Capita plc (CPI) AI Stock Analysis

• Market Cap: £294.04M
• Dividend Yield: N/A
• Average Volume (3M): 366.63K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.48
• Revenue Growth: -4.87%
• EPS Growth: N/A
• Country: UK
• Employees: 34,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.22
• Shares Outstanding: 114,359,760
• 10 Day Avg. Volume: 272,440
• 30 Day Avg. Volume: 366,625
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £402.50
• Price Target Upside: 55.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 59 Neutral
• Price Target: 263.00p ▲(1.74% Upside)

Capita plc's overall stock score reflects significant financial challenges, particularly in cash flow and revenue, despite some positive trends in equity. Technical analysis shows mixed signals, and the valuation is moderate. The lack of earnings call and corporate events data limits further insights.

Capita plc Business Overview & Revenue Model

Company Description

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates through Public Service, Experience, and Portfolio divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection, complaint handling, customer acquisition and retention, customer experience system and software, and data and analytics. In addition, the company offers capita licensing and support, support, digital policing, and engineering practice; education service and local education authority software; various solutions that help businesses create connected experiences that deliver right message across organisations, customers, and suppliers; solutions for central and local government services; corporate learning, fire service college, employability, and capita apprenticeship solutions; and employer branding and marketing, flexible workforce solutions, agile resourcing solutions, executive and specialist recruitment, background checking and vetting, and digital HR management and transformation solutions. Further, it provides pension administration and software, pensions consulting, and data, insights, and remediation solutions; automation, critical communication systems, finance and payment software, local education authority software, management information systems, and workforce management software solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT; and actuarial, defence, financial, healthcare, housing, legal, public safety, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.

How the Company Makes Money

Capita generates revenue primarily through its consulting and outsourcing services, which involve long-term contracts with both public and private sector clients. Key revenue streams include fees for ongoing management and delivery of services, performance-based payments, and project-based work. The company has established significant partnerships with various government agencies and large corporations, allowing it to secure substantial contracts that contribute to its earnings. Additionally, Capita invests in technology and innovation, creating software solutions that provide recurring revenue through licensing and maintenance fees. Overall, the company’s diverse portfolio of services and strategic partnerships enable it to maintain a steady revenue flow while adapting to market demands.

Capita plc Financial Statement Overview

Summary

Capita plc faces several financial challenges, including declining revenue and profitability pressures, high debt levels, and negative cash flow trends. However, there are some positive trends in equity and net income.

Income Statement

Capita plc's income statement reveals a challenging financial performance. Recent results show declining revenue with a negative revenue growth rate. The company has struggled with profitability, evidenced by negative EBIT margins and fluctuating net profit margins, although there is some improvement in net income in the latest periods. Gross profit margins have been relatively stable but aren't sufficient to significantly boost overall profitability.

Balance Sheet

The balance sheet analysis indicates a high debt-to-equity ratio, reflecting significant leverage, which is a potential risk. However, there has been an improvement in stockholders' equity over the years, although it remains low compared to total liabilities. The equity ratio has shown some positive trends, indicating a slow recovery in equity levels.

Cash Flow

The company's cash flow statement shows ongoing challenges. Operating cash flow has been negative in recent years, indicating difficulties in generating cash from operations. Free cash flow has also been negative, and while there have been improvements in some periods, the overall trend poses concerns for liquidity and cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.42B	2.81B	3.01B	3.18B	3.32B
Gross Profit	516.50M	592.10M	581.40M	508.60M	538.90M
EBITDA	269.50M	54.90M	238.00M	508.70M	214.20M
Net Income	76.70M	-178.10M	74.80M	224.70M	14.00M
Balance Sheet
Total Assets	1.84B	2.00B	2.55B	3.14B	3.73B
Cash, Cash Equivalents and Short-Term Investments	254.00M	155.40M	396.80M	317.60M	460.90M
Total Debt	680.30M	721.00M	903.30M	1.24B	1.60B
Total Liabilities	1.64B	1.88B	2.20B	2.85B	3.81B
Stockholders Equity	199.90M	113.00M	330.20M	274.50M	-134.50M
Cash Flow
Free Cash Flow	-75.30M	-101.90M	24.00M	-237.20M	308.90M
Operating Cash Flow	-25.20M	-40.30M	71.90M	-179.10M	396.30M
Investing Cash Flow	201.20M	9.70M	344.10M	395.20M	-34.30M
Financing Cash Flow	-51.50M	-76.30M	-340.70M	-259.70M	-331.30M

Capita plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 258.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPI, the sentiment is Positive. The current price of 258.5 is above the 20-day moving average (MA) of 245.62, below the 50-day MA of 271.00, and above the 200-day MA of 236.52, indicating a neutral trend. The MACD of -1.09 indicates Negative momentum. The RSI at 56.34 is Neutral, neither overbought nor oversold. The STOCH value of 71.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CPI.

