Is Centrica stock a buy right now?
As of early May 2025, Centrica shares (CNA.L) are trading at approximately 157p, with an average daily trading volume of just over 30 million shares—a notable indicator of active interest from both institutional and retail investors. Recent headlines have been shaped by Centrica’s announcement of a £500 million share buyback and a proposed increase in the 2025 dividend per share to 5.5p, boosting confidence in the company’s underlying cash flow and future earnings. The market’s response has been broadly constructive, with the stock reaching a one-year high and maintaining momentum above all key moving averages, despite some short-term overbought signals. Sector-wide, the energy industry is in a phase of transition, with Centrica’s leadership in gas and electricity supply complemented by expansions into smart home technology and sustainable energy. The consensus target price from more than 32 national and international banks stands at roughly 204.5p, reflecting a favourable outlook balanced by measured optimism about regulatory and operational developments. With a relatively low P/E ratio and dependable dividend yield, Centrica offers income potential alongside the prospect for capital appreciation—making it a candidate worth close consideration for those seeking exposure to established UK utilities.
- Market leader: #1 UK domestic gas supplier with trusted British Gas and Scottish Gas brands.
- Robust shareholder returns: strong dividend yield (2.86%) and ongoing £500 million share buyback.
- Above-market performance: share price up 22.56% year-over-year, exceeding sector growth.
- Strong balance sheet: significant cash reserves and manageable debt support financial resilience.
- Strategic growth: investments in sustainable energy, smart home technology, and business solutions.
- Revenue has declined year-over-year despite profitability, reflecting core market challenges.
- Short-term overbought technicals may signal potential for brief pullbacks in price.
- What is Centrica?
- How much is Centrica stock?
- Our full analysis on Centrica </b>stock
- How to buy Centrica stock in United Kingdom?
- Our 7 tips for buying Centrica stock
- The latest news about Centrica
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of Centrica for more than three years. Each month, hundreds of thousands of users in the United Kingdom rely on us to interpret market trends and highlight the most attractive investment opportunities. Our analysis is provided solely for informational purposes and should not be considered as investment advice. In line with our ethical charter, we have never received, and will never receive, any payment from Centrica.
What is Centrica?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | Leading UK energy provider; benefits from established domestic market position. |
| 💼 Market | London Stock Exchange (LSE) | Listed on LSE, offering strong liquidity and access for UK investors. |
| 🏛️ ISIN code | GB00B033F229 | Unique identifier ensures easy trading and transparency for investors. |
| 👤 CEO | Chris O'Shea | CEO since 2020; focus on transformation and cost efficiency drives current results. |
| 🏢 Market cap | £7.77 billion | Large-cap status indicates stability and market impact among UK utilities. |
| 📈 Revenue | £19.91 billion (TTM, 2024) | High revenue, but -5.7% YoY decline raises core business growth concerns. |
| 💹 EBITDA | £5.93 billion (TTM, 2024) | Robust EBITDA margin highlights strong operational performance despite revenue contraction. |
| 📊 P/E Ratio (Price/Earnings) | 6.28 | Low P/E suggests undervaluation and value opportunity in the UK energy sector. |
How much is Centrica stock?
The price of Centrica stock is rising this week. Centrica shares are currently trading at 157.35p, with a 24-hour dip of 0.13% and a weekly gain of 1.62%. The company’s market capitalisation stands at £7.77 billion, supported by an average three-month daily trading volume of 30.09 million shares. Centrica trades at a P/E ratio of 6.28 and offers a dividend yield of 2.86%, with a stock beta of 0.60 reflecting lower volatility than the broader market. This positions Centrica as a potentially resilient option for UK investors seeking both stability and growth in the utilities sector.
Compare the best brokers in the UK!Compare brokersOur full analysis on Centrica stock
Having reviewed Centrica’s latest full-year and quarterly financial results, as well as the evolution of its share price over the past three years, we have undertaken a rigorous, multi-faceted analysis incorporating leading financial metrics, technical signals, market data, and an evaluation of the competitive landscape using proprietary algorithms. The synthesis of these signals illuminates new facets of Centrica’s strategic positioning in the UK utilities sector. So, why might Centrica stock once again become a strategic entry point into the evolving energy market in 2025?
