| Centrica PLC (GB00B033F229) | |||
1,58 GBPStand (close): 03.07.25 |
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| 27.06.25 10:18:16 | Centrica preparing to take 15% stake in Sizewell C nuclear plant, reports say |  |
| British Gas owner Centrica is preparing to take a 15% stake in the UK’s new nuclear power plant Sizewell C, reports have said. The boss of the Windsor-based energy group earlier this year said he was “hopeful” of striking a deal to invest in the facility. The investment would mean Centrica has about the same size stake in Sizewell C as French energy giant EDF, the Financial Times reported on Friday. EDF, which owns and runs Britain’s nuclear facilities, and the Government were the first backers of the project.British Gas owner Centrica is said to be in discussions over securing investment in Sizewell C (Alamy/PA) But they have been trying to raise billions more from prospective investors, including Centrica. A spokeswoman for Centrica said it would not comment on speculation about acquisitions or investment. In February, chief executive Chris O’Shea said the group was in discussions over injecting cash in the new Suffolk-based nuclear plant, with aims to secure a deal in the first half of this year. He said: “I like nuclear. I’m really hopeful we can make progress with Sizewell C this year.” But he said it “all depends on the overall cost of the project and returns”. Mr O’Shea declined to give details on the size of stake Centrica was looking to take in the group, except to say it would be “between 1% or 2% and 50%”. Chancellor Rachel Reeves earlier this month said £14.2 billion will be invested to build the power plant, marking the end of a long journey to secure funding for the project since it was first earmarked in 2010. Sizewell C will power the equivalent of six million homes and is planned to be operation in the 2030s, and is expected to create 10,000 jobs, the Government said. The Financial Times reported that all sides were hopeful of reaching a final investment decision on the project before Parliament breaks for recess on July 21, citing sources familiar with the discussions. View Comments |
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| 18.04.25 14:01:17 | Centrica (LON:CNA) shareholder returns have been incredible, earning 409% in 5 years |  |
| We think all investors should try to buy and hold high quality multi-year winners. While not every stock performs well, when investors win, they can win big. Don't believe it? Then look at the Centrica plc (LON:CNA) share price. It's 374% higher than it was five years ago. This just goes to show the value creation that some businesses can achieve. It's also good to see the share price up 11% over the last quarter. On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the last half decade, Centrica became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too. We can see that the Centrica share price is up 87% in the last three years. During the same period, EPS grew by 39% each year. This EPS growth is higher than the 23% average annual increase in the share price over the same three years. Therefore, it seems the market has moderated its expectations for growth, somewhat. This unenthusiastic sentiment is reflected in the stock's reasonably modest P/E ratio of 5.59. You can see below how EPS has changed over time (discover the exact values by clicking on the image).LSE:CNA Earnings Per Share Growth April 18th 2025 We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Centrica's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Centrica's TSR for the last 5 years was 409%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. Story Continues A Different Perspective It's nice to see that Centrica shareholders have received a total shareholder return of 19% over the last year. Of course, that includes the dividend. Having said that, the five-year TSR of 38% a year, is even better. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Centrica is showing 4 warning signs in our investment analysis, and 2 of those make us uncomfortable... Centrica is not the only stock insiders are buying. So take a peek at this freelist of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 17.04.25 11:54:02 | UK risks energy crisis as British Gas halts activity at fuel storage site | |
| Centrica has stopped injecting natural gas into the Rough storage site off the Yorkshire coast amid concerns about the site’s financial viability The owner of British Gas has stopped filling a crucial fuel storage facility in the North Sea, raising the risk of winter shortages and potentially higher energy prices. Centrica (CNA.L) has stopped injecting natural gas into the Rough storage site off the Yorkshire coast amid concerns about the site’s financial viability. Executives are understood to be pressing ministers for price guarantees to ensure profits from the facility. Rough comprises about half of the UK’s energy storage capacity and is a vital buffer against spells of cold windless weather when demand for gas surges – both to heat homes and for generating electricity. Centrica reopened the facility at the Government’s behest in 2022 during the energy crisis, when ministers belatedly realised the UK was vulnerable to gas shortages. However, last December the company warned it was making losses of between £50m and £100m at its Centrica Energy Storage+ business