Centrica (CNA) AI Stock Analysis

• Market Cap: £7.91B
• Dividend Yield: 2.89%
• Average Volume (3M): 17.80M
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.85
• Revenue Growth: -4.82%
• EPS Growth: -123.58%
• Country: UK
• Employees: 21,038
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.07
• Shares Outstanding: 4,756,243,700
• 10 Day Avg. Volume: 15,940,624
• 30 Day Avg. Volume: 17,795,893
• PEG Ratio: -0.08
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 9.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £189.33
• Price Target Upside: 13.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 52 Neutral
• Price Target: 159.00p ▼(-4.73% Downside)

Centrica's overall stock score reflects a mix of improved financial performance and weak technical and valuation metrics. The company's financial health shows signs of recovery, but historical volatility and current bearish technical indicators weigh heavily on the score. The negative P/E ratio further impacts the valuation outlook.

Positive Factors

Balance Sheet Health

Improved debt-to-equity ratio and positive return on equity indicate better leverage management and effective use of shareholder funds.

Cash Flow Generation

Solid cash flow metrics suggest effective cash management, providing financial flexibility for investments and debt reduction.

Operational Efficiency

Improved margins reflect better cost management and operational execution, enhancing profitability and competitive positioning.

Negative Factors

Revenue Volatility

Inconsistent revenue trends can signal market challenges or operational issues, potentially impacting long-term growth prospects.

Historical Profitability Volatility

Volatile profitability may affect investor confidence and the ability to sustain dividend payouts or reinvest in growth opportunities.

Free Cash Flow Fluctuations

Inconsistent cash flow generation can hinder strategic planning and investment, affecting long-term business sustainability.

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 majority of its income comes from the supply of gas and electricity to residential and business customers, primarily through its British Gas brand. The company also earns revenue from energy trading activities, where it buys and sells energy in wholesale markets. Additionally, Centrica provides home services, which include boiler and heating installation, maintenance, and repair services, contributing to its overall earnings. The company has formed strategic partnerships and collaborations with various technology providers to enhance its service offerings and expand its market presence, which also supports its revenue growth. Furthermore, Centrica's investments in renewable energy projects and initiatives aimed at sustainability may provide additional revenue opportunities in the evolving energy market.

Centrica Financial Statement Overview

Summary

Centrica shows improved financial health in 2024 with better profitability and cash flow metrics, alongside a strengthening balance sheet. However, the company has demonstrated historical volatility in both revenue and profitability, necessitating cautious optimism. Continued focus on stabilizing revenue streams and managing leverage will be crucial for sustained financial performance.

Income Statement

Centrica's revenue has shown significant fluctuations, with a notable decline from 2023 to 2024, but a previous strong growth from 2021 to 2023. Despite this, the gross profit margin has varied greatly, being negative in 2023 and recovering in 2024. Net profit margin also shows inconsistency, with a positive margin in 2024 after a major loss in 2023. The EBIT and EBITDA margins indicate improving operational efficiency in 2024, yet the volatile historical performance suggests caution.

Balance Sheet

Centrica's balance sheet shows a strengthening equity position, with stockholders' equity increasing significantly from 2022 to 2024. The debt-to-equity ratio is improving, indicating better leverage management. Return on equity is positive in 2024, showing effective utilization of shareholder funds. However, the overall equity ratio remains moderate, suggesting a continued reliance on debt financing.

Cash Flow

The cash flow statement indicates strong free cash flow generation in 2024, with a solid free cash flow to net income ratio indicating good cash conversion. The operating cash flow to net income ratio is healthy, suggesting effective cash management. However, the company has experienced fluctuations in free cash flow over the years, pointing to potential volatility in future cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.43B	19.91B	26.46B	23.74B	14.74B	12.25B
Gross Profit	5.52B	4.09B	-1.70B	9.75B	1.41B	3.52B
EBITDA	2.01B	2.42B	7.08B	410.00M	721.00M	488.00M
Net Income	-118.50M	1.33B	3.93B	-782.00M	586.00M	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	6.85B	4.84B	5.06B	1.82B
Total Debt	2.93B	3.51B	4.10B	3.96B	4.58B	5.29B
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	276.00M	733.00M	2.42B	943.00M	1.19B	778.00M
Operating Cash Flow	633.00M	1.15B	2.75B	1.31B	1.61B	1.27B
Investing Cash Flow	-166.00M	493.00M	115.00M	-566.00M	2.26B	-354.00M
Financing Cash Flow	-989.00M	-1.55B	-1.41B	-917.00M	-938.00M	-280.00M

Centrica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 166.90
• 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 GB:CNA, the sentiment is Positive. The current price of 166.9 is above the 20-day moving average (MA) of 158.83, above the 50-day MA of 159.37, and above the 200-day MA of 147.24, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 72.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CNA.

