Capita
Market Cap
UK£697.0m
Last Updated
2021/05/10 01:55 UTC
Data Sources
Company Financials +
Executive Summary
Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential and slightly overvalued.
Similar Companies
Share Price & News
How has Capita's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CPI is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CPI's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-3.9%
CPI
-2.2%
GB IT
2.1%
GB Market
1 Year Return
20.9%
CPI
50.7%
GB IT
26.3%
GB Market
Return vs Industry: CPI underperformed the UK IT industry which returned 50% over the past year.
Return vs Market: CPI underperformed the UK Market which returned 26.5% over the past year.
Shareholder returns
| CPI | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.9% | -2.2% | 2.1% |
| 30 Day | -6.4% | -2.8% | 3.5% |
| 90 Day | 8.4% | 10.3% | 8.8% |
| 1 Year | 20.9%20.9% | 53.1%50.7% | 31.9%26.3% |
| 3 Year | -66.6%-66.6% | 74.7%66.1% | 12.9%-0.1% |
| 5 Year | -93.1%-96.1% | 194.9%166.6% | 51.5%22.8% |
Long-Term Price Volatility Vs. Market
How volatile is Capita's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 months ago | Simply Wall St
Capita plc (LON:CPI) Shares Could Be 35% Below Their Intrinsic Value Estimate9 months ago | Simply Wall St
When Should You Buy Capita plc (LON:CPI)?10 months ago | Simply Wall St
Is Capita plc (LON:CPI) Trading At A 23% Discount?Valuation
Is Capita undervalued compared to its fair value and its price relative to the market?
37.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CPI (£0.42) is trading below our estimate of fair value (£0.67)
Significantly Below Fair Value: CPI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CPI is unprofitable, so we can't compare its PE Ratio to the GB IT industry average.
PE vs Market: CPI is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CPI's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CPI has negative assets, so we can't compare its PB Ratio to the GB IT industry average.
Future Growth
How is Capita forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
38.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).
Earnings vs Market: CPI is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CPI's is expected to become profitable in the next 3 years.
Revenue vs Market: CPI's revenue (2.3% per year) is forecast to grow slower than the UK market (5.3% per year).
High Growth Revenue: CPI's revenue (2.3% per year) is forecast to grow slower than 20% 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 (350.1%).
Past Performance
How has Capita performed over the past 5 years?
14.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CPI is currently unprofitable.
Growing Profit Margin: CPI is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CPI is unprofitable, but has reduced losses over the past 5 years at a rate of 14.2% per year.
Accelerating Growth: Unable to compare CPI's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CPI is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (6.1%).
Return on Equity
High ROE: CPI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Financial Health
How is Capita's financial position?
Financial Position Analysis
Short Term Liabilities: CPI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: CPI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: CPI has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: CPI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable CPI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: CPI is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 30.2% per year.
Dividend
What is Capita current dividend yield, its reliability and sustainability?
0.80%
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.
Current Payout to Shareholders
Dividend Coverage: CPI is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CPI's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Jon Lewis (59 yo)
3.42yrs
Tenure
UK£1,112,325
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 ($USD1.56M) is above average for companies of similar size in the UK market ($USD959.26K).
Compensation vs Earnings: Jon's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: CPI's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: CPI's board of directors are not considered experienced ( 2.6 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Capita plc's company bio, 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
- Market Cap: UK£696.966m
- Shares outstanding: 1.66b
- Website: https://www.capita.com
Number of Employees
Location
- Capita plc
- 65 Gresham Street
- London
- Greater London
- EC2V 7NQ
- United Kingdom
Listings
Biography
Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors. It operates through six divisions: Software, People Solutions, Customer Management,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/10 01:55 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.