division. It said Rough was not financially viable in the current market, given gas prices have fallen and are relatively stable. The company has now halted filling because forecasts suggest the difference between prices today and in winter mean it would not make financial sense to pay for the storage. Centrica has opened talks with the Government over new financing arrangements. The company met with Ed Miliband, the Energy Secretary, in March to discuss options for keeping the plant open, according to reports in Energy Voice, a trade journal. A spokesperson for the Department of Energy Security and Net Zero (DESNZ) said it was a commercial matter but the Government was “open to discussing proposals on gas storage sites, as long as it provides value for money for taxpayers”. Gas is envisaged to comprise up to 5pc of the UK’s energy demand by 2030. It is a vital fuel for power stations that can be turned on at short-notice, helping to meet peaks in electricity demand or cover gaps in supply when poor weather means renewable generation falls short. At the time of reopening Rough for gas storage in October 2022, the facility was able to store approximately 30bn cubic feet (bcf) of gas, but further investment means the facility is now able to store up to 54 bcf of gas. Following the extension of capacity, it can hold enough gas to cover the UK’s energy needs for up to six days. The UK’s ability to store gas reserves is significantly less than other countries and mainland Europe, with just 12 days of total capacity compared to 89 days in Germany and 103 in France. This coming winter, the UK’s reserve gas capacity is expected to be materially lower than for the last two winters – potentially leaving the country vulnerable if it is a particularly cold period and if renewable generation falters. Story Continues Centrica has asked ministers for a so-called cap-and-floor mechanism to redevelop Rough with £2bn of its own cash so that it can eventually store hydrogen. This would effectively mean guaranteed funding underwritten by a levy on consumer bills. The company is expected to keep operating the facility while embarking on a redevelopment that would involve drilling new wells and installing a new platform. Chris Stark, who has been appointed to oversee net zero delivery by Mr Miliband, said at a parliamentary hearing earlier this year that the Government was considering a regulatory mechanism to support hydrogen storage from around 2030. Chris O’Shea, Centrica’s chief executive, said in February that the company was considering all options for Rough and had not made a decision around its continuation. Rough used to be a productive gas field but became depleted and was turned into a storage facility, then shuttered in 2017 only to be reopened in 2022. Centrica said Rough reached a record fill level in November 2024, the fullest it had been since reopening in 2022. A DESNZ spokesman said: “The future of Rough storage is a commercial decision for Centrica, but we remain open to discussing proposals on gas storage sites, as long as it provides value for money for taxpayers.” Centrica declined to comment. View Comments |
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| 07.04.25 13:40:08 | Are Utilities Stocks Lagging Centrica (CPYYY) This Year? | |
| The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Centrica PLC (CPYYY) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question. Centrica PLC is a member of our Utilities group, which includes 106 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Centrica PLC is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for CPYYY's full-year earnings has moved 9.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Based on the latest available data, CPYYY has gained about 12% so far this year. In comparison, Utilities companies have returned an average of 1%. This means that Centrica PLC is outperforming the sector as a whole this year. Another stock in the Utilities sector, Middlesex Water (MSEX), has outperformed the sector so far this year. The stock's year-to-date return is 21.2%. In Middlesex Water's case, the consensus EPS estimate for the current year increased 3.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Looking more specifically, Centrica PLC belongs to the Utility - Gas Distribution industry, a group that includes 14 individual stocks and currently sits at #60 in the Zacks Industry Rank. This group has lost an average of 10.7% so far this year, so CPYYY is performing better in this area. In contrast, Middlesex Water falls under the Utility - Water Supply industry. Currently, this industry has 12 stocks and is ranked #215. Since the beginning of the year, the industry has moved +14.9%. Investors with an interest in Utilities stocks should continue to track Centrica PLC and Middlesex Water. These stocks will be looking to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Centrica PLC (CPYYY) : Free Stock Analysis Report Middlesex Water Company (MSEX) : Free Stock Analysis Report Story Continues This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 29.03.25 07:41:27 | Centrica's (LON:CNA) Conservative Accounting Might Explain Soft Earnings | |
