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Mortgage Choice

ASX:MOC
Snowflake Description

Moderate growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MOC
ASX
A$122M
Market Cap
  1. Home
  2. AU
  3. Banks
Company description

Mortgage Choice Limited provides mortgage broking services in Australia. The last earnings update was 28 days ago. More info.


Add to Portfolio Compare Print
  • Mortgage Choice has significant price volatility in the past 3 months.
MOC Share Price and Events
7 Day Returns
2.6%
ASX:MOC
-0.4%
AU Mortgage
0.3%
AU Market
1 Year Returns
-48.3%
ASX:MOC
-7.4%
AU Mortgage
2.5%
AU Market
MOC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mortgage Choice (MOC) 2.6% 27.6% -2% -48.3% -43.8% -64.3%
AU Mortgage -0.4% 1% 6.9% -7.4% -15.6% 55.6%
AU Market 0.3% 1.5% 10.2% 2.5% 18.6% 6.2%
1 Year Return vs Industry and Market
  • MOC underperformed the Mortgage industry which returned -7.4% over the past year.
  • MOC underperformed the Market in Australia which returned 2.5% over the past year.
Price Volatility
MOC
Industry
5yr Volatility vs Market

Value

 Is Mortgage Choice undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mortgage Choice to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mortgage Choice.

ASX:MOC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= A$0.83 * 19.1%
A$0.16
Book Value of Equity per Share Median Book Value from the past 5 years. A$0.83
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:MOC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.885 (1 + (1- 30%) (3.28%))
0.937
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.937 * 5.96%)
7.89%

Discounted Cash Flow Calculation for ASX:MOC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Mortgage Choice is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:MOC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (19.1% – 7.89%) * A$0.83)
A$0.09
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.09 / (7.89% - 2.31%)
A$1.66
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$0.83 + A$1.66
A$2.48
ASX:MOC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.48
Current discount Discount to share price of A$0.97
= -1 x (A$0.97 - A$2.48) / A$2.48
60.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Mortgage Choice is available for.
Intrinsic value
>50%
Share price is A$0.97 vs Future cash flow value of A$2.48
Current Discount Checks
For Mortgage Choice to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Mortgage Choice's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Mortgage Choice's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mortgage Choice's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mortgage Choice's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:MOC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$-0.01
ASX:MOC Share Price ** ASX (2019-03-20) in AUD A$0.97
Global Mortgage Industry PE Ratio Median Figure of 176 Publicly-Listed Mortgage Companies 14.22x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mortgage Choice.

ASX:MOC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:MOC Share Price ÷ EPS (both in AUD)

= 0.97 ÷ -0.01

-150.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mortgage Choice is loss making, we can't compare its value to the Global Mortgage industry average.
  • Mortgage Choice is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Mortgage Choice's expected growth come at a high price?
Raw Data
ASX:MOC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -150.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
88%per year
Global Mortgage Industry PEG Ratio Median Figure of 71 Publicly-Listed Mortgage Companies 1.09x
Australia Market PEG Ratio Median Figure of 362 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Mortgage Choice, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Mortgage Choice's assets?
Raw Data
ASX:MOC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.66
ASX:MOC Share Price * ASX (2019-03-20) in AUD A$0.97
Australia Mortgage Industry PB Ratio Median Figure of 6 Publicly-Listed Mortgage Companies 1.07x
Australia Market PB Ratio Median Figure of 1,669 Publicly-Listed Companies 1.68x
ASX:MOC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:MOC Share Price ÷ Book Value per Share (both in AUD)

