Deep Value: cash covers more than 100% of the stock price

This company holds roughly $508M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Capita

CPI.L

Specialty Business Services · Industrials

Exchange

London Stock Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Weak

Valuation

Data not available

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Winston Score History

The full picture

Capita plc is a UK-based outsourcing company. It handles back-office tasks that other organisations do not want to manage themselves — things like processing paperwork, running customer service centres, managing IT systems, and administering pension schemes. Its main customers are UK government departments, local councils, and large private-sector companies.

Capita earns money by signing long-term contracts to run these services on behalf of clients. It operates almost entirely in the United Kingdom and Ireland, making it heavily dependent on UK public-sector spending decisions. The company has faced years of financial difficulty, including profit warnings, debt problems, and contract losses, which is reflected in its negative operating margin and poor returns on capital. The key challenge ahead is stabilising its contract base and reducing costs fast enough to return to consistent profitability, while competing against larger global outsourcers like Serco and Sopra Steria for new government work.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-21.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-458.9% YoY

YoY Growth Rate

Earnings declining

Insider Activity

7.4%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Runway

~5 years

£372M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

£372M cash & investments at current burn rate

Revenue declining

Capita's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

14.7%

Thin — 14.7% gross margin

Profit after running costs

Operating Margin

3.1%

Thin — 3.1% operating margin

Return on the money invested

ROCE

-20.1%

Weak — -20.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-16.9%

Shrinking sales (-16.9% YoY)

Profit growth

EPS YoY

<−1,000%

Earnings shrinking (<−1,000% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-1.4%

Burning cash (-1.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

41.47

Heavy debt load (41.47)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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