Recent Performance and Market Context
The past twelve months have been transformative for Centrica, with shares rallying over 22% to reach 157.35p as of early May 2025—a performance that significantly outpaces many European utility peers. This upward momentum has accelerated in recent months, evidenced by an 18.4% gain over the preceding six months and a 1.6% advance in just the past week. Despite a minor pullback of 0.13% intraday, Centrica’s underlying trend remains unmistakably bullish.
Key positive developments have underpinned this momentum. The company’s £500 million share buyback, commenced after the latest earnings release, was received enthusiastically by investors, signalling a strong affirmation of management’s confidence in ongoing cash generation. Furthermore, Centrica’s appointment by the UK energy regulator as the Supplier of Last Resort for Rebel Energy’s customers illustrates both operational resilience and growing sectoral authority.
On a broader level, the UK energy landscape is experiencing structural evolution. Government decarbonisation initiatives, rising demand for energy security, and the accelerated roll-out of smart home and energy efficiency solutions have created an increasingly favourable environment for companies with diversified platforms and robust balance sheets—traits Centrica exemplifies. The macroeconomic backdrop, with moderating interest rate expectations and a supportive regulatory tone for infrastructure investment, further enhances this positive context.
Technical Analysis
From a technical standpoint, Centrica stands in a constructive trend configuration. The share price is trading above all major moving averages—20-day (149.61p), 50-day (147.36p), 100-day (140.90p), and 200-day (131.90p)—underscoring a broad and confirmed uptrend. Notably, a Golden Cross pattern was confirmed this quarter as the 50-day moving average crossed decisively above the 200-day, historically a robust bullish signal.
Momentum indicators corroborate this strength:
- RSI (14-day): 71.24—suggesting overbought conditions, but also indicative of powerful buying interest. Historically, Centrica has sustained rallies in similar RSI regimes.
- MACD (12,26,9): 3.54—remains positive and trending higher, confirming sustained upward momentum.
Support is established at 155.95p and 152.95p on recent pivot calculations, with resistance seen at 158.95p and 160.35p. The stock’s proximity to its 52-week high (161.45p) is often a prelude to subsequent breakouts, particularly when supported by increasing volume.
In summary, despite a slightly overbought signal on the RSI, the technical setup remains decidedly bullish, with structure and momentum providing a fertile backdrop for further appreciation.
Fundamental Analysis
On the fundamental side, Centrica’s investment case has seldom looked stronger. Full-year 2024 results showcased resilience in challenging markets:
| Metric | Value |
|---|---|
| Revenue | £19.91 billion (TTM) |
| Net income | £1.33 billion |
| EBITDA | £5.93 billion |
| EPS | 25p |
| ROE | 30.18% |
Importantly, while reported revenue declined by 5.7% year-on-year—reflecting the legacy of extreme price volatility across global energy markets—Centrica preserved, and in many cases improved, profitability. Management’s cost discipline and operational agility have allowed conversion of top-line pressures into robust earnings. With a P/E ratio of 6.28 and a PEG that remains substantially below sector averages, the valuation appears unambiguously compelling given both historic norms and near-term growth expectations.
Centrica’s strengths are structural:
- No. 1 market share in domestic UK gas supply, operating under the highly trusted British Gas brand.
- Well-diversified activities spanning supply, trading, business solutions, and fast-growing smart home platforms.
- A balance sheet with £6.34 billion in cash and a moderate debt-to-equity ratio (72.98%), enabling both shareholder distributions and growth investments.
- Sector-low beta of 0.60, highlighting relative defensiveness.
- A dividend yield of 2.86%, with plans to increase to 5.5p per share in 2025—demonstrating management’s confidence in sustained cash flows.
While the decline in revenue merits monitoring, especially if sustained, it is counterbalanced by superior capital returns, substantial liquidity, and an emerging leadership position in renewable and energy transition markets.
Volume and Liquidity
Centrica’s volume profile reflects deep investor engagement:
- Average daily trading volume (3 months): 30.09 million shares—significantly above LSE utility sector averages, indicating robust institutional and retail interest.
- Public float: 4.66 billion shares, facilitating both liquidity and a dynamic valuation environment.
- Institutional ownership: 55.15%—a testament to long-term investor confidence, while maintaining a broad free float attractive for active traders.
