Analyzing Centrica (CPYYY) and Its Peers

Centrica (OTCMKTS: CPYYY) is one of 69 publicly-traded companies in the “Electric services” industry, but how does it contrast to its competitors? We will compare Centrica to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, dividends, institutional ownership and profitability.

Volatility & Risk

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Centrica has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Centrica’s competitors have a beta of 0.03, meaning that their average share price is 97% less volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of Centrica shares are held by institutional investors. Comparatively, 63.6% of shares of all “Electric services” companies are held by institutional investors. 3.5% of shares of all “Electric services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Centrica pays an annual dividend of $0.60 per share and has a dividend yield of 7.3%. Centrica pays out 92.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric services” companies pay a dividend yield of 3.8% and pay out 70.7% of their earnings in the form of a dividend.

Profitability

This table compares Centrica and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centrica N/A N/A N/A
Centrica Competitors -22.94% 4.45% -0.40%

Analyst Recommendations

This is a breakdown of current recommendations for Centrica and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centrica 2 3 2 0 2.00
Centrica Competitors 431 2356 2032 57 2.35

As a group, “Electric services” companies have a potential upside of 9.37%. Given Centrica’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Centrica has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Centrica and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Centrica $36.11 billion $429.17 million 12.63
Centrica Competitors $8.49 billion $471.49 million 10.16

Centrica has higher revenue, but lower earnings than its competitors. Centrica is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Centrica competitors beat Centrica on 9 of the 14 factors compared.

Centrica Company Profile

Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, North America, Norway, and internationally. The company operates through Energy Supply & Services?UK & Ireland, Energy Supply & Services?North America, Connected Home, Distributed Energy & Power, Energy Marketing & Trading, Exploration & Production, Central Power Generation, and Centrica Storage segments. It supplies gas and electricity to residential, business, and industrial customers, as well as provision of energy-related services; and engages in the power generation activities. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, gas appliances, and kitchen appliances; heating, ventilation, and air conditioning equipment; and water heaters and solar power generating equipment, as well as the provision of breakdown services. In addition, it engages 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; and develops new fields to maintain reserves in Europe and North America. Additionally, it generates power from combined cycle gas turbines, wind, and nuclear assets; and is involved in gas storage activities. The company engages in vehicle leasing; insurance provision; group financing; operation of a franchise network; intermediary services, including claims handling and administration services; sea freight water transport; and social enterprise investment fund activities. It supplies energy and services to around 28 million customers under British Gas, Bord Gáis Energy, Centrica, Centrica Storage, Direct Energy, Dyno, and Hive 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.

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