CAB Payments Holdings Limited (CABP) AI Stock Analysis

• Market Cap: £183.49M
• Dividend Yield: N/A
• Average Volume (3M): 233.96K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 1.17
• Revenue Growth: -13.97%
• EPS Growth: -67.63%
• Country: UK
• Employees: 421
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.02
• Shares Outstanding: 254,143,220
• 10 Day Avg. Volume: 207,786
• 30 Day Avg. Volume: 233,959
• PEG Ratio: -0.29
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 2.49
• 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: £70.00
• Price Target Upside: 12.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: 75.00p ▲(20.97% Upside)

The score is held back primarily by uneven financial performance (notably the 2024 revenue drop and volatile cash flows). Offsetting this are improving technicals (price above key moving averages with positive MACD) and supportive corporate developments, while valuation is a moderate headwind given the ~25x P/E and no stated dividend yield.

Positive Factors

Conservative balance sheet

CABP's low leverage and materially higher equity versus 2019 provide a durable capital buffer for a payments-facing bank. This thicker capital base supports underwriting settlement and counterparty risks, funds compliance and liquidity needs, and cushions earnings during FX and volume cycles.

Specialized cross-border FX payments franchise

CABP's focused business model—FX execution and cross-border payments into emerging markets—creates recurring fee and spread income tied to transaction volumes. Its correspondent network and banking infrastructure are durable competitive assets that enable multi-currency settlement and sticky institutional client relationships.

Strategic expansion into Middle East

Regulatory approval in ADGM and a senior hire represent structural growth initiatives that expand regional access to clients and payment rails. Establishing a licensed presence in Abu Dhabi can diversify geographic revenue, deepen local market relationships, and reduce over-reliance on existing corridors over the medium term.

Negative Factors

Sharp 2024 revenue decline

A 33.5% revenue drop in 2024 undermines revenue momentum and suggests reduced transaction volumes or pricing pressure. Such a sizable contraction impairs economies of scale in payments, strains operating leverage, and raises uncertainty about durable revenue growth absent clear evidence of structural recovery.

Volatile cash generation

CABP's history of wide swings in operating cash flow elevates execution and liquidity risk for a settlement-focused bank. Irregular cash conversion complicates funding for working capital and hedging, limits predictable reinvestment, and increases the chance of stress during FX or client-volume disruptions.

Inconsistent operating profitability

Fluctuating operating margins reveal that core earnings are sensitive to volume, pricing, and cost absorption. This inconsistency reduces earnings predictability, hampers confident investment planning, and may limit the firm's ability to sustainably fund growth or build durable returns for shareholders.

CAB Payments Holdings Limited Business Overview & Revenue Model

Company Description

CAB Payments Holdings Limited, through its subsidiaries, provides foreign exchange (FX) and cross-border payments services to banks, fintech companies, development organizations, and governments in the United Kingdom and internationally. The company offers EMpower FX, an end-to-end automated payments gateway for cross-border payments; EMpower Payments, a digital platform for day-to-day exposures in FX; EMpower Connect, a bank oriented service for making hard currency payments; and EMpower Pensions, a pension payment full service platform. It also provides a range of banking and other services, including transaction and deposit accounts, and trade and financial consulting related services; and B2B payment gateway software. The company was formerly known as CABIM Limited and changed its name to CAB Payments Holdings Limited in March 2023. CAB Payments Holdings Limited was incorporated in 2015 and is based in Sutton, United Kingdom.

How the Company Makes Money

CAB Payments Holdings Limited generates revenue primarily through fees charged for its cross-border payment and foreign exchange services. The company's business model involves providing payment processing and currency conversion solutions, where it takes a percentage of the transaction value as a fee. CABP also earns money through foreign exchange spreads, which are the differences between the buy and sell rates of currencies. Additionally, the company may have partnerships with banks and financial institutions that facilitate access to broader networks and customer bases, further contributing to its earnings. These partnerships can enhance service offerings and create additional revenue opportunities through collaborative financial products and services.

CAB Payments Holdings Limited Financial Statement Overview

Summary

Moderate fundamentals: a strong capital position (balance sheet score 72) is offset by a sharp 2024 revenue decline and weaker/volatile operating profitability (income statement score 56), plus highly inconsistent cash generation despite improved recent FCF (cash flow score 44).

Income Statement

Revenue has expanded strongly over the long run (2019–2024) but the most recent year shows a sharp contraction (2024 revenue down 33.5% vs. 2023), which weakens confidence in the current trajectory. Profitability is mixed: net margin is steady around ~13.5% in 2023–2024, but operating profitability has been volatile (EBIT margin positive in 2023, negative in 2024), suggesting inconsistency in core earnings power. Earlier years also show unusually choppy results, reinforcing a higher-variability earnings profile.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage overall (debt-to-equity remained modest even after rising in 2024). Equity has grown over time (up meaningfully from 2019 levels), providing a thicker capital buffer. Returns on equity have been solid in recent years but also uneven (very strong in 2022–2023, stepping down in 2024), indicating profitability is not yet consistently durable.

