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CNA:LSECentrica plc Analysis

Data as of 2026-06-21 - not real-time

£172.65

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Centrica is trading close to its recent support level with momentum indicators pointing to an oversold condition, suggesting a potential rebound. The Relative Strength Index signals oversold pressure while the MACD shows a bearish divergence, and the market has been unusually volatile, implying that price swings could be pronounced in the near term.
Fundamentally, the company offers a solid dividend yield that appears sustainable given its modest payout ratio and strong free cash flow generation. Valuation metrics indicate the stock is priced well below its discounted cash‑flow estimate and industry earnings multiples, while the utility sector backdrop provides a relatively defensive earnings profile despite moderate regulatory headwinds.

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 7/10

Key Factors

  • price near support with oversold momentum
  • high dividend yield offering immediate income
  • potential upside from valuation gap

Medium Term

1–3 years
Neutral
Model confidence: 6/10

Key Factors

  • stable cash flow supporting dividend continuity
  • moderate regulatory environment in utilities
  • ongoing volatility that may temper price appreciation

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • significant undervaluation relative to intrinsic value
  • defensive sector positioning with diversified geography
  • sustainable dividend and strong balance sheet

Key Metrics & Analysis

Financial Health

Profit Margin-0.37%
P/E Ratio12.1
ROE-1.23%
ROA18.67%
Debt/Equity81.69
P/B Ratio2.5
Op. Cash Flow£695.0M
Free Cash Flow£3.5B
Industry P/E20.6

Technical Analysis

TrendNeutral
RSI27.0
Support£171.85
Resistance£202.00
MA 20£186.53
MA 50£197.73
MA 200£184.40
MACDBearish
VolumeIncreasing
Fear & Greed Index91.46

Valuation

Fair Value£1,057.28
Target Price£222.14
Upside/Downside28.67%
GradeUndervalued
TypeValue
Dividend Yield3.19%

Risk Assessment

Beta0.02
Volatility30.81%
Sector RiskLow
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.