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CPI: Dividend Increase And Stable Risk Profile Will Support Balanced Outlook

Analysts Adjust Capitec Valuation as Earnings and Dividend Forecasts Show Strong Growth

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CPI
AnalystConsensusTarget
Not Invested
Published 07 Nov 2024

Update shared on 08 Dec 2025

Fair value Increased 1.65%
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AnalystConsensusTarget's Fair Value
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1Y
19.8%
7D
-0.9%

Analysts have raised their price target for Capitec Bank Holdings slightly, reflecting an updated fair value estimate of R4,368.07 from R4,297.07. This change factors in marginally higher long term revenue growth expectations and a somewhat richer future earnings multiple, despite a broadly unchanged risk profile and profit margin outlook.

What's in the News

  • Board declares a gross interim dividend of 2,620 cents per ordinary share for the six months ended 31 August 2025, up from 2,085 cents a year earlier, indicating management confidence in current earnings momentum (company announcement)
  • The interim dividend applies to 116,099,843 ordinary shares in issue, resulting in a substantial total cash return to shareholders (company announcement)
  • Key dates for the interim dividend are as follows: last day to trade cum dividend on 21 October 2025, ex dividend from 22 October 2025, record date on 24 October 2025, and payment on 27 October 2025 (company announcement)

Valuation Changes

  • The Fair Value Estimate has risen slightly from ZAR 4,297.07 to ZAR 4,368.07, implying a modest uplift in the intrinsic valuation.
  • The Discount Rate is unchanged at 16.73 percent, indicating a stable assessment of the bank's risk profile and required return.
  • Revenue Growth has increased marginally from 24.86 percent to 24.89 percent, reflecting slightly stronger long term top line expectations.
  • The Net Profit Margin has edged down fractionally from 32.19 percent to 32.17 percent, suggesting a broadly stable but very slightly softer profitability outlook.
  • The Future P/E has risen slightly from 31.34x to 31.86x, pointing to a somewhat richer earnings multiple embedded in the updated valuation.

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