Centrica Dividends - CNA

Centrica Dividends - CNA

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Centrica Plc CNA London Ordinary Share GB00B033F229 ORD 6 14/81P
  Price Change Price Change % Stock Price Low Price High Price Open Price Close Price Last Trade
-2.08 -6.13% 31.84 30.45 34.16 33.92 33.92 16:35:25
more quote information »
Industry Sector
GAS WATER & UTILITIES

Centrica CNA Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount
13/02/2020FinalGBX3.531/12/201831/12/201910/05/202011/05/202022/06/20205
30/07/2019InterimGBX1.531/12/201831/12/201910/10/201911/10/201921/11/20190
21/02/2019FinalGBX8.431/12/201731/12/201809/05/201910/05/201927/06/201912
31/07/2018InterimGBX3.631/12/201731/12/201811/10/201812/10/201822/11/20180
22/02/2018FinalGBX8.431/12/201631/12/201710/05/201811/05/201828/06/201812
01/08/2017InterimGBX3.631/12/201631/12/201712/10/201713/10/201730/11/20170
23/02/2017FinalGBX8.431/12/201531/12/201611/05/201712/05/201729/06/201712
28/07/2016InterimGBX3.631/12/201531/12/201613/10/201614/10/201624/11/20160
18/02/2016FinalGBX8.4331/12/201431/12/201512/05/201613/05/201623/06/201612
30/07/2015InterimGBX3.5731/12/201431/12/201501/10/201502/10/201526/11/20150
19/02/2015FinalGBX8.431/12/201331/12/201430/04/201501/05/201525/06/201513.5
31/07/2014InterimGBX5.131/12/201331/12/201424/09/201426/09/201412/11/20140
20/02/2014FinalGBX12.0831/12/201231/12/201323/04/201425/04/201411/06/201417
31/07/2013InterimGBX4.9231/12/201231/12/201325/09/201327/09/201313/11/20130
27/02/2013FinalGBX11.7831/12/201131/12/201224/04/201326/04/201312/06/201316.4
26/07/2012InterimGBX4.6231/12/201131/12/201226/09/201228/09/201214/11/20120
23/02/2012FinalGBX11.1131/12/201031/12/201125/04/201227/04/201213/06/201215.4
28/07/2011InterimGBX4.2931/12/201031/12/201128/09/201130/09/201116/11/20110
24/02/2011FinalGBX10.4631/12/200931/12/201001/05/201103/05/201115/06/201114.3
28/07/2010InterimGBX3.8431/12/200931/12/201029/09/201001/10/201017/11/20100
25/02/2010FinalGBX9.1431/12/200831/12/200928/04/201030/04/201016/06/201012.8
30/07/2009InterimGBX3.6630/12/200830/06/200923/09/200925/09/200911/11/20090
26/02/2009FinalGBX8.7331/12/200731/12/200822/04/200924/04/200910/06/200912.63
31/07/2008InterimGBX3.930/12/200730/06/200824/09/200826/09/200812/11/20080
28/03/2008FinalGBX9.6531/12/200631/12/200723/04/200825/04/200811/06/200813
02/08/2007InterimGBX3.3530/12/200630/06/200726/09/200728/09/200714/11/20070
19/02/2007FinalGBX831/12/200531/12/200625/04/200727/04/200713/06/200711.15
27/07/2006InterimGBX3.1530/12/200530/06/200627/09/200629/09/200615/11/20060
27/07/2006FinalGBX7.431/12/200431/12/200526/04/200628/04/200614/06/200610.5
15/09/2005InterimGBX3.130/12/200430/06/200512/10/200514/10/200516/11/20050
24/02/2005FinalGBX6.131/12/200331/12/200427/04/200529/04/200515/06/20058.6
29/07/2004SpecialGBX2531/12/200331/12/200425/10/200422/10/200417/11/20040
