Business Analysis of CenterPoint Energy

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of CenterPoint Energy

CENTERPOINT ENERGY

Business Overview

CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company's Electric Transmission & Distribution segment offers electric transmission and distribution services to retail electric providers, municipalities, electric cooperatives, and other distribution companies. As of December 31, 2016, this segment owned 28,702 pole miles of overhead distribution lines and 3,692 circuit miles of overhead transmission lines; 23,937 circuit miles of underground distribution lines and 26 circuit miles of underground transmission lines; and 232 substations with a capacity of 60,854 megavolt amperes. Its Natural Gas Distribution segment sells regulated intrastate natural gas; provides natural gas transportation and storage services for residential, commercial, industrial, and transportation customers; and offers unregulated services comprising residential appliance repair and maintenance services, as well as sells heating, ventilating and air conditioning equipment. As of December 31, 2016, this segment owned approximately 74,000 linear miles of natural gas distribution mains. The company's Energy Services segment provides physical natural gas supplies primarily to commercial and industrial customers, and electric and natural gas utilities; natural gas management services; and physical delivery services, as well as procures and optimizes transportation and storage assets. It owns and operates approximately 200 miles of intrastate pipelines; and leases transportation capacity on various interstate and intrastate pipelines, and storage. Its Midstream Investments segment offers gathering, processing, compression, treating, dehydration, and fractionation of natural gas liquids for producer customers; and interstate and intrastate natural gas pipeline transportation and storage services to natural gas producers, utilities, and industrial customers. The company was founded in 1882 and is based in Houston, Texas.

CenterPoint Energy

CenterPoint Energy


R&P Rank: 365
Sector: Utilities
Industry:Electric Utilities
H.Q Location:Texas
Website: www.centerpointenergy.com
Company Address:
1111 LOUISIANA ST., HOUSTON TX 77002
Ph:713-207-3000

Business Analysis of CenterPoint Energy

The Utilities Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how CenterPoint Energy compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by CenterPoint Energy to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of CenterPoint Energy with an interactive chart.

  1. Revenue Growth: CenterPoint Energy reported a revenue growth of 1.9% year-on-year during 2016. Electric Utilities Industry grew at 0.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, CenterPoint Energy spent 72.3% of its total revenues on COGS. Electric Utilities industry average (COGS share of revenue) in the same period was 64.7%
  3. R&D share of Revenues: CenterPoint Energy R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: CenterPoint Energy SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, CenterPoint Energy spent 4.1% of its total revenues on Inventories. Electric Utilities industry average Inventory spending in the same period was 7.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, CenterPoint Energy invested 8.7% of its total revenues on Accounts Payable (A/P) Electric Utilities industry average Accounts Payable investment in the same period was 11.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, CenterPoint Energy invested 14.3% of its total revenues on Accounts Receivable (A/R). Electric Utilities industry average Accounts Receivable investment in the same period was 14.5%
  8. PP&E share of Revenues: As a percentage of revenue, CenterPoint Energy invested 163.5% of its total revenues on Property, Plants, and Equipments (PP&E). Electric Utilities industry average PPE investment in the same period was 286.7%
  9. Intangibles share of Revenues: As a percentage of revenue, CenterPoint Energy invested 11.5% of its total revenues on Intangibles. Electric Utilities industry average Intangibles investment in the same period was 22.3%
  10. Net Margins: CenterPoint Energy Net Margins in the year 2016 were 5.7%. Electric Utilities industry average Net Margins in the same period were 3.3%

Sector and Industry Association of CenterPoint Energy

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

CenterPoint Energy is associated with Utilities Sector and Electric Utilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of CenterPoint Energy

With $7.5 billion revenues, CenterPoint Energy ranked number 12 of all the companies in the US Electric Utilities industry. There were a total of 33 public companies in the US Electric Utilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electric Utilities industry by revenues during 2016 were:

  1. Southern ($19.9 billion)
  2. American Electric Power ($16.4 billion)
  3. NextEra Energy ($16.2 billion)
  4. FirstEnergy ($14.6 billion)
  5. AES ($13.6 billion)
  6. NRG Energy ($12.4 billion)
  7. Edison International ($11.9 billion)
  8. Dominion Resources ($11.7 billion)
  9. Entergy ($10.8 billion)
  10. DTE Energy ($10.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of CenterPoint Energyand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of centerpoint-energy

Entergy (ETR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Entergy Corp with $11 billion revenues in the year 2016 was the number 9 Electric Utilities company. Read this report to know the top competitors of Entergy and identify growth and cost optimization opportunities of Entergy

DTE Energy (DTE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

DTE Energy Co with $11 billion revenues in the year 2016 was the number 10 Electric Utilities company. Read this report to know the top competitors of DTE Energy and identify growth and cost optimization opportunities of DTE Energy

Eversource Energy (ES) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Eversource Energy with $8 billion revenues in the year 2016 was the number 11 Electric Utilities company. Read this report to know the top competitors of Eversource Energy and identify growth and cost optimization opportunities of Eversource Energy

PPL (PPL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PPL Corp with $8 billion revenues in the year 2016 was the number 13 Electric Utilities company. Read this report to know the top competitors of PPL and identify growth and cost optimization opportunities of PPL

Calpine (CPN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Calpine Corp with $7 billion revenues in the year 2016 was the number 14 Electric Utilities company. Read this report to know the top competitors of Calpine and identify growth and cost optimization opportunities of Calpine

AVANGRID (AGR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

AVANGRID, Inc. with $6 billion revenues in the year 2016 was the number 15 Electric Utilities company. Read this report to know the top competitors of AVANGRID and identify growth and cost optimization opportunities of AVANGRID

Revenues Analysis

CenterPoint Energy (CNP) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of CenterPoint Energy Inc (CNP) from 2012 to 2016. CenterPoint Energy generated a total of $7.5 billion revenues during 2016. CenterPoint Energy reported a revenue growth of 1.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

CenterPoint Energy (CNP) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of CenterPoint Energy Inc (CNP) from 2002 to 2016. CenterPoint Energy generated a total of $7.5 billion revenues during 2016. CenterPoint Energy reported a revenue growth of 1.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

CenterPoint Energy (CNP) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of CenterPoint Energy Inc (CNP) revenue growth with Electric Utilities industry growth during the last five years from 2012 to 2016. CenterPoint Energy reported a revenue growth of 1.9% year-over-year during 2016. The Electric Utilities industry growth was 0.2% year-over-year during 2016. CenterPoint Energy growth was faster than the industry during 2016.