WEBULL

Evaluating Centuri Holdings (CTRI) After Hedge Fund Buying and Record Revenue Growth

Simply Wall St · 2d ago

Centuri Holdings (CTRI) is suddenly drawing more attention after hedge fund Tensile Capital Management and Carl Icahn each built sizable positions, just as the utility contractor posted record quarterly revenue and confirmed a strong outlook.

See our latest analysis for Centuri Holdings.

That backdrop of fresh capital and strategic moves appears to be feeding into the tape, with Centuri’s share price at $25.69 and a year-to-date share price return of roughly 33.7 percent pointing to building momentum despite some short-term volatility.

If this kind of infrastructure story has your attention, it is also worth exploring auto manufacturers to see how other capital-intensive names are positioned for the next leg of the cycle.

Yet with shares already above the average analyst target and margins still catching up to revenue growth, investors now face a key question: is Centuri still a mispriced infrastructure compounder, or has the market already banked the next leg of growth?

Price-to-Sales of 0.9x: Is it justified?

On a price-to-sales basis, Centuri trades at 0.9 times revenue, a level that screens as modest versus peers yet slightly rich versus its own fair ratio.

The price-to-sales multiple compares the company’s market value to its annual revenue. This can be a useful lens for a contractor like Centuri, where earnings are still normalizing after recent profitability shifts and one off items.

Relative to the US Construction industry’s 1.3 times average, the stock looks discounted, implying investors are not paying as much for each dollar of Centuri’s sales as they are for other contractors. However, against the estimated fair price-to-sales ratio of roughly 0.8 times that our models point to as a level the market could eventually converge on, today’s 0.9 times looks somewhat stretched rather than outright cheap.

Put differently, Centuri appears inexpensive versus the broader construction cohort and direct peers at 1.1 times, but slightly expensive versus the fair ratio benchmark that suggests a lower, more conservative multiple could be warranted if growth or margins fall short of expectations.

Explore the SWS fair ratio for Centuri Holdings

Result: Price-to-Sales of 0.9x (ABOUT RIGHT)

However, lingering margin fragility and any pullback in utility capex, particularly across North American gas and electric networks, could quickly puncture the current optimism.

Find out about the key risks to this Centuri Holdings narrative.

Another View: DCF Points to Overvaluation

While the sales multiple looks roughly fair, our DCF model tells a different story and suggests Centuri’s shares trade above an estimated fair value of about $19.31. If cash flows ultimately matter more than headline growth, could today’s optimism already be priced in?

Look into how the SWS DCF model arrives at its fair value.

CTRI Discounted Cash Flow as at Dec 2025
CTRI Discounted Cash Flow as at Dec 2025

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Centuri Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 893 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Centuri Holdings Narrative

If you see the story differently or want to stress test your own assumptions, you can build a customized view in just minutes: Do it your way.

A great starting point for your Centuri Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Ready for your next investing move?

Do not stop at a single stock. Use the Simply Wall Street Screener to uncover fresh, data-backed ideas that others may miss entirely.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.