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CTA

Capital AppreciationJSE:CTA Stock Report

Market Cap

R1.5b

7D

4.4%

1Y

25.3%

Updated

17 Oct, 2021

Data

Company Financials
CTA fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends2/6

CTA Overview

Capital Appreciation Limited, together with its subsidiaries, operates as a financial technology enterprise in South Africa, the rest of Africa, and the Indian Ocean Islands.

Price History & Performance

Summary of all time highs, changes and price drops for Capital Appreciation
Historical stock prices
Current Share PriceR1.19
52 Week HighR0.93
52 Week LowR1.31
Beta0.34
1 Month Change0.85%
3 Month Change1.71%
1 Year Change25.26%
3 Year Change33.71%
5 Year Change29.35%
Change since IPO10.18%

Recent News & Updates

Jun 22
With EPS Growth And More, Capital Appreciation (JSE:CTA) Is Interesting

With EPS Growth And More, Capital Appreciation (JSE:CTA) Is Interesting

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

CTAZA ITZA Market
7D4.4%-4.2%1.6%
1Y25.3%-21.1%21.3%

Return vs Industry: CTA exceeded the ZA IT industry which returned -21.1% over the past year.

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

Price Volatility

Is CTA's price volatile compared to industry and market?
CTA volatility
CTA Beta0.34
Industry Beta0.76
Market Beta1

Stable Share Price: CTA is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CTA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014n/aMichael Pimsteinhttps://www.capitalappreciation.co.za

Capital Appreciation Limited, together with its subsidiaries, operates as a financial technology enterprise in South Africa, the rest of Africa, and the Indian Ocean Islands. It operates in two segments, Payments and Payment Infrastructure; and Software and Services. The company provides payment infrastructure, technical support, and payment technology solutions to established financial institutions, emerging payment service providers, and corporate customers in the retail, fuel, restaurant, hospitality, and healthcare sectors.

Capital Appreciation Fundamentals Summary

How do Capital Appreciation's earnings and revenue compare to its market cap?
CTA fundamental statistics
Market CapR1.46b
Earnings (TTM)R125.70m
Revenue (TTM)R619.51m

11.6x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTA income statement (TTM)
RevenueR619.51m
Cost of RevenueR307.83m
Gross ProfitR311.69m
ExpensesR185.99m
EarningsR125.70m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 30, 2021

Earnings per share (EPS)0.10
Gross Margin50.31%
Net Profit Margin20.29%
Debt/Equity Ratio0%

How did CTA perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

54%

Payout Ratio

Valuation

Is Capital Appreciation undervalued compared to its fair value and its price relative to the market?

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTA (ZAR1.19) is trading below our estimate of fair value (ZAR1.25)

Significantly Below Fair Value: CTA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CTA's PE Ratio (11.6x) is in line with the ZA IT industry average.

PE vs Market: CTA is poor value based on its PE Ratio (11.6x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CTA's PB Ratio (1.1x) is in line with the ZA IT industry average.


Future Growth

How is Capital Appreciation forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.5%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Capital Appreciation has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Capital Appreciation performed over the past 5 years?

19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTA has high quality earnings.

Growing Profit Margin: CTA's current net profit margins (20.3%) are lower than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: CTA's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: CTA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTA had negative earnings growth (-16.1%) over the past year, making it difficult to compare to the IT industry average (-3.7%).


Return on Equity

High ROE: CTA's Return on Equity (9.1%) is considered low.


Financial Health

How is Capital Appreciation's financial position?


Financial Position Analysis

Short Term Liabilities: CTA's short term assets (ZAR604.8M) exceed its short term liabilities (ZAR79.3M).

Long Term Liabilities: CTA's short term assets (ZAR604.8M) exceed its long term liabilities (ZAR25.3M).


Debt to Equity History and Analysis

Debt Level: CTA is debt free.

Reducing Debt: CTA had no debt 5 years ago.

Debt Coverage: CTA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CTA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Capital Appreciation current dividend yield, its reliability and sustainability?

4.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTA's dividend (4.62%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: CTA's dividend (4.62%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CTA has been paying a dividend for less than 10 years.

Growing Dividend: CTA's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.5%), CTA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.1yrs

Average board tenure


CEO

Michael Pimstein (66 yo)

no data

Tenure

R2,816,000

Compensation

Mr. Michael Reuven Pimstein, Bcomm Acc (Wits) serves as Joint Chief Executive Officer at Capital Appreciation Limited and has been its Executive Director since March 3, 2015. Mr. Pimstei serves as an Execu...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD192.58K) is below average for companies of similar size in the ZA market ($USD280.19K).

Compensation vs Earnings: Michael's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

Experienced Board: CTA's board of directors are considered experienced (6.1 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

Capital Appreciation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Capital Appreciation Limited
  • Ticker: CTA
  • Exchange: JSE
  • Founded: 2014
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: R1.464b
  • Shares outstanding: 1.23b
  • Website: https://www.capitalappreciation.co.za

Number of Employees


Location

  • Capital Appreciation Limited
  • 61 Katherine Street
  • 1st Floor
  • Sandton
  • Gauteng
  • 2196
  • 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
Earnings2021/03/31
Annual Earnings2021/03/31


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.