Cantaloupe (NasdaqGS:CTLP) - Share price, News & Analysis

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

CTLP ($6.16) is trading below our estimate of [[fair value]] ($15.94)

CTLP fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

CTLP Stock Overview

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

Rewards

Trading at 61.4% below our estimate of its fair value

Earnings are forecast to grow 84.73% per year

Became profitable this year

Risk Analysis

Large one-off items impacting financial results

Cantaloupe Competitors

IBEX

NasdaqGM:IBEX

US$343.5m

Cass Information Systems

NasdaqGS:CASS

US$492.9m

Priority Technology Holdings

NasdaqCM:PRTH

US$370.8m

Paya Holdings

NasdaqCM:PAYA

US$945.7m

Price History & Performance

Summary of all time highs, changes and price drops for Cantaloupe
Historical stock prices
Current Share Price	US$6.16
52 Week High	US$13.25
52 Week Low	US$4.28
Beta	1.84
1 Month Change	15.57%
3 Month Change	36.59%
1 Year Change	-40.19%
3 Year Change	-15.03%
5 Year Change	17.33%
Change since IPO	-98.77%

Recent News & Updates

Jun 14

Is Cantaloupe (NASDAQ:CTLP) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

May 14

Cantaloupe's (NASDAQ:CTLP) Promising Earnings May Rest On Soft Foundations

Despite posting some strong earnings, the market for Cantaloupe, Inc.'s ( NASDAQ:CTLP ) stock hasn't moved much. Our...

Shareholder Returns

	CTLP	US IT	US Market
7D	-0.3%	3.0%	1.1%
1Y	-40.2%	-28.3%	-13.0%

Return vs Industry: CTLP underperformed the US IT industry which returned -28.3% over the past year.

Return vs Market: CTLP underperformed the US Market which returned -13% over the past year.

Price Volatility

Is CTLP's price volatile compared to industry and market?
CTLP volatility
CTLP Average Weekly Movement	8.1%
IT Industry Average Movement	10.0%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.2%

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

Founded	Employees	CEO	Website
1992	200	Sean Feeney	https://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 Cap	US$438.04m
Earnings (TTM)	US$2.37m
Revenue (TTM)	US$196.19m

185.1x

P/E Ratio

2.2x

P/S Ratio

Is CTLP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTLP income statement (TTM)
Revenue	US$196.19m
Cost of Revenue	US$134.34m
Gross Profit	US$61.85m
Other Expenses	US$59.48m
Earnings	US$2.37m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.033
Gross Margin	31.52%
Net Profit Margin	1.21%
Debt/Equity Ratio	9.2%

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

3/6

Valuation Score 3/6

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.

The above table shows the n/a ratio for CTLP. This is calculated by dividing CTLP's market cap by their current preferred multiple.
What is CTLP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$438.04m

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/Revenue	2x
Enterprise Value/EBITDA	66.2x
PEG Ratio	2.2x

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.
Company	PS	Estimated Growth	Market Cap
Peer Average	2x
IBEX IBEX	0.7x	9.8%	US$343.5m
CASS Cass Information Systems	2.9x	n/a	US$492.9m
PRTH Priority Technology Holdings	0.7x	17.8%	US$370.8m
PAYA Paya Holdings	3.5x	11.3%	US$945.7m
CTLP Cantaloupe	2.2x	12.4%	US$440.2m

Price-To-Sales vs Peers: CTLP is expensive based on its Price-To-Sales Ratio (2.2x) compared to the peer average (2x).

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 (2.2x) compared to the US IT industry average (3x)

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 Ratio	2.2x
Fair PS Ratio	1.7x

Price-To-Sales vs Fair Ratio: CTLP is expensive based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).

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 ($6.16) is trading below our estimate of fair value ($15.94)

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, but analysts are not 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 5 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

84.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTLP's forecast earnings growth (84.7% per year) is above the savings rate (1.9%).

Earnings vs Market: CTLP's earnings (84.7% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: CTLP's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CTLP's revenue (12.4% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: CTLP's revenue (12.4% 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

2/6

Past Performance Score 2/6

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

-4.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CTLP has a large one-off gain of $1.5M impacting its March 31 2022 financial results.

Growing Profit Margin: CTLP became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: CTLP has become profitable over the past 5 years, growing earnings by -4.2% per year.

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

Earnings vs Industry: CTLP has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (19.8%).

Return on Equity

High ROE: CTLP's Return on Equity (1.9%) is considered low.

Discover strong past performing companies

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
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CTLP's short term assets ($128.9M) exceed its short term liabilities ($66.9M).

Long Term Liabilities: CTLP's short term assets ($128.9M) exceed its long term liabilities ($17.0M).

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 10.8% to 9.2% over the past 5 years.

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

Interest Coverage: CTLP earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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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

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.

Discover strong dividend paying companies

Management

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

0.6yrs

Average management tenure

CEO

Sean Feeney (64 yo)

2.25yrs

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

Compensation vs Market: Sean's total compensation ($USD3.40M) is about average for companies of similar size in the US market ($USD2.66M).

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 ( 0.6 years average tenure), which suggests a new team.

Board Members

Experienced Board: CTLP's board of directors are not considered experienced ( 2.3 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: CTLP 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	2022/08/09 00:00
End of Day Share Price	2022/08/09 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30