AI Spotlight on CNA
Company Description
Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Norway, North America, and internationally.The company operates through British Gas Services & Solutions, British Gas Energy, Centrica Business Solutions, Bord Gáis Energy, Energy Marketing & Trading, and Upstream segments.It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from nuclear assets.
The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, home electrical, and gas and kitchen appliances; and heating, ventilation, and air conditioning equipment, as well as offers breakdown services.In addition, it is involved in the procurement, trading, and optimization of energy; procurement and sale of LNG; 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 was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996.Centrica plc was founded in 1812 and is based in Windsor, the United Kingdom.
Market Data
Last Price | 142.5 |
Change Percentage | 2.19% |
Open | 139.35 |
Previous Close | 139.45 |
Market Cap ( Millions) | 7153 |
Volume | 45664036 |
Year High | 155.3 |
Year Low | 112.98 |
M A 50 | 131.99 |
M A 200 | 129.57 |
Financial Ratios
FCF Yield | 12.48% |
Dividend Yield | 2.93% |
ROE | 25.16% |
Debt / Equity | 66.48% |
Net Debt / EBIDTA | -67.72% |
Price To Book | 1.54 |
Price Earnings Ratio | 6.81 |
Price To FCF | 8.01 |
Price To sales | 0.35 |
EV / EBITDA | 1.06 |
News
- Jan -17 - Octopus overtakes British Gas as Britain’s biggest energy company
- Jan -17 - The best and worst energy providers revealed, according to Which?
- Jan -13 - Centrica highlights depleting UK gas reserves amid cold snap
- Jan -10 - Britain has enough gas, network says amid warnings stores are low
- Jan -10 - Why Britain is running out of gas
- Jan -10 - UK ‘well placed’ to obtain enough gas this winter, says biggest network operator
- Jan -10 - Why are UK gas stores lower than usual, and how is the overall supply looking?
- Jan -10 - UK gas storage at concerningly low levels, says Centrica
- Jan -10 - Centrica Warns UK Gas Stocks ‘Concerningly Low’ After Freeze
- Jan -03 - Are Investors Undervaluing Centrica plc (LON:CNA) By 35%?
- Dec -05 - Centrica and EDF extend UK nuclear power, boosting electricity generation
- Dec -04 - Shutdown of ageing nuclear plants delayed as net zero stokes blackout fears
- Dec -04 - Four of UK’s five nuclear power stations to be extended beyond planned closure
- Nov -23 - Will Weakness in Centrica plc's (LON:CNA) Stock Prove Temporary Given Strong Fundamentals?
- Nov -21 - Centrica Says Hydrogen Can Reduce Household Bills by £35 a Year
- Nov -19 - UK Blue Chip Laggards Among Top Bets for Fund Manager Invesco
- Oct -07 - British Gas owner considers £1bn investment in Hinkley Point C
- Oct -01 - Total Voting Rights
- Sep -17 - Centrica (LON:CNA) Has Announced A Dividend Of £0.015
- Sep -16 - Centrica (LSE:CNA) Faces Profitability Challenges Amid Strategic Innovations
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> British Gas Energy
Expected Growth : 4.83 %
What the company do ?
British Gas Energy from Centrica plc is a UK-based energy and home services provider, offering gas, electricity, and boiler cover to residential and business customers.
Why we expect these perspectives ?
British Gas Energy's 4.83% growth is driven by increasing demand for energy-efficient solutions, government incentives for renewable energy, and strategic investments in smart metering and grid modernization. Additionally, Centrica's focus on customer retention and cost savings initiatives have contributed to the segment's growth.
Segment n°2 -> Centrica Energy
Expected Growth : 4.65 %
What the company do ?
Centrica Energy is the exploration and production arm of Centrica plc, a UK-based multinational energy and services company, focused on oil and gas operations.
Why we expect these perspectives ?
Centrica Energy's 4.65% growth is driven by increasing demand for natural gas and electricity in the UK, coupled with the company's strategic focus on cost reduction and operational efficiency. Additionally, investments in renewable energy sources and expansion into new markets have contributed to the segment's growth.
Segment n°3 -> Reconciling Items
Expected Growth : 4.83 %
What the company do ?
Reconciling Items from Centrica plc refers to the differences between the company's financial records and the actual bank statements, requiring investigation and resolution.
