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Centrica

LSE:CNA
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CNA
LSE
£5B
Market Cap
  1. Home
  2. GB
  3. Utilities
Company description

Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Germany, Norway, rest of Europe, the United States, Canada, and internationally. The last earnings update was 79 days ago. More info.


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  • Centrica has significant price volatility in the past 3 months.
CNA Share Price and Events
7 Day Returns
-3.3%
LSE:CNA
1.2%
Europe Integrated Utilities
0.4%
GB Market
1 Year Returns
-44.8%
LSE:CNA
5.4%
Europe Integrated Utilities
-1.9%
GB Market
CNA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Centrica (CNA) -3.3% -5.4% -23.6% -44.8% -59.4% -72.2%
Europe Integrated Utilities 1.2% 3.2% -1.2% 5.4% 2.3% -20.3%
GB Market 0.4% 1.3% 2.8% -1.9% 23.1% 4.7%
1 Year Return vs Industry and Market
  • CNA underperformed the Integrated Utilities industry which returned 5.4% over the past year.
  • CNA underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.9% over the past year.
Price Volatility
CNA
Industry
5yr Volatility vs Market

Value

 Is Centrica undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Centrica to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Centrica.

LSE:CNA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:CNA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Integrated Utilities Unlevered Beta Simply Wall St/ S&P Global 0.29
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.288 (1 + (1- 19%) (94.81%))
0.671
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for LSE:CNA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Centrica is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:CNA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.55%)
2019 650.82 Analyst x6 610.82
2020 739.78 Analyst x9 651.66
2021 912.81 Analyst x8 754.67
2022 1,062.00 Analyst x2 824.06
2023 812.00 Analyst x1 591.36
2024 663.23 Est @ -18.32% 453.34
2025 580.62 Est @ -12.46% 372.48
2026 532.13 Est @ -8.35% 320.40
2027 502.98 Est @ -5.48% 284.24
2028 485.54 Est @ -3.47% 257.52
Present value of next 10 years cash flows £5,120.53
LSE:CNA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £485.54 × (1 + 1.23%) ÷ (6.55% – 1.23%)
£9,238.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £9,238.73 ÷ (1 + 6.55%)10
£4,900.04
LSE:CNA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £5,120.53 + £4,900.04
£10,020.58
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £10,020.58 / 5,709.91
£1.75
LSE:CNA Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.75
Current discount Discount to share price of £0.88
= -1 x (£0.88 - £1.75) / £1.75
50%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Centrica is available for.
Intrinsic value
50%
Share price is £0.88 vs Future cash flow value of £1.75
Current Discount Checks
For Centrica to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Centrica's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Centrica's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Centrica's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Centrica's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:CNA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.03
LSE:CNA Share Price ** LSE (2019-06-25) in GBP £0.88
Europe Integrated Utilities Industry PE Ratio Median Figure of 15 Publicly-Listed Integrated Utilities Companies 19.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 787 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Centrica.

LSE:CNA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:CNA Share Price ÷ EPS (both in GBP)

= 0.88 ÷ 0.03

26.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Centrica is overvalued based on earnings compared to the Europe Integrated Utilities industry average.
  • Centrica is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Centrica's expected growth come at a high price?
Raw Data
LSE:CNA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.99x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
19.6%per year
Europe Integrated Utilities Industry PEG Ratio Median Figure of 11 Publicly-Listed Integrated Utilities Companies 2.72x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:CNA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.99x ÷ 19.6%

1.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Centrica is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Centrica's assets?
Raw Data
LSE:CNA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.55
LSE:CNA Share Price * LSE (2019-06-25) in GBP £0.88
Europe Integrated Utilities Industry PB Ratio Median Figure of 20 Publicly-Listed Integrated Utilities Companies 1.65x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.49x
LSE:CNA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:CNA Share Price ÷ Book Value per Share (both in GBP)

