CPI Stock Overview
Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors.
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£0.45|
|52 Week High||UK£0.56|
|52 Week Low||UK£0.32|
|1 Month Change||-1.16%|
|3 Month Change||-4.92%|
|1 Year Change||-9.60%|
|3 Year Change||-57.54%|
|5 Year Change||-90.58%|
|Change since IPO||350.87%|
Recent News & Updates
Estimating The Fair Value Of Capita plc (LON:CPI)
In this article we are going to estimate the intrinsic value of Capita plc ( LON:CPI ) by projecting its future cash...
Capita (LON:CPI) Takes On Some Risk With Its Use Of Debt
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
|CPI||GB IT||GB Market|
Return vs Industry: CPI underperformed the UK IT industry which returned 28.8% over the past year.
Return vs Market: CPI underperformed the UK Market which returned 11.6% over the past year.
|CPI Average Weekly Movement||5.8%|
|IT Industry Average Movement||5.1%|
|Market Average Movement||4.9%|
|10% most volatile stocks in GB Market||9.8%|
|10% least volatile stocks in GB Market||2.6%|
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.
About the Company
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, Government Services, Technology Solutions, and Specialist Services. The company offers application software and other solutions, such as automation, critical communication system, finance and payment, management information system, workforce management, and education software products and services; and people solutions, including human resources advisory and digitally enabled services comprising learning, resourcing, pensions, and HR outsourcing services.
Capita Fundamentals Summary
|CPI fundamental statistics|
Is CPI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CPI income statement (TTM)|
|Cost of Revenue||UK£2.56b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.15|
|Net Profit Margin||7.83%|
How did CPI perform over the long term?See historical performance and comparison
Is Capita undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CPI (£0.45) is trading below our estimate of fair value (£0.56)
Significantly Below Fair Value: CPI is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CPI is good value based on its PE Ratio (2.9x) compared to the UK IT industry average (42.6x).
PE vs Market: CPI is good value based on its PE Ratio (2.9x) compared to the UK market (19.1x).
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 PB Ratio (2.5x) compared to the GB IT industry average (4.1x).
How is Capita forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
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 (-32.2% per year).
Earnings vs Market: CPI's earnings are forecast to decline over the next 3 years (-32.2% per year).
High Growth Earnings: CPI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CPI's revenue (3.3% per year) is forecast to grow slower than the UK market (4.9% per year).
High Growth Revenue: CPI's revenue (3.3% 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 (1265.3%).
How has Capita performed over the past 5 years?
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 35.7% 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 (13.9%).
Return on Equity
High ROE: Whilst CPI's Return on Equity (82.34%) is outstanding, this metric is skewed due to their high level of debt.
How is Capita's financial position?
Financial Position Analysis
Short Term Liabilities: CPI's short term assets (£1.4B) do not cover its short term liabilities (£2.4B).
Long Term Liabilities: CPI's short term assets (£1.4B) exceed its long term liabilities (£1.1B).
Debt to Equity History and Analysis
Debt Level: CPI's net debt to equity ratio (134.5%) is considered high.
Reducing Debt: CPI's debt to equity ratio has reduced from 499.5% to 313.9% over the past 5 years.
Debt Coverage: CPI's debt is not well covered by operating cash flow (1.3%).
Interest Coverage: CPI's interest payments on its debt are well covered by EBIT (4.3x coverage).
What is Capita current dividend yield, its reliability and sustainability?
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jon Lewis (60 yo)
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 ($USD1.48M) is above average for companies of similar size in the UK market ($USD1.03M).
Compensation vs Earnings: Jon's compensation has been consistent with company performance over the past year.
Experienced Management: CPI's management team is considered experienced (2.3 years average tenure).
Experienced Board: CPI's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Capita plc's employee growth, exchange listings and data sources
- Name: Capita plc
- Ticker: CPI
- Exchange: LSE
- Founded: 1984
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: UK£748.985m
- Shares outstanding: 1.67b
- Website: https://www.capita.com
Number of Employees
- Capita plc
- 65 Gresham Street
- Greater London
- EC2V 7NQ
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/03 18:49|
|End of Day Share Price||2021/12/03 00:00|
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.