Centuri Holdings (CTRI): Valuation Insights Following New Project Awards and Service Agreements

Centuri Holdings (CTRI) has announced nearly $400 million in new customer awards, including major project wins and service agreements. These contracts highlight expanded market opportunities and strengthen the company’s position for additional revenue growth in the utility and energy sectors.

See our latest analysis for Centuri Holdings.

While Centuri Holdings has made headlines with expanded contracts, the company's share price has softened in recent weeks, down 12.08% over the past month. However, its total shareholder return sits at a healthy 10.85% over the past year, suggesting that longer-term momentum remains positive even as short-term sentiment adjusts to recent news and market shifts.

If Centuri’s growth moves have you wondering where the next breakout could be, it might be the perfect time to broaden your search and discover fast growing stocks with high insider ownership

With shares still trading below analyst price targets and revenue trends accelerating, the question now is whether Centuri Holdings offers investors an undervalued opportunity or if the market has already factored in its growth potential.

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

Centuri Holdings is currently valued at a price-to-sales ratio of 0.7x, with the last close at $20.02. This places it well below both its industry average and analysts’ estimates. This suggests that the market is assigning a discounted valuation for each dollar of the company’s sales, potentially underestimating its near-term prospects as compared to peers in the U.S. construction sector.

The price-to-sales ratio is a key metric for companies that are not yet consistently profitable, such as Centuri. It relates the market capitalization of the company to its revenue, making it particularly relevant for evaluating growth and scale-oriented businesses. A lower multiple can indicate undervaluation but could also reflect investor skepticism about future profitability or margin expansion.

Centuri’s price-to-sales ratio sits not only well below the US construction industry average of 1.4x but is also exactly aligned with the estimated fair value ratio of 0.7x. This signals that, by this measure, the market is neither underpricing nor overpricing the company relative to sales. This situation leaves room for revaluation if growth or profitability sharply improve over time.

Explore the SWS fair ratio for Centuri Holdings

Result: Price-to-Sales of 0.7x (ABOUT RIGHT)

However, Centuri’s negative net income and volatility in recent returns could challenge investor confidence if profitability does not improve soon.

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

Another View: What Does the DCF Model Say?

While the market’s current pricing matches Centuri’s sales performance, our DCF model provides a different perspective. According to this method, Centuri shares are trading above our estimate of fair value, which suggests the stock could be slightly overvalued if future cash flows do not exceed expectations. Is the market being a bit too optimistic, or does it see something the numbers do not capture?

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 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 have your own perspective or want a fresh look at Centuri Holdings’ data, you can shape your own narrative using our tools in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Centuri Holdings.

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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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