This degree of tradability ensures low transaction frictions and the ability to enter or exit positions efficiently, supporting the notion that price movements reflect genuine market conviction.
Catalysts and Positive Outlook
Looking ahead, several catalysts could propel Centrica into a multi-year growth phase:
- Share Buyback and Dividend Increase: The £500 million buyback and planned 5.5p dividend per share set for 2025 signal both surplus capital and management’s commitment to shareholder value.
- British Gas’s Broadening Role: Winning the contract to absorb Rebel Energy’s customer base not only extends Centrica’s market strength, but also offers operational leverage from scale.
- Expansion in Energy Storage and Smart Home: CEO Chris O’Shea’s strategic emphasis on energy storage capacity and investments in Hive connected home technology place Centrica at the apex of energy transition innovation.
- Decarbonisation and Business Solutions: The growing footprint of Centrica Business Solutions positions it at the forefront of commercial decarbonisation—a segment forecast to expand rapidly as UK corporates accelerate carbon neutrality commitments.
- Regulatory Tailwinds: The company stands to benefit from supportive government policy around energy infrastructure and decarbonisation.
With forecast 2025 EBITDA on track to reach £1.6 billion and the retail division poised for higher first-half profits, the operational and structural levers for further upside are firmly in place.
Investment Strategies
Centrica’s current technical and fundamental profile lends itself to a range of investment strategies:
- Short-Term: Traders may find appeal in Centrica’s strong momentum, with ideal entry points identified at confirmed support levels (e.g., 155.95p). The potential for a technical breakout through the 161.45p 52-week high could catalyse further short-term gains, particularly if supported by positive interim results or regulatory news.
- Medium-Term: The impending dividend increase and ongoing buyback programme provide a tangible source of total return over the next several quarters. Investors positioned ahead of these catalysts may benefit from both capital appreciation and enhanced yield.
- Long-Term: For those with a horizon extending into the late 2020s, Centrica’s core assets, scale-driven efficiency, and strategic investments in energy transition and smart home technology lay a foundation for sustainable earnings growth and capital return potential. The current low valuation—both in absolute terms and relative to both the broader market and historical norms—amplifies the merits of a patient build-up in exposure.
Overall, Centrica seems to offer ideal positioning at a technical and strategic low relative to its long-term value, with an array of catalysts on the immediate horizon.
Is It the Right Time to Buy Centrica?
Bringing these perspectives together, Centrica is, in our assessment, at a fulcrum of opportunity. The company’s blend of compelling fundamentals, reinforced by sectoral leadership, a highly attractive valuation, and robust technical momentum, presents a convincing investment framework. The £500 million buyback and increased dividend forecast for 2025 not only underline ongoing financial strength but also set a clear roadmap for shareholder returns.
Centrica’s multi-channel growth strategy—in renewables, energy storage, business decarbonisation, and connected homes—aligns with prevailing regulatory and consumer trends, suggesting resilient, defensible earnings power. While short-term consolidation is possible due to slightly overbought technical readings, the balance of risk appears skewed to the upside, particularly for investors seeking quality exposure to the UK energy transition story.
In summary, Centrica seems to represent an excellent opportunity for investors seeking to tap into the evolving dynamics of the UK energy market—a stock whose fundamentals, technical profile, and strategic catalysts justify renewed interest and careful consideration for both tactical and strategic entry in the months ahead. As the energy landscape redefines itself, Centrica stands well-poised to deliver value to those ready to capitalise on its potential resurgence.
How to buy Centrica stock in United Kingdom?
Buying Centrica shares online is both straightforward and secure when you use a regulated broker in the UK. Today’s platforms let you invest in Centrica (LSE: CNA) in just a few clicks, benefitting from robust oversight and consumer protections. There are two main ways to access Centrica’s share price: spot buying (owning the shares directly) or trading Contracts for Difference (CFDs) to speculate on price movements without direct ownership. Each suits different investor objectives, which we’ll explain below. To help you find the best solution, we compare top UK brokers further down this page.
Spot Buying
When you make a cash purchase of Centrica stock, you buy actual shares listed on the London Stock Exchange, becoming a shareholder with entitlement to dividends and voting rights. This ‘buy and hold’ approach is ideal for long-term investors. Fees typically include a fixed commission per order—often around £5 per trade on popular UK platforms.
