Centrica
Market Cap
US$5.8b
Last Updated
2020/02/21 00:05 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential second-rate dividend payer.
Similar Companies
Share Price & News
How has Centrica's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CPYY.Y has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
7.9%
CPYY.Y
0.7%
US Integrated Utilities
0.06%
US Market
1 Year Return
-37.0%
CPYY.Y
17.9%
US Integrated Utilities
19.3%
US Market
Return vs Industry: CPYY.Y underperformed the US Integrated Utilities industry which returned 17.9% over the past year.
Return vs Market: CPYY.Y underperformed the US Market which returned 19.3% over the past year.
Shareholder returns
| CPYY.Y | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.9% | 0.7% | 0.06% |
| 30 Day | -17.5% | 3.3% | 1.7% |
| 90 Day | -5.2% | 8.6% | 9.0% |
| 1 Year | -30.6%-37.0% | 22.0%17.9% | 21.8%19.3% |
| 3 Year | -55.4%-64.6% | 46.9%32.2% | 49.5%39.9% |
| 5 Year | -62.2%-72.9% | 79.7%44.2% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Centrica's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
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: CPYY.Y ($4.06) is trading below our estimate of fair value ($9.15)
Significantly Below Fair Value: CPYY.Y is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CPYY.Y is unprofitable, so we can't compare its PE Ratio to the Integrated Utilities industry average.
PE vs Market: CPYY.Y is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CPYY.Y's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CPYY.Y is overvalued based on its PB Ratio (3.7x) compared to the US Integrated Utilities industry average (2.3x).
Next Steps
Future Growth
How is Centrica forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
45.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPYY.Y is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: CPYY.Y is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CPYY.Y's is expected to become profitable in the next 3 years.
Revenue vs Market: CPYY.Y's revenue (4.7% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CPYY.Y's revenue (4.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CPYY.Y's Return on Equity is forecast to be high in 3 years time (31.3%)
Next Steps
Past Performance
How has Centrica performed over the past 5 years?
10.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CPYY.Y is currently unprofitable.
Growing Profit Margin: CPYY.Y is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CPYY.Y is unprofitable, but has reduced losses over the past 5 years at a rate of 10.5% per year.
Accelerating Growth: Unable to compare CPYY.Y's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CPYY.Y is unprofitable, making it difficult to compare its past year earnings growth to the Integrated Utilities industry (3.5%).
Return on Equity
High ROE: CPYY.Y has a negative Return on Equity (-61.45%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Centrica's financial position?
Financial Position Analysis
Short Term Liabilities: CPYY.Y's short term assets (£8.3B) do not cover its short term liabilities (£8.9B).
Long Term Liabilities: CPYY.Y's short term assets (£8.3B) exceed its long term liabilities (£7.5B).
Debt to Equity History and Analysis
Debt Level: CPYY.Y's debt to equity ratio (269.6%) is considered high.
Reducing Debt: CPYY.Y's debt to equity ratio has increased from 219.4% to 269.6% over the past 5 years.
Balance Sheet
Inventory Level: CPYY.Y has a low level of unsold assets or inventory.
Debt Coverage by Assets: CPYY.Y's debt is covered by short term assets (assets are 1.7x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: CPYY.Y has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: CPYY.Y has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is Centrica's current dividend yield, its reliability and sustainability?
6.41%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CPYY.Y's dividend (6.41%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: CPYY.Y's dividend (6.41%) is in the top 25% of dividend payers in the US market (3.71%)
Stability and Growth of Payments
Stable Dividend: CPYY.Y's dividend payments have been volatile in the past 10 years.
Growing Dividend: CPYY.Y's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: CPYY.Y is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: CPYY.Y's dividends in 3 years are forecast to be covered by earnings (56.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Iain Conn (56yo)
5.1yrs
Tenure
UK£2,416,000
Compensation
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 Offi ...
CEO Compensation Analysis
Compensation vs Market: Iain's total compensation ($USD3.11M) is below average for companies of similar size in the US market ($USD6.36M).
Compensation vs Earnings: Iain's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Executive Director | 5.1yrs | UK£2.42m | 0.040% £2.3m | |
| Independent Chairman of the Board (Leave of Absence) | 0yrs | UK£12.00k | 0.00069% £40.3k | |
| Group CFO & Executive Director | 1.3yrs | UK£394.00k | 0.0038% £220.1k | |
| Chief Executive of Centrica Business & Director | 1.2yrs | UK£206.00k | 0.000030% £1.8k | |
| Financial Advisor | 1.3yrs | UK£1.24m | 0.012% £704.2k | |
| Director of Technology & Engineering and Centrica Innovations | 4.1yrs | no data | no data | |
| Group Chief Information Officer | 3.3yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Group General Counsel & Company Secretary | 0.8yrs | no data | no data | |
| Group Director of Human Resources | 8.6yrs | no data | no data |
2.3yrs
Average Tenure
54.5yo
Average Age
Experienced Management: CPYY.Y's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Executive Director | 5.1yrs | UK£2.42m | 0.040% £2.3m | |
| Group CFO & Executive Director | 1.3yrs | UK£394.00k | 0.0038% £220.1k | |
| Chief Executive of Centrica Business & Director | 1.2yrs | UK£206.00k | 0.000030% £1.8k | |
| CEO of Centrica Consumer & Executive Director | 0.9yrs | no data | 0.0019% £112.7k | |
| Senior Independent Director | 3.3yrs | UK£93.00k | 0.00036% £21.0k | |
| Non-Executive Director | 4.8yrs | UK£93.00k | 0.0012% £71.8k | |
| Non-Executive Director | 0.8yrs | no data | 0.00069% £40.3k | |
| Interim Chairman | 0yrs | UK£93.00k | 0.00018% £10.5k | |
| Non-Executive Director | 3.3yrs | UK£73.00k | no data | |
| Non-Executive Director | 5.1yrs | UK£73.00k | no data |
3.3yrs
Average Tenure
56yo
Average Age
Experienced Board: CPYY.Y's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.
Top Shareholders
Company Information
Centrica plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Centrica plc
- Ticker: CPYY.Y
- Exchange: OTCPK
- Founded: 1995
- Industry: Multi-Utilities
- Sector: Utilities
- Market Cap: UK£4.535b
- Listing Market Cap: UK£5.839b
- Shares outstanding: 5.81b
- Website: https://www.centrica.com
Number of Employees
Location
- Centrica plc
- Millstream
- Maidenhead Road
- Windsor
- Berkshire
- SL4 5GD
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CPYY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Feb 1997 |
| CNA | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Feb 1997 |
| CENB | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Feb 1997 |
| CNAL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Feb 1997 |
| CPYY.Y | OTCPK (Pink Sheets LLC) | SPON ADR NEW | US | USD | Jan 1999 | |
| CENN | DB (Deutsche Boerse AG) | SPON ADR NEW | DE | EUR | Jan 1999 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/21 00:05 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.