Centrica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NG	72 Outperform	51.55B	16.85	7.68%	4.53%	-7.42%	5.84%
SSE	69 Neutral	18.33B	15.41	9.86%	3.85%	-3.11%	-31.10%
UU	61 Neutral	7.84B	29.61	13.24%	4.56%	10.04%	0.00%
SVT	60 Neutral	7.70B	33.40	12.95%	4.80%	3.78%	50.18%
PNN	58 Neutral	2.20B	-32.58	-4.00%	7.39%	15.42%	-406.43%
CNA	52 Neutral	£7.91B	6.18	-5.95%	2.89%	-4.82%	-123.58%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Centrica Corporate Events

Centrica Expands Share Buyback Programme with Recent Purchase

Centrica plc has announced the purchase of 5,207,728 of its own ordinary shares at a price of 156.4000 pence per share, which will be held as treasury shares. This transaction is part of the first tranche of the company’s 2025 buyback programme, executed through Goldman Sachs International. Since June 2025, Centrica has acquired a total of 141,825,273 shares at a cost of over £227 million, reflecting its strategy to enhance shareholder value and manage its capital structure.

The most recent analyst rating on (GB:CNA) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Centrica stock, see the GB:CNA Stock Forecast page.

Centrica Advances Share Buyback Programme with Latest Purchase

Centrica plc has announced the purchase of 5,207,728 of its own ordinary shares at a price of 156.4000 pence per share, as part of its ongoing 2025 buyback programme. This transaction, conducted through Goldman Sachs International, is part of the first tranche of the programme’s extension announced earlier this year. The acquisition of these shares, which will be held as treasury shares, reflects Centrica’s strategic focus on optimizing its capital structure and returning value to shareholders.

The most recent analyst rating on (GB:CNA) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Centrica stock, see the GB:CNA Stock Forecast page.

Centrica Executives Acquire Shares Under Incentive Plan

Centrica plc announced that its Share Incentive Plan administrators, Equiniti Limited, have acquired ordinary shares on behalf of its executive directors, Christopher O’Shea and Russell O’Brien. The transactions involve the acquisition of Partnership Shares and Matching Shares, with a total of 117 shares for O’Shea and 118 shares for O’Brien, conducted on the London Stock Exchange and outside a trading venue. This move highlights the company’s commitment to aligning the interests of its executives with those of its shareholders, potentially impacting stakeholder confidence and executive engagement.

The most recent analyst rating on (GB:CNA) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Centrica stock, see the GB:CNA Stock Forecast page.

Centrica Advances 2025 Share Buyback Programme with Latest Purchase

Centrica plc announced the purchase of 4,089,458 of its own ordinary shares at a price of 155.9600 pence per share, which will be held as treasury shares. This transaction is part of the first tranche of the company’s 2025 buyback programme, which was extended earlier in the year. Since June 2025, Centrica has acquired a total of 136,617,545 shares at a cost of £219,591,838.72. The buyback programme is a strategic move to manage the company’s capital structure and potentially enhance shareholder value.

The most recent analyst rating on (GB:CNA) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Centrica stock, see the GB:CNA Stock Forecast page.

Centrica Advances 2025 Buyback Programme with Share Purchase

Centrica plc has announced the purchase of 3,719,058 of its own ordinary shares at a price of 154.4200 pence per share, as part of the first tranche of its 2025 buyback programme. This move, executed through Goldman Sachs International, is part of Centrica’s ongoing strategy to manage its capital structure and return value to shareholders, further solidifying its position in the energy market.

The most recent analyst rating on (GB:CNA) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Centrica stock, see the GB:CNA Stock Forecast page.

Centrica Advances 2025 Share Buyback Program with New Purchase

Centrica plc has announced the purchase of 3,426,168 of its own ordinary shares at a price of 154.7700 pence each, as part of the first tranche of its extended 2025 buyback program. This move, executed through Goldman Sachs International, is part of Centrica’s strategy to manage its capital structure and return value to shareholders, reflecting confidence in its financial health and future prospects.

The most recent analyst rating on (GB:CNA) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Centrica stock, see the GB:CNA Stock Forecast page.

Centrica Advances 2025 Buyback Programme with New Share Purchase

Centrica plc announced the purchase of 2,762,183 ordinary shares at a price of 154.9100 pence per share, as part of the first tranche of its 2025 buyback programme. This move, executed through Goldman Sachs International, is part of a broader strategy to manage its capital structure and return value to shareholders. Following this transaction, Centrica holds 477,079,856 shares in treasury, with a total of 4,780,527,358 shares in issue. The buyback programme reflects Centrica’s commitment to enhancing shareholder value and optimizing its financial resources.

The most recent analyst rating on (GB:CNA) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Centrica stock, see the GB:CNA Stock Forecast page.

Centrica Advances Share Buyback Program with Latest Purchase

Centrica plc has announced the purchase of 3,229,051 of its ordinary shares at an average price of 155.4000 pence per share, as part of its ongoing 2025 buyback program. This transaction, executed through Goldman Sachs International, is part of a broader strategy to manage its capital structure and enhance shareholder value. Following this purchase, Centrica holds 474,343,314 shares in treasury, with 4,783,263,900 shares remaining in issue. This move may impact the company’s financial metrics and shareholder returns, signaling confidence in its financial health and future prospects.

The most recent analyst rating on (GB:CNA) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Centrica stock, see the GB:CNA Stock Forecast page.

Centrica Advances 2025 Share Buyback Programme

Centrica plc has announced the purchase of 3,340,508 of its own ordinary shares at a price of 155.2600 pence per share, as part of its 2025 buyback programme. This transaction, executed through Goldman Sachs International, is part of an ongoing effort to manage its share capital and enhance shareholder value by holding the purchased shares as treasury shares.

The most recent analyst rating on (GB:CNA) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Centrica stock, see the GB:CNA Stock Forecast page.