Our opinion on the current state of CAPPREC(CTA)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 handled through African Resonance and Dashpay, while the software side involves systems development and consulting. The company owns 17.5% of Resonance Australia, a startup business. All the major banks in South Africa are among its clients.
In its results for the year to 31st March 2024, the company reported revenue up 19% and headline earnings per share (HEPS) up 83%. The company said, "Strong progress arising from new and diversified revenue streams - R123 million investment in future revenue opportunities - Successful integration of the Dariel acquisition - R320 million cash generated from operations, up 75% - Continued growth in the terminal estate, up 9% to 357,000 - Multiple terminal tenders awarded post year-end."
The share now trades at a P:E of 8.67. Roughly R1.3 million worth of shares change hands each day, making 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.
Overall, Capprec presents a promising investment opportunity with strong financial performance and growth prospects. However, potential investors should monitor the technical trends and wait for a clear upward signal before considering entry.
