Centuri Holdings, Inc. (NYSE: CTRI)

Sector: Utilities Industry: Utilities - Regulated Gas CIK: 0001981599
Market Cap 1.97 Bn
P/B 3.36
P/E 782.25
P/S 0.69
ROIC (Qtr) 1.15
Div Yield % 0.00
Rev 1y % (Qtr) 18.05
Total Debt (Qtr) 1.06 Bn
Debt/Equity (Qtr) 1.81
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About

Investment thesis

Bull case

  • Operating cash flow of 55.23M provides exceptional 642.20x coverage of minority interest expenses 86000, showing strong core operations.
  • Tangible assets of 1.48B provide exceptional 46.31x coverage of deferred revenue 32.06M, showing strong service capability backing.
  • Cash position of 16.13M provides exceptional 187.59x coverage of minority interest expenses 86000, indicating strong liquidity.
  • Robust tangible asset base of 1.48B provides 4.98x coverage of working capital 298.32M, indicating strong operational backing.
  • Tangible assets of 1.48B provide robust 6.36x coverage of other current liabilities 233.33M, indicating strong asset backing.

Bear case

  • Operating cash flow of 55.23M barely covers its investment activities of (94.25M), with a coverage ratio of -0.59, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of (39.02M) provides weak coverage of capital expenditures of 94.25M, with a -0.41 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 88.61M show weak coverage of depreciation charges of 156.88M, with a 0.56 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 156.88M relative to operating cash flow of 55.23M, which is 2.84x suggests significant maintenance capital requirements affecting free cash flow.
  • Free cash flow of (39.02M) represents just -8.43x of debt issuance 4.63M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Utilities - Regulated Gas
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ATO Atmos Energy Corp 28.99 Bn 23.20 5.95 9.63 Bn
2 NI Nisource Inc. 14.62 Bn 27.48 3.16 16.21 Bn
3 UGI Ugi Corp /Pa/ 8.33 Bn 13.88 1.13 7.21 Bn
4 NJR New Jersey Resources Corp 5.43 Bn 16.61 2.52 3.97 Bn
5 BKH Black Hills Corp /Sd/ 5.38 Bn 18.44 2.33 4.70 Bn
6 SR Spire Inc 5.36 Bn 19.83 2.09 5.35 Bn
7 SWX Southwest Gas Holdings, Inc. 5.04 Bn 19.06 1.48 3.51 Bn
8 OGS ONE Gas, Inc. 4.50 Bn 29.67 3.07 3.40 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.37 0.79
EV to Cash from Ops. EV/CFO 54.13 18.36
EV to Debt EV to Debt 2.83 1.86
EV to EBIT EV/EBIT 33.74 -126.33
EV to EBITDA EV/EBITDA 12.14 11.96
EV to Free Cash Flow [EV/FCF] EV/FCF -76.62 -73.99
EV to Market Cap EV to Market Cap 1.52 1.71
EV to Revenue EV/Rev 1.05 3.19
Price to Book Value [P/B] P/B 3.36 2.59
Price to Earnings [P/E] P/E 782.25 77.08
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.42
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 47.06
Dividend per Basic Share Div per Share (Qtr) 0.00 1.78
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 54.25
Interest Coverage Int. cover (Qtr) 1.08 3.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -14.65 -16.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -69.25 44.73
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.03
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 125.60 6.88
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1,614.26 113.90
EBIT Growth (1y) % EBIT 1y % (Qtr) 163.58 26.96
EBT Growth (1y) % EBT 1y % (Qtr) 102.74 12.44
EPS Growth (1y) % EPS 1y % (Qtr) 101.25 24.35
FCF Growth (1y) % FCF 1y % (Qtr) -132.33 -146.22
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.56 10.16
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.30 0.36
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.12
Cash Ratio Cash Ratio (Qtr) 0.04 0.15
Current Ratio Curr Ratio (Qtr) 1.68 0.94
Debt to Equity Ratio Debt/Equity (Qtr) 1.81 3.58
Interest Cover Ratio Int Coverage (Qtr) 1.08 3.17
Times Interest Earned Times Interest Earned (Qtr) 1.08 3.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.60 32.74
EBIT Margin % EBIT Margin % (Qtr) 3.12 21.43
EBT Margin % EBT Margin % (Qtr) 0.23 13.06
Gross Margin % Gross Margin % (Qtr) 8.30 43.32
Net Profit Margin % Net Margin % (Qtr) 0.10 9.98