UK stock alert

UK

CLOSING UPDATE: Centrica increases 0.7% - outperforming 92% of stocks 20 June 2018 19:16 BST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's United Kingdom market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Centrica, the 2nd largest gas, water & multiutilities company by market capitalisation in the United Kingdom, has increased GBX1.15 (or 0.7%) today to trade at GBX155.15 and has outperformed 92% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the FTSE 100 Index which rose 23.6 points (or 0.3%) in the day, this represented a relative price increase of 0.4%.

Technical indicators complementing today's significant uptrend:

+ The positive 2.35 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price climbed 4.3% in the last week and 5.9% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Sales of 0.3 [1.0]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 10.7%.

+ Tobin's Q Ratio is 0.4. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

Note

Centrica today is at a discount of 21.4% to the 12-month high of GBX197.36 on 07 Jul, 2017. It is at a premium of 33.2% to the 12-month low of GBX116.45 on 06 Feb, 2018.

Bearish Signals:

Net profit margin has averaged 1.4% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

As per the Du Pont analysis, Return on Equity of 10.1% is lower than sector average of 16.0%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Dividend yield of 7.7% [8.9%]

Return on Equity 10.1% [16.0%]

Return on Assets 1.5% [2.6%]

Return on Capital Employed 3.8% [4.6%]

TODAY'S ALERT

Afternoon Alert: Centrica in 2nd consecutive rise, nears ten-month high

20 June 2018 15:52 BST

Centrica PLC (L:CNA) extended its gains Wednesday, rising an additional GBX1.10 (or 0.7%) to trade at GBX155.10. The stock increased 1.15% on Tuesday bringing its 2-day rise to 1.9%. It is now approaching its 209-day high of GBX155.45.

RECENT ALERTS

End of Day Alert: Centrica increases 1.1% - outperforming 86% of stocks

19 June 2018 19:15 BST

Centrica, the 2nd largest gas, water & multiutilities company by market capitalisation in the United Kingdom, has increased GBX1.75 (or 1.1%) today to trade at GBX154.0 and has outperformed 86% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the FTSE 100 Index which fell 27.5 points (or 0.4%) in the day, this represented a relative price increase of 1.5%.

Afternoon Alert: Centrica increases 0.7% - outperforming 84% of stocks

19 June 2018 12:53 BST

Centrica PLC (L:CNA) has increased GBX1.0 (or 0.7%) today to trade at GBX153.25 and has outperformed 84% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

Centrica PLC (L:CNA; LON:CNA; LN:CNA)

ISIN: GB00B033F229

PermID: 4295894725

Source: www.BuySellSignals.com