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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Capita Plc | LSE:CPI | London | Ordinary Share | GB00B23K0M20 | ORD 2 1/15P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.12 | -0.90% | 13.20 | 13.16 | 13.25 | 13.43 | 12.91 | 13.20 | 10,031,313 | 16:35:14 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Business Services, Nec | 3.01B | 74.8M | 0.0444 | 2.97 | 222.02M |
Date | Subject | Author | Discuss |
---|---|---|---|
27/11/2017 21:32 | Can anyone post a comparative analysis of the outsourcing sector companies? We know that there is pain, but I still think that CPI is lowly rated vs peers. | sophia1982 | |
24/11/2017 10:09 | Good post Paddy. I firmly believe the new CEO is very aware of everything you have said and will implement the changes necessary to start turning the tide. | eisler | |
24/11/2017 09:43 | You have to look at Capita in a similar lens to other outsourcers. Xchanging springs to mind. The issue is what happens when buyers are confronted with the fact that you are not what they thought you were, secure, great at what you do, I.e. its utterly safe to procure you. What has happened over the last two years is that it is no longer perceived by the market that it is utterly safe to procure Capita. Capita had a hard won reputation over the past twenty years. In the last years that reputation has been destroyed. Capita are no longer winning the volume of contracts they once did. Competitors are finding it easier to beat them than they did before. Government procurers actively discriminate against them. The non-organic route to growth has been discontinued, a contributing factor being the lower multiples that Capita itself is rated at make it much harder to stand up acquisitions, let alone the shortage of dry powder to execute them on. Xchanging was emerging as a new Capita when it started to suffer a loss of buyers confidence, which in turn led to a downward spiral in sales, the story thereafter is clear and well known. Capita from a higher point now looks remarkable similar. | paddyfool | |
23/11/2017 07:05 | Questor today: "Among our other disappointing recommendations has been Capita, the outsourcing group. We rated the shares as a “hold” in October last year at 669p and the shares are currently languishing about 27% lower. We reported at that time that Neil Woodford, the high-profile fund manager, regarded the shares as undervalued and are comforted that he has recently been increasing his holding. This suggests that he believes the market is being too pessimistic in its assessment of Capita’s chances of recovering from its recent difficulties. Capita’s position feels very different from Go-Ahead’s: in the latter case a single event could radically affect the company’s value, with very little that it could do about it. Capita’s future is much more in its own hands. Questor says “Hold”." | kamitora | |
15/11/2017 23:56 | no news... do you see a reason for this fall/ Is it connected to developments in the sector? | sophia1982 | |
15/11/2017 23:06 | Waiting to buy in... | andyj | |
15/11/2017 15:53 | Looks like they could be targeting 4.30 or even lower,certainly seems to have few fans at present. | tim 3 | |
09/11/2017 00:15 | The one time they dipped below 5 quid they bounced straight back, but with the Dow set to correct, I will wait to see if they are dragged down with that before buying. | andyj | |
08/11/2017 23:33 | Chart wise £5 is fairly good support but they may just want to test the low at 4.30. Fundamentally I agree they look cheap. | tim 3 | |
08/11/2017 17:16 | Any thoughts? this looks pretty cheap to me | sophia1982 | |
27/10/2017 03:13 | Seem to be retesting the 5.00 level, but encouraging the way the price is slowing as it nears. A lot of bad news written in and I rate this an excellent buy. Good income and very good recovery potential with limited downside. | andyj | |
18/10/2017 11:25 | hugh sells just gone through anyone know who's sold | hotshot6 | |
16/10/2017 21:03 | Hi all, pretty much every weekend I do a Blog about Index Charts and stuff and also look at a few Stocks. Someone flagged CPI to me the other day and I think it looks interesting - I have scribbled some thoughts on the business situation and also included several Charts which may be of use. You can see them here: I hope it helps, cheers, WD @wheeliedealer | thewheeliedealer | |
11/10/2017 15:15 | Sophia - agreed. Clearly risk here, but now we have a new management team who doesn't need to worry about a historical legacy, and who recognizes the problem in front of them. The core underlying long term growth drivers remain in place, whilst the stock price is discounting poor implementation from here. FCF looks fine, and debt is falling. I believe the risks from here are to the upside. | ilovefrogs | |
11/10/2017 09:34 | Walbrock, thank you for your intelligent analysis. The question is: isn't this in the price? Capita's ROCE in a bad semestre was still 15%, cash conversion always very good, etc. Market hit by Brexit, but Capita is the n. 1 so should survive in any case. If 2H is like 1H, this stock trades at 10 times FCF. | sophia1982 | |
