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Cannae Holdings (CNNE)
NYSE:CNNE
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Cannae Holdings
(NYSE:CNNE)
50Neutral
Cannae Holdings (CNNE) vs. S&P 500 (SPY)
Market Cap
$1.06B
Dividend Yield2.14%
Average Volume (3M)526.19K
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth-20.61%
EPS Growth-11.73%
CountryUS
Employees7,741
SectorConsumer Cyclical
Sector Strength49
IndustryRestaurants & Bars
Share Statistics
EPS (TTM)-4.72
Shares Outstanding62,794,357
10 Day Avg. Volume959,063
30 Day Avg. Volume526,190
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.34
Price to Cash Flow (P/CF)-22.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.50Price Target Upside37.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 | |||
| -90.10M | -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
16.33
Price Trends
19.27
Negative
19.74
Negative
19.19
Negative
Market Momentum
-0.58
Positive
23.14
Positive
4.75
Positive
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 16.33 is below the 20-day moving average (MA) of 19.02, below the 50-day MA of 19.27, and below the 200-day MA of 19.19, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 23.14 is Positive, neither overbought nor oversold. The STOCH value of 4.75 is Positive, 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 34 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 0 New Risks
Cannae Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $6.63B | 13.28 | 5.31% | 5.53% | 3.97% | ― | |
70 Outperform | $11.05B | 18.90 | 6.86% | 2.61% | 45.39% | 172.96% | |
69 Neutral | $612.09M | 9.33 | 8.73% | 1.16% | 14.34% | 141.78% | |
69 Neutral | $17.19B | 14.90 | 29.12% | 1.12% | 7.93% | 541.97% | |
67 Neutral | $5.93B | 1.86 | 43.24% | 5.27% | 47.95% | ― | |
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
50 Neutral | $1.06B | ― | -14.64% | 2.14% | -20.61% | -11.73% |
* Consumer Cyclical Sector Average
Performance Comparison
CNNE
Cannae Holdings
16.33
-5.24
-24.29%
IVZ
Invesco
15.24
0.40
2.70%
JEF
Jefferies
54.41
12.02
28.36%
LNC
Lincoln National
34.81
9.55
37.81%
OPY
Oppenheimer Holdings
58.71
20.11
52.10%
LDOS
Leidos Holdings
134.11
8.22
6.53%
Cannae Holdings Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -14.90% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balance of positive developments and challenges. Significant progress was made with AFC Bournemouth's performance and strategic investments, while substantial capital was returned to shareholders. However, there were notable declines in key areas such as DNB and restaurant revenues.Highlights
AFC Bournemouth Performance
AFC Bournemouth revenues increased nearly GBP20 million or 14% in fiscal year 2024. The team sits in sixth place in the Premier League, its highest ranking ever, with the longest unbeaten streak in club history.
New Investments and Partnerships
Cannae made several new private investments, including a 20% equity interest in JANA Partners with significant upside potential, and acquired a majority stake in Watkins Company, which ended 2024 with sales up in the mid-single digits and EBITDA in the high single digits.
Capital Returns to Shareholders
Cannae returned significant capital to shareholders through a Dutch auction repurchasing 9.7 million shares worth approximately $222 million and initiated a quarterly dividend returning an additional $23 million in 2024.
Corporate Developments
The internalization of the external manager and the return of Bill Foley as CEO, with key management now compensated primarily with Cannae shares, aims to align management with shareholder interests.
Lowlights
Dun and Bradstreet Performance
Dun and Bradstreet reported revenue of $632 million, equating to less than 1% constant currency organic growth compared to the prior year's fourth quarter, and adjusted EBITDA down $600,000.
Restaurant Revenue Decline
Fourth quarter total operating revenue was $110 million, or 8% lower than the 2023 comparable, primarily due to lower restaurant revenue and general headwinds in the casual dining sector.
Alight Revenue Decrease
Alight posted total revenue from continuing operations of $680 million for the fourth quarter of 2024, a 0.3% decrease from the 2023 fourth quarter.
Company Guidance
During the Cannae Holdings Fourth Quarter 2024 Financial Results Conference Call, the company provided guidance on several key metrics. For 2025, AFC Bournemouth's revenues are expected to increase again after a 14% rise in 2024. Alight projects mid-to-high single-digit growth in adjusted EBITDA and double-digit growth in free cash flow for the upcoming year. Dun & Bradstreet achieved a 3% organic revenue growth in 2024, with an adjusted EBITDA of $927 million, and it aims to announce ongoing strategic discussions' outcomes in early 2025. Cannae also highlighted a 36% discount of its share price to net asset value (NAV), aiming to prioritize share buybacks to address this. Finally, the company plans to rebalance its portfolio, focusing on reducing public company investments and investing in existing and new private companies with high return potential, thereby driving growth in NAV.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.