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CTLP

Cantaloupe NasdaqGS:CTLP Stock Report

Last Price

US$3.48

Market Cap

US$247.7m

7D

-10.5%

1Y

-67.6%

Updated

30 Sep, 2022

Data

Company Financials +
CTLP fundamental analysis
Snowflake Score
Valuation6/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

CTLP Stock Overview

Cantaloupe, Inc., a digital payment and software services company, provides technology solutions for the unattended retail market.

Cantaloupe Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cantaloupe
Historical stock prices
Current Share PriceUS$3.48
52 Week HighUS$13.25
52 Week LowUS$3.45
Beta1.8
1 Month Change-45.37%
3 Month Change-38.62%
1 Year Change-67.57%
3 Year Change-50.99%
5 Year Change-45.20%
Change since IPO-99.30%

Recent News & Updates

Sep 27

Cantaloupe: A Promising Growth Story But Risks Abound

Summary Cantaloupe’s post-COVID recovery continues to gain momentum. Guidance numbers indicate more of the same in FY23, although there could be downside to the long-term targets. The latest management departure adds uncertainty and with the valuation also pricey, I would remain neutral. With the COVID pandemic seemingly done and dusted, consumer demand is on the mend, and employees are returning to the workplace - a favorable setup for unattended point-of-sale service provider Cantaloupe (CTLP). In line with the post-COVID trend, revenue growth accelerated in the June quarter, with transaction volumes up double digits % YoY and EBITDA seeing similar YoY improvements. The new management team deserves a lot of credit for its progress in exercising expense discipline through the worst of the pandemic, while expansion initiatives beyond the traditional vending industry bode well for the long-term outlook. That said, at current prices, investors will need to pay a pricey EBITDA multiple for projected low to mid-teens growth. The departure of CEO Feeney is concerning as well, particularly coming on the heels of prior CFO changes and accounting issues. All in all, CTLP has plenty going for it, but the risks from another round of management reshuffling and the lofty valuation keep me on the sidelines. Data by YCharts The Post-COVID Growth Recovery Continues CTLP saw its June quarter revenue up ~18% to $58m (vs. +18% in the prior quarter), helped by +17% subscription and transaction revenue growth (vs. 21% in the prior quarter) and an impressive +22% growth of equipment revenue (vs. +1% last quarter) due to the EMV (Europay, Mastercard (MA), and Visa's (V) joint security standard) upgrade cycle. For the full year, the +21% subscription and transaction revenue growth marks an important post-COVID recovery on the path to regaining management's targeted double-digit % segment growth. Given subscription revenues carry 80%-85% gross margins, continued growth momentum here will prove accretive to future earnings. Cantaloupe Adj EBITDA benefited from this quarter's growth as well, at ~$2m for the quarter and $9.9m for FY22 (up from $7.6m in FY21). The solid P&L result means CTLP is equipped with ~$68m of cash and ~$15m of debt exiting FY22, translating to net cash of $0.76/share. This adds to the prior quarter's liquidity boost - recall that management's debt facility agreement amendments have allowed for term loan availability of ~$10m and increased its line of credit to ~$15m. Book value stands at a healthy $2.25/share. Cantaloupe Guidance Update Signals a Brighter Near-Term Outlook The FY23 guidance has been pegged at +10%-15% revenue growth or $225m-$235m - while growth is down from the +23% in FY22, the YoY comparison did benefit from a low, COVID-driven base. Underlying the guidance is a +13%-17% subscription and transaction revenue growth projection (to $191m-$198m), which is set to drive adj EBITDA of $12m-$17m (well above the $9.9m in FY22). The improved profitability makes sense, in my view - CTLP was focused on building out new products to drive future growth in FY22 (as shown by the +37% YoY Technology and Product expense growth), but as these products go to market, the expense run-rate will likely moderate. As operating leverage kicks in, expect profitability to inflect higher in FY23, driving upside to the current adj EBITDA guidance numbers. Over the mid to long-term, the newer offerings not only pose upside to the revenue growth trajectory but also the margin profile. In particular, higher subscription revenue contribution through SaaS (via SEED) and equipment subscription (via Cantaloupe One) offer higher revenue per connection and margin accretion, thus, driving improved profitability over time. Of note, however, chairman Douglas Bergeron seemed reluctant to commit to the ambitious prior targets of >30% growth and >20% operating margins on the earnings call - a worrying sign heading into the year-end investor day. Pending visibility into the long-term margin and growth profile, I would be cautious heading into the event. Yet Another Management Reshuffle The key negative surprise from the quarter was that effective this October, chief operating officer Ravi Venkatesan will take over as CEO, replacing outgoing CEO Sean Feeney, who joined in May 2020. Feeney's retirement is a loss to the company - during his tenure, he refreshed the senior leadership team, successfully rebranded (from 'USA Technologies' previously), and improved the balance sheet. More recently, he also led several new product initiatives alongside Venkatesan, who joined as chief technology officer in 2020 and became COO earlier this year.

