ASX:MOC

Stock Analysis Report

Mortgage Choice

Executive Summary

Mortgage Choice Limited provides mortgage broking services in Australia.

Snowflake

Fundamentals

Good value with acceptable track record.


Similar Companies

Share Price & News

How has Mortgage Choice's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

MOC

3.1%

AU Mortgage

0.1%

AU Market


1 Year Return

13.8%

MOC

37.2%

AU Mortgage

11.9%

AU Market

Return vs Industry: MOC underperformed the Australian Mortgage industry which returned 37.2% over the past year.

Return vs Market: MOC exceeded the Australian Market which returned 11.9% over the past year.


Shareholder returns

MOCIndustryMarket
7 Day2.1%3.1%0.1%
30 Day30.2%6.8%-1.1%
90 Day24.6%16.1%-1.4%
1 Year20.4%13.8%51.0%37.2%18.5%11.9%
3 Year-20.2%-35.8%45.0%11.9%36.4%18.1%
5 Year-20.6%-44.8%44.1%-16.2%50.9%16.7%

Price Volatility Vs. Market

How volatile is Mortgage Choice's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mortgage Choice undervalued compared to its fair value and its price relative to the market?

45.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MOC (A$1.45) is trading below our estimate of fair value (A$2.63)

Significantly Below Fair Value: MOC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MOC is good value based on its PE Ratio (13.2x) compared to the Mortgage industry average (13.7x).

PE vs Market: MOC is good value based on its PE Ratio (13.2x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MOC is poor value based on its PEG Ratio (13.3x)


Price to Book Ratio

PB vs Industry: MOC is overvalued based on its PB Ratio (2.1x) compared to the AU Mortgage industry average (1x).


Next Steps

Future Growth

How is Mortgage Choice forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOC's forecast earnings growth (1% per year) is below the savings rate (2.3%).

Earnings vs Market: MOC's earnings (1% per year) are forecast to grow slower than the Australian market (10.2% per year).

High Growth Earnings: MOC's earnings are forecast to grow, but not significantly.

Revenue vs Market: MOC's revenue (3.6% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: MOC's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MOC's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Mortgage Choice performed over the past 5 years?

-16.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MOC's earnings have declined by -16.9% per year over the past 5 years.

Accelerating Growth: MOC's earnings growth over the past year (223.8%) exceeds its 5-year average (-16.9% per year).

Earnings vs Industry: MOC earnings growth over the past year (223.8%) exceeded the Mortgage industry 19.1%.


Return on Equity

High ROE: MOC's Return on Equity (15.9%) is considered low.


Return on Assets

ROA vs Industry: MOC has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: MOC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Mortgage Choice's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MOC has a low level of unsold assets or inventory.

Debt Coverage by Assets: MOC's debt is covered by short term assets (assets are 45.7x debt).


Financial Institutions Analysis

Asset Level: MOC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MOC has a sufficient allowance for bad loans.

Low Risk Liabilities: MOC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MOC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MOC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MOC has an appropriate level of bad loans.


Next Steps

Dividend

What is Mortgage Choice's current dividend yield, its reliability and sustainability?

4.15%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.4%markettop25%5.6%industryaverage2.5%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MOC's dividend (4.15%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: MOC's dividend (4.15%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: MOC's dividend payments have been volatile in the past 10 years.

Growing Dividend: MOC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.6%), MOC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MOC's dividends in 3 years are forecast to be covered by earnings (54.5% payout ratio).


Next Steps

Management

What is the CEO of Mortgage Choice's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Susan Mitchell 0

1.5yrs

Tenure

AU$753,087

Compensation

Ms. Susan R. Mitchell is the Chief Executive Officer at Mortgage Choice Limited since April 3, 2018 and was its acting Chief Financial Officer/Chief Financial Officer since February 27, 2009 until April 3, ...


