A Look at Centuri Holdings’s Valuation Following Record Q3 Revenue and Raised Guidance

Centuri Holdings (NYSE:CTRI) reported record quarterly revenue alongside a return to profitability for the third quarter of 2025. The company also raised its full-year outlook and highlighted steady base business growth.

See our latest analysis for Centuri Holdings.

Centuri Holdings has quietly built momentum over the past year, with recent record-setting revenues and a raised outlook drawing renewed investor attention. Even as total shareholder return sits at 2.99% over one year, the stock’s year-to-date share price return of 9.27% and solid gains in the past month point to steadily improving optimism about the company’s growth potential and execution.

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With Centuri shares now trading at around a 20% discount to intrinsic value and recent upgrades to revenue guidance, the big question is whether there is still upside ahead or if the market is already pricing in this growth.

Price-to-Sales of 0.7x: Is it justified?

Centuri Holdings currently trades at a price-to-sales ratio of 0.7x, which positions the stock as undervalued both against peers and relative to industry benchmarks.

The price-to-sales ratio measures how much investors are willing to pay per dollar of sales, providing a useful gauge for companies that have recently turned profitable. For Centuri Holdings, which has just returned to profitability, this multiple offers key insight when profits are volatile or earnings are only beginning their upward trajectory.

Compared to the U.S. Construction industry average of 1.2x, Centuri's lower ratio suggests the market is giving limited credit for future growth or potential margin expansion. The stock also sits below the estimated fair price-to-sales ratio of 0.7x, highlighting alignment between market price and underlying fundamentals. If the market adjusts to the fair ratio, it could mean further upside for the stock price.

Explore the SWS fair ratio for Centuri Holdings

Result: Price-to-Sales of 0.7x (UNDERVALUED)

However, investor caution persists because modest annual revenue growth and thin profit margins could limit near-term gains if underlying momentum slows.

Find out about the key risks to this Centuri Holdings narrative.

Another View: SWS DCF Model Says Undervalued

Looking beyond sales multiples, our DCF model values Centuri Holdings at $26.12 per share compared to its recent closing price of $20.99. This suggests the stock is undervalued by nearly 20%, challenging the notion that today's price already reflects its growth prospects. Is the market too cautious, or is there hidden risk not captured by the numbers?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Centuri Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 876 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Centuri Holdings Narrative

If you want to look beyond the models or follow your own instincts, you can independently analyze the numbers and shape your own narrative in minutes. Do it your way

A great starting point for your Centuri Holdings research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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