand growth fails to convert into approved rate base, you are left with a 26.8x utility earning 5.5% on capital and carrying $20.6B of long-term debt.

source: institutional data · regulatory filings · risk analysis

Pay attention to

growth signal

whether the 8 GW queue becomes real load

the market is treating that jump from 1 GW to 8 GW as proof houston demand is changing shape. execution starts when those projects actually connect.

valuation

26.8x earnings for a utility

that multiple only holds if revenue growth stays stronger than the sector usually offers.

next checkpoint

the next set of demand and capex updates

you want to see management keep tying regional growth to projects that regulators will actually let it earn on.

balance sheet

$20.6B debt at 42% of capital

the debt load is manageable today. it gets less comfortable fast if growth spending outruns recovery.

Analyst rankings

short-term outlook

average

momentum score 3 — in human-speak, analysts see a steady stock, not a breakout trade.

risk profile

above average

stability score 2 — safer than roughly 80% of stocks. that's what regulated utilities are supposed to look like.

chart momentum

average

technical score 3 — the stock is moving with the market, not sending a strong message either way.

earnings predictability

65 / 100

results are fairly stable, but not clockwork. demand growth is helping, which also makes forecasting a little less boring and a little less certain.

source: institutional data

Institutional activity

institutions have been net buying for 3 consecutive quarters — 271 buyers vs. 240 sellers in 4q2025. total institutional holdings: 0.7B shares. net buying for 3 quarters.

source: institutional data · 2q2025-4q2025

source: institutional data

Price targets

3-5 year target range

$38 $56

$43 current price

$47 target midpoint · +10% from current · 3-5yr high: $60 (+40% · 11% ann'l return)

source: institutional data · analyst targets

The deep dive

CNP

xvary deep dive

cnp

the full analysis is in the works.

what you'll get

dcf valuation model

bull / base / bear scenarios

competitive moat breakdown

quarterly earnings tracker

operating model projections

risk matrix with kill criteria

original price target + conviction

updated with every earnings

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