= 0.88 ÷ 0.55

1.59x

* Primary Listing of Centrica.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Centrica is good value based on assets compared to the Europe Integrated Utilities industry average.
X
Value checks
We assess Centrica's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Integrated Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Integrated Utilities industry average (and greater than 0)? (1 check)
  5. Centrica has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Centrica expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Centrica expected to grow at an attractive rate?
  • Centrica's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Centrica's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Centrica's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:CNA Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:CNA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 19.6%
LSE:CNA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 0.5%
Europe Integrated Utilities Industry Earnings Growth Rate Market Cap Weighted Average 14.1%
Europe Integrated Utilities Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:CNA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:CNA Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 30,379 1,955 714 3
2022-12-31 30,672 1,914 704 4
2021-12-31 29,044 1,608 648 15
2020-12-31 28,597 1,547 578 16
2019-12-31 28,367 1,388 463 17
LSE:CNA Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 29,686 1,934 183
2018-09-30 29,372 1,771 354
2018-06-30 29,045 1,607 529
2018-03-31 28,534 1,724 431
2017-12-31 28,035 1,840 328
2017-09-30 28,028 1,989 447
2017-06-30 28,021 2,137 566
2017-03-31 27,562 2,267 1,119
2016-12-31 27,102 2,396 1,672
2016-09-30 26,501 2,311 512
2016-06-30 25,900 2,225 -649
2016-03-31 26,936 2,211 -698

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Centrica's earnings are expected to grow by 19.6% yearly, however this is not considered high growth (20% yearly).
  • Centrica's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:CNA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Centrica Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CNA Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.12 0.12 0.12 2.00
2022-12-31 0.12 0.13 0.11 3.00
2021-12-31 0.11 0.16 0.09 7.00
2020-12-31 0.11 0.14 0.09 6.00
2019-12-31 0.09 0.11 0.05 7.00
LSE:CNA Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.03
2018-09-30 0.06
2018-06-30 0.09
2018-03-31 0.08
2017-12-31 0.06
2017-09-30 0.08
2017-06-30 0.10
2017-03-31 0.21
2016-12-31 0.31
2016-09-30 0.10
2016-06-30 -0.13
2016-03-31 -0.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Centrica is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Centrica's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Centrica has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Centrica performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Centrica's growth in the last year to its industry (Integrated Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Centrica's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Centrica's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Centrica's 1-year earnings growth is negative, it can't be compared to the Europe Integrated Utilities industry average.
Earnings and Revenue History
Centrica's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Centrica Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CNA Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 29,686.00 183.00 1,270.00
2018-09-30 29,371.50 353.50 1,265.00
2018-06-30 29,045.00 529.00 1,392.00
2018-03-31 28,534.00 431.00 1,397.50
2017-12-31 28,035.00 328.00 1,271.00
2017-09-30 28,028.00 447.00 1,348.50
2017-06-30 28,021.00 566.00 1,426.00
2017-03-31 27,561.50 1,119.00 1,485.50
2016-12-31 27,102.00 1,672.00 1,545.00
2016-09-30 26,501.00 511.50 1,551.50
2016-06-30 25,900.00 -649.00 1,558.00
2016-03-31 26,935.50 -698.00 1,563.50
2015-12-31 27,971.00 -747.00 1,569.00
2015-09-30 28,541.00 -621.00 1,614.00
2015-06-30 29,111.00 -495.00 1,617.00
2015-03-31 29,259.50 -753.50 1,537.50
2014-12-31 29,408.00 -1,012.00 1,458.00
2014-09-30 29,038.00 -174.00 1,438.50
2014-06-30 28,668.00 664.00 1,419.00
2014-03-31 27,619.50 807.00 1,387.00
2013-12-31 26,571.00 950.00 1,355.00
2013-09-30 26,093.50 1,019.00 1,365.50
2013-06-30 25,616.00 1,088.00 1,376.00
2013-03-31 24,779.00 1,166.50 1,347.00
2012-12-31 23,942.00 1,245.00 1,318.00
2012-09-30 23,617.00 1,087.00 1,305.50
2012-06-30 23,292.00 929.00 1,257.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Centrica has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Centrica used its assets less efficiently than the Europe Integrated Utilities industry average last year based on Return on Assets.
  • Centrica has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Centrica's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Integrated Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Centrica has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Centrica's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Centrica's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Centrica is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Centrica's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Centrica's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Centrica Company Filings, last reported 5 months ago.

