Capprec (CTA) is a fintech company offering payments and payment infrastructure as well as software and services. Patrice Motsepe's African Rainbow Capital (ARC) owns a stake in the company. The payments side of the business is managed through African Resonance and Dashpay, while the software side involves systems development and consulting. The company also owns 17.5% of Resonance Australia, a startup business. Capprec counts all the major banks in South Africa among its clients.
In its results for the six months to 30th September 2023, the company reported revenue up 3% and headline earnings per share (HEPS) up 105.6%. The company's net asset value (NAV) increased 3.3% to 124.5c per share. The company said, "Headline earnings growth benefited from a reduction in the expected credit loss raised for GovChat in the reporting period."
In a business update for the year to 31st March 2024, the company said, "...increased business activity in the Payments division, improved expense management, and strong cash flows resulted in a robust improvement in the Group's financial performance in the second half of the financial year. Both the Payments and Software divisions have continued to attract new clients, diversify their revenue sources, and grow their market shares."
In a trading statement for the year to 31st March 2024, the company estimated that HEPS would increase by between 81% and 84.8%. The company said, "...increased business activity in the Payments division, improved expense management, and strong cash flows resulted in a significant improvement in Capital Appreciation's financial performance in the second half of the financial year." The share now trades at a P:E of 10.76. Roughly R1.3m worth of shares change hands each day, which makes this share quite feasible for private investors.
The company appears to be well-managed, profitable, and cash-flush, which means that it is beginning to attract institutional interest. Technically, the share has been in a downward trend since January 2022, and we advise waiting for a break up through its downward trendline, which does not look like it will happen anytime soon.
Key Points for Investors:
1. Strong Financial Performance: Significant improvements in HEPS and NAV, indicating robust financial health.
2. Diversified Client Base: Major South African banks as clients and growing market share in both Payments and Software divisions.
3. Institutional Interest: Increasing interest from institutional investors due to the company's strong financial performance and strategic positioning.
4. Technical Analysis: The share is in a downward trend; investors should wait for a clear break above the trendline before considering an investment.
Conclusion:
Capprec presents a promising investment opportunity due to its strong financial performance, diversified client base, and growing institutional interest. However, investors should be cautious and wait for a clear technical signal before investing. The company's ability to continue attracting new clients and managing expenses effectively will be key to its future growth.
In its results for the six months to 30th September 2023, the company reported revenue up 3% and headline earnings per share (HEPS) up 105.6%. The company's net asset value (NAV) increased 3.3% to 124.5c per share. The company said, "Headline earnings growth benefited from a reduction in the expected credit loss raised for GovChat in the reporting period."
In a business update for the year to 31st March 2024, the company said, "...increased business activity in the Payments division, improved expense management, and strong cash flows resulted in a robust improvement in the Group's financial performance in the second half of the financial year. Both the Payments and Software divisions have continued to attract new clients, diversify their revenue sources, and grow their market shares."
In a trading statement for the year to 31st March 2024, the company estimated that HEPS would increase by between 81% and 84.8%. The company said, "...increased business activity in the Payments division, improved expense management, and strong cash flows resulted in a significant improvement in Capital Appreciation's financial performance in the second half of the financial year." The share now trades at a P:E of 10.76. Roughly R1.3m worth of shares change hands each day, which makes this share quite feasible for private investors.
The company appears to be well-managed, profitable, and cash-flush, which means that it is beginning to attract institutional interest. Technically, the share has been in a downward trend since January 2022, and we advise waiting for a break up through its downward trendline, which does not look like it will happen anytime soon.
Key Points for Investors:
1. Strong Financial Performance: Significant improvements in HEPS and NAV, indicating robust financial health.
2. Diversified Client Base: Major South African banks as clients and growing market share in both Payments and Software divisions.
3. Institutional Interest: Increasing interest from institutional investors due to the company's strong financial performance and strategic positioning.
4. Technical Analysis: The share is in a downward trend; investors should wait for a clear break above the trendline before considering an investment.
Conclusion:
Capprec presents a promising investment opportunity due to its strong financial performance, diversified client base, and growing institutional interest. However, investors should be cautious and wait for a clear technical signal before investing. The company's ability to continue attracting new clients and managing expenses effectively will be key to its future growth.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.