Centuri Holdings Inc. Common Stock (CTRI)

FairStock Score: 38/100 — MIXED

Key Financials

Strengths

• Generates $5 million in annual free cash flow (0.1% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 19.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 391% margin of safety—limited downside protection

AI Analysis

Centuri Holdings Inc. Common Stock is a small-cap utilities company valued at $3.5 billion. The business generates $3.0 billion in annual revenue with a 1.0% net margin and $5 million in free cash flow. From a quality standpoint, Centuri shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is commanding a steep 138.0x multiple, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at 19.7% and profit growth of 193.0%. Our composite FairStock Score of 38/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Centuri's 20% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. With $5 million in annual free cash flow (0.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 138x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer