Education
About Us
Working with TipRanks
Follow Us
Cannae Holdings (CNNE)
NYSE:CNNE
Top Page
Cannae Holdings
(NYSE:CNNE)
Rating:56Neutral
Price Target:
$18.00
▲( 2.10% Upside)
Cannae Holdings (CNNE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.14B
Dividend Yield2.64%
Average Volume (3M)555.66K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-15.46%
EPS Growth3.24%
CountryUS
Employees7,317
SectorConsumer Cyclical
Sector Strength74
IndustryRestaurants
Share Statistics
EPS (TTM)-1.81
Shares Outstanding62,818,000
10 Day Avg. Volume588,447
30 Day Avg. Volume555,663
Financial Highlights & Ratios
PEG Ratio-1.64
Price to Book (P/B)0.62
Price to Sales (P/S)0.00
P/FCF Ratio-11.96
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit59.40
Enterprise Value/Ebitda-1.40
Forecast
1Y Price Target
$23.67Price Target Upside34.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Cannae Holdings Business Overview & Revenue Model
Company DescriptionCannae Holdings, Inc. (CNNE) is a diversified holding company that focuses on acquiring and managing a portfolio of companies and investments in various sectors. These sectors include technology, financial services, restaurants, and real estate, among others. Cannae Holdings operates with a strategic approach to leverage its expertise in identifying and nurturing growth opportunities across its diverse business interests.
How the Company Makes MoneyCannae Holdings makes money primarily through its investments in a variety of companies across different sectors. The company generates revenue from the growth and profitability of its portfolio companies, which may include dividends, interest, and capital gains from these investments. Additionally, Cannae Holdings may benefit from management fees and performance-related incentives if applicable. Significant partnerships and strategic management decisions play a crucial role in enhancing the value of its investments, thereby contributing to its earnings. The company's financial success is closely tied to its ability to effectively manage and grow its portfolio companies, capitalizing on market opportunities and driving operational efficiencies.
Cannae Holdings Financial Statement Overview
Summary
Cannae Holdings faces significant financial challenges, marked by declining revenues, negative profitability, and weak cash flow generation. While the balance sheet remains relatively stable, the overall financial health of the company is concerning, requiring strategic efforts to improve operational efficiency and profitability.Income Statement
Cannae Holdings has experienced a significant decline in revenue, with a negative revenue growth rate over the past year. The company also reports negative EBIT and net income margins, indicating profitability challenges. These factors contribute to a weak income statement performance.35
Negative
Balance Sheet
The balance sheet shows moderate stability with a reasonable debt-to-equity ratio and a relatively high equity ratio, reflecting a solid equity base. However, the declining return on equity signals inefficiencies in generating shareholder returns.60
Neutral
Cash Flow
Cash flow analysis highlights negative operating and free cash flows, raising concerns about the company's cash generation capabilities. The free cash flow to net income ratio is also unfavorable, indicating challenges in converting earnings into cash.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 452.50M | 570.00M | 662.10M | 742.20M | 585.70M | Gross Profit |
| 81.30M | 43.00M | 31.20M | 44.70M | -33.40M | EBIT |
| -474.90M | -118.90M | -144.60M | -133.50M | -188.50M | EBITDA |
| -224.50M | -150.90M | -278.70M | -374.00M | 2.24B | Net Income Common Stockholders |
| -304.60M | -313.40M | -245.70M | -359.00M | 1.79B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 137.70M | 121.80M | 282.60M | 85.80M | 759.90M | Total Assets |
| 2.23B | 2.69B | 3.13B | 3.89B | 4.61B | Total Debt |
| 330.10M | 261.10M | 271.20M | 235.80M | 314.70M | Net Debt |
| 198.60M | 154.90M | 23.50M | 150.00M | -410.00M | Total Liabilities |
| 413.60M | 377.50M | 410.60M | 548.50M | 828.20M | Stockholders Equity |
| 1.84B | 2.32B | 2.72B | 3.34B | 3.78B |
| Cash Flow | Free Cash Flow | |||
| -97.10M | -97.80M | -219.40M | -189.80M | -136.20M | Operating Cash Flow |
| -90.10M | -87.80M | -205.10M | -176.10M | -113.90M | Investing Cash Flow |
| 298.30M | 53.10M | 521.20M | -272.40M | -74.20M | Financing Cash Flow |
| -182.90M | -106.80M | -154.20M | -190.40M | 379.10M |
Cannae Holdings Technical Analysis
Negative
17.63
Price Trends
17.70
Negative
18.42
Negative
18.93
Negative
Market Momentum
0.10
Positive
46.03
Neutral
30.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNNE, the sentiment is Negative. The current price of 17.63 is below the 20-day moving average (MA) of 18.02, below the 50-day MA of 17.70, and below the 200-day MA of 18.93, indicating a bearish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 30.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNNE.
Cannae Holdings Risk Analysis
Cannae Holdings disclosed 36 risk factors in its most recent earnings report. Cannae Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our Articles of Incorporation and Nevada law may discourage, delay or prevent a change of control of our Company or changes in our management, which could have the result of depressing the trading price of our common stock. Q4, 2024
2.
Negotiation, pricing and terms of key media contracts are outside of Black Knight Football's control and those contracts may change in the future or expose it to certain risks. Q4, 2024
3.
