Loading...

Capita

LSE:CPI
Snowflake Description

Slightly overvalued with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CPI
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

Capita plc provides customer management, administration, and professional support services to clients in the private and public sectors. The last earnings update was 7 days ago. More info.


Add to Portfolio Compare Print
CPI Share Price and Events
7 Day Returns
4.6%
LSE:CPI
-0.2%
GB Professional Services
1.9%
GB Market
1 Year Returns
-17.2%
LSE:CPI
9.9%
GB Professional Services
1.2%
GB Market
CPI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Capita (CPI) 4.6% 5.9% 15.3% -17.2% -88% -88.7%
GB Professional Services -0.2% -2.5% 3.4% 9.9% 37.4% 65.2%
GB Market 1.9% 1.5% 9.1% 1.2% 14.5% 3.1%
1 Year Return vs Industry and Market
  • CPI underperformed the Professional Services industry which returned 9.9% over the past year.
  • CPI underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.2% over the past year.
Price Volatility
CPI
Industry
5yr Volatility vs Market

CPI Value

 Is Capita undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Capita to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Capita.

LSE:CPI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:CPI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.86 (1 + (1- 19%) (74.39%))
1.253
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.253 * 6.65%)
9.56%

Discounted Cash Flow Calculation for LSE:CPI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Capita is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:CPI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 9.56%)
2019 18.73 Analyst x4 17.09
2020 170.15 Analyst x2 141.75
2021 191.95 Analyst x2 145.96
2022 208.85 Est @ 8.8% 144.96
2023 222.48 Est @ 6.53% 140.95
2024 233.47 Est @ 4.94% 135.00
2025 242.40 Est @ 3.83% 127.94
2026 249.79 Est @ 3.05% 120.33
2027 256.03 Est @ 2.5% 112.58
2028 261.45 Est @ 2.12% 104.94
Present value of next 10 years cash flows £1,191.51
LSE:CPI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £261.45 × (1 + 1.23%) ÷ (9.56% – 1.23%)
£3,176.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £3,176.52 ÷ (1 + 9.56%)10
£1,274.91
LSE:CPI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,191.51 + £1,274.91
£2,466.42
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,466.42 / 1,656.38
£1.49
LSE:CPI Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.49
Current discount Discount to share price of £1.24
= -1 x (£1.24 - £1.49) / £1.49
16.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Capita is available for.
Intrinsic value
17%
Share price is £1.24 vs Future cash flow value of £1.49
Current Discount Checks
For Capita to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Capita's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Capita's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Capita's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Capita's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:CPI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.18
LSE:CPI Share Price ** LSE (2019-03-21) in GBP £1.24
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PE Ratio Median Figure of 33 Publicly-Listed Professional Services Companies 18.8x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 808 Publicly-Listed Companies 15.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Capita.

LSE:CPI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:CPI Share Price ÷ EPS (both in GBP)

= 1.24 ÷ 0.18

6.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Capita is good value based on earnings compared to the GB Professional Services industry average.
  • Capita is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Capita's expected growth come at a high price?
Raw Data
LSE:CPI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
-9.1%per year
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Professional Services Companies 1.67x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 576 Publicly-Listed Companies 1.35x

*Line of best fit is calculated by linear regression .

LSE:CPI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.89x ÷ -9.1%

-0.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Capita earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Capita's assets?
Raw Data
LSE:CPI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.02
LSE:CPI Share Price * LSE (2019-03-21) in GBP £1.24
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PB Ratio Median Figure of 43 Publicly-Listed Professional Services Companies 3.06x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,359 Publicly-Listed Companies 1.5x
LSE:CPI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:CPI Share Price ÷ Book Value per Share (both in GBP)

= 1.24 ÷ 0.02

56.69x

* Primary Listing of Capita.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Capita is overvalued based on assets compared to the GB Professional Services industry average.
X
Value checks
We assess Capita's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. Capita has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CPI Future Performance

