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Capita PLC (GB:CPI)
LSE:CPI

Capita plc (CPI) AI Stock Analysis

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GB

Capita plc

(LSE:CPI)

Rating:71Outperform
Price Target:
314.00p
▼(-1.72%Downside)
Capita plc's overall stock score is driven by strong technical momentum and favorable corporate events. However, financial performance challenges, particularly in cash flow and leverage, moderate the overall outlook. The valuation appears attractive, enhancing the stock's investment appeal despite financial struggles.

Capita plc (CPI) vs. iShares MSCI United Kingdom ETF (EWC)

Capita plc Business Overview & Revenue Model

Company DescriptionCapita 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 MoneyCapita plc generates revenue primarily through long-term contracts and service agreements with both public and private sector clients. The company's key revenue streams include outsourcing services, consultancy, and digital solutions. Capita partners with governments and enterprises to streamline operations, improve customer engagement, and implement technology solutions, thereby earning fees for service delivery and project outcomes. Additionally, Capita leverages its expertise in IT and digital transformation to offer bespoke software and platform services, contributing to its earnings.

Capita plc Financial Statement Overview

Summary
Capita plc faces several financial challenges with declining revenues and negative operating cash flow. Despite stable gross margins and slight improvements in net income, high leverage remains a risk.
Income Statement
55
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.42B2.81B3.01B3.18B3.32B
Gross Profit516.50M592.10M581.40M508.60M538.90M
EBITDA269.50M54.90M238.00M508.70M214.20M
Net Income76.70M-178.10M74.80M224.70M14.00M
Balance Sheet
Total Assets1.84B2.00B2.55B3.14B3.73B
Cash, Cash Equivalents and Short-Term Investments254.00M155.40M396.80M317.60M460.90M
Total Debt680.30M721.00M903.30M1.24B1.60B
Total Liabilities1.64B1.88B2.20B2.85B3.81B
Stockholders Equity199.90M113.00M330.20M274.50M-134.50M
Cash Flow
Free Cash Flow-75.30M-101.90M24.00M-237.20M308.90M
Operating Cash Flow-25.20M-40.30M71.90M-179.10M396.30M
Investing Cash Flow201.20M9.70M344.10M395.20M-34.30M
Financing Cash Flow-51.50M-76.30M-340.70M-259.70M-331.30M

Capita plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price319.50
Price Trends
50DMA
227.81
Positive
100DMA
215.20
Positive
200DMA
236.61
Positive
Market Momentum
MACD
21.43
Negative
RSI
82.30
Negative
STOCH
95.14
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 319.5 is above the 20-day moving average (MA) of 261.74, above the 50-day MA of 227.81, and above the 200-day MA of 236.61, indicating a bullish trend. The MACD of 21.43 indicates Negative momentum. The RSI at 82.30 is Negative, neither overbought nor oversold. The STOCH value of 95.14 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBJSG
80
Outperform
£594.36M17.1412.12%2.70%10.34%33.59%
GBMTO
77
Outperform
£1.71B17.1423.48%3.19%15.25%25.57%
GBRWS
76
Outperform
£342.07M13.512.82%0.05%-0.78%
GBSRP
75
Outperform
£1.96B46.314.71%2.92%-0.68%-78.93%
GBCPI
71
Outperform
£363.15M4.6949.03%-10.33%
GBRST
68
Neutral
£349.16M27.905.32%2.22%-0.65%
65
Neutral
$10.36B15.105.28%2.01%2.70%-26.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CPI
Capita plc
319.50
117.00
57.78%
GB:JSG
Johnson Service
147.60
-5.58
-3.64%
GB:MTO
Mitie Group plc
140.60
28.17
25.06%
GB:RST
Restore
257.00
-5.09
-1.94%
GB:RWS
RWS Holdings
90.05
-82.43
-47.79%
GB:SRP
Serco Group plc
199.00
23.92
13.66%

Capita plc Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Capita Issues 2025 Restricted Share Awards to Key Executives
Neutral
Jun 27, 2025

