Capita plc (CPI) AI Stock Analysis

• Market Cap: £348.64M
• Dividend Yield: N/A
• Average Volume (3M): 600.76K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.82
• Revenue Growth: -4.87%
• EPS Growth: N/A
• Country: UK
• Employees: 34,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.22
• Shares Outstanding: 114,359,760
• 10 Day Avg. Volume: 585,131
• 30 Day Avg. Volume: 600,765
• PEG Ratio: -0.02
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -3.24
• 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: £492.75
• Price Target Upside: 45.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: 356.00p ▲(4.86% Upside)

Capita plc's stock score is primarily influenced by its challenging financial performance, with significant risks from high leverage and negative cash flow. However, positive technical indicators provide some optimism, suggesting potential for price appreciation. The valuation is moderate, but the lack of a dividend yield may deter income investors.

Positive Factors

Strategic Partnerships

Strategic partnerships with government agencies and large corporations provide Capita with stable, long-term revenue streams, enhancing its market position and resilience against economic fluctuations.

Diverse Revenue Streams

Capita's diverse revenue streams, including consulting, outsourcing, and software solutions, enable it to adapt to market demands and reduce dependency on any single source of income, supporting long-term stability.

Technology and Innovation Investment

Investment in technology and innovation allows Capita to develop software solutions that generate recurring revenue, positioning the company to capitalize on digital transformation trends.

Negative Factors

High Debt Levels

High debt levels can strain Capita's financial flexibility and increase risk, potentially impacting its ability to invest in growth opportunities and weather economic downturns.

Negative Cash Flow

Negative cash flow from operations indicates difficulties in generating cash, which can limit Capita's ability to fund operations and invest in growth, posing long-term liquidity concerns.

Declining Revenue

Declining revenue suggests challenges in maintaining market share and competitiveness, which could hinder Capita's ability to achieve sustainable growth and profitability over time.

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 company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection, complaint handling, customer acquisition and retention, customer experience system and software, and data and analytics. In addition, the company offers capita licensing and support, support, digital policing, and engineering practice; education service and local education authority software; various solutions that help businesses create connected experiences that deliver right message across organisations, customers, and suppliers; solutions for central and local government services; corporate learning, fire service college, employability, and capita apprenticeship solutions; and employer branding and marketing, flexible workforce solutions, agile resourcing solutions, executive and specialist recruitment, background checking and vetting, and digital HR management and transformation solutions. Further, it provides pension administration and software, pensions consulting, and data, insights, and remediation solutions; automation, critical communication systems, finance and payment software, local education authority software, management information systems, and workforce management software solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT; and actuarial, defence, financial, healthcare, housing, legal, public safety, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.

How the Company Makes Money

Capita generates revenue primarily through the provision of outsourced services and solutions to both public and private sector clients. Its revenue model is based on long-term contracts, project-based work, and service-level agreements that ensure recurring income. Key revenue streams include customer management services, IT services, and consultancy fees. Capita also benefits from significant partnerships with various government agencies and private corporations, which enable it to secure substantial contracts and maintain a steady flow of income. The company's focus on digital transformation and technology integration allows it to create new service offerings that enhance its revenue potential.

Capita plc Financial Statement Overview

Summary

Capita plc faces several financial challenges, including declining revenue and negative cash flow. While there are some improvements in net income and equity, the high debt burden and cash flow issues remain significant risks.

Income Statement

Capita plc's income statement reveals a challenging financial performance. Recent results show declining revenue with a negative revenue growth rate. The company has struggled with profitability, evidenced by negative EBIT margins and fluctuating net profit margins, although there is some improvement in net income in the latest periods. Gross profit margins have been relatively stable but aren't sufficient to significantly boost overall profitability.

Balance Sheet

The balance sheet analysis indicates a high debt-to-equity ratio, reflecting significant leverage, which is a potential risk. However, there has been an improvement in stockholders' equity over the years, although it remains low compared to total liabilities. The equity ratio has shown some positive trends, indicating a slow recovery in equity levels.