Compliance with applicable laws and regulations including changes in such laws and regulations, their application and their interpretation, could have an adverse effect on Alight's business. Q4, 2024
Cannae Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $901.52M | 26.62 | 7.37% | ― | 4.57% | 6.89% | |
66 Neutral | $1.25B | 34.98 | 7.80% | 1.78% | 2.26% | -56.99% | |
62 Neutral | $1.34B | 17.28 | -20.16% | 4.51% | -2.77% | 4.01% | |
62 Neutral | $6.97B | 11.36 | 2.77% | 3.91% | 2.66% | -22.00% | |
58 Neutral | $999.07M | 89.27 | 1.86% | ― | 14.43% | -53.71% | |
57 Neutral | $1.45B | 63.72 | 12.11% | ― | ― | ― | |
56 Neutral | $1.14B | ― | -12.56% | 2.64% | -15.46% | 3.24% |
* Consumer Cyclical Sector Average
Performance Comparison
CNNE
Cannae Holdings
17.63
-1.28
-6.77%
CBRL
Cracker Barrel
54.75
10.05
22.48%
PZZA
Papa John's International
41.00
-4.28
-9.45%
FWRG
First Watch Restaurant Group
15.91
-3.34
-17.35%
PTLO
Portillo's
11.50
1.85
19.17%
HDL
SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR
22.35
3.74
20.10%
Cannae Holdings Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -6.22%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant progress in strategic investments and partnerships, particularly with the acquisition of Dun & Bradstreet and expansion with JANA Partners. Despite a decrease in operating revenue and challenges in the Restaurant Group, the overall outlook remains optimistic with ongoing strategic initiatives to enhance shareholder value.Q1-2025 Updates
Positive Updates
Dun & Bradstreet Acquisition
Cannae's largest public investment, Dun & Bradstreet, announced a definitive agreement to be acquired by Clearlake Capital for $4.1 billion. Cannae will receive $632 million in proceeds, with $460 million planned for share repurchases, dividends, and debt repayment.
Expansion of Partnership with JANA Partners
Cannae has entered into an agreement to acquire an additional 30% stake in JANA Partners for $67.5 million, bringing total ownership to 50%. This broadens the scope of their partnership and enhances Cannae's ability to allocate capital towards proprietary acquisitions.
Progress in Black Knight Football Investments
Black Knight Football club raised $133 million in new capital. AFC Bournemouth made significant progress, opening a new performance center and acquiring Vitality Stadium. FC Lorient was promoted to Ligue 1, and Hibernian FC is in third place in the Scottish Premier League.
Financial Performance of Portfolio Companies
D&B reported revenue of $580 million with 3.6% constant currency organic growth. Alight reported $548 million in revenue with a 2% decrease but increased adjusted EBITDA. Both companies' results were ahead of consensus estimates.
Negative Updates
Decrease in Operating Revenue
Cannae's first quarter total operating revenue was $103 million, a 7% decrease from the prior year, primarily due to lower restaurant revenue.
Challenges in Restaurant Group
The O'Charley's brand experienced a decline, contributing to overall same-store sales drop. The group is undergoing significant changes, including SKU reductions and new management appointments, to address operational challenges.
Company Guidance
During the Cannae Holdings, Inc. First Quarter 2025 Financial Results Conference Call, CEO Ryan Caswell provided guidance on several key metrics and strategic initiatives. The call highlighted a definitive agreement for Dun & Bradstreet to be acquired for $4.1 billion, with Cannae set to receive $632 million, from which $460 million is earmarked for share repurchases, dividends, and debt repayment. Additionally, the company plans to acquire an extra 30% stake in JANA Partners for $67.5 million, increasing its ownership to 50%. Significant progress in their venture, Black Knight Football, was also discussed, including capital raising of $133 million and infrastructure improvements at AFC Bournemouth. Caswell emphasized the commitment to rebalance the portfolio and return capital to shareholders.Cannae Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Cannae Holdings Ends Management Agreement, Appoints New Leadership
Positive
May 12, 2025
On May 12, 2025, Cannae Holdings announced the termination of its Management Services Agreement with Trasimene Capital Management, effective immediately, which included a revised payment schedule for outstanding fees. Additionally, the company appointed William T. Royan and Woodrow Tyler as new independent directors and announced a management transition with William P. Foley stepping down as CEO and Chairman to become Vice Chairman, while Doug Ammerman and Ryan R. Caswell assumed the roles of Chairman and CEO, respectively. Cannae also expanded its strategic relationship with JANA Partners, acquiring an additional 30% stake to enhance capital allocation opportunities. These strategic actions are part of Cannae’s ongoing efforts to rebalance its portfolio, improve operational performance, and create long-term shareholder value.
The most recent analyst rating on (CNNE) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Cannae Holdings stock, see the CNNE Stock Forecast page.
Executive/Board Changes
Cannae Holdings Updates Executive Employment Agreements
Neutral
Mar 17, 2025
On March 17, 2025, Cannae Holdings, Inc. entered into a three-year employment agreement with Peter T. Sadowski, their Executive Vice President and Chief Legal Officer, and updated the employment agreement with William P. Foley II, their Chairman, CEO, and Chief Investment Officer. The agreements are effective as of the same date. The Chief Legal Officer’s agreement includes provisions for automatic extensions and benefits such as a minimum annual salary, bonus eligibility, and insurance coverage. The CEO’s updated agreement introduces a clause for stock purchase by the company if Mr. Foley terminates his employment for Good Reason, ensuring a favorable price for his shares.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.