Capita plc has announced the issuance of its 2025 restricted share awards under the Capita Plc Executive Plan 2021 to key executives, including the CEO and CFO. These awards are contingent on continued employment, personal performance, and specific underpin conditions, such as positive total shareholder return and satisfactory company performance over the vesting period. The move is designed to align executive interests with long-term company performance, potentially impacting stakeholder confidence and Capita’s market positioning.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Executive/Board Changes
Capita Announces Director Resignation
Neutral
Jun 23, 2025

Capita plc announced the resignation of Brian McArthur-Muscroft from his role as an Independent Non-Executive Director, effective 23 July 2025. Brian’s decision to step down is due to his external CFO role’s demands, which prevent him from dedicating adequate time to Capita. His departure marks the end of his three-year tenure, during which he notably chaired the Audit and Risk Committee. This change in the board may impact Capita’s governance dynamics and stakeholder relations.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Capita plc Reports Steady Progress in AI Solutions and Strategic Initiatives
Neutral
Jun 17, 2025

Capita plc has reported progress in its AI solutions and remains on track to meet its full-year expectations for 2025. The company is focusing on product innovation to deliver scalable solutions and has identified over 200 AI use cases to enhance efficiency and quality. Despite a 4.5% decline in adjusted revenue for the first five months of 2025, Capita has seen significant contract wins, particularly in the public service sector, which offset losses in other areas. The company is committed to improving its operating margin and achieving substantial cost savings by the end of 2025, with a strong emphasis on AI-driven technological advancements.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Other
Capita Executives Participate in Share Ownership Plan
Neutral
Jun 6, 2025

Capita plc announced transactions involving its senior executives under the Capita Share Ownership Plan. Scott Hill, Chief People Officer, and Sameer Vuyyuru, Chief AI and Product Officer, participated in monthly share purchases. Hill acquired 72 ordinary shares, while Vuyyuru’s son purchased 24 shares, both at a price of £2.409285 per share. These transactions, conducted on the London Stock Exchange, reflect the company’s efforts to align management interests with shareholder value.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £255.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Financial DisclosuresRegulatory Filings and Compliance
Capita plc Updates Total Voting Rights and Shareholder Information
Neutral
Jun 2, 2025

Capita plc announced an update on its total voting rights, stating that as of May 31, 2025, the company has 113,959,758 ordinary shares, each carrying one vote. This figure is crucial for shareholders to calculate their interests in accordance with FCA regulations. The announcement also notes that 296,359 shares held by the Capita Employee Benefit Trust are excluded from the company’s EPS calculation, which may impact financial assessments.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Business Operations and Strategy
Capita Secures £37m Contract for UK Pension Services
Positive
Jun 2, 2025

Capita Pension Solutions, a division of Capita plc, has secured a £37 million contract to provide pensions administration services and transformational projects for a global company’s UK pension schemes. The five-year contract, starting in November 2025, aims to enhance member experience through increased digitisation and automation, leveraging Capita’s Digital Pension Solutions platform and Microsoft Dynamics 365 for a personalized service. This contract underscores Capita’s strategic focus on improving member outcomes and operational efficiencies, potentially strengthening its market position in the pension administration sector.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Capita CEO Executes Share Transaction Under Executive Plan
Neutral
May 28, 2025

Capita plc announced a transaction involving its Chief Executive Officer of Capita Public Service, Richard Holroyd, who exercised restricted share awards under the Capita Executive Plan 2021. The transaction included the sale of shares to cover tax liabilities and the retention of remaining shares, indicating a strategic move to manage executive compensation and align interests with shareholders.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Business Operations and Strategy
Capita plc Executive Share Transaction Announcement
Neutral
May 20, 2025

Capita plc has announced a transaction involving Claire Denton, the Chief General Counsel and Company Secretary, who exercised share options under the Capita Executive Plan 2021. The transaction included the sale of shares to cover tax liabilities and the retention of the remaining shares, reflecting strategic financial management by the company’s executives.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £0.40 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Capita plc Announces Executive Share Transaction
Neutral
May 16, 2025

Capita plc has announced a transaction involving Scott Hill, the Chief People Officer, who exercised restricted share awards under the Capita Executive Plan 2021. The transaction involved the sale of shares to cover tax liabilities and the retention of the remaining shares. This move reflects internal financial management strategies and may impact the company’s stock liquidity and stakeholder interests.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £0.40 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Other
Capita plc Announces Managerial Share Purchases
Positive
May 15, 2025

