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CNA

CentricaLSE:CNA Stock Report

Market Cap

UK£3.5b

7D

0.3%

1Y

58.9%

Updated

27 Oct, 2021

Data

Company Financials +
CNA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends0/6

CNA Overview

Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Norway, North America, and internationally.

Centrica Competitors

Enel

BIT:ENEL

€73.3b

Iberdrola

BME:IBE

€62.1b

Ørsted

CPSE:ORSTED

kr.382.8b

Electricité de France

ENXTPA:EDF

€41.6b

Price History & Performance

Summary of all time highs, changes and price drops for Centrica
Historical stock prices
Current Share PriceUK£0.60
52 Week HighUK£0.36
52 Week LowUK£0.61
Beta1.28
1 Month Change8.63%
3 Month Change29.95%
1 Year Change58.95%
3 Year Change-58.97%
5 Year Change-71.39%
Change since IPO-29.86%

Recent News & Updates

Sep 24
What Is Centrica plc's (LON:CNA) Share Price Doing?

What Is Centrica plc's (LON:CNA) Share Price Doing?

Centrica plc ( LON:CNA ), might not be a large cap stock, but it received a lot of attention from a substantial price...

Sep 03
These 4 Measures Indicate That Centrica (LON:CNA) Is Using Debt Extensively

These 4 Measures Indicate That Centrica (LON:CNA) Is Using Debt Extensively

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jul 30
Centrica's (LON:CNA) Performance Is Even Better Than Its Earnings Suggest

Centrica's (LON:CNA) Performance Is Even Better Than Its Earnings Suggest

Centrica plc ( LON:CNA ) just reported healthy earnings but the stock price didn't move much. Investors are probably...

Shareholder Returns

CNAGB Integrated UtilitiesGB Market
7D0.3%2.4%0.5%
1Y58.9%14.1%26.7%

Return vs Industry: CNA exceeded the UK Integrated Utilities industry which returned 14.1% over the past year.

Return vs Market: CNA exceeded the UK Market which returned 26.7% over the past year.

Price Volatility

Is CNA's price volatile compared to industry and market?
CNA volatility
CNA Beta1.28
Industry Beta0.86
Market Beta1

Stable Share Price: CNA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CNA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199519,711Chris O’Sheahttps://www.centrica.com

Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Norway, North America, and internationally. The company operates through British Gas, Energy Marketing & Trading, Centrica Business Solutions, Bord Gáis Energy, and Upstream segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from combined cycle gas turbines and nuclear assets.

Centrica Fundamentals Summary

How do Centrica's earnings and revenue compare to its market cap?
CNA fundamental statistics
Market CapUK£3.52b
Earnings (TTM)UK£814.00m
Revenue (TTM)UK£12.84b

4.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNA income statement (TTM)
RevenueUK£12.84b
Cost of RevenueUK£9.08b
Gross ProfitUK£3.76b
ExpensesUK£2.95b
EarningsUK£814.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)0.14
Gross Margin29.29%
Net Profit Margin6.34%
Debt/Equity Ratio127.8%

How did CNA perform over the long term?

See historical performance and comparison

Valuation

Is Centrica undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CNA (£0.6) is trading below our estimate of fair value (£2.58)

Significantly Below Fair Value: CNA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CNA is good value based on its PE Ratio (4.3x) compared to the European Integrated Utilities industry average (16x).

PE vs Market: CNA is good value based on its PE Ratio (4.3x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: CNA is poor value based on its PEG Ratio (85.6x)


Price to Book Ratio

PB vs Industry: CNA is good value based on its PB Ratio (1.4x) compared to the XE Integrated Utilities industry average (1.7x).


Future Growth

How is Centrica forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

0.05%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNA's forecast earnings growth (0.05% per year) is below the savings rate (0.9%).

Earnings vs Market: CNA's earnings (0.05% per year) are forecast to grow slower than the UK market (12.7% per year).

High Growth Earnings: CNA's earnings are forecast to grow, but not significantly.

Revenue vs Market: CNA's revenue (0.1% per year) is forecast to grow slower than the UK market (5% per year).

High Growth Revenue: CNA's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CNA's Return on Equity is forecast to be low in 3 years time (19.4%).


Past Performance

How has Centrica performed over the past 5 years?

-32.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNA has a large one-off loss of £1.1B impacting its June 30 2021 financial results.

Growing Profit Margin: CNA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CNA has become profitable over the past 5 years, growing earnings by -32.8% per year.

Accelerating Growth: CNA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CNA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Integrated Utilities industry (28.8%).


Return on Equity

High ROE: Whilst CNA's Return on Equity (26.09%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Centrica's financial position?


Financial Position Analysis

Short Term Liabilities: CNA's short term assets (£9.8B) exceed its short term liabilities (£6.9B).

Long Term Liabilities: CNA's short term assets (£9.8B) exceed its long term liabilities (£7.2B).


Debt to Equity History and Analysis

Debt Level: CNA's debt to equity ratio (127.8%) is considered high.

Reducing Debt: CNA's debt to equity ratio has reduced from 238.2% to 127.8% over the past 5 years.

Debt Coverage: CNA's debt is well covered by operating cash flow (28.7%).

Interest Coverage: CNA's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Dividend

What is Centrica current dividend yield, its reliability and sustainability?

5.59%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CNA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CNA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CNA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CNA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CNA is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CNA's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Chris O’Shea

1.58yrs

Tenure

UK£765,000

Compensation

Mr. Chris O’Shea serves as Group Chief Executive at Centrica Plc since April 14, 2020 and served as Interim Group Chief Executive at Centrica Plc since March 17, 2020 until April 14, 2020. He served as the...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.05M) is below average for companies of similar size in the UK market ($USD2.25M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CNA's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: CNA's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CNA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Centrica plc's employee growth, exchange listings and data sources


Key Information

  • Name: Centrica plc
  • Ticker: CNA
  • Exchange: LSE
  • Founded: 1995
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: UK£3.516b
  • Shares outstanding: 5.82b
  • Website: https://www.centrica.com

Number of Employees


Location

  • Centrica plc
  • Millstream
  • Maidenhead Road
  • Windsor
  • Berkshire
  • SL4 5GD
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 21:40
End of Day Share Price2021/10/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.