29/07/2004InterimGBX2.530/12/200330/06/200420/10/200422/10/200417/11/20040
12/02/2004FinalGBX3.731/12/200231/12/200328/04/200430/04/200416/06/20046
31/07/2003InterimGBX1.730/12/200230/06/200324/09/200326/09/200312/11/20030
13/02/2003FinalGBX2.631/12/200131/12/200230/04/200302/05/200318/06/20034.44
05/09/2002InterimGBX1.430/12/200130/06/200207/10/200209/10/200227/11/20020
21/02/2002FinalGBX1.931/12/200031/12/200101/05/200203/05/200219/06/20023.44
06/09/2001InterimGBX1.230/12/200030/06/200110/10/200112/10/200128/11/20010
22/02/2001FinalGBX1.731/12/199931/12/200002/05/200104/05/200121/06/20013.11
07/09/2000InterimGBX1.130/12/199930/06/200025/09/200029/09/200027/11/20000
24/02/2000FinalGBX1.531/12/199831/12/199925/04/200002/05/200021/06/20002.78
09/09/1999InterimGBX130/12/199830/06/199920/09/199924/09/199907/12/19990

Top Dividend Posts

DateSubject
04/4/2020
20:50
whatsup32: https://uk.finance.yahoo.com/news/centrica-share-price-crashed-d-065839584.html?guce_referrer=aHR0cHM6Ly91ay5maW5hbmNlLnlhaG9vLmNvbS8_Z3VjY291bnRlcj0x&guce_referrer_sig=AQAAACVZA2swvmmBG-RfKmnur43tnno1Ol4Bif8XiQ4a8FdalD6DGJHsi6TP4JflM3SIXJ2ruT0uBt93Jlw-fGH2zyMIRY22m9jRSG-sSYR3c4b8C-I8SX15uuUklbpO15Ct26AcKf5XjnyX763WyGTF-sP2Z9so3UpnjTH195hC47EY&guccounter=2 Fool yet again recommending Centrica, although even they seem to show less enthusiasm . £4 billion debt , £ 3.3billion credit , enough to keep going for a year. They can’t sell Nuclear or Spirit , They can’t force people to pay or cut their supply There is hardly any Business energy supplied No help from government No indication of when Virus will be under control No indication of where Oil Price is going. You can forget Oil exploration for a while. Fool suggests it’s a good value share , with good income potential??? I can see some minor energy suppliers going under and hopefully holding onto dividends will go some ways. It’s batten down the hatches time
04/4/2020
15:47
discodave4: Those businesses that will survive this recession will be those with no debt, are cash generative and have decent margins.....CNA has none of these attributes and IMO there is a high risk now of bankruptcy, a fire sale or a heavily discounted rights issue, which will smash the share price. Unless that is that the banks are happy to increase their RCF.
28/3/2020
12:46
careful: Todays Telegraph quotes the historic PE as -2.2. They seem to have divided todays price by last years reported loss per share. =40/-17 = -2.2 approx. It looks funny set against last years dividend giving 12.5% yield. When Conn eventually leaves, by the back door in disguise I would guess, they should present him with a framed graph of the share price achieved under his watch. A World record for a utility. From now on investors will refer to a company as being 'conned' or 'cenricerd'. A new word for the dictionary.