| A lackluster earnings announcement from Centrica plc (LON:CNA) last week didn't sink the stock price. However, we believe that investors should be aware of some underlying factors which may be of concern.LSE:CNA Earnings and Revenue History March 29th 2025 Examining Cashflow Against Centrica's Earnings One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. Centrica has an accrual ratio of 0.44 for the year to December 2024. Ergo, its free cash flow is significantly weaker than its profit. Statistically speaking, that's a real negative for future earnings. Indeed, in the last twelve months it reported free cash flow of UK£733m, which is significantly less than its profit of UK£1.33b. Centrica's free cash flow actually declined over the last year, but it may bounce back next year, since free cash flow is often more volatile than accounting profits. However, that's not all there is to consider. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio. Check out our latest analysis for Centrica That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. The Impact Of Unusual Items On Profit Unfortunately (in the short term) Centrica saw its profit reduced by unusual items worth UK£4.3b. In the case where this was a non-cash charge it would have made it easier to have high cash conversion, so it's surprising that the accrual ratio tells a different story. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. In the twelve months to December 2024, Centrica had a big unusual items expense. All else being equal, this would likely have the effect of making the statutory profit look worse than its underlying earnings power. Story Continues Our Take On Centrica's Profit Performance In conclusion, Centrica's accrual ratio suggests that its statutory earnings are not backed by cash flow, even though unusual items weighed on profit. Based on these factors, it's hard to tell if Centrica's profits are a reasonable reflection of its underlying profitability. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For instance, we've identified 4 warning signs for Centrica (2 are potentially serious) you should be familiar with. Our examination of Centrica has focussed on certain factors that can make its earnings look better than they are. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 20.03.25 13:40:10 | Is Centrica (CPYYY) Stock Outpacing Its Utilities Peers This Year? | |
| The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Centrica PLC (CPYYY) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question. Centrica PLC is one of 104 individual stocks in the Utilities sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Centrica PLC is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for CPYYY's full-year earnings has moved 1.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Based on the latest available data, CPYYY has gained about 13.2% so far this year. Meanwhile, the Utilities sector has returned an average of 4.7% on a year-to-date basis. This shows that Centrica PLC is outperforming its peers so far this year. Another Utilities stock, which has outperformed the sector so far this year, is RWE AG (RWEOY). The stock has returned 22.8% year-to-date. Over the past three months, RWE AG's consensus EPS estimate for the current year has increased 1.5%. The stock currently has a Zacks Rank #2 (Buy). To break things down more, Centrica PLC belongs to the Utility - Gas Distribution industry, a group that includes 13 individual companies and currently sits at #132 in the Zacks Industry Rank. On average, stocks in this group have lost 6% this year, meaning that CPYYY is performing better in terms of year-to-date returns. RWE AG, however, belongs to the Utility - Electric Power industry. Currently, this 60-stock industry is ranked #75. The industry has moved +5.4% so far this year. Centrica PLC and RWE AG could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Centrica PLC (CPYYY) : Free Stock Analysis Report Story Continues RWE AG (RWEOY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 17.03.25 08:18:28 | When Should You Buy Centrica plc (LON:CNA)? | |
| While Centrica plc (LON:CNA) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the LSE. The company is inching closer to its yearly highs following the recent share price climb. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Centrica’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for Centrica Is Centrica Still Cheap? According to our valuation model, Centrica seems to be fairly priced at around 9.74% above our intrinsic value, which means if you buy Centrica today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth £1.32, there’s only an insignificant downside when the price falls to its real value. What's more, Centrica’s share price may be more stable over time (relative to the market), as indicated by its low beta. What does the future of Centrica look like?LSE:CNA Earnings and Revenue Growth March 17th 2025 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Centrica, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term. What This Means For You Are you a shareholder? CNA seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed. Are you a potential investor? If you’ve been keeping tabs on CNA for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on CNA should the price fluctuate below its true value. Story Continues So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. To that end, you should learn about the 4 warning signs we've spotted with Centrica (including 2 which are a bit concerning). If you are no longer interested in Centrica, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 04.03.25 14:40:11 | Has Chesapeake Utilities (CPK) Outpaced Other Utilities Stocks This Year? | |
