Centrica (CPYYY) AI Stock Analysis

• Market Cap: $10.69B
• Dividend Yield: 2.8%
• Average Volume (3M): 7.14K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.09
• Revenue Growth: -2.19%
• EPS Growth: -124.15%
• Country: US
• Employees: 21,038
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.38
• Shares Outstanding: 1,183,911,300
• 10 Day Avg. Volume: 7,440
• 30 Day Avg. Volume: 7,141
• PEG Ratio: -0.08
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 9.46
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.15
• Enterprise Value/Ebitda: 3.89
• 1Y Price Target: $9.00
• Price Target Upside: -1.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: $9.00 ▼(-1.53% Downside)

Centrica's overall stock score is primarily influenced by its solid financial performance, despite challenges in cash flow growth and high liabilities. Technical indicators suggest bearish momentum, and the negative P/E ratio raises concerns about valuation. The attractive dividend yield offers some compensation for these risks.

Centrica Business Overview & Revenue Model

Company Description

Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Norway, North America, and internationally. The company operates through British Gas Services & Solutions, British Gas Energy, Centrica Business Solutions, Bord Gáis Energy, Energy Marketing & Trading, and Upstream segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, home electrical, and gas and kitchen appliances; and heating, ventilation, and air conditioning equipment, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; procurement and sale of LNG; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it provides vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage and franchise network. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was founded in 1812 and is based in Windsor, the United Kingdom.

How the Company Makes Money

Centrica generates revenue through several key streams. The primary source is the sale of gas and electricity to residential and commercial customers, leveraging its extensive customer base across the UK and North America. Additionally, the company earns income from its Energy Marketing and Trading segment, which involves trading energy commodities and managing portfolios to optimize financial returns. The Connected Home segment contributes to revenue through the sale of smart home products and services, including installation and maintenance of energy management systems. Centrica also engages in partnerships with renewable energy providers and technology firms, enhancing its service offerings and expanding its market reach. Fluctuations in energy prices and regulatory changes also significantly impact the company's earnings.

Centrica Financial Statement Overview

Summary

Centrica has shown a strong recovery with increased net income and improved net profit margin due to effective cost management and revenue growth. The balance sheet is stable with a healthy equity position and reduced debt-to-equity ratio. However, high total liabilities and slowed cash flow growth rate require careful management.

Income Statement

Centrica has demonstrated a strong recovery with a notable increase in net income from 2022 to 2023. The net profit margin improved significantly due to better cost management and revenue growth. Revenue growth rate was robust, reflecting a strong market position. However, the gross profit margin experienced fluctuations, indicating potential volatility in cost structures.

Balance Sheet

The company has improved its equity position with a rising stockholders' equity over the years, indicating financial stability. The Debt-to-Equity ratio has decreased, suggesting effective debt management. The equity ratio is healthy, showcasing a solid asset base supported by equity. However, the total liabilities remain high, which could pose a risk if not managed carefully.

Cash Flow

Centrica's operating cash flow has decreased from the previous year, but the company still maintains positive free cash flow, essential for reinvestment and debt servicing. The free cash flow to net income ratio indicates strong cash generation from operations. However, the free cash flow growth rate has slowed compared to previous periods, which could affect future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.50B	19.91B	26.46B	23.74B	14.74B	12.25B
Gross Profit	3.72B	4.09B	9.62B	2.04B	1.63B	3.12B
EBITDA	2.05B	2.42B	7.30B	506.00M	721.00M	2.60B
Net Income	-244.00M	1.33B	3.93B	-782.00M	1.21B	41.00M
Balance Sheet
Total Assets	16.21B	18.73B	21.37B	29.04B	27.09B	17.12B
Cash, Cash Equivalents and Short-Term Investments	5.38B	6.22B	6.74B	4.29B	4.63B	1.67B
Total Debt	2.93B	3.51B	4.10B	4.02B	4.64B	5.38B
Total Liabilities	12.52B	13.92B	17.13B	27.76B	24.34B	15.74B
Stockholders Equity	3.30B	4.42B	3.88B	1.02B	2.37B	957.00M
Cash Flow
Free Cash Flow	174.00M	733.00M	2.42B	943.00M	1.19B	911.00M
Operating Cash Flow	645.00M	1.15B	2.75B	1.31B	1.61B	1.40B
Investing Cash Flow	323.00M	493.00M	115.00M	-566.00M	2.26B	-285.00M
Financing Cash Flow	-1.20B	-1.55B	-1.41B	-917.00M	-938.00M	-482.00M

Centrica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPYYY, the sentiment is Positive. The current price of 9.14 is above the 20-day moving average (MA) of 8.82, above the 50-day MA of 8.74, and above the 200-day MA of 7.86, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 70.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPYYY.

Centrica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTRG	73 Outperform	$10.82B	16.50	9.61%	3.35%	20.70%	14.59%
PNW	69 Neutral	$10.50B	18.11	8.56%	3.97%	7.47%	-8.53%
AES	65 Neutral	$10.18B	10.09	46.27%	4.80%	-3.19%	30.48%
TLN	64 Neutral	$19.83B	125.20	15.01%	―	125.17%	-74.67%
NRG	58 Neutral	$32.36B	70.80	22.81%	1.04%	2.09%	-74.13%
CPYYY	57 Neutral	$10.69B	6.56	-5.90%	2.80%	-2.19%	-124.15%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%