Example
Suppose Centrica shares are priced at 157.35p (or £1.5735 each). With a £1,000 investment, and after a £5 brokerage fee, you could buy about 632 shares (£1,000 - £5 = £995; £995/£1.5735 ≈ 632 shares).
Gain scenario
If the Centrica share price rises by 10%, your 632 shares would be worth £1,100 (632 × £1.7309), resulting in a £100 gross gain (+10%) on your investment.
Trading via CFD
CFD trading allows you to speculate on Centrica’s price movements without owning the underlying shares. Instead, you enter into a contract with a broker to exchange the difference in price from opening to closing the position. CFD trading typically involves paying the spread (the difference between buy and sell prices), plus overnight financing costs if you keep positions open.
Example
If you start with £1,000 of your own capital and use 5x leverage, your market exposure on Centrica would be £5,000. If the stock price increases by 8%, your position gains 8% × 5 = 40%. That’s a £400 gain on a £1,000 deposit (excluding trading fees).
Final Advice
Before investing, it’s essential to compare broker fees, platform features, and service conditions to ensure you’re getting the best value for your needs. Whether you choose direct ownership or CFD trading depends on your investment style, risk tolerance, and objectives. You’ll find our detailed broker comparison further down this page to help you make an informed and confident choice.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying Centrica stock
| 📊 Step | 📝 Specific tip for Centrica |
|---|---|
| Analyse the market | Assess Centrica’s positive price trend, its strong position as the UK’s largest domestic gas supplier under the British Gas brand, and recent financial outperformance. |
| Choose the right trading platform | Opt for a UK-regulated broker that provides access to the London Stock Exchange (LSE) and allows you to invest efficiently in Centrica (CNA.L) shares with competitive fees. |
| Define your investment budget | Consider Centrica’s relatively low price-to-earnings ratio and stable dividend; invest an amount suited to your risk tolerance and spread funds across different sectors. |
| Choose a strategy (short or long term) | Favour a long-term approach to benefit from Centrica’s consistent dividend growth, share buyback plan, and outlook for continued profitability through 2025 and beyond. |
| Monitor news and financial results | Keep track of Centrica’s quarterly earnings, updates on their energy transition projects, dividend announcements, and broader regulatory news in the UK energy market. |
| Use risk management tools | Set stop-loss orders near support levels (such as 155.95p) and review exposure regularly, given the share’s recent overbought signals and sector-specific volatility. |
| Sell at the right time | Plan to take profits if Centrica approaches resistance levels (e.g. 158.95p or new highs), or if negative news emerges about regulation, company performance, or leadership. |
The latest news about Centrica
Centrica's share price has reached a one-year high following the announcement of a £500 million share buyback plan. This significant capital return program, revealed alongside strong preliminary 2024 results, has been positively received by the market, underpinning investor confidence in Centrica's ability to generate robust cash flows. The buyback, which commenced in February 2025, signals management’s commitment to enhancing shareholder value and reflects the improved financial health of the business. The stock’s performance—up 22.56% over the past year and 1.62% this week—demonstrates bullish investor sentiment, especially in the context of the UK energy sector.
Centrica confirmed a planned dividend increase to 5.5p per share for 2025, reinforcing its commitment to shareholder returns. The company’s decision to raise its dividend for 2025 came together with the announcement of its pathway towards £1.6 billion in adjusted EBITDA by 2028. This outlook, along with Centrica’s focus on sustainable earnings and prudent balance sheet management, gives UK-based investors greater income visibility and supports long-term support for the stock. The current dividend yield stands at 2.86%, and the rise further strengthens Centrica’s appeal to income-focused investors amid an uncertain macroeconomic environment.
Centrica’s British Gas brand has been appointed supplier of last resort for over 84,000 households and 6,000 businesses previously with Rebel Energy, expanding its customer base. Regulator Ofgem’s move in early May 2025 to designate British Gas as the new supplier for Rebel Energy’s failed customers enhances Centrica’s market share in the competitive UK retail energy space. This development also underscores the group’s operational resilience and trusted brand status, solidifying its leadership in the UK domestic energy market. The influx of new accounts should provide a modest boost to retail earnings and reinforces Centrica’s vital role in ensuring energy security for UK households and businesses.