= 0.97 ÷ 0.66

1.47x

* Primary Listing of Mortgage Choice.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mortgage Choice is overvalued based on assets compared to the AU Mortgage industry average.
X
Value checks
We assess Mortgage Choice's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. Mortgage Choice has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
88%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mortgage Choice expected to grow at an attractive rate?
  • Mortgage Choice's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Mortgage Choice's earnings growth is expected to exceed the Australia market average.
  • Mortgage Choice's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:MOC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:MOC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 88%
ASX:MOC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts -6%
Global Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 3%
Global Mortgage Industry Revenue Growth Rate Market Cap Weighted Average -6.4%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.5%
Australia Market Revenue Growth Rate Market Cap Weighted Average 2.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:MOC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:MOC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-06-30 186 14 1
2019-06-30 185 14 1
ASX:MOC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 206 17 -1
2018-09-30 211 20 2
2018-06-30 215 22 4
2018-03-31 205 25 13
2017-12-31 193 26 22
2017-09-30 195 25 22
2017-06-30 197 24 22
2017-03-31 195 23 21
2016-12-31 193 21 20
2016-09-30 194 21 20
2016-06-30 195 21 20
2016-03-31 191 22 20

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mortgage Choice's earnings are expected to grow significantly at over 20% yearly.
  • Mortgage Choice's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:MOC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Mortgage Choice Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MOC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-06-30 0.11 0.11 0.11 1.00
2019-06-30 0.11 0.11 0.11 1.00
ASX:MOC Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 -0.01
2018-09-30 0.01
2018-06-30 0.03
2018-03-31 0.11
2017-12-31 0.18
2017-09-30 0.18
2017-06-30 0.18
2017-03-31 0.17
2016-12-31 0.16
2016-09-30 0.16
2016-06-30 0.16
2016-03-31 0.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Mortgage Choice will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Mortgage Choice's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mortgage Choice has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Mortgage Choice performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mortgage Choice's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mortgage Choice does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Mortgage Choice's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Mortgage Choice's 1-year growth to the Global Mortgage industry average as it is not currently profitable.
Earnings and Revenue History
Mortgage Choice's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mortgage Choice Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MOC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 206.33 -0.81 33.47
2018-09-30 210.64 1.71 34.15
2018-06-30 214.94 4.24 34.83
2018-03-31 204.58 13.21 35.69
2017-12-31 193.38 22.18 36.55
2017-09-30 195.21 22.18 36.53
2017-06-30 197.05 22.18 36.50
2017-03-31 195.18 21.20 35.08
2016-12-31 193.32 20.22 33.67
2016-09-30 193.91 19.88 35.40
2016-06-30 194.51 19.54 37.13
2016-03-31 191.00 19.59 37.34
2015-12-31 187.50 19.63 37.54
2015-09-30 185.08 19.24 37.62
2015-06-30 182.67 18.86 37.69
2015-03-31 184.31 18.81 36.75
2014-12-31 185.94 18.77 35.81
2014-09-30 181.36 18.66 34.83
2014-06-30 176.78 18.55 33.86
2014-03-31 172.10 19.78 34.12
2013-12-31 167.43 21.02 34.38
2013-09-30 160.67 20.03 33.11
2013-06-30 153.91 19.03 31.84
2013-03-31 155.68 19.41 30.80
2012-12-31 157.45 19.78 29.75
2012-09-30 156.69 19.12 30.29
2012-06-30 155.93 18.46 30.82
2012-03-31 163.75 21.78 13.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Mortgage Choice has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Mortgage Choice has efficiently used its assets last year compared to the Global Mortgage industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Mortgage Choice improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Mortgage Choice's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mortgage Choice has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

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

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Mortgage Choice's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mortgage Choice Company Filings, last reported 2 months ago.