06/10/2017 09:57 | This is a good entry point. | 60000 muppets | |
06/10/2017 09:37 | Capita’s share price decline can be summed up by falling employee productivity and out of control net borrowings growth. But there are other factors, such as: 1). Exceptional Charges; - The reason why reported EPS collapsed from 35.5 pence in 2014 to 5.5 pence in 2016 was the write-down of contracts and assets. That level of write-downs has totalled £740m in the past two-and-a-half-years 2). Not fulfilling contracts obligations; - The London congestion charge cost Capita £25m, as they are unable to meet a deadline to install a system. There are delays in registering qualified GPs in the NHS, which resulted in GPs being sent home after getting hired. 3). Contract delays due to governmental budgetary constraints; - That is due to the delay in military contracts and missing out on a large pensions deal. 4). Falling profits led to questions over goodwill valuation; -Goodwill makes up a good chunk of total assets. It amounts to £2.15bn or 30% of total assets. In the event of falling profits, there is pressure on management to write-down Capita’s goodwill to reflect reality. The demise of Capita’s share price is fully researched And, if you happen to have an investment professional advising you about an “employee-base -Is each employee generating a greater level of sales each year? You can use the period from 2007 to today. -Has the “company&rdquo -Are total liabilities outpacing sales growth? -How much does goodwill accounts for total assets? The purpose of asking these questions are: -To give an impression to your adviser that you did your homework. -To make them think twice about taking you for a mug. -To display your analytical intelligence when it comes to stock research. | walbrock82 | |
05/10/2017 16:01 | Capita declining share price didn’t happen because of problems in the past few years, but occur much earlier (you are talking about the time during the financial crisis). By using secondary metrics like Sales per employee, you would have noticed that productivity per staff has stalled and was experiencing a gradual decline. See here: - Another interesting observation, which could disrupt the way we analysis market valuation is to pick the most important financial/non-financ So, what you do is divide the employee numbers by market capitalisation to get market capitalisation per employee. Then you divide employee numbers by normalised profits to get normalised profit per employee. Next, divide Market Capitalisation per employee over Normalised profit per employee to get multiple. Much like the PE ratio, a low number signals cheap valuation and vice-versa. You measure that against Capita’s share price to achieve this correlation. This gradual internal inefficiency has led to their share price decline. | walbrock82 | |
04/10/2017 15:19 | When 447% sales growth (since 2002) doesn’t look too impressive and is a big contributor to the decline of their share price. | walbrock82 | |
21/9/2017 10:08 | The market has gone from valuing this company with extreme optimism at over 8bn to extreme pessimism to less than 4bn in less than 2 years. In a very difficult period, CPI has made 179 of FCF. (Tangible assets are not a usefuul indicator for a service co). Net debt should be less than 900m at end of year and leverage quite manageable. I did not like the sale of Asset Services but the possibility of a dilutive rights issue has been basically removed for the time being. This is the market leader in UK in a market with tremendous potential and has a good set of capital allocation rules which will become even stricter in the future. I do not quite understand the market reaction... especially looking at the valuation of the peers. | sophia1982 | |
21/9/2017 08:53 | Got to look forward. What are the capabilities of the new management? Getting a bit of youth involved, it seemed to me. Which I think will be good. Energy and desire to just do. | bakunin | |
21/9/2017 08:47 | The glory days of Rod and Paul well in the past. | bigbigdave | |
21/9/2017 08:35 | bookbroker That's a fair point, especially the debt (which the division sale helps resolve). I wouldn't expect tangible assets other than cash in an IP-focused company. Their assets are the knowledge of all of their people in the design of systems and resolution of problems. It has been a typical, badly-managed UK company. With the right management, they ought to generate a lot of cash. There is the crux, UK companies are almost all badly managed. They are only successful by default (happen to be in high-margin areas). Capita's US equivalents are doing very nicely at the moment, with similar B/S profiles (as far as I recollect from previous research). | bakunin | |
21/9/2017 08:28 | That's what the market is looking at Bak., this co. has very little in the way of tangible assets, huge intangibles, high debt and pedestrian growth, it will be overcome by the new order and newer technology with very little to back the share price! | bookbroker |
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