Centrica (CPYYY) AI Stock Analysis

• Market Cap: $10.02B
• Dividend Yield: 2.31%
• Average Volume (3M): 318.00
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.16
• Revenue Growth: -22.53%
• EPS Growth: -62.36%
• Country: US
• Employees: 21,038
• Sector: Utilities
• Sector Strength: 88
• Industry: Independent Power Producers
• EPS (TTM): 1.28
• Shares Outstanding: 1,256,515,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 318
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.36
• Price to Cash Flow (P/CF): 4.60
• P/FCF Ratio: 4.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Centrica's overall stock score of 74 reflects its solid financial performance, with strong profitability and a healthy balance sheet. While technical indicators are generally positive, suggesting potential for price appreciation, the valuation is particularly compelling due to a low P/E ratio and a decent dividend yield. However, attention to cash flow generation and careful debt management will be essential to maintain stability and growth. The absence of significant new corporate events or earnings call highlights leaves the current stock evaluation largely unchanged.

Centrica Business Overview & Revenue Model

Company Description

Centrica PLC is a leading British multinational energy and services company headquartered in Windsor, Berkshire. The company operates primarily in the energy sector, offering a range of products and services including the supply of electricity and natural gas to residential, commercial, and industrial customers. Centrica is also involved in the installation and maintenance of heating and cooling systems, as well as providing energy efficiency solutions. The company operates under several brands, including British Gas in the UK and Bord Gáis Energy in Ireland.

How the Company Makes Money

Centrica makes money through multiple revenue streams, primarily from the sale of electricity and natural gas to its large customer base in the UK, Ireland, and North America. The company generates revenue by charging customers for energy consumption, as well as providing energy-related services such as installation, maintenance, and repair of heating and cooling systems. Centrica also earns money through its business solutions segment, which offers energy efficiency solutions and distributed energy technologies to help businesses reduce their energy consumption and carbon footprint. Additionally, Centrica has strategic partnerships and collaborations that enhance its service offerings and market reach, contributing to its financial performance.

Centrica Financial Statement Overview

Summary

Centrica has shown a commendable financial recovery with significant improvements in profitability, strengthened balance sheet, and robust cash flow generation. The transition from net loss to net income is notable, though challenges in cost management persist as indicated by the negative gross profit margin.

Income Statement

The company has shown a significant turnaround in its financial performance with a notable increase in revenue from 2022 to 2023, leading to a positive revenue growth rate. However, the gross profit margin is negative for 2023, indicating potential cost management issues. The net profit margin has improved significantly, transitioning from a net loss to a net income position, showcasing enhanced profitability. The EBIT and EBITDA margins have also improved drastically, indicating better operational efficiencies.

Balance Sheet

Centrica's balance sheet has strengthened with an increase in stockholders' equity and a decrease in total debt, leading to a robust debt-to-equity ratio. The return on equity has dramatically improved due to the significant net income reported in 2023. However, the equity ratio remains relatively low, indicating a substantial portion of assets financed by liabilities.

Cash Flow

The cash flow statement shows a strong free cash flow growth rate, highlighting effective cash management and improved operational cash generation. The operating cash flow to net income ratio suggests that the company is effectively converting its profits into cash, enhancing liquidity. The free cash flow to net income ratio further supports the company's strong cash generation capabilities.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
25.46B	26.46B	23.74B	14.74B	12.25B	22.67B
	Gross Profit
2.69B	9.62B	2.04B	1.63B	3.12B	3.21B
	EBIT
-2.57B	6.51B	-240.00M	954.00M	-362.00M	-849.00M
	EBITDA
-10.63B	7.30B	506.00M	1.73B	1.87B	1.37B
	Net Income Common Stockholders
993.50M	3.93B	-782.00M	1.21B	41.00M	-1.02B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.15B	6.74B	4.29B	4.63B	1.67B	1.47B
	Total Assets
20.56B	21.37B	29.04B	27.09B	17.12B	18.15B
	Total Debt
4.75B	4.10B	4.02B	4.64B	5.38B	5.34B
	Net Debt
3.67B	-2.24B	-270.00M	18.00M	3.70B	4.00B
	Total Liabilities
16.61B	17.13B	27.76B	24.34B	15.74B	16.36B
	Stockholders Equity
3.15B	3.88B	1.02B	2.37B	957.00M	1.21B
Cash Flow		Free Cash Flow
935.00M	2.42B	943.00M	1.19B	911.00M	469.00M
	Operating Cash Flow
1.34B	2.75B	1.31B	1.61B	1.40B	1.25B
	Investing Cash Flow
14.00M	115.00M	-566.00M	2.26B	-285.00M	-503.00M
	Financing Cash Flow
-2.14B	-1.41B	-917.00M	-938.00M	-482.00M	-1.08B

Centrica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.15
• 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 8.15 is above the 20-day moving average (MA) of 7.73, above the 50-day MA of 7.53, and above the 200-day MA of 6.76, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 65.20 is Neutral, neither overbought nor oversold. The STOCH value of 99.20 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
CPYYY	74 Outperform	$10.02B	6.22	32.15%	2.31%	-22.53%	-62.36%
VST	74 Outperform	$38.31B	16.10	48.89%	0.78%	24.68%	103.48%
OGE	73 Outperform	$9.11B	20.64	9.65%	3.71%	11.63%	5.61%
PNW	70 Neutral	$11.33B	18.14	9.42%	3.74%	9.13%	21.11%
KEP	63 Neutral	$11.38B	4.52	9.32%	―	1.51%	―
Sector *	63 Neutral	$8.55B	12.13	6.36%	4.42%	3.05%	-9.27%
NRG	62 Neutral	$20.12B	19.80	41.79%	1.68%	-1.72%	―