ASX:MOC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 82.70 4.00 0.46
2018-09-30 82.70 4.00 0.46
2018-06-30 85.65 0.00 3.35
2018-03-31 85.65 0.00 3.35
2017-12-31 104.92 0.00 7.08
2017-09-30 104.92 0.00 7.08
2017-06-30 104.19 0.00 8.65
2017-03-31 104.19 0.00 8.65
2016-12-31 103.62 0.00 6.81
2016-09-30 103.62 0.00 6.81
2016-06-30 102.33 0.00 8.07
2016-03-31 102.33 0.00 8.07
2015-12-31 103.04 0.00 6.88
2015-09-30 103.04 0.00 6.88
2015-06-30 101.91 0.00 7.83
2015-03-31 101.91 0.00 7.83
2014-12-31 102.21 0.00 6.26
2014-09-30 102.21 0.00 6.26
2014-06-30 102.33 0.00 12.45
2014-03-31 102.33 0.00 12.45
2013-12-31 102.10 0.00 10.93
2013-09-30 102.10 0.00 10.93
2013-06-30 99.13 0.00 10.95
2013-03-31 99.13 0.00 10.95
2012-12-31 94.92 0.00 8.54
2012-09-30 94.92 0.00 8.54
2012-06-30 93.62 0.00 10.66
2012-03-31 93.62 0.00 10.66
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Unable to establish if Mortgage Choice has an acceptable proportion of non-loan assets without balance sheet data.
  • Unable to establish if Mortgage Choice's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.
  • Mortgage Choice reports no customer deposits, loans are made up entirely of borrowed funds.
  • Mortgage Choice's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Unable to establish if Mortgage Choice has a sufficient allowance for bad loans without relevant financial data.
  • Unable to establish if Mortgage Choice has an acceptable level of bad loans without bad loans data.
X
Financial health checks
We assess Mortgage Choice's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mortgage Choice has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.19%
Current annual income from Mortgage Choice dividends. Estimated to be 6.19% next year.
If you bought A$2,000 of Mortgage Choice shares you are expected to receive A$124 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mortgage Choice's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.61%).
  • Mortgage Choice's dividend is above the markets top 25% of dividend payers in Australia (5.71%).
Upcoming dividend payment

Purchase Mortgage Choice on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:MOC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Global Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 133 Stocks 2.7%
Australia Market Average Dividend Yield Market Cap Weighted Average of 418 Stocks 4.4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:MOC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2020-06-30 0.06 1.00
2019-06-30 0.06 1.00
ASX:MOC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-20 0.060 6.716
2018-08-20 0.180 15.509
2018-02-21 0.180 10.364
2017-08-23 0.180 7.689
2017-02-22 0.170 7.546
2016-08-24 0.170 7.578
2016-02-17 0.160 8.746
2015-08-27 0.155 8.489
2015-08-18 0.155 7.661
2014-08-28 0.160 6.310
2014-08-20 0.160 5.321
2013-08-29 0.130 4.548
2013-08-21 0.130 5.202
2013-02-21 0.130 5.967
2012-08-29 0.130 7.666
2012-08-22 0.130 8.554
2011-08-24 0.130 9.945
2010-08-25 0.130 9.951
2009-08-21 0.103 8.457
2009-03-23 0.128 13.791

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Mortgage Choice's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Mortgage Choice's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mortgage Choice afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mortgage Choice has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Susan Mitchell
COMPENSATION A$615,074
TENURE AS CEO 0.9 years
CEO Bio

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, 2018. Ms. Mitchell served as Chief Financial Officer of Seiza Capital. Ms. Mitchell is an experienced Senior Finance Executive and Chief Financial Officer, having previously worked across ASX listed and start-up private equity backed financial institutions, subsidiaries of global banks and a major international accounting firm. Ms. Mitchell has a Bachelor of Fine Arts from the Tulane University, Louisiana and a Masters of Business Administration from the University of Texas. She is also US CPA Qualified and a graduate of the Australian Institute of Company Directors.

CEO Compensation
  • Susan's compensation has increased whilst company is loss making.
  • Susan's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Mortgage Choice management team in years:

1
Average Tenure
  • The average tenure for the Mortgage Choice management team is less than 2 years, this suggests a new team.
Management Team

Susan Mitchell

TITLE
Chief Executive Officer
COMPENSATION
A$615K
TENURE
0.9 yrs

Peter Higgins

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
A$104K
AGE
58

Rodney Higgins

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
A$104K
AGE
63

Vincent ten Krooden

TITLE
Head of Technology
COMPENSATION
A$232K
TENURE
1 yrs

Melissa McCarney

TITLE
General Manager of Group Marketing & Communications
COMPENSATION
A$350K

Marie Pitton

TITLE
General Manager of Human Resources
COMPENSATION
A$222K

Neill Rose-Innes

TITLE
General Manager of Distribution
COMPENSATION
A$467K
TENURE
3.3 yrs

Emma Dupont-Brown

TITLE
General Manager of Product
COMPENSATION
A$300K
TENURE
3.7 yrs

Tania Milnes

TITLE
General Manager of Financial Planning
COMPENSATION
A$297K

Ian Parkes

TITLE
Chief Financial Officer
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Mortgage Choice board of directors in years:

