Centrica Share Discussion Threads

[purchase_atthebottom1] 21/3/2022 13:50

Spent all the family savings on SAGA at 398🤣

[disc0dave45] 21/3/2022 13:50

Thanks, yep revenue increasing, never said anything about their revenue, bottom line earnings are forecast to reduce heavily.Do you have a personal view on how they are going to substitute the earnings previously generated by DE (57% of eps) and for last year the 59% of operating profit generated by Spirit Norway?.

[hamhamham1] 21/3/2022 13:49

Yer but no but yer but..

[purchase_atthebottom1] 21/3/2022 13:49

Discodaves wife through him out 🤣

[the grumpy old men] 21/3/2022 13:49

Centrica
80.24 +1.44%

[hamhamham1] 21/3/2022 13:48

Bang goes 80p
Heehee, naysayer since 40p, 50p, 60p, 70p and now 80p hilarious

[the grumpy old men] 21/3/2022 13:47

At UK£0.78, Is It Time To Put Centrica plc (LON:CNA) On Your Watch List?

By
Simply Wall St

Published
March 18, 2022



Centrica plc (LON:CNA), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the LSE. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Centrica’s outlook and valuation to see if the opportunity still exists.


Great news for investors – Centrica is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is £1.29, but it is currently trading at UK£0.78 on the share market, meaning that there is still an opportunity to buy now. However, given that Centrica’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.


What does the future of Centrica look like?
earnings-and-revenue-growth
LSE:CNA Earnings and Revenue Growth March 18th 2022

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Centrica, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.


THANKS

disc0dave45
21 Mar '22 - 13:35 - 8334 of 8336
0 0 0

[the grumpy old men] 21/3/2022 13:43

Industry Analysts Just Upgraded Their Centrica plc (LON:CNA) Revenue Forecasts By 19%

By
Simply Wall St

Published
March 03, 2022



Celebrations may be in order for Centrica plc (LON:CNA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Centrica will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Centrica's eleven analysts is for revenues of UK£21b in 2022, which would reflect a sizeable 46% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing UK£18b of revenue in 2022. It looks like there's been a clear increase in optimism around Centrica, given the decent improvement in revenue forecasts.

See our latest analysis for Centrica
earnings-and-revenue-growth
LSE:CNA Earnings and Revenue Growth March 3rd 2022

We'd point out that there was no major changes to their price target of UK£0.84, suggesting the latest estimates were not enough to shift their view on the value of the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Centrica, with the most bullish analyst valuing it at UK£1.20 and the most bearish at UK£0.50 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Centrica's past performance and to peers in the same industry. For example, we noticed that Centrica's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 46% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 20% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.1% per year. So it looks like Centrica is expected to grow faster than its competitors, at least for a while.
The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Centrica this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Centrica.

[disc0dave45] 21/3/2022 13:36

Diohohku aka jeanettetigger aka fant1 aka patb aka gasbag aka cleverinvesterFiltered

[disc0dave45] 21/3/2022 13:35

HTTPS://simplywall.st/stocks/gb/utilities/lse-cna/centrica-shares/news/at-uk078-is-it-time-to-put-centrica-plc-loncna-on-your-watchThe only thing they've got right in the article, the rest is garbage:'Though in the case of Centrica, it is expected to deliver a highly negative earnings growth in the next few years, which doesn't help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.'

[diohohku] 21/3/2022 13:35

Discodave4 talk about a mauling....... Oh no is there a night shift on the horizon?

[cleverinvester] 21/3/2022 13:29

Still no link old chap.

[disc0dave45] 21/3/2022 13:29

Diohohku aka jeanettetigger aka fant1 aka patb aka gasbag aka cleverinvesterFiltered

[disc0dave45] 21/3/2022 13:29

An extra £0.5bn operating profit ain't going to come from installing heat pumps and EV charge points!Where is their future growth in profits going to come from?, O’Shea keeps selling off all their very profitable higher margin businesses - Direct Energy and Spirit, but keeps deteriorating and loss making assets like nuclear.Spirit Energy contributed two-thirds (£624m) of their 2021 group adjusted operating profit (£948m), yep two-thirds!. Of that 89% was from Spirits Norwegian assets - the ones O’Shea has sold!. Of Spirits remaining assets production is also declining.FY21 operating profit, excluding Spirit assets now divested, would have been reduced by 59% (£555m) - okay BG energy Rev will be increasing but so are their costs, particularly as they are now having to purchase more energy OTC, margins will still be paper thin, the regulator sees to that. So where will £555m additional operating profit come from?

[cleverinvester] 21/3/2022 13:28

Dio chat again, discodave has definitely lost the plot,sad way to go!

[diohohku] 21/3/2022 13:28

That made me laugh clever!

[purchase_atthebottom1] 21/3/2022 13:28

Diggerdog1 🤣

[cleverinvester] 21/3/2022 13:27

Come to think about it you can't even have a job. ADVFN seems to be your only source of socialising!

[cleverinvester] 21/3/2022 13:26

Translation you haven't a clue, tell me have you any life at all? Or did you spend all your money and the wife kicked you out.

[disc0dave45] 21/3/2022 13:26

In FY20 (and previous years) Direct Energy (DE)contributed about 57% of their adjusted earnings - O'Shea has now sold DEIn FY21 Spirit Norwegian assets contributed 59% to their adjusted operating profit - O'Shea has now sold these assets.He has nothing of any similar profit enhancing assets left to sell off, no wonder he (as the ex CFO) gives no financial forecasts anymore!.

[purchase_atthebottom1] 21/3/2022 13:25

No money= skint diggers 🤣

[disc0dave45] 21/3/2022 13:24

Diohohku aka jeanettetigger aka fant1 aka patb aka gasbag aka cleverinvesterFiltered