LSE:CNA Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,948.00 4,536.00 1,336.00
2018-09-30 3,948.00 4,536.00 1,336.00
2018-06-30 4,023.00 5,047.00 1,599.00
2018-03-31 4,023.00 5,047.00 1,599.00
2017-12-31 3,432.00 6,057.00 2,869.00
2017-09-30 3,432.00 6,057.00 2,869.00
2017-06-30 2,688.00 6,075.00 2,416.00
2017-03-31 2,688.00 6,075.00 2,416.00
2016-12-31 2,844.00 6,331.00 2,049.00
2016-09-30 2,844.00 6,331.00 2,049.00
2016-06-30 2,818.00 6,716.00 2,264.00
2016-03-31 2,818.00 6,716.00 2,264.00
2015-12-31 1,342.00 6,544.00 1,169.00
2015-09-30 1,342.00 6,218.00 871.00
2015-06-30 3,470.00 6,530.00 1,082.00
2015-03-31 3,470.00 6,530.00 1,082.00
2014-12-31 3,071.00 6,749.00 632.00
2014-09-30 3,071.00 6,749.00 632.00
2014-06-30 4,984.00 6,103.00 826.00
2014-03-31 4,984.00 6,103.00 826.00
2013-12-31 5,257.00 5,810.00 728.00
2013-09-30 5,257.00 5,810.00 728.00
2013-06-30 5,864.00 5,118.00 811.00
2013-03-31 5,864.00 5,118.00 811.00
2012-12-31 5,927.00 5,117.00 1,206.00
2012-09-30 5,927.00 5,117.00 1,206.00
2012-06-30 6,060.00 5,415.00 1,002.00
  • Centrica's level of debt (120.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (115.8% vs 120.4% today).
  • Debt is well covered by operating cash flow (40.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).
X
Financial health checks
We assess Centrica's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Centrica has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
13.66%
Current annual income from Centrica dividends. Estimated to be 9.34% next year.
If you bought £2,000 of Centrica shares you are expected to receive £273 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Centrica's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Centrica's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.42%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:CNA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Europe Integrated Utilities Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 5.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:CNA Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.09 4.00
2022-12-31 0.08 6.00
2021-12-31 0.08 16.00
2020-12-31 0.08 17.00
2019-12-31 0.08 18.00
LSE:CNA Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-08 0.120 12.279
2019-02-21 0.120 10.040
2018-07-31 0.120 8.452
2018-02-22 0.120 8.142
2017-08-01 0.120 7.514
2017-02-23 0.120 5.782
2016-07-28 0.120 5.379
2016-05-19 0.120 5.549
2015-02-19 0.135 5.733
2014-02-21 0.170 5.546
2013-07-31 0.167 4.750
2013-03-28 0.164 4.368
2013-02-27 0.164 4.602
2012-02-23 0.154 4.751
2011-02-24 0.143 4.668
2010-02-25 0.128 4.090
2009-03-02 0.122 4.966
2009-02-26 0.122 4.548
2008-08-01 0.136 4.794

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Centrica's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Centrica's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Centrica afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Centrica has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Centrica's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Iain Conn
COMPENSATION £2,416
AGE 55
TENURE AS CEO 4.4 years
CEO Bio