| For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Chesapeake Utilities (CPK) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. Chesapeake Utilities is one of 104 individual stocks in the Utilities sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Chesapeake Utilities is currently sporting a Zacks Rank of #2 (Buy). The Zacks Consensus Estimate for CPK's full-year earnings has moved 0.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Based on the latest available data, CPK has gained about 6% so far this year. In comparison, Utilities companies have returned an average of 4.3%. This means that Chesapeake Utilities is performing better than its sector in terms of year-to-date returns. Centrica PLC (CPYYY) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 11.1%. Over the past three months, Centrica PLC's consensus EPS estimate for the current year has increased 1.4%. The stock currently has a Zacks Rank #2 (Buy). To break things down more, Chesapeake Utilities belongs to the Utility - Gas Distribution industry, a group that includes 13 individual companies and currently sits at #24 in the Zacks Industry Rank. Stocks in this group have lost about 4.7% so far this year, so CPK is performing better this group in terms of year-to-date returns. Centrica PLC is also part of the same industry. Chesapeake Utilities and Centrica PLC could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chesapeake Utilities Corporation (CPK) : Free Stock Analysis Report Story Continues Centrica PLC (CPYYY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 27.02.25 05:07:19 | Some Investors May Be Willing To Look Past Centrica's (LON:CNA) Soft Earnings | |
| The market shrugged off Centrica plc's (LON:CNA) weak earnings report last week. We did some analysis and found some positive factors that investors might be paying attention to rather than profit. Check out our latest analysis for Centrica LSE:CNA Earnings and Revenue History February 27th 2025 Examining Cashflow Against Centrica's Earnings In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Centrica has an accrual ratio of 0.44 for the year to December 2024. Ergo, its free cash flow is significantly weaker than its profit. Statistically speaking, that's a real negative for future earnings. To wit, it produced free cash flow of UK£733m during the period, falling well short of its reported profit of UK£1.33b. Centrica's free cash flow actually declined over the last year, but it may bounce back next year, since free cash flow is often more volatile than accounting profits. Having said that, there is more to the story. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. The Impact Of Unusual Items On Profit Centrica's profit suffered from unusual items, which reduced profit by UK£4.2b in the last twelve months. In the case where this was a non-cash charge it would have made it easier to have high cash conversion, so it's surprising that the accrual ratio tells a different story. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. In the twelve months to December 2024, Centrica had a big unusual items expense. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be. Story Continues Our Take On Centrica's Profit Performance Centrica saw unusual items weigh on its profit, which should have made it easier to show high cash conversion, which it did not do, according to its accrual ratio. Given the contrasting considerations, we don't have a strong view as to whether Centrica's profits are an apt reflection of its underlying potential for profit. So while earnings quality is important, it's equally important to consider the risks facing Centrica at this point in time. To help with this, we've discovered 4 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in Centrica. Our examination of Centrica has focussed on certain factors that can make its earnings look better than they are. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 22.02.25 08:39:12 | Centrica Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag | |
| Centrica (LON:CNA) Full Year 2024 Results Key Financial Results Revenue: UK£19.9b (down 25% from FY 2023). Net income: UK£1.33b (down 66% from FY 2023). Profit margin: 6.7% (down from 15% in FY 2023). EPS: UK£0.26 (down from UK£0.71 in FY 2023).LSE:CNA Revenue and Expenses Breakdown February 22nd 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Centrica EPS Beats Expectations, Revenues Fall Short Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 31%. The primary driver behind last 12 months revenue was the British Gas Energy segment contributing a total revenue of UK£12.1b (61% of total revenue). Notably, cost of sales worth UK£11.8b amounted to 59% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling UK£4.31b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how CNA's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Integrated Utilities industry in Europe. Performance of the market in the United Kingdom. The company's shares are up 6.6% from a week ago. Risk Analysis Before we wrap up, we've discovered 4 warning signs for Centrica (2 are a bit unpleasant!) that you should be aware of. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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