27/3/2020
18:49
diku: Try reading this from the RNS...about the Chairman going going gone...did he get his golden goodbye for a nice script below?... PLC Directorate Change 17/03/2020 7:00am UK Regulatory (RNS & others) Centrica (LSE:CNA) Historical Stock Chart 1 Month : From Feb 2020 to Mar 2020 Click Here for more Centrica Charts. TIDMCNA RNS Number : 4192G Centrica PLC 17 March 2020 17 M arc h 202 0 Ce n trica plc ('the C o m p a n y') Boa rd c ha n g es -- Cha r l es Be rry to s t ep do wn as C en tr i ca Cha i r m an -- Sco t t W he w ay c o n f i r m ed as C ha r l es ' su c ce s sor -- Ch r is O' Shea a p po i n t e d I n t e r im Gr o up Ch i ef E x ecu t i ve -- I a i n Conn to s t ep d o wn as CEO a nd fr om t he Boa rd Cen tr i ca p lc ("Cen t r i ca ") annou n c es t hat i ts Cha i r m a n, Cha r l es Be rry, w ho has b e en on med i cal l eave s i nce t he 12 F e b r ua ry 20 20, has t en d e r ed h is r es i gna t i on wi th i mme d i a te e ff ec t . Cha r l es' dec i s i on f o l l o ws a d v i ce fr om d oc t o r s to r ed u ce h is w o r k l oad. T h e Co m p any t he r e f o re c on f i r ms t he a p p o i n t m ent of S c o tt W he w ay as i ts Cha i r m an, e ff ec t i ve imm e d i a t e l y. Sco tt has b e en a N o n - E x e c u t i ve Di r ec t or of Cen tr i ca s i nce 2016 a nd ac t i ng Cha i r m an s i nce 12 Feb r u a ry 2020, and is a w e l l - qua li f i ed suc c e s sor to Ch a r l es, wi th de ep k n o w l edge of t he C ompan y, s tr ong p lc Boa rd e x pe r i ence a nd i n - dep th c us t omer f ac i ng ped i g r ee. Cha r l es Be rry sa i d: " It has be en a g r eat h on o ur to Cha ir Cen t r i ca, but w hen t he d o ct or t e l ls y o u to r edu ce y our w o r k l o a d, y ou a re wi se to l i s t en. I wi sh e v e ry o ne at Cen tr i ca g r eat su c c e ss in t he f u t u r e ." T h e Boa rd w ou ld l i ke to t hank Cha r l es f or h is se r v i ce to Ce n tr i ca. We wi sh h im a swi ft and f u ll r ec o v e ry fr om h is r ec e nt ill hea l th and g r ea t ly app r ec i a te h is con t r i bu t i on to t he c o mpan y 's r e p os i t i o n i ng du r i ng h is t enu r e. Cen tr i ca a l so ann o u n c es t hat Ch r is O' Shea, cu rr en t ly Gr oup Ch i ef F i nanc i al Of f i c er (CFO), will bec ome I n t e r im Gr oup C h i ef E x ecu t i ve (CEO) w h i le t he sea rch f or a pe r m a nent CEO con t i nu e s. I a in C onn will s t ep do wn as C EO and fr om t he Boa rd from today. He will r e m a in a v a il a b le un t il t he Ann u al Gene r al M ee t i ng on 11 M ay 20 2 0, as a n t i c i pa t ed, to su pp o rt t he ha n d o ver but t he d ay to day l eade r sh ip of t he C o m p any will pass to Ch r i s. Sco t t W he w ay sa id "I ' m acu t e ly a w a re t hat I 'm t ak i ng t h is r o le at a t i me w hen we need to n a v i ga t e o ur w ay t h r ough t he cu rr ent vo l a t il i ty caus ed by t he i m p a ct of Co r on a v i r u s. Protecting our employees and customers is a priority for us, particularly those who are vulnerable. As a bus i ne ss we r ema in f ocu s s ed on s tr u c t u r al s i m p l i f i ca t i on, i m p r o v i ng o ur e ff i c i ency and de l i v e r i ng g r o w th in our cus t o m er f ac i ng b us i ne s ses. "I will i mm e d i a t e ly be con c en t r a t i ng on c omp l e t i ng t he sea r ch f or a CEO f or Cen t r i ca, w h i ch i n c l udes b o th i n t e r nal and e xt e r nal ca n d i da t es . In t he m e an t i m e, I h a ve a s k ed Ch r is O' Shea to t a ke o ver as I n t e r im C EO u n t i l t hat sea rch is conc l ud e d. Ch r is is an e x p e r i enc ed CFO w i th a s tr ong tr ack r eco rd of cost e ff i c i ency and f i nanc i al d i s c i p l i n e, and I will w o rk c l ose ly wi th h im du r i ng t h is pe r i od. " On be h a lf of t he Boa r d, I w ou ld l i ke to t h ank I a in f or h is con t i nued c omm i tment a nd r es il i enc e in t he f ace of unp r ec e d e n t ed c h a l l enges d u r i ng h is t enu re as CEO. I a in has l ed t he r ep o s i t i on i ng of t he comp a ny ba ck t o w a r ds t he c u s t o m er a nd t o w a r ds a l o w er c a r b on f u t u re and h as d e l i v e r ed s i gn i f i cant po rtf o l io s i m p l i f i ca t i on, debt r ed u c t i on and c ost e f f i c i enc y. T h e Boa rd w i shes I a in w e ll and t hanks h im f or h is con tr i bu t i on ." T h e i n f o r m a t i on c omm u n i ca t ed in t h is an n ou n c ement is i ns i de i n f o r m a t i on.
