Capita Share Discussion Threads

[hyden] 17/6/2014 21:28

I agree with you to a point but I feel fair value can only be judged by taking growth potential into account. Thus I would not regard stocks such as BVIC, CPI, ISAT, KENZ and WTB as expensive yet they all have PE's over 15 according to your measure. These stocks have served me very well over the past few years and I believe that they will continue to do so and I remain invested.

I accept we must consider: Is the growth already priced in at this level and how much more outperformance is there? But I would argue that the market prices all stocks at fair value so you might as well chase those which are heading in the right direction? After all if a stock is 'cheap' then surely it is cheap for a reason?

I can't leave without mentioning NXT. This stock as always been 'expensive' but look at how well it's done over the past few years. I have few regrets, and not purchasing NXT is one of them. Thankfully CPI isn't and I am very happy to continue holding.

Best of luck to you and I hope that you enjoy your own successes. :-)

[armagan] 17/6/2014 11:15

Hyden,

I have some sympathy with your argument, but it seems the more widely used method of P/E is not the one you are suggesting. In fact its the first time I have heard this particular argument. If we are looking to judge the past and future earnings potential of a stock, your argument does make some sense. Typically though p/e is used to judge how cheap a stock is relative to its earnings. Would you not agree?

If you are using a slightly different yard stick to judge p/e surely the same ratios of p/e would not be valid for such a measure. I mean typically if a p/e of 10 is considered cheap, and 15 is considered dear. Then using the method you are using, surely you would have to also move those goal posts.

[hyden] 16/6/2014 19:59

I use Digital Look. Consider this: would you rather measure PE on a basis which allows an easier comparison across years and between differing stocks or do you prefer a measure which takes into account all manner of non-recurring revenue and costs? If you choose the latter then stocks are flattered by one-off windfalls and penalised by investment in future growth. You will surely agree that the former is the more realistic basis but as with all things we must exercise a measure if caution. I must admit I'm surprised to see the FT in your list but the others are of no interest.

[armagan] 16/6/2014 09:09

thats interesting, which sites use your methodology? I looked up CPI on the FT, google finance, yahoo finance and they all have the p/e at 42. The only one that seemed to use another method perhaps was morningstar, which as a p/e of 26.

[hyden] 15/6/2014 21:05

I use underlying earnings per share in line with most other websites. A.D.V.F.N do things differently for some strange reason.

[armagan] 14/6/2014 19:38

How do you calculate pe at 17.5?

[hyden] 14/6/2014 16:12

I guess it depends how you calculate PE, Armagan. I have CPI on a historical PE of 17.5 which is reasonable imo, given mcap, past record and growth forecasts.

[armagan] 13/6/2014 16:01

Capita is very over valued, the p/e is 42! its a well run company though, a good quality stock. But way too expensive currently.

[mechanical trader] 06/6/2014 08:51

Capita Group.

Lovely bullish bowl pattern formed on CPI.

[lateralam] 03/3/2014 17:27

How's that for a vote of non confidence....

[hyden] 28/2/2014 06:34

Later, from the results "Total shareholder returns - Over the 10 year period to 31 December 2013, ... Capita's total shareholder return ... is 425% compared to 115% for the FTSE 100." Can't argue with that!

[lateralam] 27/2/2014 22:32

Smoke and mirrors.....

[hyden] 27/2/2014 20:57

Excellent results today, well received. :-)

[hyden] 24/2/2014 19:46

I'm not at all surprised by that statement Later as I understand that most of Capita's larger contracts are like that. The early years are usually constrained by transformation costs and the profits begin to emerge year 3 onwards.

[lateralam] 24/2/2014 18:36

Not sure what this Thursday's results will bring, capita seem to be struggling to make a number of new contracts pay their way...

[lateralam] 18/11/2013 07:17

Really? Nothing really new in there and Paul Pindar is leaving!

[broadwood] 18/11/2013 07:13

Stand out results.

[lateralam] 07/11/2013 09:33

Is there nobody else trading this?!

[lateralam] 22/10/2013 08:21

Morning all. I notice there's not much discussion on here. I bought in recently with an expected rise back over the £10 mark. Thoughts on this anyone?

[12at] 30/8/2013 17:05

apologies to go off-topic,
but i am applying for a graduate vacancy at Capita and as PI's i would appreciate your views on Capita as an organisation,

Financials aside, what makes Capita a good company to work for, in your opinion

thanks guys

[broadwood] 06/8/2013 07:43

StockMarketWire.com - Capita has confirmed that it has now signed contracts with the London Borough of Barnet to support the council's new support and customer service organisation (NSCSO) and development and regulatory services (DRS).

Under the NSCSO contract, Capita will deliver a range of services for the Council including corporate programmes, customer services, estates, finance, human resources and payroll, information systems, procurement, revenues and benefits. The contract is worth approximately £320m over 10 years and will commence on 1 September 2013.

Under the DRS contract, Capita will manage services including highways management, planning and development, regeneration and environmental health and trading standards services. The contract, which will be delivered by our property and infrastructure business, is expected to be worth £154m over 10 years and is scheduled to commence on 1 October 2013.

[major clanger] 05/8/2013 18:23

CPI downgraded by Berenberg Bank...

H from B; TP up to 1,060p from 955p [downgrade]

Full piece here:

hxxp://www.brokerforecasts.com/news/article/articleId/4644925