Cannae Holdings (NYSE:CNNE) - Share price, News & Analysis

Q: What is the Fair Price of CNNE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CNNE ($19.65) is trading below our estimate of [[fair value]] ($87.51)

CNNE fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

CNNE Stock Overview

Cannae Holdings, Inc. is a principal investment firm.

Rewards

Trading at 77.5% below our estimate of its fair value

Revenue is forecast to grow 11.5% per year

Risk Analysis

No risks detected for CNNE from our risk checks.

Cannae Holdings Competitors

Compass Diversified

NYSE:CODI

US$1.5b

Siem Industries

OTCPK:SEMU.F

US$259.5m

Jackson Financial

NYSE:JXN

US$2.3b

Elron Ventures

OTCPK:ELRN.F

US$127.7m

Price History & Performance

Summary of all time highs, changes and price drops for Cannae Holdings
Historical stock prices
Current Share Price	US$19.65
52 Week High	US$36.50
52 Week Low	US$17.12
Beta	0.80
1 Month Change	-1.50%
3 Month Change	-19.43%
1 Year Change	-44.08%
3 Year Change	-32.61%
5 Year Change	n/a
Change since IPO	6.85%

Recent News & Updates

Jun 28

Cannae Holdings: Trading At A Discount To NAV And Insiders Have Been Buying

Investors get to invest alongside a smart investor with a good track record of creating value. CNNE is trading at a conservative 0.87x P/NAV of its public investments. Investors get a handful of free call options on its private investments. Insiders have been consistently buying and own ~6% of the company.

Shareholder Returns

	CNNE	US Diversified Financial	US Market
7D	-5.9%	-0.7%	-2.5%
1Y	-44.1%	-2.7%	-21.2%

Return vs Industry: CNNE underperformed the US Diversified Financial industry which returned -4.4% over the past year.

Return vs Market: CNNE underperformed the US Market which returned -21.7% over the past year.

Price Volatility

Is CNNE's price volatile compared to industry and market?
CNNE volatility
CNNE Average Weekly Movement	7.8%
Diversified Financial Industry Average Movement	7.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

Stable Share Price: CNNE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CNNE's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2014	12,938	Rick Massey	https://www.cannaeholdings.com

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes.

Cannae Holdings Fundamentals Summary

How do Cannae Holdings's earnings and revenue compare to its market cap?
CNNE fundamental statistics
Market Cap	US$1.57b
Earnings (TTM)	-US$301.50m
Revenue (TTM)	US$737.70m

2.1x

P/S Ratio

-5.2x

P/E Ratio

Is CNNE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNNE income statement (TTM)
Revenue	US$737.70m
Cost of Revenue	US$704.30m
Gross Profit	US$33.40m
Other Expenses	US$334.90m
Earnings	-US$301.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-3.76
Gross Margin	4.53%
Net Profit Margin	-40.87%
Debt/Equity Ratio	0.5%

How did CNNE perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is CNNE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CNNE?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CNNE. This is calculated by dividing CNNE's market cap by their current preferred multiple.
What is CNNE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.57b

CNNE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	-11.7x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does CNNE's PB Ratio compare to its peers?

CNNE PB Ratio vs Peers

The above table shows the PB ratio for CNNE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	0.8x
CODI Compass Diversified	1.8x	34.7%	US$1.5b
SEMU.F Siem Industries	n/a	n/a	US$259.5m
JXN Jackson Financial	0.2x	-17.2%	US$2.3b
ELRN.F Elron Ventures	1.3x	n/a	US$127.7m
CNNE Cannae Holdings	0.5x	116.6%	US$1.6b

Price-To-Book vs Peers: CNNE is good value based on its Price-To-Book Ratio (0.5x) compared to the peer average (0.8x).

Price to Earnings Ratio vs Industry

How does CNNE's PE Ratio compare vs other companies in the US Diversified Financial Industry?

Price-To-Book vs Industry: CNNE is good value based on its Price-To-Book Ratio (0.5x) compared to the US Diversified Financial industry average (0.8x)

Price to Book Ratio vs Fair Ratio

What is CNNE's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CNNE PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.5x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate CNNE's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of CNNE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CNNE ($19.65) is trading below our estimate of fair value ($87.51)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CNNE's PEG Ratio to determine if it is good value.

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Future Growth

How is Cannae Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 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

116.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNNE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CNNE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CNNE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CNNE's revenue (11.5% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: CNNE's revenue (11.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if CNNE's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Cannae Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

37.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNNE is currently unprofitable.

Growing Profit Margin: CNNE is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: CNNE is unprofitable, but has reduced losses over the past 5 years at a rate of 37.5% per year.

Accelerating Growth: Unable to compare CNNE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CNNE is unprofitable, making it difficult to compare its past year earnings growth to the Diversified Financial industry (-3.7%).

Return on Equity

High ROE: CNNE has a negative Return on Equity (-9.93%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Cannae Holdings'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: CNNE's short term assets ($76.3M) do not cover its short term liabilities ($229.7M).

Long Term Liabilities: CNNE's short term assets ($76.3M) do not cover its long term liabilities ($220.3M).

Debt to Equity History and Analysis

Debt Level: CNNE has more cash than its total debt.

Reducing Debt: CNNE's debt to equity ratio has reduced from 24.9% to 0.5% over the past 5 years.

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

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

Balance Sheet

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Dividend

What is Cannae Holdings's 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

Dividend Yield vs Market

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

High Dividend: Unable to evaluate CNNE'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 CNNE's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

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

Discover strong dividend paying companies

Management

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

1.7yrs

Average management tenure

CEO

Rick Massey (66 yo)

2.58yrs

Tenure

US$1

Compensation

Mr. Richard Nelson Massey, also known as Rick, is Director at Alight Solutions LLC. He has been Director of Alight, Inc. since July 2021. Mr. Massey served as the Chief Executive Officer of Austerlitz Acqu...

CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD1.00) is below average for companies of similar size in the US market ($USD5.57M).

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

Leadership Team

Experienced Management: CNNE's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: CNNE's board of directors are considered experienced (4.4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: CNNE 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31