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Deep Value: cash covers more than 100% of the stock price

This company holds roughly $7.4B in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Centrica logo

Centrica

CNA.L
59
Independent Power Producers · Utilities
Price
153.90 GBp
-0.60 (-0.39%)
Market Cap
£6.97B
Exchange
London Stock Exchange
Winston Score
59
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Good
Cash Flow
Mixed
Stability
Strong
Valuation
Good
Dividends
Strong

Share count falling — buybacks

19.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 5.91B (2021) → 4.79B (2025)

Winston Score History

The full picture

Centrica is a British energy company that sells gas and electricity to homes and businesses across the UK and Ireland. Its most well-known brand is British Gas, which is one of the largest energy suppliers in the United Kingdom. The company also provides boiler repairs, home warranties, and energy services to millions of households.

Centrica makes money by charging customers for energy supply contracts, home service plans, and maintenance subscriptions through British Gas. It also owns gas storage assets and has a growing business helping companies manage their energy use more efficiently. The company operates mainly in the UK and Ireland, giving it a strong local brand but also heavy exposure to British energy regulations and government price caps. The key growth opportunity is expanding its energy services and flexibility businesses as the UK shifts toward cleaner energy, but volatile wholesale gas prices and political pressure on household energy bills remain ongoing risks.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+101.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+570.6% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

£0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

4.3%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~6 years

£5.4B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

£5.4B cash & investments at current burn rate

Revenue accelerating

Centrica grew revenue 101% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
38.2%
Modest — 38.2% gross margin
Profit after running costs
Operating Margin
25.9%
Excellent — 25.9% operating margin
Return on the money invested
ROCE
76.1%
Exceptional — 76.1% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+35.4%
Fast-growing sales (+35.4% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
68%
Modest — 68% of profit becomes cash
Spare cash per sale
FCF Margin
-0.6%
Burning cash (-0.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.75
Moderate — manageable debt (0.75)
Covers its interest
Interest Cover
22.70x
Comfortably covers interest (22.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
9.6x
Attractive valuation — P/E 9.6

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
-0.4
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
2.49%
Moderate income — 2.49% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+52.8%
Dividend growing fast (52.8% YoY)

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