Capita plc (CTA0) AI Stock Analysis

0 Followers

Capita plc

(Frankfurt:CTA0)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Order Book MomentumA large, growing order book provides multi-period revenue visibility and supports future capacity planning. Strong new wins and TCV growth indicate continued customer demand, which can underpin recurring service revenue and improve operating leverage as contracts mature.

Negative Factors

Revenue and Profitability DeclineSeveral years of revenue contraction and the latest loss indicate weakened operating performance rather than a temporary margin fluctuation. Negative EBIT and EBITDA reduce internal funding capacity and make sustained investment in growth and service improvement more difficult.

Capita plc (CTA0) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 327.59M
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): -1.6
Beta (1Y): 1.34
Revenue Growth: -18.90%
EPS Growth: -1270.16%
Country: Germany
Employees: 29,500
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

Capita plc Business Overview & Revenue Model

Company Description

Capita plc operates as an outsourcer that supports clients across the public and private sectors in the United Kingdom, India, South Africa, and the rest of Europe. It operates through two divisions: Capita Public Service and Capita Experience. The c...

Capita plc Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:11.03%|Next Earnings Date:Mar 10, 2027

Earnings Call SentimentNeutral

The call presents a mixed picture: operational and strategic progress (order book growth, TCV momentum, cost savings, AI/hyperscaler partnerships, improved retention and KPI delivery across most divisions) is offset by a material profitability and cash‑flow hit driven by the CSPS remediation, increased net debt and a guided free cash outflow for the year. Management emphasizes remediation priorities, simplification and long‑term AI‑led strategy, but near‑term financial and operational headwinds (CSPS) remain significant.

Positive Updates

Revenue and Top-Line Resilience

Group revenue of GBP 906 million in H1, up 1.6% year‑on‑year; Capita Public Service revenue GBP 729 million, up 2.4% driven by local/regional partnerships, transactional business and TfL.

Negative Updates

Significant Profitability Decline

Adjusted operating profit was GBP 32 million, down 32% year‑on‑year; profit before tax of GBP 12.5 million (down from GBP 29 million prior year), reflecting remediation costs on the CSPS contract and non-repeat prior year benefits.

Company Guidance

Management guidance: the group expects FY26 revenue to be broadly flat, margins to stay in line with prior guidance but reduced by the Civil Service Pension Scheme remediation costs and residual transition overheads, and free cash flow before business exits to be an outflow of GBP 35–50m; net financial debt (pre‑IFRS16) is expected to increase (was GBP 200m at 30 June, 1.6x EBITDA), reflecting that outflow and disposal-related payments, with total H1 liquidity at GBP 351m (GBP 278m committed facilities after extension of the RCF to GBP 325m, plus GBP 73m net cash). Management reiterated its cost‑savings momentum (GBP 250m already removed, a further GBP 40m targeted in 2026–27), a c.200 basis‑point performance improvement aim by 2027, and noted H1 operating metrics of revenue GBP 906m (+1.6%), operating profit GBP 32m (‑32%), PBT GBP 12.5m, H1 cash conversion 96% (free cash flow GBP 3.5m) and an order book of c. GBP 4bn (TCV growth c.15%).

Capita plc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:CTA0 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:SRP	68Neutral	GBP 2.74B	18.45	17.55%	1.64%	1.20%	221.80%
GB:MTO	67Neutral	GBP 2.66B	32.29	15.86%	2.16%	10.55%	-19.05%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GB:RST	55Neutral	GBP 391.95M	142.18	1.30%	2.43%	8.11%	-69.68%
GB:RTO	54Neutral	GBP 9.01B	25.51	5.82%	2.61%	-0.18%	39.04%
GB:IWG	50Neutral	GBP 2.05B	317.06	-2.52%	0.48%	0.18%	-55.56%

* Industrials Sector Average

Performance Comparison

DE:CTA0 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:CTA0	Capita plc	3.22	-0.26	-7.47%
GB:MTO	Mitie Group plc	208.60	52.79	33.88%
GB:RTO	Rentokil Initial	360.00	-34.71	-8.79%
GB:RST	Restore plc	300.00	78.11	35.20%
GB:SRP	Serco Group plc	283.60	38.66	15.78%
GB:IWG	IWG plc	218.40	-2.73	-1.23%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Capita plc AI Stock Analysis