Educational information, not financial advice or a personal recommendation. Not regulated by the FCA. Do your own research. Capital at risk.
Sterling AlmanacExploreStart hereFind your fitGlossaryCompareMy ListMy PieEarnings calendarSupport

Centrica (CNA.L)

Utilities Dividend payer

Centrica is the British energy giant behind British Gas, keeping the lights on and homes warm for millions of households across the UK.

£1.55

Is Centrica a good stock for a UK beginner?

The honest version: Centrica is the British energy giant behind British Gas, keeping the lights on and homes warm for millions of households across the UK.

No rating · no target price · nothing for sale here
Price+16.9%
52-week range+1% past year
£1.55
Low £1.53High £2.20
Where today's price sits versus its past year - context, not a signal.
If you had put £1,000 into Centrica
£1,169+17%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
£7.02B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
19.37M
Day range: The lowest and highest price the shares traded at during the latest day.
£1.53 – £1.56
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
£1.53 – £2.20
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
10.3
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
3.7%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.34
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.34
Calm
Wild
Steadier than most

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▼ -7% past week · ▲ +1% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Effective transition to a low-carbon energy provider.

The bear case

Failure to adapt to long-term shifts in energy consumption.

What does Centrica do?

Centrica is primarily an energy supplier and services company that manages the flow of gas and electricity into our homes and businesses. Charging customers for their energy usage and offering maintenance services like boiler repairs keeps the money coming in. The balancing act to follow is how they weigh their public-facing utility role against the volatile cost of buying energy on the global market.

VQGMI
Factor profile

On our factor screen it looks strongest on value and income, and weakest on momentum.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 77Quality: How profitable and financially healthy the company is (higher = stronger). 46Growth: How fast revenue and earnings are growing (higher = faster). 21Momentum: How the share price has been trending recently (higher = stronger recent run). 9Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 74
Quick checks
What's strong
  • Value screens high (77/100)
  • Income screens high (74/100)
  • Strong brand recognition through British Gas
  • Essential service provider with steady demand
  • Relatively low share price volatility compared to the wider market
What to watch
  • Growth screens low (21/100)
  • Momentum screens low (9/100)
  • Political pressure to limit energy company profits
  • High sensitivity to global wholesale energy price spikes
  • Operational risks associated with aging infrastructure

What do Centrica's numbers mean?

Forward P/E
12.2
This shows how much you are paying for each pound of expected profit; a lower number often suggests the market is cautious about future growth.
P/S
0.4
This compares the company's total market value to its sales, suggesting that for every pound of revenue the company generates, the market values the business at 40 pence.
Dividend yield
3.2%
This is the annual cash payout to shareholders as a percentage of the share price, acting as a potential income stream for investors.
Beta
0.3
A low beta suggests the share price tends to be much less jumpy and volatile than the wider stock market.

Does Centrica pay a dividend?

Yes - Centrica currently pays a dividend of about 3.7% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

More in Utilities

United UtilitiesPG&EEdison InternationalThe AES CorporationVistra Corp.Pinnacle West Capital CorporationDominion Energy, Inc.Eversource Energy

What are the scenarios for Centrica?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

£2£2£1today · £2▲ Bull · £2• Base · £2▼ Bear · £1in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+5% to +10%Energy prices stabilise and customer demand remains steady.
Base
-2% to +2%Business continues as usual with predictable seasonal demand.
Bear
-5% to -10%Unexpected regulatory changes impact profit margins.

What are the pros and cons of Centrica?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Strong brand recognition through British Gas
  • Essential service provider with steady demand
  • Relatively low share price volatility compared to the wider market
The catch3
  • Negative net margins indicate recent profitability challenges
  • Stagnant revenue growth suggests a mature, slow-moving market
  • Heavy reliance on government-regulated pricing structures
Key risks3
  • Political pressure to limit energy company profits
  • High sensitivity to global wholesale energy price spikes
  • Operational risks associated with aging infrastructure
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: GBP · flags: earnings_growth · Charts by TradingView Lightweight Charts™
Found this useful? The Almanac is free and ad-free - a coffee keeps it that way.Support →

Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.