OTCPK:CPYY.Y

Stock Analysis Report

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.


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.YIndustryMarket
7 Day7.9%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

company6.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years6.9%

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

NamePositionTenureCompensationOwnership
Iain Conn
Group CEO & Executive Director5.1yrsUK£2.42m0.040% £2.3m
Charles Berry
Independent Chairman of the Board (Leave of Absence)0yrsUK£12.00k0.00069% £40.3k
Chris O'Shea
Group CFO & Executive Director1.3yrsUK£394.00k0.0038% £220.1k
Richard Hookway
Chief Executive of Centrica Business & Director1.2yrsUK£206.00k0.000030% £1.8k
Jeff Bell
Financial Advisor1.3yrsUK£1.24m0.012% £704.2k
Charles Cameron
Director of Technology & Engineering and Centrica Innovations4.1yrsno datano data
Mike Young
Group Chief Information Officer3.3yrsno datano data
Martyn Espley
Head of Investor Relations0yrsno datano data
Justine Campbell
Group General Counsel & Company Secretary0.8yrsno datano data
Jill Shedden
Group Director of Human Resources8.6yrsno datano 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

NamePositionTenureCompensationOwnership
Iain Conn
Group CEO & Executive Director5.1yrsUK£2.42m0.040% £2.3m
Chris O'Shea
Group CFO & Executive Director1.3yrsUK£394.00k0.0038% £220.1k
Richard Hookway
Chief Executive of Centrica Business & Director1.2yrsUK£206.00k0.000030% £1.8k
Sarwjit Sambhi
CEO of Centrica Consumer & Executive Director0.9yrsno data0.0019% £112.7k
Stephen Alan Hester
Senior Independent Director3.3yrsUK£93.00k0.00036% £21.0k
Stephen Pusey
Non-Executive Director4.8yrsUK£93.00k0.0012% £71.8k
Kevin O'Byrne
Non-Executive Director0.8yrsno data0.00069% £40.3k
Jonathan Wheway
Interim Chairman0yrsUK£93.00k0.00018% £10.5k
Joan Gillman
Non-Executive Director3.3yrsUK£73.00kno data
Carlos Pascual
Non-Executive Director5.1yrsUK£73.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPYY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 1997
CNALSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 1997
CENBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1997
CNALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPFeb 1997
CPYY.YOTCPK (Pink Sheets LLC)SPON ADR NEWUSUSDJan 1999
CENNDB (Deutsche Boerse AG)SPON ADR NEWDEEURJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:05
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.