Capita plc has announced transactions involving its managerial personnel under the Capita Share Ownership Plan. Scott Hill, Chief People Officer, and Sameer Vuyyuru, Chief AI and Product Officer, participated in the monthly share purchase plan, acquiring ordinary shares on the London Stock Exchange. These transactions reflect the company’s ongoing efforts to align managerial interests with shareholder value, potentially impacting stakeholder confidence positively.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £0.40 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Capita Announces Share Consolidation and New Voting Rights Structure
Neutral
Apr 28, 2025

Capita plc has announced the approval of a Share Consolidation Resolution at its Annual General Meeting, leading to the issuance of 113,959,758 new ordinary shares. These shares will begin trading on the London Stock Exchange on April 29, 2025. This move is expected to streamline the company’s share capital structure, potentially enhancing its market position and providing clarity on voting rights for stakeholders.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Capita plc AGM: Resolutions Passed and Strategic Approvals
Neutral
Apr 28, 2025

Capita plc announced that all resolutions proposed at its Annual General Meeting were approved by the necessary majority of shareholders. Key resolutions included the re-election of several directors, the appointment of KPMG LLP as auditor, and the approval of a share consolidation and share premium reduction, subject to court approval. These decisions are expected to influence Capita’s operational and financial strategies, potentially impacting its market positioning and shareholder value.

Regulatory Filings and Compliance
Capita plc Announces Change in Voting Rights Structure
Neutral
Apr 24, 2025

Capita plc has announced a change in its voting rights structure following an acquisition or disposal by RWC Asset Management LLP. The transaction has resulted in RWC Asset Management LLP holding 10.9774% of the voting rights in Capita, down from a previous position of 11.9982%. This adjustment in voting rights could influence Capita’s decision-making processes and reflects the dynamic nature of shareholder positions within the company.

Regulatory Filings and Compliance
Capita plc Updates Total Voting Rights
Neutral
Apr 23, 2025

Capita plc has announced an update regarding its total voting rights, stating that as of 23 April 2025, the company has 1,709,396,383 ordinary shares, each carrying one vote. This figure will be used by shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules. The announcement also notes that 9,314,319 shares are held by the Capita Employee Benefit Trust and are excluded from the company’s EPS calculation.

Regulatory Filings and Compliance
Capita CEO Acquires Shares in Market Transaction
Neutral
Apr 11, 2025

Capita plc has announced a transaction involving the market purchase of ordinary shares by Corinne Ripoche, the Chief Executive Officer of Capita Experience. The transaction, conducted on the London Stock Exchange, involved the acquisition of 357,644 shares at prices of £0.1256 and £0.1258. This move is in line with regulatory requirements under the UK Market Abuse Regulation and reflects the company’s ongoing commitment to transparency in its financial dealings.

Executive/Board ChangesBusiness Operations and Strategy
Capita plc Announces Executive Share Transaction
Neutral
Apr 11, 2025

Capita plc has announced a transaction involving Scott Hill, the Chief People Officer, who exercised restricted share awards under the Capita Executive Plan 2021. The transaction involved the acquisition of 290,942 shares at no cost, the sale of 137,017 shares at £0.1226 to cover tax and national insurance liabilities, and the retention of 153,925 shares. This transaction reflects ongoing executive share management and financial planning within the company.

Delistings and Listing ChangesBusiness Operations and Strategy
Capita plc Announces Block Listing Application for 7 Million Shares
Positive
Apr 10, 2025

Capita plc has applied for a Block Listing of 7,000,000 ordinary shares on the London Stock Exchange, expected to be effective from 14 April 2025. This move, involving shares issued under the company’s executive and bonus plans, signifies Capita’s ongoing efforts to enhance its financial strategies and shareholder value.

Business Operations and Strategy
Capita Secures £92.4 Million Contract Extension with Southern Water
Positive
Apr 10, 2025

Capita plc’s Contact Centre subdivision has secured a £92.4 million contract extension with Southern Water, effective from July 2026, to provide comprehensive customer contact and transaction processing services. This extension underscores Capita’s commitment to leveraging innovative technology and AI, such as AWS Connect and AgentSuite, to enhance customer service in the utilities sector, positioning Capita as a leader in AI-enabled customer experience solutions.