CEO Compensation Analysis

Compensation vs. Market: Susan has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

Compensation vs Earnings: Susan's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

Experienced Management: MOC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

59yo

Average Age

Experienced Board: MOC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$1,549,80212 Jun 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares1,428,994
Max PriceAU$1.23
BuyAU$729,05517 May 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares799,408
Max PriceAU$0.97
BuyAU$1,341,83202 Apr 19
Spheria Asset Management Pty Ltd
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Shares1,367,823
Max PriceAU$1.01
BuyAU$3,091,99214 Mar 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares3,483,903
Max PriceAU$0.98
BuyAU$463,77428 Feb 19
Stephen Jermyn
EntityIndividual
Shares500,000
Max PriceAU$0.95
SellAU$823,76911 Feb 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,050,038
Max PriceAU$1.03
BuyAU$1,894,14710 Jan 19
Realindex Investments Pty Limited
EntityCompany
Shares895,930
Max PriceAU$2.11
SellAU$3,332,63910 Jan 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,118,143
Max PriceAU$2.42
BuyAU$2,891,33709 Jan 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares2,958,850
Max PriceAU$0.98
BuyAU$192,22018 Dec 18
Spheria Asset Management Pty Ltd
EntityCompany
Shares158,276
Max PriceAU$1.22

Ownership Breakdown


Management Team

  • Peter Higgins (59yo)

    Co-Founder & Non-Executive Director

    • Tenure: 29.9yrs
    • Compensation: AU$104.03k
  • Rodney Higgins (64yo)

    Co-Founder & Non-Executive Director

    • Tenure: 33.8yrs
    • Compensation: AU$104.03k
  • Neill Rose-Innes

    General Manager of Distribution

    • Tenure: 3.9yrs
    • Compensation: AU$387.85k
  • Susan Mitchell

    Chief Executive Officer

    • Tenure: 1.5yrs
    • Compensation: AU$753.09k
  • Vincent ten Krooden

    General Manager of Technology

    • Tenure: 0.8yrs
    • Compensation: AU$228.87k
  • Ian Parkes

    CFO & Company Secretary

    • Tenure: 1yrs
    • Compensation: AU$351.36k
  • Melissa McCarney

    General Manager of Group Marketing

    • Tenure: 0yrs
    • Compensation: AU$321.30k
  • Emma Dupont-Brown

    General Manager of Product & Corporate Communications

    • Tenure: 0yrs
    • Compensation: AU$278.78k
  • Tania Milnes

    General Manager of Financial Planning

    • Tenure: 0yrs
    • Compensation: AU$261.72k
  • Marie Pitton

    General Manager of Human Resources

    • Tenure: 0yrs
    • Compensation: AU$222.34k

Board Members

  • Peter Higgins (59yo)

    Co-Founder & Non-Executive Director

    • Tenure: 29.9yrs
    • Compensation: AU$104.03k
  • Rodney Higgins (64yo)

    Co-Founder & Non-Executive Director

    • Tenure: 33.8yrs
    • Compensation: AU$104.03k
  • Vicki Allen (57yo)

    Independent Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: AU$158.78k
  • Sean Clancy (59yo)

    Independent Non-Executive Director

    • Tenure: 10.4yrs
    • Compensation: AU$114.98k
  • Dharma Chandran (55yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
    • Compensation: AU$37.48k
  • Andrew Gale (62yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$113.15k
  • Sarah Brennan (52yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$125.93k

Company Information

Mortgage Choice Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mortgage Choice Limited
  • Ticker: MOC
  • Exchange: ASX
  • Founded: 1992
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: AU$193.673m
  • Shares outstanding: 124.15m
  • Website: https://www.mortgagechoice.com.au

Location

  • Mortgage Choice Limited
  • 100 Pacific Highway
  • Level 10
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MOCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2004
MOCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2004

Biography

Mortgage Choice Limited provides mortgage broking services in Australia. The company operates in two segments, Mortgage Choice Franchised Mortgage Broking and Mortgage Choice Financial Planning. It offers  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:31
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.