Centrica plc (CNA.L) stock analysis

In our weekly check, Centrica plc is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 6.

About Centrica plc

Centrica plc is an Utilities company (Independent Power Producers) based in the United Kingdom, listed on LSE as CNA.L.

What our checks show for CNA.L

Red flags

• The net margin fell by 4.3 points over 5 years, to -0.4%: the company keeps less of each sale as profit.
• Revenue fell 6.4% a year over the last 3 years.
• Earnings per share fell 51.3% a year over the last 3 years.
• The company is losing money: the net margin is -0.4%.
• Centrica plc pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 92% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 4.5% a year of growth in revenue.
• Free cash flow is only 1.7% of revenue.
• The stock is still below its previous peak.

Strengths

• Debt is low: 0.81x equity.
• Operating profit covers interest 31 times over.
• The gross margin is 38.7% and has risen by 29.1 points: pricing power is holding.
• Operating cash flow is 12.17x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 115% a year over the next years.
• Analysts expect the net margin to improve by 3.5 points from today's -0.4%.

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Questions

What grade does Centrica plc (CNA.L) have?

In our weekly check, Centrica plc is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CNA.L stock?

This week's biggest flags for Centrica plc: Margins falling, Weak revenue growth, Weak EPS growth. In total 9 of 24 checks show a warning or a red flag.

What does Centrica plc do?

Centrica plc is an Utilities company (Independent Power Producers) based in the United Kingdom, listed on LSE as CNA.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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