Shareholder Returns

CTLPUS ITUS Market
7D-10.5%-2.7%-2.5%
1Y-67.6%-39.1%-23.2%

Return vs Industry: CTLP underperformed the US IT industry which returned -37.2% over the past year.

Return vs Market: CTLP underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is CTLP's price volatile compared to industry and market?
CTLP volatility
CTLP Average Weekly Movement8.3%
IT Industry Average Movement8.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

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

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

About the Company

FoundedEmployeesCEOWebsite
1992200Sean Feeneyhttps://www.cantaloupe.com

Cantaloupe, Inc., a digital payment and software services company, provides technology solutions for the unattended retail market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides ePort, an integrated payment device that is deployed in self-service, unattended market applications, such as vending, amusement, arcade, commercial laundry, air/vacuum, car wash, and others, which facilitates digital payments; and integrated software services for payment devices in the field for the wireless transfer.

Cantaloupe Fundamentals Summary

How do Cantaloupe's earnings and revenue compare to its market cap?
CTLP fundamental statistics
Market CapUS$247.73m
Earnings (TTM)-US$2.37m
Revenue (TTM)US$205.20m

1.2x

P/S Ratio

-104.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTLP income statement (TTM)
RevenueUS$205.20m
Cost of RevenueUS$141.01m
Gross ProfitUS$64.20m
Other ExpensesUS$66.57m
Earnings-US$2.37m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.033
Gross Margin31.28%
Net Profit Margin-1.16%
Debt/Equity Ratio9.1%

How did CTLP perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CTLP 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/Revenue1x
Enterprise Value/EBITDA74.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does CTLP's PS Ratio compare to its peers?

CTLP PS Ratio vs Peers
The above table shows the PS ratio for CTLP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.3x
IBEX IBEX
0.7x9.4%US$341.7m
PRTH Priority Technology Holdings
0.6x13.0%US$346.0m
LSAK Lesaka Technologies
0.9x43.1%US$204.4m
CASS Cass Information Systems
2.8xn/aUS$473.8m
CTLP Cantaloupe
1.2x11.7%US$247.7m

Price-To-Sales vs Peers: CTLP is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (1.3x).


Price to Earnings Ratio vs Industry

How does CTLP's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Sales vs Industry: CTLP is good value based on its Price-To-Sales Ratio (1.2x) compared to the US IT industry average (2.5x)


Price to Sales Ratio vs Fair Ratio

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

CTLP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.2x
Fair PS Ratio1.4x

Price-To-Sales vs Fair Ratio: CTLP is good value based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).


Share Price vs Fair Value

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

Below Fair Value: CTLP ($3.48) is trading below our estimate of fair value ($7.83)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Cantaloupe forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


119.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTLP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: CTLP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CTLP is expected to become profitable in the next 3 years.

Revenue vs Market: CTLP's revenue (11.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: CTLP's revenue (11.7% 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 CTLP's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Cantaloupe 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


4.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CTLP is currently unprofitable.

Growing Profit Margin: CTLP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CTLP is unprofitable, but has reduced losses over the past 5 years at a rate of 4.9% per year.

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

Earnings vs Industry: CTLP is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (19.2%).


Return on Equity

High ROE: CTLP has a negative Return on Equity (-1.06%), as it is currently unprofitable.


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Financial Health

How is Cantaloupe's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CTLP's short term assets ($136.6M) exceed its short term liabilities ($79.2M).

Long Term Liabilities: CTLP's short term assets ($136.6M) exceed its long term liabilities ($16.5M).


Debt to Equity History and Analysis

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

Reducing Debt: CTLP's debt to equity ratio has reduced from 14.3% to 9.1% over the past 5 years.


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: CTLP has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CTLP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Cantaloupe 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

  • Cash Flow Coverage

Dividend Yield vs Market

Cantaloupe Dividend Yield vs Market
How does Cantaloupe dividend yield compare to the market?
SegmentDividend Yield
Company (Cantaloupe)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (IT)1.6%
Analyst forecast in 3 Years (Cantaloupe)n/a

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

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

Growing Dividend: Insufficient data to determine if CTLP'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 CTLP has not reported any payouts.


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Management

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

0.7yrs

Average management tenure


CEO

Sean Feeney (64 yo)

2.33yrs

Tenure

US$3,402,145

Compensation

Mr. Sean E. Feeney serves as President and Chief Executive Officer at Cantaloupe, Inc. (formerly known as USA Technologies, Inc.) since May 8, 2020 and also serves as its Director since May 2020. He serves...


