Capita PLC (GB:CPI)
LSE:CPI
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Capita plc
(LSE:CPI)
Select Model
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Rating:41Neutral
Price Target:
230.00 p
▼(-16.52% Downside)
Action:UpgradedDate:03/14/26
The score is driven primarily by weak financial performance (recent loss, margin compression, high leverage and thin equity, and poor free-cash-flow generation) and bearish technicals (price below major moving averages with negative momentum). Valuation provides limited offset given the negative P/E and no dividend yield data.
Positive Factors
Recurring, contracted revenue model
Capita's core fee-for-service model is built on multi-year outsourcing contracts and recurring charges. That structurally smooths revenue timing, supports long-duration client relationships, and creates opportunities to cross-sell digital and transformation work, underpinning more stable revenue streams over months to years.
Negative Factors
Persistent revenue decline
A multi-year top-line contraction erodes scale advantages, reduces pricing leverage on long-term contracts, and increases the fixed-cost burden per unit of revenue. Continued declines weaken long-term margin sustainability and make it harder to restore earnings and cash flow without structural client or service mix improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, contracted revenue model
Capita's core fee-for-service model is built on multi-year outsourcing contracts and recurring charges. That structurally smooths revenue timing, supports long-duration client relationships, and creates opportunities to cross-sell digital and transformation work, underpinning more stable revenue streams over months to years.
Read all positive factors
Capita plc (CPI) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£332.08M
Dividend YieldN/A
Average Volume (3M)600.76K
Price to Earnings (P/E)―
Beta (1Y)1.40
Revenue Growth-4.87%
EPS GrowthN/A
CountryUK
Employees34,500
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-1.38
Shares Outstanding120,830,666
10 Day Avg. Volume585,131
30 Day Avg. Volume600,765
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)9.74
Price to Sales (P/S)0.21
P/FCF Ratio-96.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£520.00Price Target Upside88.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.47
Revenue Forecast (FY)£2.02B
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 compan...
How the Company Makes Money
Capita makes money primarily by selling outsourced services under contractual arrangements, earning revenue as it delivers agreed service levels for clients. Its core revenue model is fee-for-service: clients pay Capita to operate customer-facing ...
Capita plc Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
24
Negative
Cash Flow
18
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.20B | 2.42B | 2.81B | 3.01B | 3.18B |
| Gross Profit | 276.20M | 516.50M | 592.10M | 581.40M | 508.60M |
| EBITDA | -22.50M | 269.50M | 54.90M | 238.00M | 508.70M |
| Net Income | -164.10M | 76.70M | -178.10M | 74.80M | 224.70M |
Balance Sheet | |||||
| Total Assets | 1.74B | 1.84B | 2.00B | 2.55B | 3.14B |
| Cash, Cash Equivalents and Short-Term Investments | 264.10M | 254.00M | 155.40M | 396.80M | 317.60M |
| Total Debt | 457.00M | 680.30M | 721.00M | 903.30M | 1.24B |
| Total Liabilities | 1.70B | 1.64B | 1.88B | 2.20B | 2.85B |
| Stockholders Equity | 47.40M | 199.90M | 113.00M | 330.20M | 274.50M |
Cash Flow | |||||
| Free Cash Flow | -4.80M | -75.30M | -101.90M | 24.00M | -237.20M |
| Operating Cash Flow | 4.70M | -25.20M | -40.30M | 71.90M | -179.10M |
| Investing Cash Flow | -43.70M | 201.20M | 9.70M | 344.10M | 422.40M |
| Financing Cash Flow | -28.50M | -51.50M | -76.30M | -340.70M | -259.70M |
Capita plc Technical Analysis
Neutral
275.50
Price Trends
323.39
Negative
348.65
Negative
321.49
Negative
Market Momentum
-15.13
Negative
46.11
Neutral
75.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPI, the sentiment is Neutral. The current price of 275.5 is above the 20-day moving average (MA) of 262.25, below the 50-day MA of 323.39, and below the 200-day MA of 321.49, indicating a neutral trend. The MACD of -15.13 indicates Negative momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 75.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CPI.