 How is Capita expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-9.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Capita expected to grow at an attractive rate?
  • Capita's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Capita's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • Capita's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:CPI Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:CPI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts -9.1%
LSE:CPI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 0.3%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 8.9%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.2%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:CPI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:CPI Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,138 1
2022-12-31 4,039 1
2021-12-31 3,842 439 193 4
2020-12-31 3,811 328 178 10
2019-12-31 3,743 141 102 8
LSE:CPI Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 3,918 -202 263
2018-09-30 4,019 -231 -104
2018-06-30 4,120 -288 -472
2018-03-31 4,177 -65 -503
2017-12-31 4,235 187 -534
2017-09-30 4,287 355 -330
2017-06-30 4,340 522 -126
2017-03-31 4,354 542 -111
2016-12-31 4,369 563 -95
2016-09-30 4,670 563 -57
2016-06-30 4,704 563 -33
2016-03-31 4,770 532 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Capita's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Capita's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:CPI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Capita Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CPI Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.12 0.13 0.12 2.00
2020-12-31 0.11 0.14 0.08 7.00
2019-12-31 0.06 0.08 0.05 4.00
LSE:CPI Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.18
2018-09-30 -0.09
2018-06-30 -0.49
2018-03-31 -0.62
2017-12-31 -0.80
2017-09-30 -0.50
2017-06-30 -0.19
2017-03-31 -0.17
2016-12-31 -0.14
2016-09-30 -0.09
2016-06-30 -0.05
2016-03-31 0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Capita is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Capita's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Capita has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CPI Past Performance

  How has Capita performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Capita's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Capita's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Capita has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Capita has become profitable in the last year making it difficult to compare the GB Professional Services industry average.
Earnings and Revenue History
Capita's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Capita Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CPI Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,918.40 263.40 865.40
2018-09-30 4,019.15 -104.15 826.65
2018-06-30 4,119.90 -471.70 663.00
2018-03-31 4,177.25 -502.60 641.95
2017-12-31 4,234.60 -533.50 745.80
2017-09-30 4,287.30 -329.95 685.80
2017-06-30 4,340.00 -126.40 625.80
2017-03-31 4,354.30 -110.60 620.55
2016-12-31 4,368.60 -94.80 615.30
2016-09-30 4,669.50 -57.25 681.55
2016-06-30 4,703.90 -33.40 674.30
2016-03-31 4,770.40 9.65 693.00
2015-12-31 4,836.90 52.70 711.70
2015-09-30 4,716.45 141.60 691.95
2015-06-30 4,596.00 230.50 672.20
2015-03-31 4,487.05 233.20 655.00
2014-12-31 4,378.10 235.90 637.80
2014-09-30 4,263.25 202.55 595.65
2014-06-30 4,148.40 169.20 553.50
2014-03-31 4,022.30 173.20 566.00
2013-12-31 3,896.20 177.20 578.50
2013-09-30 3,729.75 211.90 551.40
2013-06-30 3,563.30 246.60 524.30
2013-03-31 3,457.55 238.00 501.00
2012-12-31 3,351.80 229.40 477.70
2012-09-30 3,244.70 235.70 467.45
2012-06-30 3,137.60 242.00 457.20
2012-03-31 3,033.90 240.00 432.65

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Capita made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Capita used its assets less efficiently than the GB Professional Services industry average last year based on Return on Assets.
  • Capita's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Capita's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Capita has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CPI Health

 How is Capita's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Capita's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Capita's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Capita's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Capita's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Capita Company Filings, last reported 2 months ago.

LSE:CPI Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 103.30 1,526.60 967.30
2018-09-30 103.30 1,526.60 967.30
2018-06-30 -128.60 1,826.30 981.50
2018-03-31 -128.60 1,826.30 981.50
2017-12-31 -929.80 2,216.30 994.30
2017-09-30 -929.80 2,216.30 994.30
2017-06-30 -668.30 3,395.60 1,186.50
2017-03-31 -668.30 3,395.60 1,186.50
2016-12-31 -552.90 3,235.00 1,165.50
2016-09-30 483.40 3,235.00 1,165.50
2016-06-30 701.30 3,440.80 999.00
2016-03-31 701.30 3,440.80 999.00
2015-12-31 753.30 2,572.10 577.80
2015-09-30 753.30 2,572.10 577.80
2015-06-30 866.40 2,304.50 488.70
2015-03-31 866.40 2,304.50 488.70
2014-12-31 915.50 2,112.60 473.60
2014-09-30 915.50 2,112.60 473.60
2014-06-30 887.50 2,307.00 543.20
2014-03-31 887.50 2,307.00 543.20
2013-12-31 896.30 1,988.10 613.80
2013-09-30 896.30 1,988.10 613.80
2013-06-30 960.40 2,098.00 563.10
2013-03-31 960.40 2,098.00 563.10
2012-12-31 878.10 2,052.10 755.30
2012-09-30 878.10 2,052.10 755.30
2012-06-30 792.70 1,729.50 194.90
2012-03-31 792.70 1,729.50 194.90
  • Capita's level of debt (1477.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (222.2% vs 1477.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Capita's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Capita has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CPI Dividends

