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CPI

Capita LSE:CPI Stock Report

Last Price

UK£0.23

Market Cap

UK£381.1m

7D

-4.8%

1Y

-43.3%

Updated

24 May, 2022

Data

Company Financials +
CPI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends0/6

CPI Stock Overview

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally.

Capita Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Capita
Historical stock prices
Current Share PriceUK£0.23
52 Week HighUK£0.56
52 Week LowUK£0.20
Beta2.08
1 Month Change8.06%
3 Month Change-19.83%
1 Year Change-43.31%
3 Year Change-78.90%
5 Year Change-95.98%
Change since IPO127.43%

Recent News & Updates

Shareholder Returns

CPIGB ITGB Market
7D-4.8%1.4%-0.4%
1Y-43.3%-18.0%-3.0%

Return vs Industry: CPI underperformed the UK IT industry which returned -16.5% over the past year.

Return vs Market: CPI underperformed the UK Market which returned -2.7% over the past year.

Price Volatility

Is CPI's price volatile compared to industry and market?
CPI volatility
CPI Average Weekly Movement9.5%
IT Industry Average Movement6.8%
Market Average Movement6.0%
10% most volatile stocks in GB Market11.6%
10% least volatile stocks in GB Market3.1%

Stable Share Price: CPI is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CPI's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
198452,000Jon Lewishttps://www.capita.com

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates through Public Service, Experience, and Portfolio divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration.

Capita Fundamentals Summary

How do Capita's earnings and revenue compare to its market cap?
CPI fundamental statistics
Market CapUK£381.07m
Earnings (TTM)UK£221.60m
Revenue (TTM)UK£3.18b

1.7x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPI income statement (TTM)
RevenueUK£3.18b
Cost of RevenueUK£2.51b
Gross ProfitUK£675.80m
Other ExpensesUK£454.20m
EarningsUK£221.60m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.13
Gross Margin21.23%
Net Profit Margin6.96%
Debt/Equity Ratio267.9%

How did CPI perform over the long term?

See historical performance and comparison

Valuation

Is Capita undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CPI (£0.23) is trading below our estimate of fair value (£0.53)

Significantly Below Fair Value: CPI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CPI is good value based on its Price-To-Earnings Ratio (1.7x) compared to the UK IT industry average (35.7x).

PE vs Market: CPI is good value based on its Price-To-Earnings Ratio (1.7x) compared to the UK market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: CPI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CPI is good value based on its Price-To-Book Ratio (1.4x) compared to the GB IT industry average (3.8x).


Future Growth

How is Capita forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-64.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPI's earnings are forecast to decline over the next 3 years (-64.7% per year).

Earnings vs Market: CPI's earnings are forecast to decline over the next 3 years (-64.7% per year).

High Growth Earnings: CPI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CPI's revenue is expected to decline over the next 3 years (-0.03% per year).

High Growth Revenue: CPI's revenue is forecast to decline over the next 3 years (-0.03% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPI's Return on Equity is forecast to be very high in 3 years time (2433.6%).


Past Performance

How has Capita performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


47.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CPI has a high level of non-cash earnings.

Growing Profit Margin: CPI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CPI has become profitable over the past 5 years, growing earnings by 47.4% per year.

Accelerating Growth: CPI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CPI has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (26.7%).


Return on Equity

High ROE: Whilst CPI's Return on Equity (75.58%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Capita's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CPI's short term assets (£1.0B) do not cover its short term liabilities (£2.0B).

Long Term Liabilities: CPI's short term assets (£1.0B) exceed its long term liabilities (£846.4M).


Debt to Equity History and Analysis

Debt Level: CPI's net debt to equity ratio (157.6%) is considered high.

Reducing Debt: CPI had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: CPI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if CPI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.22%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CPI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CPI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CPI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPI's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: CPI is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CPI has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Jon Lewis (60 yo)

4.42yrs

Tenure

UK£1,237,918

Compensation

Dr. Jonathan Lewis, also known as Jon, has been Director at Equinor ASA (formerly known as Statoil ASA) since July 01, 2018. He has been the Chief Executive Officer of Capita plc since December 1, 2017. Dr...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD1.55M) is above average for companies of similar size in the UK market ($USD998.19K).

Compensation vs Earnings: Jon's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CPI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: CPI's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CPI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Capita plc's employee growth, exchange listings and data sources


Key Information

  • Name: Capita plc
  • Ticker: CPI
  • Exchange: LSE
  • Founded: 1984
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: UK£381.066m
  • Shares outstanding: 1.67b
  • Website: https://www.capita.com

Number of Employees


Location

  • Capita plc
  • 65 Gresham Street
  • London
  • Greater London
  • EC2V 7NQ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.