Cash Flow

The company's cash flow statement shows ongoing challenges. Operating cash flow has been negative in recent years, indicating difficulties in generating cash from operations. Free cash flow has also been negative, and while there have been improvements in some periods, the overall trend poses concerns for liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.34B	2.42B	2.81B	3.01B	3.18B	3.32B
Gross Profit	418.50M	516.50M	592.10M	581.40M	508.60M	538.90M
EBITDA	224.70M	269.50M	54.90M	238.00M	508.70M	214.20M
Net Income	16.20M	76.70M	-178.10M	74.80M	224.70M	14.00M
Balance Sheet
Total Assets	1.94B	1.84B	2.00B	2.55B	3.14B	3.73B
Cash, Cash Equivalents and Short-Term Investments	334.10M	254.00M	155.40M	396.80M	317.60M	460.90M
Total Debt	745.70M	680.30M	721.00M	903.30M	1.24B	1.60B
Total Liabilities	1.76B	1.64B	1.88B	2.20B	2.85B	3.81B
Stockholders Equity	182.30M	199.90M	113.00M	330.20M	274.50M	-134.50M
Cash Flow
Free Cash Flow	-33.80M	-75.30M	-101.90M	24.00M	-237.20M	308.90M
Operating Cash Flow	-21.10M	-25.20M	-40.30M	71.90M	-179.10M	396.30M
Investing Cash Flow	146.40M	201.20M	9.70M	344.10M	422.40M	-34.30M
Financing Cash Flow	-29.20M	-51.50M	-76.30M	-340.70M	-259.70M	-331.30M

Capita plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 339.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPI, the sentiment is Positive. The current price of 339.5 is above the 20-day moving average (MA) of 317.55, above the 50-day MA of 315.13, and above the 200-day MA of 260.51, indicating a bullish trend. The MACD of 6.28 indicates Negative momentum. The RSI at 64.49 is Neutral, neither overbought nor oversold. The STOCH value of 85.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CPI.

Capita plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSG	78 Outperform	£524.38M	15.41	12.46%	3.07%	6.55%	18.44%
SRP	76 Outperform	£2.52B	53.21	5.21%	1.38%	0.84%	-62.73%
MTO	75 Outperform	£2.09B	19.90	20.62%	2.78%	11.42%	-17.18%
RWS	66 Neutral	£276.62M	10.98	2.82%	15.60%	-0.78%	―
RST	63 Neutral	£338.89M	36.08	4.01%	2.55%	6.90%	145.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CPI	63 Neutral	£348.64M	21.33	9.00%	―	-4.87%	―

Capita plc Corporate Events

Capita Responds to Ofgem’s Proposed Cost Disallowance

Capita plc has responded to Ofgem’s announcement regarding a proposal to disallow £31.03 million in costs incurred by its subsidiary, Smart Data Communications Company (Smart DCC), for the regulatory year 2024/2025. This draft determination is part of the regular regulatory framework, but Capita expressed disappointment at the scale and retrospective nature of the disallowance. Smart DCC plans to engage with Ofgem to potentially reduce these costs before the final determination in February 2026. The company remains committed to efficiently operating Britain’s smart meter network and addressing energy affordability challenges.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £356.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Announces Director Share Purchase

Capita plc has announced a transaction involving Scott Hill, the Chief People Officer, who has made a monthly share purchase under the Capita Share Ownership Plan. This transaction reflects ongoing participation in the company’s share ownership scheme, which may indicate confidence in the company’s future prospects and align managerial interests with those of shareholders.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £356.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Updates Total Voting Rights

Capita plc has announced an update to its total voting rights, with its capital comprising 114,359,758 ordinary shares, each carrying one vote, as of 31 October 2025. This figure is crucial for shareholders to determine their reporting obligations under the FCA’s rules. Additionally, 295,199 shares held by the Capita Employee Benefit Trust are excluded from the company’s EPS calculation.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £356.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita Extends Key Contract with Samsung UK to Enhance Customer Support

