Centrica (CPYYY) AI Stock Analysis

• Market Cap: $11.71B
• Dividend Yield: 2.67%
• Average Volume (3M): 692.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -2.19%
• EPS Growth: -124.15%
• Country: US
• Employees: 21,038
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.22
• Shares Outstanding: 1,151,215,600
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 692
• PEG Ratio: 1.09
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 25.65
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 1.01
• Enterprise Value/Ebitda: 1.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $10.50 ▲(7.36% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

Overall score reflects mid-range financial quality: strong operating margins and improved leverage are offset by recent revenue declines and a return to net losses, with cash flow still positive but less robust than 2023. Technicals are modestly supportive (price above key longer-term averages and positive MACD), while valuation is constrained by a negative P/E despite a moderate dividend yield.

Positive Factors

High operating margins

Sustained high gross and operating margins in 2025 indicate structural operational efficiency across supply and services. Durable margins give Centrica buffer versus retail price swings, supporting cash generation and reinvestment capacity over the next several quarters.

Improved leverage

Leverage improvement to debt roughly in line with equity reduces refinancing and solvency risk versus past cycles. A more manageable balance sheet increases financial flexibility to fund capex, energy projects, and service investments over the medium term.

Positive free cash flow

A rebound in free cash flow and positive operating cash flow provide recurring internal funds for maintenance, renewables investment and service growth. Even with earnings volatility, positive FCF supports dividends, debt service and strategic capex over coming quarters.

Negative Factors

Recent revenue decline

Two consecutive years of revenue decline weaken scale economics for retail and services segments. Persistent top-line erosion can pressure margins, reduce cross-sell opportunities, and limit the company's ability to absorb wholesale cost shocks or fund growth initiatives.

Earnings swung to loss

A swing to a net loss in 2025 erodes retained earnings and undermines earnings-based cushions that fund investment or dividends. Loss-making periods make cash generation and capital allocation more sensitive to market swings, increasing medium-term execution risk.

Capital structure volatility

Compressed equity and a history of capital-structure swings indicate vulnerability to cyclical stress and financing shocks. That structural volatility can raise future funding costs, constrain strategic moves, and require more active balance-sheet management over the next 2–6 months.

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 multiple streams, primarily from the sale of natural gas and electricity to residential and business customers. The company operates in the retail energy market, where it sources energy from wholesale markets and sells it to consumers. In addition to energy supply, Centrica earns income from its services division, which includes home maintenance and repair services, smart home technologies, and energy management solutions. The company also invests in renewable energy projects and operates power generation assets, contributing to its revenue through electricity generation and sale. Strategic partnerships with technology and energy companies enhance Centrica's service offerings and market reach, further bolstering its financial performance.

Centrica Financial Statement Overview

Summary

Mid-range fundamentals: strong gross and operating margins in 2025 and improved leverage versus prior stress periods, but revenue has declined in 2024–2025 and earnings swung to a small net loss. Cash flow is positive and FCF rebounded, though operating cash flow is down from 2023 and provides less cushion given negative earnings.

Income Statement

Profitability has been volatile. The company delivered strong operating performance in 2025 (high gross and operating margins), but earnings swung to a small net loss versus solid profitability in 2023–2024. Revenue has also softened recently (down in 2024 and 2025, after growth in 2022–2023), which raises questions about near-term momentum even as core operating margins remain healthy.

Balance Sheet

Leverage looks manageable today, with debt roughly in line with equity in 2025 and improved versus periods of heavy leverage (notably 2020 and 2022). However, equity has compressed versus 2024 and the capital structure has historically been prone to swings, suggesting the balance sheet is better than it was but still not consistently sturdy across cycles.

Cash Flow

Cash generation is positive, with operating cash flow and free cash flow both positive in 2025 and free cash flow rebounding sharply year over year. That said, cash flow relative to earnings is not especially strong in the latest year (and earnings were negative), and operating cash flow has stepped down from the much stronger 2023 level—signaling less cushion if operating conditions tighten.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.06B	19.91B	26.46B	23.74B	14.74B
Gross Profit	7.37B	4.09B	9.62B	2.04B	1.63B
EBITDA	5.41B	2.42B	7.30B	506.00M	721.00M
Net Income	-70.42M	1.33B	3.93B	-782.00M	1.21B
Balance Sheet
Total Assets	15.39B	18.73B	21.37B	29.04B	27.09B
Cash, Cash Equivalents and Short-Term Investments	4.30B	6.22B	6.74B	4.29B	4.63B
Total Debt	3.04B	3.51B	4.10B	4.02B	4.64B
Total Liabilities	11.90B	13.92B	17.13B	27.76B	24.34B
Stockholders Equity	3.08B	4.42B	3.88B	1.02B	2.37B
Cash Flow
Free Cash Flow	314.94M	733.00M	2.42B	943.00M	1.19B
Operating Cash Flow	856.80M	1.15B	2.75B	1.31B	1.61B
Investing Cash Flow	-1.03B	493.00M	115.00M	-566.00M	2.26B
Financing Cash Flow	-1.19B	-1.55B	-1.41B	-917.00M	-938.00M

Centrica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 9.78 is below the 20-day moving average (MA) of 10.43, below the 50-day MA of 9.79, and above the 200-day MA of 9.02, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 53.00 is Neutral, neither overbought nor oversold. The STOCH value of 47.43 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	66 Neutral	$11.26B	16.49	10.29%	3.48%	21.35%	20.96%
NRG	66 Neutral	$35.27B	45.89	64.19%	1.11%	6.40%	62.12%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	65 Neutral	$11.59B	9.91	23.02%	5.06%	-1.55%	12.83%
PNW	64 Neutral	$11.98B	20.45	8.62%	4.15%	5.70%	-8.25%
TLN	59 Neutral	$17.14B	81.51	11.72%	―	80.20%	-74.33%
CPYYY	58 Neutral	$11.71B	-204.13	-5.90%	2.67%	-2.19%	-124.15%