Capitec Bank (CPI.JO)
Financials · JSE · South Africa
Fundamentals
Valuation and ratings
Capitec Bank trades at R4,738.66, which is 26% above the R3,500.00 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 80 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 32.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Capitec Bank
Capitec Bank Holdings Limited, through its subsidiaries, provides various banking products and services in South Africa. The company operates through three segments: Personal banking, Business banking, and Insurance. It offers transactional banking services; flexible, notice, fixed, and tax-free savings; call and notice deposits; term, home, personal, vehicle, education, home improvement, business, term, medical, instalment, short-term, and mortgage loans; overdrafts, instalment sales and leases, credit and debit cards, and access facilities; and payment, merchant, forex, franchising, and value-added services. The company also provides treasury products comprising foreign exchange spot trades and foreign exchange forward contracts; insurance products, such as general, fleet, agricultural, engineering, motor traders, hospitality, contractors all risk, life, and credit insurance, as well as funeral cover insurance; and trade finance products, including letters of credit, trade guarantees, bills of collection, exchange control, and society for worldwide interbank financial telecommunication, as well as app and online banking. In addition, it offers vehicle and asset finance, property finance, rental finance, credit line products, and card machines. The company was incorporated in 1999 and is based in Stellenbosch, South Africa.
CPI.JO passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Capitec Bank (CPI.JO) undervalued?
Against our discounted cash flow estimate of R3,500.00, CPI.JO at R4,738.66 is 26% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is CPI.JO's P/E ratio?
CPI.JO trades at 32.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.