Regulatory Filings and Compliance
Capita plc Updates Total Voting Rights
Neutral
Apr 9, 2025

Capita plc has announced an update regarding its total voting rights, stating that as of 9 April 2025, the company’s capital consists of 1,702,396,383 ordinary shares, each carrying one vote. This update is crucial for shareholders as it affects the calculations for notifying changes in their interests under the FCA’s Disclosure Guidance and Transparency Rules. Additionally, 7,146,108 shares held by the Capita Employee Benefit Trust are excluded from the company’s EPS calculation, potentially impacting financial assessments.

Executive/Board ChangesBusiness Operations and Strategy
Capita plc Announces Share Transactions for Chief AI and Product Officer
Neutral
Apr 9, 2025

Capita plc announced a transaction involving its Chief AI and Product Officer, Sameer Vuyyuru, who was granted two conditional share awards as compensation for forfeited incentives from a previous employer. The transaction involved the vesting of these awards, the sale of some shares to cover tax liabilities, and the retention of the remaining shares. This move reflects Capita’s commitment to retaining key talent and aligning management incentives with company performance, potentially impacting its market positioning and stakeholder interests.

Business Operations and Strategy
Capita plc Announces Director Share Purchase
Positive
Apr 9, 2025

Capita plc has announced a transaction involving Xenia Walters, the Chief Strategy and Transformation Officer, who has purchased shares under the Capita Share Ownership Plan. This transaction, involving the acquisition of 16,311 ordinary shares at a price of £0.12689 each, reflects ongoing engagement in the company’s equity plans, potentially indicating confidence in Capita’s strategic direction and market positioning.

Executive/Board Changes
Capita CEO Exercises Share Options Under Executive Plan
Neutral
Apr 8, 2025

Capita plc announced that Richard Holroyd, Chief Executive Officer of Capita Public Service, has exercised restricted share awards under the Capita Executive Plan 2021. The transaction involved the sale of some shares to cover tax and national insurance liabilities, while retaining the remaining shares. This move reflects the company’s ongoing executive compensation strategy and may impact stakeholder perceptions regarding executive incentives and shareholding structures.

Business Operations and Strategy
Capita plc Announces Share Transaction by Chief General Counsel
Neutral
Apr 7, 2025

Capita plc announced a transaction involving Claire Denton, the Chief General Counsel and Company Secretary, who exercised share options under the Capita Executive Plan 2021. The transaction involved the sale of shares to cover tax liabilities and the retention of a portion of shares, reflecting a strategic move in managing personal shareholdings and financial obligations.

Regulatory Filings and Compliance
Capita plc Updates Total Voting Rights and Capital Structure
Neutral
Apr 1, 2025

Capita plc has announced an update regarding its total voting rights and capital structure. As of March 31, 2025, the company has a total of 1,701,273,523 ordinary shares, each carrying one vote, with no shares held in Treasury. This figure is crucial for shareholders to determine their notification requirements under the FCA’s rules. Additionally, 7,992,984 shares held by the Capita Employee Benefit Trust are excluded from the company’s EPS calculation.

Business Operations and Strategy
Capita Secures £107m Contract Extension with Northern Ireland’s Education Authority
Positive
Apr 1, 2025

Capita has secured a £107 million contract extension with the Education Authority of Northern Ireland to continue providing managed IT and application services to 1,104 schools across the region until 2027, with an option for further extension. This contract extension, which marks a 13-year partnership, aligns with Capita’s strategy to enhance complex process delivery at scale, benefiting the educational experience for staff and pupils in Northern Ireland.

Executive/Board Changes
Capita plc Grants Share Options to Executives
Neutral
Mar 28, 2025

Capita plc announced the grant of options over ordinary shares to its Chief Executive Officer, Adolfo Hernandez, and Chief Financial Officer, Pablo Andres, as part of the 2024 annual bonus awards. These options, granted under the Capita plc Executive Plan 2021, are deferred into shares and will vest after three years, aligning with the company’s remuneration policy. This move is indicative of Capita’s commitment to aligning executive incentives with shareholder interests and long-term company performance.

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.Date of analysis: Jun 25, 2025