 What is Capita's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Capita dividends. Estimated to be 1.03% next year.
If you bought £2,000 of Capita shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Capita's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Capita's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:CPI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:CPI Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.05 4.00
2020-12-31 0.01 11.00
2019-12-31 0.00 11.00
LSE:CPI Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-14 0.000 0.000
2018-08-01 0.000 0.000
2018-04-23 0.000 0.000
2017-09-21 0.317 11.761
2017-04-10 0.317 5.108
2017-03-02 0.418 7.586
2017-03-01 0.317 5.892
2016-04-04 0.317 4.382
2016-02-25 0.317 3.068
2015-02-26 0.292 2.418
2014-07-23 0.274 2.431
2014-02-27 0.265 2.376
2013-02-28 0.235 2.407
2012-07-25 0.221 2.920
2012-02-23 0.214 3.119
2011-07-21 0.206 3.061
2011-04-05 0.200 2.767
2011-02-24 0.200 2.651
2010-02-25 0.168 2.280
2009-03-23 0.144 2.025

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Capita has not reported any payouts.
  • Unable to verify if Capita's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Capita's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Capita has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Capita's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Capita's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Capita afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Capita has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CPI Management

 What is the CEO of Capita's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jon Lewis
COMPENSATION £769,241
AGE 57
TENURE AS CEO 1.3 years
CEO Bio

Dr. Jonathan Lewis, also known as Jon, has been Director at Statoil ASA since July 01, 2018. He has been the Chief Executive Officer of Capita plc since December 1, 2017. Dr. Lewis served as the Chief Executive Officer of Amec Foster Wheeler plc from June 1, 2016 to November 2017. He joined Amec Foster Wheeler in 2016, following a 20-year career at leading, technology-based, oilfield services company Halliburton, which included 10 years working in, then running, the Landmark software business, a leading technology solutions provider of data management and analytics, science, software and consulting services for the international oil and gas exploration and production industry. He served as Senior Vice President of Completions and Production Division at Halliburton Company from 2014 to May 31, 2016 and served as its Senior Vice President of Europe/SubAfrica from 2011 to 2014 and Vice President of Wireline and Perforating Services from 2007 to 2010. Dr. Lewis served as Senior Vice-President of Drilling and Evaluation Division at Halliburton Company since 2010 to 2011. Dr. Lewis served as Vice President of Digital And Consulting Solutions at Halliburton Company. He joined Halliburton in 1996 as Vice President of the Geology and Reservoir Engineering product line. He served as Vice President and Relationship Manager for ExxonMobil from 2006 to 2007. From 1997 to 2006, he has held various senior management positions at Landmark covering technology development, marketing, corporate strategy, business development and sales operations. His strategy role at Landmark included working with customers to define a vision for the role of digital solutions in driving productivity, including early adoption of leading edge technologies, including real-time data telemetrics, immersive visualisation, big data and SaaS. He has proven experience in technology-enabled services businesses and a track record of delivering value from strategic business transformations. He has strategic vision and a strong track record throughout his career of growing high value, technology-enabled services businesses through securing and developing major client relationships in both the private and public sectors. His business and leadership experience combined with an inspirational and collegiate style. Dr. Lewis has been a Director of CHC Helicopter Corporation since March 2012. He has been a Director of Capita plc since December 1, 2017. He serves as a Director of Amec Foster Wheeler plc. He serves as a Non-Executive Director of PetroData a.s. He has been a Board Member and Industrial Advisory Board at Heriot-Watt University since 2001. He has been a Board Member at University of Houston Energy Advisory Board since 2014. Dr. Lewis served as a Director of CHC Group Ltd, since March 2012. He served as a Director of CHC Group Ltd. from December 2011 to April 26, 2016. He served as a Member of Board of Managers of OFS Portal, LLC. He served as Chairman of the board and President at the BizTech 4 Energy Foundation until 2000. Prior to his commercial career, Jon spent a number of years in academia. He was awarded the NERC post-doctoral grant for research on reservoir characterization while at the Royal School of Mines, Imperial College of Science, Technology and Medicine where he established and grew a commercial research group undertaking studies for British Petroleum, Conoco, Shell and Statoil from 1987 to 1990. From 1990 to 1996, he was Principle Investigator and Conoco Lecturer, Petroleum Geology at Heriot Watt University, where he developed and managed a multi-million dollar commercial research contract portfolio. He has published and given keynote presentations on various E&P topics and in 1996, was awarded a SPE Distinguished Lectureship. Dr. Lewis holds a Bachelor of Science degree in Geology from Kingston Polytechnic in 1984 and a PhD in Geology/Sedimentology from the University of Reading.

