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Cannae Holdings, Inc. (CNNE)
:CNNE
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Cannae Holdings
(NYSE:CNNE)
Rating:53Neutral
Price Target:
$20.00
▲(1.63% Upside)
Cannae Holdings (CNNE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.29B
Dividend Yield2.44%
Average Volume (3M)611.67K
Price to Earnings (P/E)―
Beta (1Y)1.04
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. Volume504,412
30 Day Avg. Volume611,667
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue2.95
Enterprise Value/Gross Profit60.14
Enterprise Value/Ebitda-4.72
Forecast
1Y Price Target
$26.50Price Target Upside34.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Cannae Holdings Business Overview & Revenue Model
Company DescriptionCannae Holdings, Inc. (CNNE) is a diversified holding company based in the United States. The company primarily focuses on managing and operating a portfolio of investments in various sectors, including technology, healthcare, restaurants, and financial services. Cannae Holdings leverages its expertise in strategic management and investment to grow its assets and enhance shareholder value.
How the Company Makes MoneyCannae Holdings makes money by investing in and managing a diverse range of companies and assets across various industries. Its revenue model includes generating income from its ownership stakes in these companies, which can come in the form of dividends, interest, and capital gains from the sale of investments. The company also benefits from strategic partnerships and its ability to drive operational improvements and efficiencies within its portfolio companies. By actively managing its investments and seeking out new opportunities, Cannae Holdings aims to achieve long-term growth and profitability.
Cannae Holdings Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 5.35%|
Next Earnings Date:Aug 11, 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 Financial Statement Overview
Summary
Cannae Holdings faces significant financial challenges with declining revenue, consistent net losses, and negative cash flows. Despite a strong equity position and manageable debt levels, the continuous decrease in assets and equity indicates financial instability.Income Statement
Cannae Holdings has experienced declining revenue over recent years, with a significant drop from $742.2 million in 2021 to $445 million in TTM (Trailing-Twelve-Months). The company struggles with profitability, reflected in negative EBIT and net income margins. The gross profit margin has also decreased significantly, indicating cost pressures. While the EBITDA margin has shown some improvement, overall financial performance remains weak with consistent net losses.45
Neutral
Balance Sheet
Cannae Holdings maintains a relatively healthy equity position with a stockholders' equity of $1.72 billion and a debt-to-equity ratio of 0.19 in TTM. The equity ratio is strong, providing a buffer against liabilities. However, decreasing total assets and stockholders' equity over time indicate potential long-term financial challenges. Despite manageable debt levels, the company's declining asset base poses a risk.65
Positive
Cash Flow
The company's cash flow performance is under stress, with negative free cash flow and operating cash flow in the TTM. Although there was an improvement in free cash flow from the previous period, the overall trend shows persistent cash outflows. The operating cash flow to net income ratio remains unfavorable, highlighting challenges in generating cash from operations.50
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 |
| EBITDA | -224.50M | -150.90M | -278.70M | -374.00M | 2.24B |
| Net Income | -304.60M | -313.40M | -245.70M | -359.00M | 1.79B |
Balance Sheet | |||||
| Total Assets | 2.23B | 2.69B | 3.13B | 3.89B | 4.61B |
| Cash, Cash Equivalents and Short-Term Investments | 137.70M | 121.80M | 282.60M | 85.80M | 759.90M |
| Total Debt | 330.10M | 261.10M | 271.20M | 235.80M | 314.70M |
| 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
19.68
Price Trends
20.51
Negative
19.11
Positive
19.25
Positive
Market Momentum
-0.07
Positive
32.88
Neutral
14.96
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 19.68 is below the 20-day moving average (MA) of 21.29, below the 50-day MA of 20.51, and above the 200-day MA of 19.25, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 32.88 is Neutral, neither overbought nor oversold. The STOCH value of 14.96 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 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 0 New Risks
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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.09B | 287.92 | 0.69% | ― | 14.43% | -53.71% | |
68 Neutral | $544.66M | 16.55 | 7.36% | ― | 3.62% | 17.67% | |
63 Neutral | $1.28B | 33.33 | 12.11% | ― | ― | ― | |
62 Neutral | C$4.64B | 8.13 | 17.93% | 3.89% | 2.62% | -2.19% | |
61 Neutral | $1.26B | 21.96 | 12.90% | 1.74% | 2.84% | -4.44% | |
61 Neutral | $1.32B | 17.02 | -20.16% | 4.18% | -2.77% | 4.01% | |
53 Neutral | $1.29B | ― | -12.56% | 2.44% | -15.46% | 3.24% |
* Consumer Cyclical Sector Average
Performance Comparison
CNNE
Cannae Holdings
19.68
1.03
5.52%
CBRL
Cracker Barrel
57.58
20.17
53.92%
PZZA
Papa John's International
44.00
1.05
2.44%
FWRG
First Watch Restaurant Group
17.79
1.56
9.61%
PTLO
Portillo's
7.72
-2.99
-27.92%
HDL
SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR
20.00
5.56
38.50%
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.
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.