Mr. Iain C. Conn has been the Group Chief Executive of Centrica plc since January 1, 2015. Mr. Conn serves as the Chief executive of Refining & Marketing at BP Zambia plc. He served as Chief executive Officer of Downstream at BP Norge AS since June 1, 2007. Mr. Conn served as the Chief Executive of Downstream of BP PLC from June 1, 2007 to October 1, 2014. He served as Group Managing Director of BP PLC. He served as Group Executive Officer of Strategic Resources at BP PLC since July 1, 2004 and was responsible for Europe, including the UK, together with Russia, the Middle East, the Caspian and Africa. He joined BP PLC in 1985 and held a number of posts in supply and trading, refining & marketing, exploration and production and in BP Group headquarters. He served as the Chief Executive of BP Plc's Petrochemicals segment from November 2002 to 2004. He has international experience, and an understanding of technology, energy and regulated consumer markets. He worked in BP's refining & marketing segment as Group Vice President responsible for BP's marketing operations in Europe. He joined BP Oil International in 1986, working in a variety of roles in oil trading, commercial refining and exploration before becoming, on the merger between BP and Amoco in 1999, Vice president of BP Amoco Exploration's mid-continent business unit in Houston. At the end of 1997, he became Senior Vice President of BP oil in the US, responsible for retail and commercial marketing operations, refining and supply. He was also responsible for the integration of Veba Oel into the BP organisation and had regional responsibility for BP in Europe. Mr. Conn serves as the Chairman of BP Pension Trustees Ltd. He serves as Chairman of the Advisory Board of The Imperial College London Tanaka Business School and member of the Imperial College Council. He served as an Executive Director of the BP group from July 1, 2004 to 2014. He has been an Independent Non-Executive Director of BT Group plc since June 1, 2014. He has been an Executive Director of Centrica plc since January 1, 2015. He serves as an Executive Director of BP Zambia plc. He served as an Executive Director of BP P.L.C. from July 1, 2004 to December 31, 2014. He served as a Director of BP Norge AS since July 1, 2004. He served as a Non-Executive Director of Rolls Royce Holdings plc from January 1, 2005 to May 1, 2014 and its Senior Independent Director from September 13, 2007 to May 1, 2014. He joined Rolls-Royce in 2005. He was Director of Rolls-Royce plc from January 2005 to May 1, 2014 and its Senior Independent Director until May 1, 2014. He possesses a deep understanding of the energy sector built up over a lifetime in the industry and has demonstrated strong commitment to customers, safety and technology. He was a Board Member of BP for 10 years from 2004 and had previously held a number of senior roles throughout the organisation in trading, exploration and production and the management of corporate functions such as safety, marketing, technology and human resources. He is a fellow of the Royal Academy of Engineering, and the Royal Society of Edinburgh, the Institution. Mr. Conn was educated in Musselburgh, Scotland and studied chemical engineering and management at The Imperial College, London.

CEO Compensation
  • Iain's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Iain's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Centrica management team in years:

1.6
Average Tenure
52
Average Age
  • The average tenure for the Centrica management team is less than 2 years, this suggests a new team.
Management Team

Iain Conn

TITLE
Group CEO & Executive Director
COMPENSATION
£2K
AGE
55
TENURE
4.4 yrs

Chris O’Shea

TITLE
Group CFO & Executive Director
COMPENSATION
£394
TENURE
0.6 yrs

Richard Hookway

TITLE
Chief Executive of Centrica Business & Director
COMPENSATION
£206
TENURE
0.6 yrs

Jeff Bell

TITLE
Financial Advisor
COMPENSATION
£1K
TENURE
0.7 yrs

Charles Cameron

TITLE
Director of Technology & Engineering and Centrica Innovations
TENURE
3.4 yrs

Mike Young

TITLE
Group Chief Information Officer
TENURE
2.6 yrs

Martyn Espley

TITLE
Head of Investor Relations

Justine Campbell

TITLE
General Counsel & Company Secretary
AGE
47
TENURE
0.2 yrs

Tim Cowen

TITLE
Director of Media Relations

Jill Shedden

TITLE
Group Director of Human Resources
AGE
52
TENURE
7.9 yrs
Board of Directors Tenure

Average tenure and age of the Centrica board of directors in years:

1.6
Average Tenure
55.5
Average Age
  • The average tenure for the Centrica board of directors is less than 3 years, this suggests a new board.
Board of Directors

Charles Berry

TITLE
Chairman of the Board
COMPENSATION
£12
AGE
66
TENURE
0.3 yrs

Iain Conn

TITLE
Group CEO & Executive Director
COMPENSATION
£2K
AGE
55
TENURE
4.4 yrs

Chris O’Shea

TITLE
Group CFO & Executive Director
COMPENSATION
£394
TENURE
0.6 yrs

Richard Hookway

TITLE
Chief Executive of Centrica Business & Director
COMPENSATION
£206
TENURE
0.5 yrs

