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
|Historical stock prices|
|Current Share Price||R1.19|
|52 Week High||R0.93|
|52 Week Low||R1.31|
|1 Month Change||0.85%|
|3 Month Change||1.71%|
|1 Year Change||25.26%|
|3 Year Change||33.71%|
|5 Year Change||29.35%|
|Change since IPO||10.18%|
Recent News & Updates
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...
|CTA||ZA IT||ZA Market|
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.
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
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
|CTA fundamental statistics|
Is CTA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CTA income statement (TTM)|
|Cost of Revenue||R307.83m|
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
Nov 30, 2021
|Earnings per share (EPS)||0.10|
|Net Profit Margin||20.29%|
How did CTA perform over the long term?See historical performance and comparison
4.6%Current Dividend Yield
Is Capital Appreciation undervalued compared to its fair value and its price relative to the market?
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.
How is Capital Appreciation forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
How has Capital Appreciation performed over the past 5 years?
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.
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.
What is Capital Appreciation current dividend yield, its reliability and sustainability?
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.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Michael Pimstein (66 yo)
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.
Experienced Board: CTA's board of directors are considered experienced (6.1 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.
Capital Appreciation Limited's employee growth, exchange listings and data sources
- 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
- Capital Appreciation Limited
- 61 Katherine Street
- 1st Floor
- South Africa
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/17 17:03|
|End of Day Share Price||2021/10/15 00:00|
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.