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Cannae Holdings
(NYSE:CNNE)
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Rating:54Neutral
Price Target:
$15.00
▲(1.83% Upside)
Action:Reiterated
Date:08/11/26
CNNE’s score is held back primarily by weak operating results and ongoing cash burn (negative margins and negative free cash flow), despite a more manageable leverage profile. The earnings call improves the outlook via stronger liquidity, asset monetizations, and materially lower corporate costs, but restaurant impairments and strategic-review delays remain key risks. Technical indicators are broadly neutral, and valuation is mixed due to a negative P/E partially offset by a ~4.1% dividend yield.
Positive Factors
Improved liquidity & balance-sheet flexibility
Monetizations (Watkins sale, Brasada) plus an expected $45M tax refund raised holding-company cash to ~$124M, materially improving near-term funding flexibility. This strengthens the firm’s ability to support opportunistic buybacks, invest in growth businesses, and avoid forced asset sales over the next several quarters.
Negative Factors
Negative operating and free cash flow
Persistent negative operating and free cash flow means the consolidated businesses are not self-funding, forcing reliance on asset monetizations, drawing down cash, or raising capital. This structural cash deficit constrains reinvestment, increases execution risk, and limits durable capital-return capacity absent sustained improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved liquidity & balance-sheet flexibility
Monetizations (Watkins sale, Brasada) plus an expected $45M tax refund raised holding-company cash to ~$124M, materially improving near-term funding flexibility. This strengthens the firm’s ability to support opportunistic buybacks, invest in growth businesses, and avoid forced asset sales over the next several quarters.
Read all positive factors
Cannae Holdings (CNNE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$634.56M
Dividend Yield4.1%
Average Volume (3M)689.37K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth-6.54%
EPS Growth57.86%
CountryUS
Employees6,602
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-3.02
Shares Outstanding43,374,226
10 Day Avg. Volume599,835
30 Day Avg. Volume689,369
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.87
Price to Sales (P/S)2.10
P/FCF Ratio-31.18
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$16.00Price Target Upside8.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.28
Revenue Forecast (FY)$398.75M
Cannae Holdings Business Overview & Revenue Model
Company Description
Cannae Holdings, Inc. operates as a core investment enterprise. This firm primarily funnels capital into a range of sectors, including the restaurant industry, technology-driven healthcare services, and various financial ventures. Its investment a...
How the Company Makes Money
CNNE primarily makes money through (1) operating income generated by its consolidated subsidiaries and (2) investment returns from its non-consolidated equity holdings. For consolidated businesses, revenue is earned in the ordinary course of those...
Cannae Holdings Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive strategic direction: management materially improved liquidity, monetized non-core assets (Watkins and Brasada) to free capital, delivered significant corporate cost reductions, and highlighted standout operational and financial performance in the sports portfolio (AFC Bournemouth and Black Knight Football). Offsetting these positives are continued weakness and significant impairments in the restaurant group, delays in that strategic review, and the potential for earnings volatility from mark-to-market accounting of SpaceX. On balance, the highlights — especially strong sports performance, asset monetizations, and improved cash position — outweigh the lowlights.Positive Updates
Shareholder Returns & Capital Allocation
Q2 dividend of $7M; year-to-date through July allocated $58M to shareholders ( $44M buybacks and $14M dividends ). No buybacks in Q2 due to transactions but management expects opportunistic repurchases in H2. Q2 investments of approximately $45M and YTD investments of $54M as management prioritizes long-term return opportunities versus buybacks.
Negative Updates
Decline in Consolidated Operating Revenues — Restaurant Underperformance
Total operating revenues (including restaurants and Brasada) were $102M in Q2 2026 versus $110M in Q2 2025, a decline of ~7.3%, driven primarily by reduced traffic and store closures at O'Charley's.
Read all updates
Q2-2026 Updates
Positive
Negative
Shareholder Returns & Capital Allocation
Q2 dividend of $7M; year-to-date through July allocated $58M to shareholders ( $44M buybacks and $14M dividends ). No buybacks in Q2 due to transactions but management expects opportunistic repurchases in H2. Q2 investments of approximately $45M and YTD investments of $54M as management prioritizes long-term return opportunities versus buybacks.
