Update shared on30 Jul 2025
Fair value Decreased 12%Cantaloupe’s fair value estimate was reduced as its future P/E ratio rose sharply and net profit margin dropped considerably, suggesting declining earnings quality and higher valuation risk, resulting in the analyst price target falling from $12.70 to $11.20.
What's in the News
- Cantaloupe announced a definitive agreement to be acquired by 365 Retail Markets for approximately $830 million ($11.20 per share cash); the deal is unanimously approved by both boards and is subject to customary closing conditions.
- Leading up to the acquisition, Cantaloupe received multiple takeover bids exceeding $10 per share following a strategic review process.
- The company revised fiscal year 2025 guidance, expecting total revenue between $302 million and $308 million, and net income between $64 million and $70 million.
- Cantaloupe formed a partnership with Carnival Cruise Line to provide POS technology for exclusive destination Celebration Key, extending Carnival’s cashless payment system to the island.
- Cantaloupe was dropped from multiple Russell value and small cap indexes, while being added to the Russell 2000 Defensive and Growth-Defensive indexes.
Valuation Changes
Summary of Valuation Changes for Cantaloupe
- The Consensus Analyst Price Target has significantly fallen from $12.70 to $11.20.
- The Future P/E for Cantaloupe has significantly risen from 20.38x to 31.54x.
- The Net Profit Margin for Cantaloupe has significantly fallen from 12.30% to 7.09%.
Disclaimer
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