CNPNEUTRAL

CNP Return on Equity (ROE) Analysis

9.8%

Updated 681h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how efficiently a company generates profit from shareholders’ invested capital; a 9.8% ROE means that for every $100 of equity, the company earns $9.80 in profit.

Sector Performance

38th percentile

CNP

9.8%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

9.6%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how efficiently a company generates profit from shareholders’ invested capital; a 9.8% ROE means that for every $100 of equity, the company earns $9.80 in profit.

This sits below the sector median of 13.8%, placing CNP in the 36th percentile among peers, so roughly two-thirds of comparable companies deliver higher returns on equity. The year-over-year change is not available, but the quarter-over-quarter change is +2.1%, and the two most recent values are 9.8% and 9.6%, showing a modest improvement over just one quarter. The combination of a below-median ROE with only a small recent gain suggests limited near-term upside from this metric, but the positive QoQ move prevents a clear deterioration signal. Investment risk is moderate: the stock is not an efficiency leader, yet the improving trend offers a watch point rather than a red flag. This metric supports the overall NEUTRAL verdict, since ROE is neither strong enough to justify a bullish tilt nor weak enough to force a bearish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CNP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are CNP's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.