5.8
Average Tenure
58
Average Age
  • The tenure for the Mortgage Choice board of directors is about average.
Board of Directors

Vicki Allen

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$162K
AGE
56
TENURE
1.7 yrs

Peter Higgins

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
A$104K
AGE
58
TENURE
29.3 yrs

Rodney Higgins

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
A$104K
AGE
63
TENURE
33.2 yrs

Sean Clancy

TITLE
Independent Non-Executive Director
COMPENSATION
A$105K
AGE
58
TENURE
9.8 yrs

Sarah Brennan

TITLE
Independent Non-Executive Director
COMPENSATION
A$32K
AGE
51
TENURE
1 yrs

Andrew Gale

TITLE
Independent Non-Executive Director
COMPENSATION
A$29K
AGE
60
TENURE
1 yrs

Steve Jermyn

TITLE
Independent Non-Executive Director
COMPENSATION
A$105K
AGE
69
TENURE
14.8 yrs

Dharma Chandran

TITLE
Director
AGE
54
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Mortgage Choice insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
14. Mar 19 Buy Spheria Asset Management Pty Ltd Company 11. Jan 19 14. Mar 19 3,483,903 A$0.98 A$3,091,992
28. Feb 19 Buy Stephen Jermyn Individual 25. Feb 19 28. Feb 19 500,000 A$0.95 A$463,774
11. Feb 19 Sell Colonial First State Asset Management (Australia) Limited Company 22. Jan 19 07. Feb 19 -1,050,038 A$1.03 A$-823,769
10. Jan 19 Buy Realindex Investments Pty Limited Company 18. Sep 15 25. Oct 18 895,930 A$2.11 A$1,894,147
10. Jan 19 Sell Colonial First State Asset Management (Australia) Limited Company 23. Jul 15 09. Jan 19 -2,118,143 A$2.42 A$-3,332,639
09. Jan 19 Buy Spheria Asset Management Pty Ltd Company 28. Dec 18 07. Jan 19 2,958,850 A$0.98 A$2,891,337
18. Dec 18 Buy Spheria Asset Management Pty Ltd Company 09. Nov 18 15. Nov 18 158,276 A$1.22 A$192,220
18. Oct 18 Buy Spheria Asset Management Pty Ltd Company 16. Jul 18 16. Oct 18 2,563,372 A$1.53 A$3,308,552
01. Jul 18 Sell FIL Limited Company 11. Mar 14 27. Jun 18 -1,562,222 A$3.02 A$0
01. Jul 18 Buy Spheria Asset Management Pty Ltd Company 02. May 18 27. Jun 18 2,528,206 A$1.97 A$3,624,069
10. Apr 18 Sell Pinnacle Fund Services Limited Company 03. Apr 18 09. Apr 18 -119,611 A$1.77 A$-210,329
10. Apr 18 Buy Pinnacle Fund Services Limited Company 03. Apr 18 03. Apr 18 81,669 A$1.79 A$145,413
12. Apr 18 Buy Spheria Asset Management Pty Ltd Company 12. Jan 17 10. Apr 18 1,367,587 A$1.93 A$2,635,727
04. Apr 18 Buy Pinnacle Fund Services Limited Company 13. Dec 17 28. Mar 18 1,650,523 A$2.38 A$3,922,922
26. Mar 18 Buy Sean Clancy Individual 23. Mar 18 23. Mar 18 45,000 A$1.75 A$78,750
X
Management checks
We assess Mortgage Choice's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mortgage Choice has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Some Mortgage Choice Shareholders Have Taken A Painful 76% Share Price Drop

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Looking back five years, both Mortgage Choice's share price and EPS declined; the latter at a rate of 26% per year. … So it's fair to say the share price has been responding to changes in EPS.

