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 High Price Low Price Open Price Close Price Last Trade
  0.00 0.0% 72.20 0.00 0.00 0.00 72.20 01:00:00
more quote information »
Industry Sector

Centrica CNA Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

nortic 007: I must say that CNA price movements give you the feeling that they want to break out. Yet another spike in the price but will it finally hold.
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.
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.
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
sarkasm: invezz Centrica share price sinks as group slashes dividend Tsveta Zikolova Tsveta Zikolova July 30, 2019 2 min read Share this article! Centrica’s (LON:CNA) share price has slumped in London this morning as the company updated investors on its interim performance, posting a fall in revenue and profits and taking the axe to its dividend, amid the UK energy price cap and additional pension contributions which have pressured the company’s cash flow. The British Gas owner further announced that its chief executive Iain Conn was stepping down. As of 08:21 BST, Centrica’s share price had given up 10.33 percent to 81.46p. The shares are significantly underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.24 percent higher at 7,705.24 points. ‘Exceptionally challenging environment’ Centrica announced in a statement this morning that its adjusted revenue had dropped two percent to £13.8 billion in the first half of 2019. The group’s EBITDA meanwhile fell 19 percent to £1.9 billion, while the company’s adjusted operating cash flow came in 32 percent lower at £744 million. “Centrica faced an exceptionally challenging environment in the first half of 2019, which impacted earnings and cash flows,” the group’s chief executive Iain Conn said in the statement, adding that the company had “regrettably had to make the decision to rebase the dividend”. The British Gas owner said that it was slashing its interim payout to shareholders by 58 percent to 1.5p per share. The update comes after it emerged earlier this month that the company was planning to lower its payout to shareholders. Chief executive Iain Conn to step down Centrica announced in a separate statement that Iain Conn had agreed with the board that he will step down as CEO and retire from the Board next year. The British Gas owner, however, expects that he will remain with the company at least until next year’s annual general meeting. According to MarketBeat, the British Gas owner currently has a consensus ‘hold’ rating, while the average target on the Centrica share price stands at 113.46p.
adrian j boris: Cheers and coutesy of mbmiah 8 Jul '19 - 18:53 - 20063 of 20063 0 0 0 Https://www.ii.co.uk/analysis-commentary/chart-week-how-centrica-could-shock-us-all-ii508616?utm_source=IBMW&utm_medium=email&utm_campaign=ii_Afternoon_round_up_newsletter_080719%20(1)&utm_content=&spMailingID=6554396&spUserID=MTIxNjc2OTAxODM5S0&spJobID=1310623165&spReportId=MTMxMDYyMzE2NQS2 Chart of the week: How Centrica could shock us all by John Burford from interactive investor | 8th July 2019 11:43 At a 20-year low, and despite a long list of problems, Centrica shares could experience a near-perfect alignment of bullish factors later this year, believes chartist John Burford. Will Centrica now step on the gas? Could it get any worse for British Gas owner Centrica (LSE:CNA)? The furore over the awarding to the CEO of a 44% pay rise to £2.4 million as the shares have now sunk to a 20-year low shows little sign of abating. Could this be the high-water mark in this era of rewards for failure? This year alone, Centrica's share price has dropped from 140p to the current 88p, a loss of 38%. It seems a far cry from the 400p valuation six years ago. But hold on! The massive 12p dividend remains, despite pressure for cuts, so for many investors the CEO is being seen as a hero - so far. Half-year results are due on 30 July which will be closely watched for signs of a dividend cut – and a likely change in direction for the company. That could be a very interesting scenario. Not only has British Gas lost many customers to alternative suppliers, but market sentiment remains firmly bearish as many pundits see no hope at all for the shares to recover. Most say they wouldn’t touch it with a bargepole. And that means only one thing – I am very interested in looking at the case for a contrarian stance (with great timing, of course)! So, let's get to the all-knowing charts. Here is the very long-term monthly: Source: interactive investor Past performance is not a guide to future performance In the era before the energy markets were deregulated, Centrica was in a general bull market. Even the 2008/2009 Credit Crunch impacted the shares much less than many other FTSE 100 companies. And Centrica's share price high was set near the 400p mark in September 2013. Since then, it has been a ski run slide down the mountain. And to create a new 20-year low takes some skill just as the FTSE 100 is knocking on all-time highs – and the Dow Jones/S&P 500/Nasdaq have this week made record highs! But note the five-wave pattern on Centrica's chart, with the current market in an extended fifth wave. Elliott wave theory tells us that when the fifth wave of an impulse pattern such as this one terminates, a reversal begins. The question is: are we at or near the end of that fifth wave and, hence, at the start of a reversal? For clues, here is the weekly chart action off the high: Source: interactive investor Past performance is not a guide to future performance The red fifth wave also sports a five-wave pattern – and along very decent tramlines. That places the current market right at or near the termination of fifth waves of two degrees of scale – and on a momentum divergence on this chart as well. That makes further downside as limited, and if the market can base around here and then push up through the upper tramline at 120p, I will be looking at a target at the 250p region. That should be the extent of my 'b' wave (see monthly chart) – and lead to a renewed slide. And if the dividend is cut later this month to say 8p, even at the 120p target the yield will be a juicy 6.6% - not at all bad in today's low rate environment. That should boost demand for this very high value defensive share. Finally, global natural gas prices are depressed, which should help increase margins this winter – if the trading desk is awake to the opportunity. We could be looking at a near-perfect alignment of bullish factors later this year, especially if the many shorts start to cover. For more information about Tramline Traders, or to take a three-week free trial, go to www.tramlinetraders.com. John Burford is the author of the definitive text on his trading method, Tramline Trading. He is also a freelance contributor and not a direct employee of interactive investor.
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.
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.
redtom1: Turvart, you are almost certainly incorrect about the impact of a cut in dividend. Small investors like you and me are completely irrelevant in determining the future share price movement. Only the big institutions and professionals have the capacity to shift the share price in a company like CNA. A dividend cut has been flagged to the markets for a while and the markets ARE expecting it. Not to cut would be much worse the share price The company has flagged the minimum fcf required to maintain the dividend and has publicly stated that current forecasts fall short of this. The new dividend needs to be covered by earnings too so again a cut is nailed on. A dividend around 6-8p would kill many birds withe same stone. Again, your forecast of 47p is rather farcical and not credible.
careful: That all seems sensible. Apart from the dividend yield at 11.3%. The share price in these markets is a random number +/- 50% error. The play thing of the traders. So many worthless profitless companies highly rated but never paying a dividend. Other strong established companies beaten down by momentum traders. The dividend yield as a % of turnover is unchanged. The dividend yield against the old share price of £4 is 3%. I know, that is history when profits were easier and the future looked steady. Personally I do not give a damn about the dividend, it only gets taken off the share price on ex divi date. Warren Buffetts Berkshire Hathaway never pays one. Preserve the cash, reduce the dividend. that is sensible.
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