Cash Flow

Cash generation is volatile year-to-year: operating cash flow swung from strongly positive (2021) to deeply negative (2022) and then improved again (2023–2024). Free cash flow was solidly positive in 2023–2024, but the reported free-cash-flow growth in 2024 is sharply negative, pointing to decelerating momentum off a higher base or prior-period effects. Overall, cash conversion is acceptable in the last two years, but the historical swings elevate execution and predictability risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	136.56M	105.54M	167.92M	32.97M	14.54M	34.27M
Gross Profit	0.00	105.54M	137.07M	-7.62M	-7.62M	34.27M
EBITDA	9.51M	0.00	43.47M	-37.38M	13.63M	631.00K
Net Income	6.28M	14.21M	22.71M	31.00M	7.14M	-2.61M
Balance Sheet
Total Assets	1.61B	1.80B	1.73B	1.49B	1.32B	1.17B
Cash, Cash Equivalents and Short-Term Investments	759.07M	1.08B	1.06B	816.84M	1.01B	730.60M
Total Debt	18.50M	18.07M	884.00K	1.28M	819.00K	1.05M
Total Liabilities	1.46B	1.66B	1.60B	1.37B	1.23B	1.10B
Stockholders Equity	149.46M	146.55M	131.53M	108.25M	76.34M	68.52M
Cash Flow
Free Cash Flow	2.72M	70.02M	21.31M	-263.36M	313.59M	3.07M
Operating Cash Flow	2.96M	84.97M	21.73M	-258.47M	318.21M	10.31M
Investing Cash Flow	-172.26M	-14.97M	40.80M	-4.88M	-4.84M	-5.27M
Financing Cash Flow	41.11M	-539.00K	226.66M	-232.00K	268.00K	-374.00K

CAB Payments Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CABP, the sentiment is Positive. The current price of 62 is below the 20-day moving average (MA) of 68.38, above the 50-day MA of 61.80, and above the 200-day MA of 51.74, indicating a bullish trend. The MACD of 2.78 indicates Positive momentum. The RSI at 61.83 is Neutral, neither overbought nor oversold. The STOCH value of 54.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CABP.

CAB Payments Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBA	80 Outperform	£220.77B	17.56	8.88%	4.27%	-11.86%	-24.31%
BARC	78 Outperform	£67.09B	11.48	9.72%	1.50%	14.18%	46.12%
STAN	77 Outperform	£41.93B	12.41	10.45%	1.70%	-4.35%	21.86%
NWG	75 Outperform	£53.07B	9.91	14.96%	3.85%	4.27%	26.21%
STB	68 Neutral	£269.67M	11.52	6.47%	2.66%	9.09%	-9.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CABP	59 Neutral	£183.49M	29.23	4.30%	―	-13.97%	-67.63%

CAB Payments Holdings Limited Corporate Events

CAB Payments secures ADGM licence and new global clearing partnership

CAB Payments Holdings has strengthened its Middle Eastern presence by securing a Category 2 Financial Services Permission from the Abu Dhabi Global Market’s Financial Services Regulatory Authority for its subsidiary CAB Global Markets, enabling it to conduct cross-border payments, FX transactions, trade finance and credit arrangements across the Gulf and wider region. In parallel, the Group has entered into a new strategic global clearing partnership with a major international bank to expand USD and euro clearing access for clients, deepen liquidity in both existing and new markets, and bolster operational resilience and diversification, marking a significant advance in its growth strategy and regional expansion ahead of its 2025 full-year results in March 2026.

The most recent analyst rating on (GB:CABP) stock is a Hold with a £74.00 price target. To see the full list of analyst forecasts on CAB Payments Holdings Limited stock, see the GB:CABP Stock Forecast page.

CAB Payments Expects FY25 Results to Beat Market Forecasts on Strong Growth

CAB Payments Holdings plc said it expects to report full-year 2025 total income of about £119m and adjusted EBITDA slightly above market consensus, reflecting strong second-half trading and placing revenue and profitability ahead of prior expectations. The performance is underpinned by higher transaction volumes, an enlarged client base, and new product capabilities, while the group has deepened relationships with central banks and regulators and expanded its global footprint with a new New York office and an in-principle licence in Abu Dhabi, supporting positive operating leverage and signalling renewed, sustainable growth momentum into 2026.

The most recent analyst rating on (GB:CABP) stock is a Hold with a £72.00 price target. To see the full list of analyst forecasts on CAB Payments Holdings Limited stock, see the GB:CABP Stock Forecast page.

CAB Payments Director Acquires Shares in Market Purchase

CAB Payments Holdings Limited announced a market purchase of shares by Kushagra Saxena, an Independent Non-executive Director. The transaction involved the acquisition of 97,861 ordinary shares at GBP0.5150 each on the London Stock Exchange. This move signifies a potential increase in confidence from the company’s management and could impact stakeholder perceptions positively.

The most recent analyst rating on (GB:CABP) stock is a Hold with a £0.45 price target. To see the full list of analyst forecasts on CAB Payments Holdings Limited stock, see the GB:CABP Stock Forecast page.

CAB Payments to Announce 2025 Financial Results in Early 2026

CAB Payments Holdings plc has announced it will release an update on its 2025 trading performance on January 15, 2026, followed by the full annual results on March 5, 2026. The company will host presentations for analysts, institutional investors, and retail shareholders, highlighting its commitment to transparency and stakeholder engagement.

The most recent analyst rating on (GB:CABP) stock is a Hold with a £0.45 price target. To see the full list of analyst forecasts on CAB Payments Holdings Limited stock, see the GB:CABP Stock Forecast page.