| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 52.33 | -28 |
| Intrinsic value (DCF) | 41.50 | -43 |
| Graham-Dodd Method | 0.83 | -99 |
| Graham Formula | n/a |
CAB Payments Holdings Limited (CABP.L) is a UK-based financial services company specializing in foreign exchange (FX) and cross-border payments solutions. Operating in the diversified banking sector, CAB Payments serves a diverse clientele, including banks, fintech firms, development organizations, and governments globally. The company's flagship offerings include EMpower FX, an automated payments gateway for cross-border transactions, EMpower Payments for daily FX exposures, EMpower Connect for hard currency payments, and EMpower Pensions for pension payment services. Additionally, CAB Payments provides banking services such as transaction accounts, deposit services, and trade consulting. Founded in 2015 and headquartered in Sutton, UK, the company rebranded from CABIM Limited to CAB Payments Holdings Limited in 2023. With a market capitalization of approximately £105.85 million, CAB Payments is positioned as a niche player in the competitive cross-border payments and FX market, leveraging technology to streamline international transactions.
CAB Payments Holdings presents a high-risk, high-reward investment opportunity, underscored by its volatile beta of 3.39. The company operates in a competitive and rapidly evolving fintech and FX payments landscape, which demands continuous innovation and regulatory compliance. While CAB Payments reported revenue of £105.54 million and net income of £14.21 million, its diluted EPS of 5.59p suggests modest profitability. The absence of debt and a strong cash position (£1.08 billion) provide financial stability, but the lack of dividends may deter income-focused investors. The company's growth hinges on expanding its digital payment solutions and capturing market share in emerging markets, where cross-border payment demand is rising. Investors should weigh its technological capabilities against intense competition from established financial institutions and fintech disruptors.
CAB Payments Holdings competes in the crowded cross-border payments and FX services market, where differentiation is critical. Its competitive advantage lies in its specialized EMpower platform suite, which targets underserved segments like development organizations and governments. The company's end-to-end automated solutions offer efficiency and scalability, appealing to clients seeking streamlined international transactions. However, CAB Payments faces stiff competition from global banks with extensive FX desks and fintech firms like Wise and Revolut, which dominate the retail and SME segments. The company's niche focus on B2B and institutional clients provides some insulation from mass-market competition but limits its growth potential compared to broader platforms. Additionally, regulatory complexities in cross-border payments pose operational risks. CAB Payments' lack of debt is a strength, but its relatively small market cap may hinder its ability to invest aggressively in technology and expansion. To sustain growth, the company must enhance its technological edge, forge strategic partnerships, and possibly explore M&A opportunities to scale its operations.