Capita plc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £2.97B | 19.41 | 16.69% | 1.27% | 0.84% | -62.73% | |
76 Outperform | £2.27B | 13.52 | 20.41% | 2.58% | 11.42% | -17.18% | |
65 Neutral | £12.57B | 31.67 | 6.51% | 1.68% | -1.58% | -34.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | £327.84M | 275.23 | 0.58% | 2.31% | 6.90% | 145.00% | |
42 Neutral | £1.86B | 126.90 | ― | 0.36% | -2.24% | ― | |
41 Neutral | £332.08M | -2.81 | -142.88% | ― | -4.87% | ― |
* Industrials Sector Average
GB:CPI
Capita plc
275.50
100.60
57.52%
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Mitie Group plc
180.50
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63.63%
GB:RTO
Rentokil Initial
500.00
191.66
62.16%
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240.00
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14.22%
GB:SRP
Serco Group plc
298.40
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GB:IWG
IWG plc
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27.80%
Capita plc Corporate Events
Regulatory Filings and Compliance
Capita Discloses Executive Share Option Exercise by Public Service CEO
Neutral
Mar 24, 2026
Capita plc has disclosed a management share transaction involving Richard Holroyd, CEO of Capita Public Service, under UK Market Abuse Regulation requirements. Holroyd exercised and retained nil-cost restricted share options granted in 2021 under ...
Regulatory Filings and Compliance
Capita Executive Exercises Share Awards and Sells Portion to Cover Tax
Neutral
Mar 24, 2026
Capita has disclosed that Chief Communications and Corporate Affairs Officer Nicole Dorskind has exercised nil-cost restricted share options granted under the Capita Executive Plan 2021. As part of the transaction, a portion of the resulting ordin...
Business Operations and StrategyExecutive/Board Changes
Capita Aligns 2026 Executive Share Awards to Performance and ESG Underpins
Positive
Mar 19, 2026
Capita plc has granted its 2026 restricted share awards to Chief Executive Officer Adolfo Hernandez and Chief Financial Officer Pablo Andres under the Capita Plc Executive Plan 2021, with the awards taking the form of conditional grants of ordinar...
Regulatory Filings and Compliance
Capita’s Chief General Counsel Exercises Share Awards and Sells Portion to Cover Tax
Neutral
Mar 18, 2026
Capita plc has disclosed that Chief General Counsel and Company Secretary Claire Denton has exercised nil-cost restricted share options granted under the Capita Executive Plan 2021, converting them into ordinary shares of 31 pence each. A portion ...
Regulatory Filings and Compliance
Capita CEO Adolfo Hernandez Increases Stake with £97,400 Share Purchase
Positive
Mar 16, 2026
Capita plc has disclosed that its chief executive officer, Adolfo Hernandez, bought 34,540 ordinary shares in the company on 13 March 2026 for about £97,400, in line with UK Market Abuse Regulation disclosure rules. Following this transaction...
Regulatory Filings and Compliance
Capita Executive Corinne Ripoche Buys Additional Ordinary Shares
Positive
Mar 12, 2026
Capita plc has disclosed that Corinne Ripoche, Chief Executive Officer of Capita Experience, has made a market purchase of ordinary shares in the company, in line with UK Market Abuse Regulation disclosure requirements. The transaction, involving ...
Regulatory Filings and Compliance
Capita Discloses Share Purchase by Chief Strategy and Transformation Officer
Positive
Mar 12, 2026
Capita plc has disclosed that its Chief Strategy and Transformation Officer, Xenia Walters, has carried out a market purchase of ordinary shares in the company, in line with reporting obligations under the UK Market Abuse Regulation. The transacti...
Executive/Board ChangesRegulatory Filings and Compliance
Capita CEO Increases Stake as Fourth Tranche of Buy-Out Share Award Vests
Positive
Mar 11, 2026
Capita has disclosed that the fourth tranche of a buy-out share award granted to Chief Executive Officer Adolfo Hernandez in March 2024 has vested, resulting in the allocation of 125,689 ordinary shares to him on 11 March 2026. Hernandez will pers...
Regulatory Filings and Compliance
Capita CFO Pablo Andres Increases Stake with £100k Share Purchase
Positive
Mar 11, 2026
Capita plc has disclosed that its Chief Financial Officer, Pablo Andres, has purchased 36,178 ordinary shares in the company for a total consideration of about £100,000. Following this market transaction, Andres’ holding has increased t...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Capita welcomes reduced Ofgem cost disallowance for Smart DCC
Neutral
Mar 11, 2026
Capita plc has responded to Ofgem’s decision to disallow £11.425m of costs incurred by its wholly owned subsidiary Smart DCC for the 2024/25 regulatory year, down from the initially proposed £30.841m and compared with a £20m d...
