CNNE

Cannae Holdings Inc

Consumer


Presented:01/15/2019
Price:$18.07
Cap:$1.30B
Current Price:$18.45
Cap:$1.16B

Presented

Date01/15/2019
Price$18.07
Market Cap$1.30B
Ent Value$1.50B
P/E RatioN/A
Book Value$15.18
Div Yield0%
Shares O/S71.86M
Ave Daily Vol397,396
Short Int1.09%

Current

Price$18.45
Market Cap$1.16B
Cannae Holdings, Inc. engages in the management and operation of a group of companies and investments. It operates through the following business segment: Restaurant Group, Ceridian, T-System, and Corporate and Other. The Restaurant Group segment is consist of the operations of ABRH. The Ceridian segment refers to Ceridian HCM, a global company which offers a broad range of services and software designed to help employers effectively manage employment processes. The T-System segment is comprised of the operations of the wholly-owned subsidiary of the company, T-System which provides clinical documentation and coding solutions to hospital based and free standing emergency departments and urgent care facilities. The Corporate and Other segment covers certain other unallocated corporate overhead expenses and other smaller investments. The company is headquartered in Las Vegas, NV.

Publicly traded companies mentioned herein: Black Knight Inc (BKI), Cannae Holdings Inc (CNNE), Ceridian HCM Holding Inc (CDAY), Dun & Bradstreet Corp (DNB), Fidelity National Financial Inc (FNF)

Highlights

Cannae Holdings (CNNE), formerly known as Fidelity National Financial Ventures, was spun-off from FNF in November 2017. The presenter is long the stock at $18 and sees an extremely favorable risk/reward setup given 1) the stock is trading at ~71% of its NAV (and, Ceridian - CDAY - makes up the bulk of that value), and 2) Chairman Bill Foley’s proven ability to create value for shareholders. While #1 is relatively straightforward given that CDAY is publicly traded and CNNE appears to be selling down its stake, #2 is much more exciting as CNNE is leading an investor group in the purchase of Dun & Bradstreet (DNB), and Foley et al should have plenty of room to cut cost and thereby improve its margins. As such, downside risk from current levels should be negligible, and on the upside, patient shareholders could realize an 80% - 100%+ gain over the next 2 - 3 years if all goes well.

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Idea Discussion

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