Centrica (CPYYY) AI Stock Analysis

• Market Cap: $10.97B
• Dividend Yield: 2.67%
• Average Volume (3M): 692.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• 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: 1,151,265,400
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 692
• 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: 0.52
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 1.54
• Enterprise Value/Ebitda: 2.79
• 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: 61 Neutral
• Price Target: $10.00 ▲(13.90% Upside)

Centrica's overall stock score is driven primarily by its solid financial performance and positive technical indicators. The company's strong balance sheet and profitability improvements are significant strengths. However, the negative P/E ratio and potential cash flow concerns weigh down the score. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Balance Sheet Health

A strong balance sheet with rising equity and effective debt management enhances financial stability and supports long-term growth.

Profitability Improvements

Improved profitability reflects effective cost management and revenue growth, strengthening the company's competitive position.

Cash Flow Generation

Strong cash generation supports reinvestment and debt servicing, enhancing financial flexibility and sustainability.

Negative Factors

Revenue Growth Challenges

Fluctuating gross margins suggest potential cost structure volatility, which could impact long-term revenue growth and profitability.

Cash Flow Concerns

Decreasing operating cash flow may limit future liquidity and investment capacity, posing a risk to sustained growth.

High Liabilities

High liabilities can strain financial resources and limit strategic flexibility, potentially impacting long-term stability.

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

Centrica is on a solid financial trajectory with improving profitability and a strengthened balance sheet. The company has effectively managed its debt and equity, but careful attention to cash flow generation and cost management is essential to sustain growth. The financial health is robust but requires vigilant oversight of liabilities and cash flow to ensure long-term stability.

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: 8.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.78 is below the 20-day moving average (MA) of 9.09, below the 50-day MA of 9.06, and above the 200-day MA of 8.63, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 66.17 is Neutral, neither overbought nor oversold. The STOCH value of 85.89 is Negative, 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
NRG	68 Neutral	$27.51B	21.81	64.19%	1.11%	6.40%	62.12%
WTRG	66 Neutral	$10.89B	15.89	10.29%	3.48%	21.35%	20.96%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
PNW	65 Neutral	$10.69B	18.29	8.62%	4.15%	5.70%	-8.25%
AES	65 Neutral	$10.13B	8.72	23.02%	5.06%	-1.55%	12.83%
CPYYY	61 Neutral	$10.97B	-36.98	-5.90%	2.67%	-2.19%	-124.15%
TLN	60 Neutral	$16.26B	77.33	11.72%	―	80.20%	-74.33%