25/1/2020
09:39
sarkasm: ISA investors! Should you buy or sell this 5.4% FTSE 100 dividend yield before February? Royston Wild Fool.co.uk24 January 2020 There’s a galaxy of great dividend shares I think you should buy before the beginning of February. Some of these look particularly irresistible at current prices. I wouldn’t consider splashing the cash on Centrica (LSE: CNA) shares any time soon, though. Full-year results are scheduled for February 13 and I fear that a shocking set of trading numbers could be in the offing. I’ve often talked about the rate at which British Gas is haemorrhaging customers. It’s something that the energy giant has failed to get a grip on as tough economic conditions have encouraged more and more households to switch suppliers. Centrica’s customer base shed another 107,000 accounts in the four months to October, its most recent update in late autumn showed. The energy supplier was able to find some crumbs of comfort in that most recent release. It said that the rate of energy supply net losses “was lower than in the first half of the year and significantly lower than in 2018, despite continued high levels of price competition and market switching.” But I’m not convinced that this marks a turning point for Centrica, and latest Energy UK data shows why. According to the trade association, the number of energy switchers in the UK hit another fresh annual record in 2019. This came in at 6.4m and represented a 9% year on year rise. Worryingly for the established suppliers, though, switching activity seems to have accelerated again in the latter part of the year. In December some 519,343 customers changed provider, Energy UK said, up 12% on an annual basis. Double trouble It’s probably no surprise that City analysts are tipping a 38% dip in annual profits at Centrica for 2019. It might not shock you that they’re expecting a BIG reduction in the dividend, too. A 5p per share reward is expected for 2019. Rewards have recently come in at 12p. Those with a glass-half-full approach to life might still be encouraged to invest, however. A rock-bottom forward P/E ratio of 10.1 times is complemented by a gigantic 5.4% dividend yield, after all. Broker consensus suggests that Centrica might finally be about to bounce back too, a 32% earnings rebound predicted for 2020. Too much risk Recent share price action suggests that a lot of optimists have been piling back in. Over the past six weeks Centrica’s share price has leapt 25%. Buying activity was helped by the Tory general election win that vanquished the possibility of nationalisation of utilities firms by a Labour government. That said, I consider recent buying of Centrica shares to be a bit too bold. The business will likely have to engage in some hefty, profits-crushing reductions to stop its customers heading for the exits. And the ‘success’; of the price cap means that further regulatory action could be around the corner (the government estimates that households have shaved £1bn off their bills in 2019). I fully expect Centrica to endure another year of significant profits pressures in 2020. The post ISA investors! Should you buy or sell this 5.4% FTSE 100 dividend yield before February? appeared first on The Motley Fool UK. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
13/10/2019
12:16
maywillow: Piched from the other thread Https://simplywall.st/news/an-intrinsic-calculation-for-centrica-plc-loncna-suggests-its-50-undervalued/ PT Corticeira Amorim, S.G.P.S., S.A. (ELI:COR) Earns Among The Best Returns In Its Industry GB Do Directors Own 4D pharma plc (LON:DDDD) Shares? GB How Do DCD Media Plc’s (LON:DCD) Returns Compare To Its Industry? GB Does Coats Group plc (LON:COA) Have A Particularly Volatile Share Price? GB How Does Centamin plc (LON:CEY) Fare As A Dividend Stock? LSE:CNA An Intrinsic Calculation For Centrica plc (LON:CNA) Suggests It’s 50% Undervalued Simply Wall St June 28, 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Today we’ll do a simple run through of a valuation method used to estimate the attractiveness of Centrica plc (LON:CNA) as an investment opportunity by taking the foreast future cash flows of the company and discounting them back to today’s value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! Remember though, that there are many ways to estimate a company’s value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. View our latest analysis for Centrica Is Centrica fairly valued? We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company’s cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren’t available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today’s value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (£, Millions) £650.82 £739.78 £912.81 £1.06k £812.00 £663.23 £580.62 £532.13 £502.98 £485.54 Growth Rate Estimate Source Analyst x6 Analyst x9 Analyst x8 Analyst x2 Analyst x1 Est @ -18.32% Est @ -12.46% Est @ -8.35% Est @ -5.48% Est @ -3.47% Present Value (£, Millions) Discounted @ 6.55% £610.82 £651.66 £754.67 £824.06 £591.36 £453.34 £372.48 £320.40 £284.24 £257.52 Present Value of 10-year Cash Flow (PVCF)= £5.12b “Est” = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 1.2%. We discount the terminal cash flows to today’s value at a cost of equity of 6.5%. Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = UK£486m × (1 + 1.2%) ÷ (6.5% – 1.2%) = UK£9.2b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = £UK£9.2b ÷ ( 1 + 6.5%)10 = £4.90b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is £10.02b. In the final step we divide the equity value by the number of shares outstanding. This results in an intrinsic value estimate of £1.72. Relative to the current share price of £0.86, the company appears quite undervalued at a 50% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula – garbage in, garbage out. LSE:CNA Intrinsic value, June 28th 2019 LSE:CNA Intrinsic value, June 28th 2019 The assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don’t agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company’s future capital requirements, so it does not give a full picture of a company’s potential performance. Given that we are looking at Centrica as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we’ve used 6.5%, which is based on a levered beta of 0.800. Beta is a measure of a stock’s volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Next Steps: Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to “what assumptions need to be true for this stock to be under/overvalued?” If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Centrica, I’ve compiled three relevant aspects you should further examine: Financial Health: Does CNA have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does CNA’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of CNA? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LON every day. If you want to find the calculation for other stocks just search here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
19/9/2019
15:04
ariane: PROACTIVEINVESTORS Calum Muirhead 13:08 Thu 19 Sep 2019 Centrica PLC Centrica a “value wildcard”, says Jefferies as it ups to buy The US broker said the shares were trading at a 50% discount to the sector after a torrid 2019 marred by profit warnings and a savage dividend cut Centrica PLC - Centrica PLC “value wildcard”, says Jefferies as it ups to buy British Gas owner Centrica PLC (LON:CNA) is a “value wildcard” with a steep discount to the rest of the sector, according to analysts at Jefferies, who on Thursday upgraded the stock to ‘buy’ from ‘hold’. The US broker, which has the FTSE 100 firm pegged with a 90p target price, said the shares were currently trading at around a 50% discount to the sector after a torrid 2019 that has seen the firm issue a multitude of profit warnings, swing to a net loss in its first half, lose its chief executive Iain Conn and slash its generous full-year dividend by more than half to 5p. READ: Centrica chief executive to depart after slump into losses and dividend cut Unsurprisingly, this has resulted in a sharp plunge in the share price, which has tumbled around 45% since the start of the year. However, analysts said a new strategy presented in July, which will involve the disposal of the group’s Spirit Energy business and its 20% stake in UK nuclear by 2020 alongside spending cuts, would leave its balance sheet “in better shape”, support 3% EBIT margins in Centrica’s UK Home energy business, which includes British Gas and Hive Energy smart monitoring, and leave its dividend “well-underpinned”. As a result, the new strategy, alongside the discounted share price, left Centrica’s stock with an “attractive221; risk-reward profile, Jefferies said, adding that even if it reached their 90p target the group would still trade at a 30% discount to the sector with a dividend yield of 5.6% as opposed to 5% among its peers. The shares began to heat up in early afternoon on Thursday, rising 2.7% to 74.8p.