Capita plc has announced an extension of its contract with Samsung Electronics UK, continuing a partnership that began in 2011. The renewed contract will see Capita’s Contact Centre business provide ongoing customer support services, including technical voice support and social media management, for Samsung’s electronic product customers. The extension involves technological advancements such as migrating the telephony system to AWS Connect and implementing Capita’s GenAI-powered Agent Suite, aimed at enhancing customer and colleague experiences. This move aligns with Samsung’s mission to inspire consumer adoption of its innovative technology, reinforcing Capita’s strategy of integrating technology, people, and processes to deliver transformative client experiences.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £356.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita’s Jack Clarke to Join Zotefoams as Non-Executive Director

Capita plc announced that Jack Clarke, an Independent Non-Executive Director and Chair of Capita’s Audit & Risk Committee, will be appointed as a Non-Executive Director of Zotefoams plc on 28 October 2025 and will assume the role of chair of its Audit Committee from 1 January 2026. This appointment highlights Capita’s strategic positioning and influence within the industry, potentially strengthening its ties with other market players and enhancing its corporate governance framework.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £356.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita Settles with ICO Over 2023 Cyber Attack

Capita plc has reached a settlement with the Information Commissioner’s Office (ICO) concerning a cyber attack that occurred in March 2023, resulting in a £14 million penalty. The company has since enhanced its cybersecurity measures under new leadership and continues its transformation journey, aiming for a positive cash flow by the end of 2025, with no changes to its financial guidance.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £9.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Announces Director Shareholding Transaction

Capita plc has announced a transaction involving Scott Hill, the Chief People Officer, as part of the company’s Share Ownership Plan. This notification reflects the ongoing commitment of Capita’s management to align their interests with those of shareholders, potentially impacting the company’s governance and stakeholder confidence.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £9.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Updates Total Voting Rights

Capita plc has announced a change in its total voting rights, with its capital consisting of 114,359,758 ordinary shares, each carrying one vote. This update, in compliance with the FCA’s Disclosure Guidance and Transparency Rules, informs shareholders of the denominator for calculating their interests in the company. The announcement also notes that 303,305 shares held by the Capita Employee Benefit Trust are excluded from the company’s EPS calculation.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £9.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Director Acquires Additional Shares

Capita plc announced that Jack Clarke, an Independent Non-Executive Director, has purchased 5,165 ordinary shares of the company, representing 0.0045% of its issued share capital. This transaction is in compliance with the UK Market Abuse Regulation, and it highlights the director’s confidence in the company’s prospects.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £298.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Announces Director Shareholding Transaction

Capita plc announced a transaction involving Scott Hill, the Chief People Officer, who made an initial notification of a monthly share purchase under the Capita Share Ownership Plan. This transaction reflects the company’s ongoing commitment to employee engagement and investment in its workforce, potentially impacting its market positioning by demonstrating confidence in its future performance.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £298.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Updates Total Voting Rights

Capita plc has announced an update regarding its total voting rights, stating that as of August 31, 2025, the company has 114,359,758 ordinary shares, each carrying one vote. This figure is crucial for shareholders to determine their notification requirements under the FCA’s rules. Additionally, 460,111 shares held by the Capita Employee Benefit Trust are excluded from the company’s EPS calculation, impacting financial metrics.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £298.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Capita plc Appoints RBC Capital Markets as Joint Corporate Broker

Capita plc has appointed RBC Capital Markets as a Joint Corporate Broker alongside its existing broker, Barclays Bank PLC, effective immediately. This strategic move is likely to enhance Capita’s market positioning by leveraging RBC Capital Markets’ expertise, potentially benefiting stakeholders by strengthening the company’s financial advisory capabilities.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £298.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.