Business Operations and StrategyFinancial Disclosures
Capita boosts profit and contract wins as AI-led transformation gathers pace
Positive
Mar 10, 2026
Capita reported that 2025 was a pivotal year in its transformation into an AI-led business process outsourcer, with about two thirds of group revenue now AI-enabled and a growing £19.8bn bid pipeline. The group delivered £250m of annuali...
Regulatory Filings and Compliance
Capita Discloses Share Purchase by Chief People Officer Scott Hill
Neutral
Mar 9, 2026
Capita plc has disclosed that Chief People Officer Scott Hill acquired ordinary shares in the company through a monthly purchase under the Capita Share Ownership Plan. The transaction, involving 31p ordinary shares, reflects ongoing executive part...
Business Operations and Strategy
Capita Wins £370m Synergy Contract to Deliver Back-Office Services for UK Government
Positive
Mar 4, 2026
Capita has been selected to deliver the Synergy Business Process Services contract, providing technology-enabled back-office functions for public servants across the Department for Work and Pensions, Ministry of Justice, Home Office, and the Depar...
Regulatory Filings and Compliance
Capita updates total voting rights after share capital change
Neutral
Mar 2, 2026
Capita plc has confirmed that, as of 28 February 2026, its issued share capital comprises 120,030,667 ordinary shares of 31 pence each, with each share carrying one voting right and no shares held in treasury. This establishes 120,030,667 as the t...
Executive/Board ChangesRegulatory Filings and Compliance
Capita Discloses External Board Role of Non-Executive Director Neelam Dhawan
Neutral
Feb 24, 2026
Capita plc has disclosed that independent non-executive director Neelam Dhawan also serves on the board of Fractal Analytics Pvt Ltd, which was recently listed on both the National Stock Exchange of India and the Bombay Stock Exchange. The announc...
Business Operations and StrategyFinancial Disclosures
Capita restates 2024 figures as it exits closed book Life & Pensions unit
Neutral
Feb 24, 2026
Capita has confirmed that its closed book Life Pensions business will be treated as a business exit and removed from the Regulated Services division in its external reporting, ahead of its 2025 full-year results. The company has published pro for...
Business Operations and StrategyFinancial Disclosures
Capita Secures £137m, 10-Year Pension Contract Renewal in UK
Positive
Feb 19, 2026
Capita’s Pension Solutions division has renewed a long-term contract with an existing UK pensions client, securing work valued at £137 million over an extended term of up to 10 years. The deal, booked at £137 million under IFRS 15,...
Regulatory Filings and Compliance
Capita Discloses Routine Share Purchase by Chief People Officer
Neutral
Feb 6, 2026
Capita plc has disclosed that its Chief People Officer, Scott Hill, has carried out a routine monthly purchase of ordinary shares under the Capita Share Ownership Plan, in line with regulatory requirements for reporting transactions by persons dis...
Regulatory Filings and Compliance
Capita Confirms Updated Total Voting Rights and Share Capital
Neutral
Feb 2, 2026
Capita plc has updated the market on its share capital and voting rights position, confirming that as of 31 January 2026 the company’s issued share capital comprises 120,030,667 ordinary shares of 31 pence each, all carrying one vote per sha...
Business Operations and Strategy
Capita Wins Three-Year Extension to BBC TV Licensing Contract
Positive
Jan 27, 2026
Capita has secured a three-year extension to its contract with the BBC to administer TV Licensing across the UK, with the renewed term starting in July 2027. The deal reinforces a long-standing relationship between the two organisations and unders...
Regulatory Filings and Compliance
Capita Discloses Monthly Share Purchase by Chief People Officer
Neutral
Jan 6, 2026
Capita plc has disclosed that its Chief People Officer, Scott Hill, has made a monthly purchase of ordinary shares in the company under the Capita Share Ownership Plan. The transaction, reported as an initial notification under regulatory requirem...
Regulatory Filings and Compliance
Capita Confirms Total Voting Rights at 120 Million Shares
Neutral
Jan 2, 2026
Capita plc has confirmed that, as of 31 December 2025, its issued share capital comprises 120,030,667 ordinary shares of 31 pence each, with each share carrying one voting right and no shares held in Treasury, resulting in a total of 120,030,667 v...
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.