Why we expect these perspectives ?
Centrica plc's 4.83% growth is driven by increasing demand for energy-efficient solutions, strategic acquisitions, and cost savings initiatives. Additionally, the company's focus on renewable energy sources and expansion into new markets have contributed to its growth. Furthermore, effective management of energy prices and hedging strategies have helped to mitigate risks and boost profitability.
Segment n°4 -> Centrica Business Solutions
Expected Growth : 10.27 %
What the company do ?
Centrica Business Solutions is a leading provider of energy management and sustainability solutions for businesses, offering tailored energy services to help companies reduce energy costs and carbon emissions.
Why we expect these perspectives ?
Centrica Business Solutions' 10.27% growth is driven by increasing demand for energy-efficient solutions, expansion into new markets, and strategic partnerships. The segment benefits from Centrica plc's diversified energy portfolio, enabling it to offer integrated energy management services to commercial and industrial customers. Additionally, investments in digital technologies and data analytics enhance customer engagement and optimize energy usage.
Segment n°5 -> Bord Gais Energy
Expected Growth : 4.83 %
What the company do ?
Bord Gais Energy is an Irish energy supplier acquired by Centrica plc in 2014, providing gas and electricity to residential and business customers in Ireland.
Why we expect these perspectives ?
Bord Gais Energy's 4.83% growth is driven by increasing demand for energy-efficient solutions, strategic expansion into the Irish market, and effective cost management. Additionally, Centrica plc's strong brand reputation and investments in digital infrastructure have contributed to the segment's growth.
Segment n°6 -> British Gas Services & Solutions
Expected Growth : 4.73 %
What the company do ?
British Gas Services & Solutions is a leading energy and services company from Centrica plc, providing energy supply, installation, and maintenance services to UK homes and businesses.
Why we expect these perspectives ?
British Gas Services & Solutions' 4.73% growth is driven by increasing demand for energy-efficient solutions, government incentives for low-carbon initiatives, and strategic partnerships to expand its smart home offerings. Additionally, Centrica's focus on digitization and cost savings has improved operational efficiency, enabling investments in growth initiatives.
Segment n°7 -> Upstream
Expected Growth : 4.15 %
What the company do ?
Upstream from Centrica plc refers to the exploration and production of oil and gas, which is a key business segment for the UK-based energy company.
Why we expect these perspectives ?
Centrica plc's upstream segment growth of 4.15% is driven by increased production from existing assets, successful exploration and development activities, and strategic acquisitions. Additionally, favorable commodity prices, improved operational efficiency, and a strong focus on cost reduction have contributed to this growth.
Centrica Plc Products
Product Range | What is it ? |
---|---|
British Gas Energy | Supply of gas and electricity to residential and business customers |
British Gas Home Services | Installation, maintenance and repair of boilers, central heating systems and appliances |
Dynamics | Smart home technology and energy management solutions |
Centrica Business Solutions | Energy management and procurement services for large businesses |
Centrica Storage | Gas storage facilities for the UK energy market |
Exploration and Production | Oil and gas exploration and production operations |
Centrica plc's Porter Forces
Threat Of Substitutes
Centrica plc operates in the energy industry, where substitutes are limited. However, there is a growing trend towards renewable energy sources, which could pose a threat to the company's traditional business model.
Bargaining Power Of Customers
Centrica plc operates in a highly competitive market, but its large customer base and diversified product offerings give it a strong bargaining position.
Bargaining Power Of Suppliers
Centrica plc relies on a diverse range of suppliers for its energy products, which gives it some bargaining power. However, the company is also exposed to fluctuations in global energy prices, which can impact its profitability.
Threat Of New Entrants
The energy industry is highly regulated, and new entrants face significant barriers to entry, including high capital costs and complex infrastructure requirements.
Intensity Of Rivalry
The energy industry is highly competitive, with many established players competing for market share. Centrica plc faces intense rivalry from companies such as British Gas, EDF Energy, and npower.
Capital Structure
Value | |
---|---|
Debt Weight | 49.26% |
Debt Cost | 9.43% |
Equity Weight | 50.74% |
Equity Cost | 9.43% |
WACC | 9.43% |
Leverage | 97.09% |
Centrica plc : Quality Control
Centrica plc passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
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