Sarwjit Sambhi

TITLE
CEO of Centrica Consumer & Executive Director
TENURE
0.3 yrs

Steve Pusey

TITLE
Non-Executive Director
COMPENSATION
£93
AGE
56
TENURE
4.2 yrs

Jonathan Wheway

TITLE
Non-Executive Director
COMPENSATION
£93
AGE
52
TENURE
3.1 yrs

Kevin O'Byrne

TITLE
Non-Executive Director
AGE
53
TENURE
0.1 yrs

Stephen A. Hester

TITLE
Senior Independent Director
COMPENSATION
£93
AGE
57
TENURE
2.7 yrs

Carlos Pascual

TITLE
Non-Executive Director
COMPENSATION
£73
TENURE
4.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
25. Feb 19 Buy Iain Conn Individual 25. Feb 19 25. Feb 19 100,000 £1.23 £123,110
27. Nov 18 Buy Margherita Della Valle Individual 26. Nov 18 26. Nov 18 1,492 £1.33 £1,977
25. Oct 18 Buy Margherita Della Valle Individual 25. Oct 18 25. Oct 18 1,323 £1.49 £1,977
26. Sep 18 Buy Margherita Della Valle Individual 25. Sep 18 25. Sep 18 1,340 £1.48 £1,977
30. Aug 18 Buy Margherita Della Valle Individual 28. Aug 18 28. Aug 18 1,385 £1.43 £1,976
26. Jul 18 Buy Margherita Della Valle Individual 25. Jul 18 25. Jul 18 1,306 £1.51 £1,976
X
Management checks
We assess Centrica's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Centrica has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Investors Who Bought Centrica (LON:CNA) Shares Five Years Ago Are Now Down 72%

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). … Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. … If you want to research this stock further, the data on insider buying is an obvious place to start.

Simply Wall St -

Why You Should Like Centrica plc’s (LON:CNA) ROCE

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Centrica: 0.13 = UK£1.5b ÷ (UK£21b - UK£8.4b) (Based on the trailing twelve months to December 2018.) So, Centrica has an ROCE of 13%. … Centrica's Current Liabilities And Their Impact On Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Can Centrica plc (LON:CNA) Improve Its Returns?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Centrica has a return on equity of 6.1% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do Institutions Own Shares In Centrica plc (LON:CNA)?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Companies of this size are usually well known to retail investors, too.

Simply Wall St -

How Much Are Centrica plc (LON:CNA) Insiders Taking Off The Table?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … The Last 12 Months Of Insider Transactions At Centrica. … In the last twelve months, the biggest single sale by an insider was when the Group CEO & Executive Director, Iain Conn, sold UK£203k worth of shares at a price of UK£1.54 per share.

Simply Wall St -

Should You Worry About Centrica plc's (LON:CNA) CEO Salary Level?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Iain Conn's Compensation Compare With Similar Sized Companies. … Our data indicates that Centrica plc is worth UK£6.8b, and total annual CEO compensation is UK£1.7m.

Simply Wall St -

Does Centrica plc's (LON:CNA) Debt Level Pose A Problem?

Today we will look at CNA’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further. … View our latest analysis for Centrica

Simply Wall St -

A Look At The Fair Value Of Centrica plc (LON:CNA)

I am going to run you through how I calculated the intrinsic value of Centrica plc (LON:CNA). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Why Centrica plc’s (LON:CNA) Return On Capital Employed Is Impressive

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

What Investors Should Know About Centrica plc's (LON:CNA) Financial Strength

its financial health remains the key to continued success. … Let’s take a look at Centrica’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Company Info

Description

Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Germany, Norway, rest of Europe, the United States, Canada, and internationally. The company operates through Centrica Consumer, Centrica Business, and Exploration & Production 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. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, and gas and kitchen appliances; heating, ventilation, and air conditioning equipment; and water heaters, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; 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 also provides sea freight water transport services. It primarily supplies energy and services to approximately 25 million customers under the British Gas, Direct Energy, and Bord Gáis Energy brands. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was incorporated in 1995 and is headquartered in Windsor, the United Kingdom.

Details
Name: Centrica plc
CNA
Exchange: LSE
Founded: 1995
£5,014,446,249
5,709,913,743
Website: http://www.centrica.com
Address: Centrica plc
Millstream,
Maidenhead Road,
Windsor,
Berkshire, SL4 5GD,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE CNA Ordinary Shares London Stock Exchange GB GBP 10. Feb 1997
OTCPK CPYY.F Ordinary Shares Pink Sheets LLC US USD 10. Feb 1997
DB CENB Ordinary Shares Deutsche Boerse AG DE EUR 10. Feb 1997
BATS-CHIXE CNAL Ordinary Shares BATS 'Chi-X Europe' GB GBP 10. Feb 1997
OTCPK CPYY.Y SPON ADR NEW Pink Sheets LLC US USD 13. Jan 1999
Number of employees
Current staff
Staff numbers
30,520
Centrica employees.
Industry
Multi-Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 02:20
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/25
Last earnings filing: 2019/04/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.