CEO Compensation
  • Insufficient data for Jon to compare compensation growth.
  • Jon's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Capita management team in years:

1.2
Average Tenure
51
Average Age
  • The average tenure for the Capita management team is less than 2 years, this suggests a new team.
Management Team

Jon Lewis

TITLE
CEO & Director
COMPENSATION
£769K
AGE
57
TENURE
1.3 yrs

Simon Butcher

TITLE
CFO & Executive Director
AGE
50
TENURE
0.2 yrs

Mark Brown

TITLE
Chief Information Officer
TENURE
2 yrs

Andrew Ripper

TITLE
Head of Investor Relations

Claire Chapman

TITLE
Chief General Counsel
AGE
51
TENURE
1.2 yrs

Shona Nichols

TITLE
Executive Director of Communications

Rupert Green

TITLE
Chief Corporate Development Officer

Will Serle

TITLE
Chief People Officer
TENURE
0.9 yrs

Dave Spencer

TITLE
Managing Director for Real Estate & Infrastructure Business
TENURE
1.8 yrs

Ismail Amla

TITLE
Chief Growth Officer
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Capita board of directors in years:

2.1
Average Tenure
56
Average Age
  • The average tenure for the Capita board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ian Powell

TITLE
Non-Executive Chairman
COMPENSATION
£325K
TENURE
2.2 yrs

Jon Lewis

TITLE
CEO & Director
COMPENSATION
£769K
AGE
57
TENURE
1.3 yrs

Simon Butcher

TITLE
CFO & Executive Director
AGE
50
TENURE
0.2 yrs

John Cresswell

TITLE
Non-Executive Director
COMPENSATION
£65K
AGE
57
TENURE
3.3 yrs

Matthew Lester

TITLE
Non-Executive Director
COMPENSATION
£54K
AGE
55
TENURE
2 yrs

Gillian Sheldon

TITLE
Senior Independent Director
COMPENSATION
£75K
TENURE
6.2 yrs

Andrew Williams

TITLE
Non-Executive Director
COMPENSATION
£65K
AGE
51
TENURE
4.2 yrs

Baroness Neville-Rolfe

TITLE
Independent Non-Executive Director
COMPENSATION
£5K
AGE
65
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
05. Dec 18 Buy Jonathan Lewis Individual 04. Dec 18 04. Dec 18 162 £1.07 £173
05. Oct 18 Buy Jonathan Lewis Individual 04. Oct 18 04. Oct 18 125 £1.36 £170
11. May 18 Buy John Cresswell Individual 11. May 18 11. May 18 3,000 £1.23 £3,695
27. Apr 18 Buy Jonathan Lewis Individual 26. Apr 18 26. Apr 18 21,500 £1.84 £39,506
23. Apr 18 Buy Gillian Sheldon Individual 23. Apr 18 23. Apr 18 2,000 £1.79 £3,583
23. Apr 18 Buy Ian Powell Individual 23. Apr 18 23. Apr 18 3,600 £1.78 £6,399
23. Apr 18 Buy Andrew Williams Individual 23. Apr 18 23. Apr 18 30,000 £1.79 £53,745
11. Apr 18 Buy Nick Greatorex Individual 09. Apr 18 09. Apr 18 132 £1.32 £174
X
Management checks
We assess Capita's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Capita has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CPI News

Simply Wall St News

Should You Take Comfort From Insider Transactions At Capita plc (LON:CPI)?

So shareholders might well want to know whether insiders have been buying or selling shares in Capita plc (LON:CPI). … That means that an insider was happy to buy shares at above the current price. … In the last twelve months there was more buying than selling by Capita insiders

Simply Wall St -

What Do You Get For Owning Capita plc (LON:CPI)?

