Capitec Bank Holdings Limited
Capitec Bank Holdings Limited Fundamental Analysis
Capitec Bank Holdings Limited (CKHGY) shows moderate financial fundamentals with a PE ratio of 30.47, profit margin of 27.45%, and ROE of 29.73%. The company generates $61.6B in annual revenue with weak year-over-year growth of 1.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 90.2/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
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
ModerateCKHGY shows steady but slowing expansion.
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 30.47 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CKHGY's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Capitec Bank Holdings Limited at 8.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 22.77 times EBITDA. This signals the market has high growth expectations.
How Well Does CKHGY Make Money?
Net Profit Margin
For every $100 in sales, Capitec Bank Holdings Limited keeps $27.45 as profit after all expenses.
Operating Margin
Core operations generate 36.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.73 in profit for every $100 of shareholder equity.
ROA
Capitec Bank Holdings Limited generates $6.39 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 $19.01B, reflecting robust business health.
Free Cash Flow
Capitec Bank Holdings Limited generates strong free cash flow of $17.87B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $77.14 in free cash annually.
FCF Yield
CKHGY converts 3.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.32
vs 25 benchmark
How CKHGY Stacks Against Its Sector Peers
| Metric | CKHGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.47 | 19.02 | Worse (Expensive) |
| ROE | 29.73% | 818.00% | Weak |
| Net Margin | 27.45% | 1593.00% | Weak |
| Debt/Equity | 0.06 | 0.99 | Strong (Low Leverage) |
| Current Ratio | 0.15 | 669.82 | Weak Liquidity |
| ROA | 6.39% | -24701.00% (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
203.36%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
119.71%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
13883.07%
Industry Style: Value, Dividend, Cyclical
High Growth