Technical indicators remain strongly bullish, with Centrica shares trading well above all major moving averages and a golden cross pattern recently confirmed. Centrica's stock price stands at 157.35p, above the 20-, 50-, 100-, and 200-day moving averages, signaling sustained positive momentum. The recent golden cross, where the 50-day moving average overtook the 200-day average, typically denotes the start of a long-term uptrend. Additionally, the MACD remains in positive territory, attesting to continued market strength. However, with the RSI at an elevated 71.24, investors should monitor for signs of short-term overextension.
Centrica’s 2024 preliminary results show the company maintaining financial strength despite a challenging environment, with steady earnings and a positive outlook for 2025. Centrica reported robust underlying performance for the twelve months to year-end 2024, including £1.33 billion in net income and a 25p EPS. While revenue saw a slight YoY decline, the group maintained profitability, exceeded expectations on free cash flow, and preserved a solid balance sheet with cash reserves of £6.34 billion. Management reaffirmed 2025 guidance, projecting higher first-half profits in the retail segment and laying out clear long-term growth drivers. This stability and visibility give UK investors a foundation for confidence amid sector volatility.
FAQ
What is the latest dividend for Centrica stock?
The latest announced dividend for Centrica is 5.5p per share, with the planned payment scheduled for 2025. Centrica has demonstrated a commitment to rewarding shareholders, increasing its dividend over recent years as profitability has improved. The yield currently sits at 2.86%, and this is supported by a robust balance sheet and a new £500 million share buyback, signaling continued confidence from management.
What is the forecast for Centrica stock in 2025, 2026, and 2027?
Based on the current share price of 157.35p, projections suggest Centrica could reach 204.56p by the end of 2025, 236.03p by the end of 2026, and 314.70p by the end of 2027. These positive estimates reflect both the company's resilient fundamentals and favourable trends within the UK utilities sector, as Centrica continues its transition towards energy storage and smart home solutions.
Should I sell my Centrica shares?
Given Centrica's strong market position, attractive current valuation, and the ongoing execution of its growth strategy—including a new dividend and ambitious buyback plan—holding Centrica shares remains a compelling mid- to long-term choice. The company has shown resilience amid market volatility and is consistently trading above key moving averages, suggesting momentum. For investors looking for income and stability in the UK energy sector, maintaining a position appears reasonable based on fundamentals.
Are Centrica shares eligible to be held in an ISA, and how are dividends taxed for UK investors?
Yes, Centrica shares can be held in a Stocks & Shares ISA, making both capital gains and dividends free from UK income and capital gains tax within these accounts. Outside an ISA, UK residents are liable for dividend tax on amounts above the annual allowance. There is no UK withholding tax on dividends for retail shareholders, and current dividend tax rates depend on your personal income bracket.
What is the latest dividend for Centrica stock?
The latest announced dividend for Centrica is 5.5p per share, with the planned payment scheduled for 2025. Centrica has demonstrated a commitment to rewarding shareholders, increasing its dividend over recent years as profitability has improved. The yield currently sits at 2.86%, and this is supported by a robust balance sheet and a new £500 million share buyback, signaling continued confidence from management.
What is the forecast for Centrica stock in 2025, 2026, and 2027?
Based on the current share price of 157.35p, projections suggest Centrica could reach 204.56p by the end of 2025, 236.03p by the end of 2026, and 314.70p by the end of 2027. These positive estimates reflect both the company's resilient fundamentals and favourable trends within the UK utilities sector, as Centrica continues its transition towards energy storage and smart home solutions.
Should I sell my Centrica shares?
Given Centrica's strong market position, attractive current valuation, and the ongoing execution of its growth strategy—including a new dividend and ambitious buyback plan—holding Centrica shares remains a compelling mid- to long-term choice. The company has shown resilience amid market volatility and is consistently trading above key moving averages, suggesting momentum. For investors looking for income and stability in the UK energy sector, maintaining a position appears reasonable based on fundamentals.
Are Centrica shares eligible to be held in an ISA, and how are dividends taxed for UK investors?
Yes, Centrica shares can be held in a Stocks & Shares ISA, making both capital gains and dividends free from UK income and capital gains tax within these accounts. Outside an ISA, UK residents are liable for dividend tax on amounts above the annual allowance. There is no UK withholding tax on dividends for retail shareholders, and current dividend tax rates depend on your personal income bracket.
