Centrica PLC

CNA: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 485.00	Vcrz	Jwhgflbn

Centrica Earnings: Above Expectations; Potential for More Share Buybacks in Sight; Shares Cheap

Tancrede Fulop

Feb 15, 2024

We confirm our GBX 180 fair value estimate after no-moat Centrica released 2023 EPS slightly above our and FactSet consensus estimates. The full-year dividend is set at GBX 4 per share, one third above last year and in line with the interim dividend hike. The group mentioned that distributions on top of the dividend will be reviewed against a revised capital allocation framework. This opens the door to additional share buybacks, in our view. Shares are materially undervalued.

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