Centrica (CPYYY) AI Stock Analysis

• Market Cap: $9.97B
• Dividend Yield: 2.77%
• Average Volume (3M): 666.00
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.10
• Revenue Growth: -2.19%
• EPS Growth: -124.15%
• Country: US
• Employees: 21,038
• Sector: Utilities
• Sector Strength: 59
• Industry: Independent Power Producers
• EPS (TTM): 0.38
• Shares Outstanding: 1,192,323,100
• 10 Day Avg. Volume: 343
• 30 Day Avg. Volume: 666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: 3.30
• 1Y Price Target: $9.00
• Price Target Upside: 3.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $9.00 ▲(3.45% Upside)

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.

Positive Factors

Financial Stability

Centrica's improved equity position and reduced debt-to-equity ratio indicate effective debt management and financial stability, providing a solid foundation for future growth and resilience against economic fluctuations.

Strong Cash Generation

Centrica's ability to generate strong cash flow from operations ensures it can reinvest in growth opportunities and service debt, supporting long-term financial health and strategic initiatives.

Improved Profit Margins

Enhanced net profit margins reflect Centrica's effective cost management and revenue strategies, strengthening its competitive position and profitability over the long term.

Negative Factors

High Total Liabilities

Despite improved equity, Centrica's high total liabilities could strain financial resources and limit flexibility, potentially impacting its ability to invest in growth and manage economic downturns.

Slowing Cash Flow Growth

A slowdown in cash flow growth may hinder Centrica's capacity to fund new projects and manage debt, potentially affecting its long-term strategic initiatives and financial stability.

Revenue Growth Decline

Despite past robust growth, the recent decline in revenue growth could signal challenges in maintaining market share and competitive edge, affecting future profitability and expansion efforts.

Centrica Business Overview & Revenue Model

Company Description

Centrica plc is a leading energy and services company based in the UK, primarily engaged in the supply of gas and electricity to residential and business customers. The company operates through various segments, including Energy Supply, which provides energy solutions; Energy Marketing and Trading, which manages energy trading activities; and Connected Home, focusing on smart home technologies and services. Centrica also offers energy efficiency solutions and provides support for renewable energy initiatives.

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 strong financial recovery with improved net income and a robust revenue growth rate. The balance sheet is stable with effective debt management, though high liabilities pose a risk. Cash flow remains positive but has slowed, requiring 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.91B	26.46B	23.74B	14.74B	12.25B
Gross Profit	4.09B	9.62B	2.04B	1.63B	3.12B
EBITDA	2.42B	7.30B	506.00M	1.73B	1.87B
Net Income	1.33B	3.93B	-782.00M	1.21B	41.00M
Balance Sheet
Total Assets	18.73B	21.37B	29.04B	27.09B	17.12B
Cash, Cash Equivalents and Short-Term Investments	6.22B	6.74B	4.29B	4.63B	1.67B
Total Debt	3.51B	4.10B	4.02B	4.64B	5.38B
Total Liabilities	13.92B	17.13B	27.76B	24.34B	15.74B
Stockholders Equity	4.42B	3.88B	1.02B	2.37B	957.00M
Cash Flow
Free Cash Flow	733.00M	2.42B	943.00M	1.19B	911.00M
Operating Cash Flow	1.15B	2.75B	1.31B	1.61B	1.40B
Investing Cash Flow	493.00M	115.00M	-566.00M	2.26B	-285.00M
Financing Cash Flow	-1.55B	-1.41B	-917.00M	-938.00M	-482.00M

Centrica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.70
• 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 8.7 is above the 20-day moving average (MA) of 8.66, above the 50-day MA of 8.64, and above the 200-day MA of 7.82, indicating a bullish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 65.20 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	69 Neutral	$10.73B	16.24	10.02%	3.45%	20.70%	14.59%
Sector *	66 Neutral	$17.51B	18.09	5.60%	3.63%	6.62%	11.55%
PNW	65 Neutral	$10.55B	18.05	8.90%	4.06%	7.47%	-8.53%
AES	65 Neutral	$9.15B	8.99	21.17%	5.44%	-3.19%	30.48%
TLN	64 Neutral	$18.32B	114.47	9.95%	―	125.17%	-74.67%
NRG	58 Neutral	$30.55B	68.22	17.66%	1.05%	2.09%	-74.13%
CPYYY	57 Neutral	$9.97B	6.56	-5.90%	2.77%	-2.19%	-124.15%