Capita Free cashflow per share is superbly in excess of Earnings per share consistently for last 5 years ????

Thursday, Mar 22 2018 by
1

Can someone explain to me why EPS has decreased year on year yet FCF per share has more or less done the opposite and increased ? With FCF so good are we all missing a buying opportunity ?

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Capita PLC is a United Kingdom-based company, which creates and delivers services in business process management. The Company's segments include Digital & Software Solutions, Integrated Services, Local Government, Property & Health, Workplace Services, IT Enterprise Services, Customer Management, Capita Europe and Insurance & Benefits Services. The Company operates in private sectors, such as banking and financial services, insurance, life and pensions, retail, telecoms and media, transport and utilities, and public sector, such as central government, defense, education, emergency services, health, local government, and police and justice. The Company offers its services, which include business process management, customer management, digital and software solutions, financial services, information technology, legal services, property and infrastructure, travel and events, human resource and recruitment, debt solutions, and corporate and administration service. more »

LSE Price
146.35p
Change
0.1%
Mkt Cap (£m)
2,439
P/E (fwd)
10.1
Yield (fwd)
n/a



  Is LON:CPI fundamentally strong or weak? Find out More »


1 Post on this Thread show/hide all

Blissgull 22nd Mar '18 1 of 1
1

Have you seen their announcement in January?

" we expect a free cash outflow this year, "

"The divisional plans indicate that there is likely to
be a significant negative impact upon profits from contract and volume
attrition"

Dividend suspended.
Rights issue (restructuring?) planned.
Massive debt.
Significant disposals needed.

Maybe there is an opportunity for a turnaround here, but clearly not without its risks.

To me Capita looks like a classic case of "diworsification."

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