07/8/2019
18:08
ariane: 7% yields! Are these FTSE 100 dividend stocks investment traps or the key to retirement riches? Royston Wild | Wednesday, 7th August, 2019 | More on: CNA SSE Happy retired couple on a beach Image source: Getty Images. In days gone by, investment in utilities plays like Centrica (LSE: CNA) and SSE (LSE: SSE) was seen as a safe way to build a brilliant nest egg for retirement. Electricity’s role as an essential commodity in Western societies meant that long-term earnings could always be guaranteed. And this meant that dividends could be relied upon to rise each and every year too. What a difference a few years can make, though. The dominance of the Big Six suppliers in the market has crumbled, amid the emergence of dozens of independent, promotion-led suppliers. And this is continuing to have a disastrous impact on these traditional operators. Data last week showed customer numbers at Centrica’s British Gas division fell by another 178,000 in the six months to June, a result which contributed to it booking an operating loss of £446m for the period. This followed news that energy accounts at FTSE 100 rival SSE dropped another 70,000 in the three months to June. Cap attack The introduction of the price cap in January has proved a particular bugbear for operators. An increase in the level of maximum tariffs worsened customer losses in recent months. And today Ofgem announced fresh changes to the cap in more bad news for Centrica et al. This time around, the regulator’s slashed the cap in a bid to reduce average household bills by around £75 per annum. This might slow the rate at which customers of the Big Six move elsewhere, sure, but clearly it will do little for these suppliers’s profit levels. As the boffins at Warwick Business School have commented: “The way energy companies are expected to compete simply isn’t working. Last year we saw eight energy companies fail and the merger between SSE and nPower fall apart. The collapse of Economy Energy and Brilliant Energy this year has caused more concern and uncertainty for customers and showed 2019 has been no easier for energy companies.” No wonder Centrica’s share price has fallen to fresh 22-year lows below 70p today. Big dividends Glass-half-full investors are hoping that the planned departure of chief executive Ian Conn in 2020 will signal an end to Centrica’s dismal run. A new chief with new ideas might plug some of the holes, I agree. But it’s hard to see how another exec might stop the boat from continuing to sink. The introduction of the price cap; new steps to make the switching process easier; the emergence of a flood of cheaper suppliers; and a shocking fall in wholesale energy prices. These are all problems which Conn’s replacement, like the man they will displace, will have to face down. And judging by the collective failure of the Big Six to deal with these issues, well, the omens certainly aren’t great. Centrica cut the dividend again last week on its murky profits outlook, and in my opinion it’s unlikely to prove the last time it will do so. So forget about its 7.2% forward yield, I say. And give SSE’s corresponding dividend yield of 7.4% a miss too. I think these utilities should be avoided at all costs. The Motley Fool UK
02/7/2019
17:33
la forge: CHEERS WHATUPS Is the Centrica share price heading for 110p again? [Fool.co.uk] Alan Oscroft Fool.co.uk2 July 2019 Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office. Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office. Centrica (LSE: CNA) has been regularly popping up in my stock filters these days, making me wonder if it’s finally time to buy. Shares in the owner of British Gas have recently fallen to a 21-year low, but can they really keep on sliding? What do I mean by stock filters? I regularly run a scan of the FTSE 100, checking on various fundamental measures. I look for stuff like low P/E, high dividends, good dividend cover, low PEG, all kinds of things. And, increasingly, Centrica makes the cut. Looking for undervalued dividend stocks, the other day I narrowed the FTSE 100 down to those with a dividend yield of 5% or more, cover by earnings of at least 1.3 times, and a P/E that’s no higher than 14. And Centrica made the cut. Earnings rebound? Earnings at Centrica are expected to fall again this year, but analysts have EPS starting to climb again in 2020. That would put the stock on a forward P/E of around 11 for the current year, dropping as low as 8.5, based on next year’s forecasts. There’s a dividend cut on the cards for this year too, after the firm had maintained its 12p per year for four years in a row while