This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand Capita’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit

Simply Wall St -

Who Owns Most Of Capita plc (LON:CPI)?

Today, I will be analyzing Capita plc’s (LON:CPI) recent ownership structure, an important but not-so-popular subject among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.

Simply Wall St -

What Should Investors Know About Capita plc's (LON:CPI) Return On Capital?

Buying Capita makes you a partial owner of the company. … Owing to this, it is important that the underlying business is producing a sufficient amount of income from the capital invested by stockholders … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock.

Simply Wall St -

Before Investing In Capita plc (LON:CPI), Consider This

Capita plc (LON:CPI) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … Today we will examine Capita’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Capita’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure

Simply Wall St -

What Kind Of Risk Should You Expect For Capita plc (LON:CPI)?

For Capita plc’s (LON:CPI) shareholders, and also potential investors in the stock, understanding how the stock’s risk and return characteristics can impact your portfolio is important. … Broadly speaking, there are two types of risk you should consider when investing in stocks such as CPI. … The second risk is market-wide, which arises from investing in the stock market.

Simply Wall St -

Is Capita plc (LON:CPI) Expensive For A Reason? A Look At The Intrinsic Value

I am going to run you through how I calculated the intrinsic value of Capita plc (LON:CPI). … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

A Look At The Intrinsic Value Of Capita plc (LON:CPI)

I am going to run you through how I calculated the intrinsic value of Capita plc (LSE:CPI) by estimating the company's future cash flows and discounting them to their present value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF (£, Millions) £-303.10 £-4.88 £166.32 £197.25 £232.25 Source Analyst x4 Analyst x6 Analyst x6 Analyst x2 Analyst x2 Present Value Discounted @ 8.3% £-279.88 £-4.16 £130.94 £143.40 £155.90 Present Value of 5-year Cash Flow (PVCF)= £146 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … LSE:CPI Intrinsic Value May 24th 18 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Why You Should Care About Capita plc’s (LON:CPI) Cash Levels

There are two methods I will use to evaluate the quality of Capita’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability. … Free Cash Flow = Operating Cash Flows – Net Capital Expenditure Free Cash Flow Yield = Free Cash Flow / Enterprise Value where Enterprise Value = Market Capitalisation + Net Debt The business reinvests all its cash profits as well as borrows more money, to maintain and grow the company. … Current +1 year +2 year +3 year Operating Cash Flow (OCF) UK£158.50M -UK£62.50M UK£353.77M UK£440.16M OCF Growth Year-On-Year -139.43% -666.03% 24.42% OCF Growth From Current Year 123.20% 177.71% Next Steps: Now you know to keep cash flows in mind, You should continue to research Capita to get a better picture of the company by looking at: Valuation: What is CPI worth today?

Simply Wall St -

Is Capita plc (LON:CPI) Undervalued?

What’s more interesting is that, Capita’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. … LSE:CPI Future Profit Apr 26th 18 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. … But keep in mind the risks that come with negative growth prospects in the future.

Simply Wall St -

CPI Company Info

Description

Capita plc provides customer management, administration, and professional support services to clients in the private and public sectors. The company offers automation, business transformation, customer management, data and analytics, digital transformation, government, IT and networks, people, and software solutions and services, as well as specialist services, such as intelligent communications, financial, legal, travel and event, start-up development, property and infrastructure, procurement, and translation and interpreting, and workplace technology services. Capita plc provides its services to banking and financial services, insurance, life and pensions, retail, telecoms and media, transport, utilities, central and local government, defense, education, emergency services, health, police and justice, and science sectors. The company operates in the United Kingdom, Ireland, Northern Europe, the United States, India, South Africa, and Dubai. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is headquartered in London, the United Kingdom.

Details
Name: Capita plc
CPI
Exchange: LSE
Founded: 1984
£2,052,260,333
1,656,384,450
Website: http://www.capita.com
Address: Capita plc
30 Berners Street,
London,
Greater London, W1T 3LR,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE CPI Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK CTAG.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB CTAA Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE CPIL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK CTAG.Y UNSPONSORD ADR Pink Sheets LLC US USD 13. Oct 2008
Number of employees
Current staff
Staff numbers
58,733
Capita employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 21:26
End of day share price update: 2019/03/21 00:00
Last estimates confirmation: 2019/03/21
Last earnings filing: 2019/03/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.