Read all positive updates
Company Guidance
The company guided that it will remain committed to opportunistic share buybacks in the second half of 2026, supported by current liquidity of $124 million of corporate cash (up from $46 million at quarter end) plus an expected $45 million federal tax refund in 2026; year-to-date through July Cannae has returned $58 million to shareholders ( $44 million buybacks and $14 million dividends) and paid a $7 million dividend in Q2, and it allocated approximately $45 million to investments in Q2 ($54 million YTD). Management highlighted balance-sheet and portfolio actions that underpin that guidance: the $90 million sale of a 49% stake in Watkins (≈1.2x MOIC in <2 years, ~10% IRR), the Brasada transaction (≈$40 million enterprise value with ~$17 million debt and ~$23 million equity, elimination of a put right that freed ~ $47 million of capital), and a Q2 mark-to-market gain of $83.4 million on SpaceX (with ongoing earnings variability expected). They also pointed to sharp cost reductions at the holding company (corporate operating expenses of just under $9 million in Q2, an ~85% decrease from $59 million a year ago; $18 million YTD, ~76% below $75 million prior-year YTD), and cited portfolio performance at Black Knight Football (AFC Bournemouth finished 6th with 57 points, qualified for the UEFA Europa League, club revenues for the quarter ended Mar. 31 were $89 million, up 45% from $61 million, EBITDA $80 million vs. $8 million prior year, adjusted EBITDA excluding player trading $34 million vs. $8 million), plus stadium capacity growth to 17,600 next season via a Phase 1 increase of 1,000 seats and doubled hospitality — all of which management said provides “plenty of flexibility” to support buybacks and new sports-related investments.Cannae Holdings Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 408.60M | 423.60M | 452.50M | 570.00M | 662.10M | 742.20M |
| Gross Profit | 45.60M | 53.70M | 2.90M | 43.00M | 31.20M | 44.70M |
| EBITDA | -45.30M | -384.30M | -224.50M | -150.90M | -278.70M | -374.00M |
| Net Income | -156.00M | -513.20M | -304.60M | -313.40M | -428.10M | -287.00M |
Balance Sheet | ||||||
| Total Assets | 1.26B | 1.32B | 2.23B | 2.69B | 3.13B | 3.89B |
| Cash, Cash Equivalents and Short-Term Investments | 70.40M | 182.00M | 137.70M | 121.80M | 282.60M | 85.80M |
| Total Debt | 194.30M | 331.80M | 330.50M | 274.20M | 300.00M | 235.80M |
| Total Liabilities | 346.50M | 329.80M | 413.60M | 377.50M | 410.60M | 548.50M |
| Stockholders Equity | 957.60M | 1.02B | 1.84B | 2.32B | 2.72B | 3.34B |
Cash Flow | ||||||
| Free Cash Flow | -38.70M | -28.50M | -97.10M | -97.80M | -219.40M | -189.80M |
| Operating Cash Flow | -27.30M | -18.10M | -90.10M | -87.80M | -205.10M | -176.10M |
| Investing Cash Flow | 414.80M | 518.10M | 298.30M | 53.10M | 521.20M | -272.40M |
| Financing Cash Flow | -382.20M | -449.50M | -182.90M | -106.80M | -154.20M | -190.40M |
Cannae Holdings Technical Analysis
Neutral
14.73
Price Trends
14.54
Positive
13.74
Positive
14.13
Positive
Market Momentum
0.11
Positive
47.90
Neutral
69.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNNE, the sentiment is Neutral. The current price of 14.73 is below the 20-day moving average (MA) of 14.83, above the 50-day MA of 14.54, and above the 200-day MA of 14.13, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 69.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.65B | 7.13 | 32.65% | 3.42% | 10.77% | 97.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.22B | -39.73 | -5.49% | ― | 7.54% | -176.04% | |
54 Neutral | $634.56M | -4.84 | -15.04% | 4.07% | -6.54% | 57.86% | |
53 Neutral | $1.29B | 49.20 | 5.89% | 1.86% | -4.92% | -54.90% | |
52 Neutral | $1.65B | 13.09 | 109.00% | 8.01% | -0.98% | -31.26% | |
46 Neutral | $798.68M | 29.95 | -6.17% | 6.06% | -5.65% | -64.96% |
* Consumer Cyclical Sector Average
CNNE
Cannae Holdings
14.63
-2.66
-15.39%
ARCO
Arcos Dorados Holdings
7.91
0.78
10.89%
BH
Biglari Holdings
385.03
81.93
27.03%
CBRL
Cracker Barrel
57.93
-1.21
-2.05%
PZZA
Papa John's International
24.26
-19.90
-45.07%
WEN
Wendy's
8.64
-1.35
-13.51%
Cannae Holdings Corporate Events
Business Operations and StrategyM&A Transactions
Cannae Holdings Divests Watkins to Refocus Portfolio Strategy
Positive
Jul 31, 2026
On July 30, 2026, Cannae Holdings sold its entire interest in Watkins Holdings, LLC, owner of The Watkins Company, to KDSA Investment Partners for cash proceeds of $90 million. Cannae had invested $80 million in Watkins in October 2024, and the ex...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Cannae Holdings Reshapes Portfolio and Revises Governance Terms
Neutral
Jul 17, 2026
On July 15, 2026, Cannae Holdings, Inc. closed the previously announced sale of its interest in Brasada Ranch to a company owned by Chairman William P. Foley, II, marking a divestiture of this particular asset from Cannae’s investment portfo...
Executive/Board Changes
Cannae Holdings Names Interim CFO After Executive Resignation
Neutral
Jun 12, 2026
On June 10, 2026, Cannae Holdings, Inc. announced that Executive Vice President and Chief Financial Officer Bryan D. Coy resigned from his position, with the company emphasizing that his departure was not due to any disagreement with management or...
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.