earnings were falling. And as an aside, that’s something I don’t like to see — companies that stubbornly keep their dividends going until it’s almost too late. Sadly, it’s a very common thing. But I’d much rather see dividends paid more variably as, and when, the cash is there to cover them reliably. Anyway, even with forecasts suggesting the payout will be slashed to around 7.8p this year, and then nudged down to 7.5p next, that would still provide yields of 8.7% and 8.3% for the two years, respectively. Dividend cover Cover by earnings wouldn’t be great. But we’d be seeing 1.33 times by 2020, if these predictions are close to the truth, and that wouldn’t be too bad in the energy sector where dividends are generally only modestly covered. This isn’t a picture of a company bouncing with health I’m painting here. But, at the same time, it looks like it could be passing the bottom of its poor spell. I can’t help feeling there’s more pessimism in the share price than is justified. Let’s imagine a 25% upside and a share price rising to 112p. That would bring those P/E predictions to undemanding levels of 14 and 11 for the two years, respectively, and the dividend yields would drop to 7% and 6.7%. That would still represent a very desirable income level. Trading In its most recent trading update in May, Centrica told us things remain tough, but that it’s still on track for its cash flow and net debt guidance, with £250m of efficiency savings and £500m of non-core divestments expected by the end of the year. Net debt should still be around £3bn-£3.5bn, and I see that as the biggest risk right now. Interim results are due on 30 July, and debt will be the first thing I’m looking for. Would I buy Centrica shares? No, because of my cautious investing approach, and because these days I won’t buy recovery stocks until I’ve seen them recover. But for a bolder contrarian investor, I reckon Centrica could be worth a close look now.
01/7/2019
08:02
florenceorbis: Investomania Are recoveries ahead for Vodafone Group plc, easyJet plc, Centrica PLC and Marks and Spencer Group Plc? Do these shares have turnaround potential? Vodafone Group plc (LON:VOD) (VOD.L), easyJet plc (LON:EZJ) (EZJ.L), Centrica PLC (LON:CNA) (CNA.L) and Marks and Spencer Group Plc (LON:MKS) (MKS.L) July 1, 2019 Robert Stephens, CFA FTSE 100 Centrica PLC Centrica PLC The performances of shares in Vodafone Group plc (LON:VOD) (VOD.L), easyJet plc (LON:EZJ) (EZJ.L), Centrica PLC (LON:CNA) (CNA.L) and Marks and Spencer Group Plc (LON:MKS) (MKS.L) have been disappointing over recent quarters in my view. Investors seem to be concerned about the financial prospects of Vodafone. The company is investing heavily in 5G and in acquisitions. This may have contributed to its decision to rebase its dividend, which seems to have caused investor sentiment to come under pressure. I think that the Vodafone share price offers long-term recovery potential. Its decision to enter into partnerships and become a simpler business could catalyse its financial performance, but it may be a gradual process. easyJet’s financial prospects continue to be uncertain to my mind. Even though fuel costs may moderate due to a lower oil price, overcapacity and a high level of competition at a time when consumer confidence is weak could lead to a difficult period. Still, with the stock having a P/E ratio of 7, I think it could offer a margin of safety. I also think easyJet’s balance sheet and strong position in the budget airline segment may allow it to gain market share over the medium term. Marks and Spencer may take time to deliver improving financial performance in my opinion. It is investing heavily in its omnichannel prospects, but I feel that other retailers have got a head start in this respect. Therefore, while I think the company has a strong brand and a loyal customer base, I feel that some of its rivals have business models that are better aligned with evolving customer tastes. As a result, I view Marks and Spencer as a long-term recovery stock. Centrica’s uncertain outlook could hold back its share price in the near term in my view. The company faces political and regulatory risks that are showing little sign of subsiding to my mind. Therefore, while it has a dividend yield that is now in the double digits, I feel there may be better opportunities for me elsewhere. It wouldn’t surprise me if Centrica continues to underperform the FTSE 100 in the short run, although a successful turnaround cannot be ruled out over future years as it seeks to become more efficient under a revised strategy.
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