Capita plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSG	78 Outperform	564.71M	16.30	11.60%	2.79%	6.55%	18.44%
SRP	77 Outperform	2.21B	46.16	5.25%	1.60%	0.84%	-62.73%
RWS	71 Outperform	326.54M	12.97	5.28%	14.10%	-0.78%	0.00%
MTO	70 Outperform	1.81B	16.90	24.71%	3.11%	14.34%	-16.43%
RST	64 Neutral	368.33M	39.21	5.30%	2.23%	6.90%	0.00%
CPI	59 Neutral	£294.04M	18.00	9.00%	―	-4.87%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Capita plc Corporate Events

Capita plc Director Acquires Additional Shares

Capita plc announced that Jack Clarke, an Independent Non-Executive Director, has purchased 5,165 ordinary shares of the company, representing 0.0045% of its issued share capital. This transaction is in compliance with the UK Market Abuse Regulation, and it highlights the director’s confidence in the company’s prospects.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £298.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Announces Director Shareholding Transaction

Capita plc announced a transaction involving Scott Hill, the Chief People Officer, who made an initial notification of a monthly share purchase under the Capita Share Ownership Plan. This transaction reflects the company’s ongoing commitment to employee engagement and investment in its workforce, potentially impacting its market positioning by demonstrating confidence in its future performance.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £298.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Updates Total Voting Rights

Capita plc has announced an update regarding its total voting rights, stating that as of August 31, 2025, the company has 114,359,758 ordinary shares, each carrying one vote. This figure is crucial for shareholders to determine their notification requirements under the FCA’s rules. Additionally, 460,111 shares held by the Capita Employee Benefit Trust are excluded from the company’s EPS calculation, impacting financial metrics.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £298.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Appoints RBC Capital Markets as Joint Corporate Broker

Capita plc has appointed RBC Capital Markets as a Joint Corporate Broker alongside its existing broker, Barclays Bank PLC, effective immediately. This strategic move is likely to enhance Capita’s market positioning by leveraging RBC Capital Markets’ expertise, potentially benefiting stakeholders by strengthening the company’s financial advisory capabilities.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £298.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Executive Shareholding Update

Capita plc announced a transaction involving Xenia Walters, the Chief Strategy and Transformation Officer, who exercised and retained restricted share awards under the Capita Executive Plan 2021. This transaction, conducted in compliance with the UK Market Abuse Regulation, involved the acquisition of 47,222 ordinary shares at a nil cost, reflecting the company’s ongoing commitment to aligning executive interests with shareholder value.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita Extends Strategic Partnership with ScottishPower to Enhance Customer Experience

Capita plc has secured a three-year extension of its partnership with ScottishPower, focusing on enhancing customer experience through innovation and operational excellence. The extension will see services transition to Capita’s sustainable delivery hub in Cape Town, and will leverage advanced technologies like Centrical and CCAi to improve productivity and customer service, reflecting a commitment to sustainable and innovative service delivery.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita CEO Adolfo Hernandez Vests Third Tranche of Share Award

Capita plc announced that Adolfo Hernandez, the Chief Executive Officer, has vested the third tranche of shares awarded under a buy-out share award. This vesting involved 126,505 ordinary shares, with Hernandez personally funding £154,886 to cover tax liabilities, resulting in his total holding of 503,650 shares, which is 0.44% of the company’s issued share capital. This transaction was disclosed in compliance with the UK Market Abuse Regulation, highlighting transparency in executive share dealings.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Announces Monthly Share Purchase by Chief People Officer

Capita plc has announced a transaction involving Scott Hill, the Chief People Officer, who has made a monthly share purchase under the Capita Share Ownership Plan. This notification is part of the company’s regular disclosure of transactions by individuals in managerial positions, ensuring transparency and adherence to regulatory requirements.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.