CEO Compensation Analysis

Sean Feeney's Compensation vs Cantaloupe Earnings
How has Sean Feeney's remuneration changed compared to Cantaloupe's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-US$2m

Mar 31 2022n/an/a

US$2m

Dec 31 2021n/an/a

-US$2m

Sep 30 2021n/an/a

-US$4m

Jun 30 2021US$3mUS$421k

-US$9m

Mar 31 2021n/an/a

-US$23m

Dec 31 2020n/an/a

-US$31m

Sep 30 2020n/an/a

-US$36m

Compensation vs Market: Sean's total compensation ($USD3.40M) is above average for companies of similar size in the US market ($USD1.72M).

Compensation vs Earnings: Insufficient data to compare Sean's compensation with company performance.


Leadership Team

Experienced Management: CTLP's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: CTLP's board of directors are not considered experienced ( 2.4 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.


Recent Insider Transactions

NasdaqGS:CTLP Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
16 Jun 22BuyUS$50,158Ian HarrisIndividual10,575US$4.85
15 Jun 22BuyUS$50,820Ravi VenkatesanIndividual10,500US$4.84
25 May 22BuyUS$649,711Hudson Executive Capital LPCompany143,460US$4.83
24 May 22BuyUS$46,700Lisa BairdIndividual10,000US$4.67
23 May 22BuyUS$203,593Ravi VenkatesanIndividual45,001US$4.59
22 Feb 22BuyUS$29,559Ian HarrisIndividual3,965US$7.46
15 Feb 22SellUS$8,925,212Antara Capital LPCompany1,116,069US$8.10
14 Feb 22BuyUS$134,818Ian HarrisIndividual17,462US$7.76
31 Jan 22BuyUS$4,691,058Antara Capital LPCompany1,082,600US$8.90
29 Dec 21BuyUS$860,199Hudson Executive Capital LPCompany106,635US$8.11
18 Nov 21BuyUS$48,984Sean FeeneyIndividual5,200US$9.42

Ownership Breakdown

What is the ownership structure of CTLP?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders4,364,0726.1%
General Public12,053,58116.9%
Hedge Funds18,064,06025.4%
Institutions36,706,34051.6%

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


Top Shareholders

Top 25 shareholders own 72.95% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
17.2%
Hudson Executive Capital LP
12,245,860$42.6m1.19%4.91%
8.17%
Ardsley Advisory Partners LP
5,818,200$20.2m11.75%5.46%
5.75%
BlackRock, Inc.
4,096,819$14.3m4.77%no data
5.09%
F. H. van Vlissingen
3,626,661$12.6m2.67%no data
4.34%
Abrams Capital Management, L.P.
3,090,000$10.8m0%0.29%
4.16%
Cowen Inc,Private Banking and Investment Banking Investments
2,963,188$10.3m45.36%1.27%
4.01%
The Vanguard Group, Inc.
2,853,972$9.9m-11.12%no data
2.42%
Sargent Investment Group, LLC
1,721,274$6.0m5.97%2.11%
2.31%
Wasatch Advisors Inc
1,644,117$5.7m-28.43%0.03%
2.05%
G2 Investment Partners Management LLC
1,462,842$5.1m2.05%1.75%
1.97%
Hudson Bay Capital Management LP
1,401,941$4.9m-14.67%0.06%
1.83%
Nierenberg Investment Management Company, Inc.
1,304,940$4.5m8.3%4.24%
1.65%
State Street Global Advisors, Inc.
1,173,205$4.1m-0.6%no data
1.53%
Exchange Traded Concepts, LLC
1,087,992$3.8m4.92%0.08%
1.5%
Geode Capital Management, LLC
1,070,030$3.7m2.55%no data
1.46%
ETF Managers Group LLC
1,036,988$3.6m313.25%0.11%
1.05%
Heartland Advisors, Inc.
750,000$2.6m50%0.21%
0.99%
Invenire Capital, LLC
701,696$2.4m56.89%4.13%
0.92%
First Washington Corporation
654,895$2.3m-0.35%1.2%
0.91%
Jacob Asset Management of New York LLC
645,009$2.2m-3.71%2.44%
0.8%
Assenagon Asset Management S.A.
566,671$2.0m58.85%0.01%
0.77%
Northern Trust Global Investments
550,849$1.9m-2.48%no data
0.76%
Royce & Associates, LP
544,496$1.9m0%0.02%
0.65%
Caption Management, LLC
459,700$1.6m-37.87%0.16%
0.64%
Dimensional Fund Advisors LP
457,361$1.6m36.05%no data

Company Information

Cantaloupe, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cantaloupe, Inc.
  • Ticker: CTLP
  • Exchange: NasdaqGS
  • Founded: 1992
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: US$247.734m
  • Shares outstanding: 71.19m
  • Website: https://www.cantaloupe.com

Number of Employees


Location

  • Cantaloupe, Inc.
  • 100 Deerfield Lane
  • Suite 300
  • Malvern
  • Pennsylvania
  • 19355
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTLP.POTCPK (Pink Sheets LLC)PFDUSUSDMar 1995
CTLPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1995
UTE0DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1995

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.