JSE:CPI

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Capitec Bank Holdings

Executive Summary

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


Snowflake Analysis

Outstanding track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Capitec Bank Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.2%

CPI

5.8%

ZA Banks

-0.7%

ZA Market


1 Year Return

-35.7%

CPI

-48.1%

ZA Banks

-23.8%

ZA Market

Return vs Industry: CPI exceeded the ZA Banks industry which returned -48.1% over the past year.

Return vs Market: CPI underperformed the ZA Market which returned -23.8% over the past year.


Shareholder returns

CPIIndustryMarket
7 Day0.2%5.8%-0.7%
30 Day-6.2%-2.5%-0.6%
90 Day-37.7%-34.6%-8.1%
1 Year-35.3%-35.7%-44.3%-48.1%-13.0%-23.8%
3 Year12.8%8.7%-18.3%-31.3%0.3%-18.8%
5 Year84.0%71.2%-10.1%-32.7%9.9%-17.5%

Price Volatility Vs. Market

How volatile is Capitec Bank Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

15.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CPI (ZAR845.77) is trading above our estimate of fair value (ZAR327.08)

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 (15.7x) compared to the Banks industry average (4.3x).

PE vs Market: CPI is poor value based on its PE Ratio (15.7x) compared to the ZA market (8x).


Price to Earnings Growth Ratio

PEG Ratio: CPI is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: CPI is overvalued based on its PB Ratio (3.8x) compared to the ZA Banks industry average (0.6x).


Next Steps

Future Growth

How is Capitec Bank Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPI's forecast earnings growth (17.5% per year) is above the savings rate (9.5%).

Earnings vs Market: CPI's earnings (17.5% per year) are forecast to grow slower than the ZA market (19.2% per year).

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

Revenue vs Market: CPI's revenue (20.1% per year) is forecast to grow faster than the ZA market (8.5% per year).

High Growth Revenue: CPI's revenue (20.1% per year) is forecast to grow faster 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 (21.5%)


Next Steps

Past Performance

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

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPI has high quality earnings.

Growing Profit Margin: CPI's current net profit margins (37.6%) are higher than last year (36.3%).


Past Earnings Growth Analysis

Earnings Trend: CPI's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: CPI's earnings growth over the past year (18.1%) exceeds its 5-year average (17.1% per year).

Earnings vs Industry: CPI earnings growth over the past year (18.1%) exceeded the Banks industry -1.9%.


Return on Equity

High ROE: CPI's Return on Equity (24.4%) is considered high.


Next Steps

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 (5.3x) is low.

Allowance for Bad Loans: CPI has a sufficient allowance for bad loans (114%).

Low Risk Liabilities: 91% 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 (46%).

Low Risk Deposits: CPI's Loans to Deposits ratio (62%) is appropriate.

Level of Bad Loans: CPI has a high level of bad loans (15.8%).


Next Steps

Dividend

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

3.20%

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 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?

5.5yrs

Average management tenure


CEO

Gerrie Fourie (55yo)

6.42yrs

Tenure

R72,052,000

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 ($USD4.08M) is above average for companies of similar size in the ZA market ($USD2.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gerhardus Fourie
CEO & Executive Director6.42yrsR72.05m0.86% ZAR843.9m
André du Plessis
CFO & Executive Director18.08yrsR51.75m0.27% ZAR264.7m
Nkosana Mashiya
CRO & Executive Director4yrsR21.96m0.010% ZAR10.2m
Jan-Hendrik de Beer
Compliance & Anti-Money Laundering Headno datano datano data
Francois Viviers
Executive of Marketing & Communications4yrsno data0.0022% ZAR2.2m
Nathan Stephen Motjuwadi
Acting Executive of Human Resourcesno datano data0.014% ZAR13.9m
R. Swanepoel
Acting Internal Audit Headno datano datano data
Jerome Passmore
Head of Project Officerno datano datano data
Dumisani Ncukana
Head of Service Supportno datano datano data
Yolande Mouton
Company Secretary4.5yrsno datano data

5.5yrs

Average Tenure

52yo

Average Age

Experienced Management: CPI's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerhardus Fourie
CEO & Executive Director6.42yrsR72.05m0.86% ZAR843.9m
André du Plessis
CFO & Executive Director18.08yrsR51.75m0.27% ZAR264.7m
Nkosana Mashiya
CRO & Executive Director4yrsR21.96m0.010% ZAR10.2m
Chris Otto
Non-Executive Director20.17yrsR870.00k0.21% ZAR207.1m
Michiel du Pré le Roux
Non-Executive Director19.25yrsR520.00k7.89% ZAR7.7b
Susan Botha
Independent Non-Executive Chairman1yrR1.88mno data
Daniel Meintjes
Independent Non-Executive Director1.58yrsR738.00kno data
John McKenzie
Lead Independent Non-Executive Directorno dataR1.55mno data
Petrus Mouton
Non Executive Director12.67yrsR720.00k0.011% ZAR10.6m
Jean Verster
Independent Non-Executive Director5.25yrsR1.10mno data

6.8yrs

Average Tenure

56yo

Average Age

Experienced Board: CPI's board of directors are considered experienced (6.8 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 company bio, 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: R97.794b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPIJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARFeb 2002
CKHG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2002
CPIPJSE (The Johannesburg Securities Exchange)ZAR0.01 NON CUM NON RED PREFZAZARSep 2006
CKHG.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2009

Biography

Capitec Bank Holdings Limited, through its subsidiaries, provides various banking products and services in South Africa. It operates through two segment, Retail Banking and Business Banking. The company offers various deposits products, including transactional and savings accounts; rental finance; and term loans, mortgage loans, home loans, commercial property loans, credit facilities, instalment sales and leases, and credit cards, as well as funeral and life insurance products. It also provides treasury products, which includes foreign exchange, money market solutions, and trade finance services; and collection and payment services, authenticated collections, data and bank account validation, salary transfer, Internet banking, and mobile banking services. As of February 2020, the company operated approximately 852 branches and 2,380 ATMs. Capitec Bank Holdings Limited was incorporated in 1999 and is headquartered in Stellenbosch, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 06:34
End of Day Share Price2020/05/29 00:00
Earnings2020/02/29
Annual Earnings2020/02/29


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.