Cannae Holdings Inc. Common Stock (CNNE)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I see Cannae as a holding company first, not a restaurant chain. Its value depends on the assets it owns and the discipline of its capital allocation. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $102.2 million and net income was $37.5 million, or $0.86 per diluted share. That is a welcome positive, but one quarter does not make a trend. In fiscal FY2025, the period ended 2025-12-31, revenue was $423.6 million and net income was a loss of $513.2 million, or -$9.08 per diluted share. Fiscal FY2024 and FY2023 also had losses of $304.6 million and $313.4 million, respectively. The Lynch category is none because it has lost money in each of the last four years. That is not an earnings record Graham would trust. The balance sheet offers some support. At the 2026-10-13 close of $15.72, FairStock calculates price/book of 0.71, a discount to book value, and debt/equity is only 0.22. But trailing free cash flow is negative $43.4 million, a -6.4% FCF yield, and the Altman Z-score of 1.24 suggests financial stress. FairStock also shows ROE of -14.65%. Filed revenue has fallen from $570.0 million in fiscal FY2023 to $452.5 million in fiscal FY2024 to $423.6 million in fiscal FY2025. The 4.01% dividend yield is attractive only if asset value and cash generation can support it. Cannae has no obvious operating moat; its edge must come from buying well and selling well. The 0.71 price/book could be a margin of safety if book value is real and stable. But with negative earnings, negative free cash flow, and a FairStock score of 38/100, I would call it a speculative asset play, not a compounder. I need evidence of durable positive earnings and cash flow before trusting the discount.

In plain English: Cannae Holdings is an investment company that owns stakes in restaurants, healthcare services, financial services and other businesses. It has lost money in each of the last four years and is currently using more cash than it brings in, so the business looks weak. The stock price is below the stated value of its net assets, which may look cheap, but the losses make that discount uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer