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CPI

Capitec Bank HoldingsJSE:CPI Stock Report

Market Cap

R194.3b

7D

0.2%

1Y

55.4%

Updated

17 Oct, 2021

Data

Company Financials +
CPI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance6/6
Financial Health5/6
Dividends0/6

CPI Overview

Capitec Bank Holdings Limited, through its subsidiaries, provides various banking products and services in South Africa.

Capitec Bank Holdings Competitors

Standard Bank Group

JSE:SBK

R216.9b

Absa Group

JSE:ABG

R118.4b

Nedbank Group

JSE:NED

R84.9b

Sanlam

JSE:SLM

R124.6b

Price History & Performance

Summary of all time highs, changes and price drops for Capitec Bank Holdings
Historical stock prices
Current Share PriceR1,680.81
52 Week HighR1,074.03
52 Week LowR1,936.95
Beta0.69
1 Month Change-10.17%
3 Month Change9.68%
1 Year Change55.42%
3 Year Change69.77%
5 Year Change149.75%
Change since IPO93,278.33%

Recent News & Updates

Shareholder Returns

CPIZA BanksZA Market
7D0.2%0.3%1.6%
1Y55.4%49.6%21.3%

Return vs Industry: CPI exceeded the ZA Banks industry which returned 49.6% over the past year.

Return vs Market: CPI exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is CPI's price volatile compared to industry and market?
CPI volatility
CPI Beta0.69
Industry Beta0.91
Market Beta1

Stable Share Price: CPI is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CPI's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199914,789Gerrie Fouriehttps://www.capitecbank.co.za

Capitec Bank Holdings Limited, through its subsidiaries, provides various banking products and services in South Africa. It operates through two segments, Retail Banking and Business Banking. The company offers transactional banking services; term loans, credit facilities, mortgage loans, overdrafts, instalment sales and leases, credit cards, and access facilities; rental finance; collection and payment services; and merchant services, as well as funeral and life insurance products.

Capitec Bank Holdings Fundamentals Summary

How do Capitec Bank Holdings's earnings and revenue compare to its market cap?
CPI fundamental statistics
Market CapR194.35b
Earnings (TTM)R7.75b
Revenue (TTM)R20.92b

25.1x

P/E Ratio

6.1x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPI income statement (TTM)
RevenueR20.92b
Cost of RevenueR0
Gross ProfitR20.92b
ExpensesR13.17b
EarningsR7.75b

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)67.00
Gross Margin100.00%
Net Profit Margin37.04%
Debt/Equity Ratio4.4%

How did CPI perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

42%

Payout Ratio

Does CPI pay a reliable dividends?

See CPI dividend history and benchmarks
When do you need to buy CPI by to receive an upcoming dividend?
Capitec Bank Holdings dividend dates
Ex Dividend DateOct 20 2021
Dividend Pay DateOct 25 2021
Days until Ex dividend2 days
Days until Dividend pay date7 days

Does CPI pay a reliable dividends?

See CPI dividend history and benchmarks

Valuation

Is Capitec Bank Holdings undervalued compared to its fair value and its price relative to the market?

25.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CPI (ZAR1680.81) is trading above our estimate of fair value (ZAR693.75)

Significantly Below Fair Value: CPI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CPI is poor value based on its PE Ratio (25.1x) compared to the ZA Banks industry average (10.6x).

PE vs Market: CPI is poor value based on its PE Ratio (25.1x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: CPI is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CPI is overvalued based on its PB Ratio (6.1x) compared to the ZA Banks industry average (0.9x).


Future Growth

How is Capitec Bank Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPI's forecast earnings growth (18.4% per year) is above the savings rate (8.8%).

Earnings vs Market: CPI's earnings (18.4% per year) are forecast to grow faster than the ZA market (12.2% per year).

High Growth Earnings: CPI's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPI's revenue (16.7% per year) is forecast to grow faster than the ZA market (6.1% per year).

High Growth Revenue: CPI's revenue (16.7% 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 high in 3 years time (26.4%)


Past Performance

How has Capitec Bank Holdings performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPI has high quality earnings.

Growing Profit Margin: CPI's current net profit margins (37%) are higher than last year (28.7%).


Past Earnings Growth Analysis

Earnings Trend: CPI's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: CPI's earnings growth over the past year (97.8%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: CPI earnings growth over the past year (97.8%) exceeded the Banks industry 24.9%.


Return on Equity

High ROE: CPI's Return on Equity (24.3%) is considered high.


Financial Health

How is Capitec Bank Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: CPI's Assets to Equity ratio (5.2x) is low.

Allowance for Bad Loans: CPI has a sufficient allowance for bad loans (663%).

Low Risk Liabilities: 95% of CPI's liabilities are made up of primarily low risk sources of funding.

Loan Level: CPI has an appropriate level of Loans to Assets ratio (36%).

Low Risk Deposits: CPI's Loans to Deposits ratio (47%) is appropriate.

Level of Bad Loans: CPI has a high level of bad loans (3.5%).


Dividend

What is Capitec Bank Holdings's current dividend yield, its reliability and sustainability?

1.43%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 18 2021Ex Dividend DateOct 20 2021Dividend Pay DateOct 25 20215 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CPI's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: CPI's dividend (1.43%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: CPI is not paying a notable dividend for the ZA market, therefore no need to check if payments are stable.

Growing Dividend: CPI is not paying a notable dividend for the ZA market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CPI is not paying a notable dividend for the ZA 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 ZA market.


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Gerrie Fourie (57 yo)

7.75yrs

Tenure

R49,223,000

Compensation

Mr. Gerhardus Metselaar Fourie, also known as Gerrie, B Comm (Hons), MBA has been Chief Executive Officer of Capitec Bank Limited and Capitec Bank Holdings Limited since January 1, 2014. Mr. Fourie served...


CEO Compensation Analysis

Compensation vs Market: Gerrie's total compensation ($USD3.37M) is above average for companies of similar size in the ZA market ($USD2.58M).

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


Leadership Team

Experienced Management: CPI's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: CPI's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CPI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Capitec Bank Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Capitec Bank Holdings Limited
  • Ticker: CPI
  • Exchange: JSE
  • Founded: 1999
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R194.347b
  • Shares outstanding: 115.63m
  • Website: https://www.capitecbank.co.za

Number of Employees


Location

  • Capitec Bank Holdings Limited
  • 5 Neutron Road
  • Techno Park
  • Stellenbosch
  • Western Cape
  • 7600
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:03
End of Day Share Price2021/10/15 00:00
Earnings2021/08/31
Annual Earnings2021/02/28


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.