Capitec Bank Holdings Limited
Capitec Bank Holdings Limited Fundamental Analysis
Capitec Bank Holdings Limited (CKHGY) shows strong financial fundamentals with a PE ratio of 35.53, profit margin of 32.17%, and ROE of 29.26%. The company generates $47.7B in annual revenue with strong year-over-year growth of 16.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CKHGY's fundamental strength across five key dimensions:
Efficiency Score
WeakCKHGY struggles to generate sufficient returns from assets.
Valuation Score
ModerateCKHGY shows balanced valuation metrics.
Growth Score
ExcellentCKHGY delivers strong and consistent growth momentum.
Financial Health Score
ModerateCKHGY shows balanced financial health with some risks.
Profitability Score
ExcellentCKHGY achieves industry-leading margins.
Key Financial Metrics
Is CKHGY Expensive or Cheap?
P/E Ratio
CKHGY trades at 35.53 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CKHGY's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values Capitec Bank Holdings Limited at 10.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -17.52 times EBITDA. This is generally considered low.
How Well Does CKHGY Make Money?
Net Profit Margin
For every $100 in sales, Capitec Bank Holdings Limited keeps $32.17 as profit after all expenses.
Operating Margin
Core operations generate 61.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.26 in profit for every $100 of shareholder equity.
ROA
Capitec Bank Holdings Limited generates $6.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Capitec Bank Holdings Limited generates strong operating cash flow of $26.23B, reflecting robust business health.
Free Cash Flow
Capitec Bank Holdings Limited generates strong free cash flow of $25.27B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $109.10 in free cash annually.
FCF Yield
CKHGY converts 4.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.43
vs 25 benchmark
How CKHGY Stacks Against Its Sector Peers
| Metric | CKHGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.53 | 18.73 | Worse (Expensive) |
| ROE | 29.26% | 847.00% | Weak |
| Net Margin | 32.17% | 2562.00% | Weak |
| Debt/Equity | 0.08 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.32 | 674.76 | Weak Liquidity |
| ROA | 6.11% | -21692.00% (disorted) | Weak |
CKHGY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Capitec Bank Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.87%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
100.04%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
3743.12%
Industry Style: Value, Dividend, Cyclical
High Growth