Simply Wall St -

Does Mortgage Choice Limited (ASX:MOC) Have A Particularly Volatile Share Price?

If you're interested in Mortgage Choice Limited (ASX:MOC), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

How Much Of Mortgage Choice Limited (ASX:MOC) Do Insiders Own?

A look at the shareholders of Mortgage Choice Limited (ASX:MOC) can tell us which group is most powerful. … With a market capitalization of AU$120m, Mortgage Choice is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for Mortgage Choice

Simply Wall St -

When Should You Buy Mortgage Choice Limited (ASX:MOC)?

Mortgage Choice Limited (ASX:MOC), operating in the financial services industry based in Australia,. … A question to answer is whether Mortgage Choice's current trading price of A$1.26 reflective of the actual value of the? … Let’s take a look at Mortgage Choice’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

How Mortgage Choice Limited (ASX:MOC) Can Impact Your Portfolio Volatility

If you're interested in Mortgage Choice Limited (ASX:MOC), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful.

Simply Wall St -

Should You Follow This Trend For Mortgage Choice Limited (ASX:MOC)?

Mortgage Choice Limited provides mortgage broking services in Australia. … Generally, insiders buying more shares in their own firm sends a bullish signal … The MIT Press (1998) published an article showing that stocks following insider buying outperformed the market by 4.5%

Simply Wall St -

Has Mortgage Choice Limited (ASX:MOC) Improved Earnings In Recent Times?

In this article, I will take a look at Mortgage Choice Limited's (ASX:MOC) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … View our latest analysis for Mortgage Choice? … Did MOC beat its long-term earnings growth trend and its industry.

Simply Wall St -

Should You Buy Mortgage Choice Limited (ASX:MOC) For Its Dividend?

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … In the past 10 years Mortgage Choice Limited (ASX:MOC) has returned an average of 9.00% per year to investors in the form of dividend payouts. … Does Mortgage Choice tick all the boxes of a great dividend stock?

Simply Wall St -

Is Mortgage Choice Limited's (ASX:MOC) PE Ratio A Signal To Buy For Investors?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for MOC Price per share = A$1.85 Earnings per share = A$0.178 ∴ Price-Earnings Ratio = A$1.85 ÷ A$0.178 = 10.4x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … Since MOC's P/E of 10.4x is lower than its industry peers (18.2x), it means that investors are paying less than they should for each dollar of MOC's earnings. … For example, if you are inadvertently comparing lower risk firms with MOC, then MOC’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

Can Mortgage Choice Limited (ASX:MOC) Continue To Outperform Its Industry?

View our latest analysis for Mortgage Choice Breaking down Return on Equity Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Mortgage Choice’s equity capital deployed. … Given a positive discrepancy of 12.59% between return and cost, this indicates that Mortgage Choice pays less for its capital than what it generates in return, which is a sign of capital efficiency.

Simply Wall St -

Company Info

Description

Mortgage Choice Limited provides mortgage broking services in Australia. The company operates in three segments: Mortgage Choice Franchised Mortgage Broking, Mortgage Choice Financial Planning, and Help Me Choose Health Fund and Mortgage Comparison Website. It offers assistance in determining the borrowing capacities of residential mortgage borrowers; and assessment of a range of home loans products, as well as submits loan applications on behalf of borrowers. The company also provides assistance with personal loans, car loans, equipment finance, and small business and commercial finance; and financial planning services. In addition, it offers life, mortgage and income protection, car, home building and contents, lenders mortgage insurance, and landlord products. The company provides loan origination services through its franchise network. Mortgage Choice Limited was founded in 1992 and is headquartered in North Sydney, Australia.

Details
Name: Mortgage Choice Limited
MOC
Exchange: ASX
Founded: 1992
A$122,104,160
123,963,615
Website: http://www.mortgagechoice.com.au
Address: Mortgage Choice Limited
100 Pacific Highway,
Level 10,
North Sydney,
New South Wales, 2060,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX MOC Ordinary Shares Australian Securities Exchange AU AUD 10. Aug 2004
CHIA MOC Ordinary Shares Chi-X Australia AU AUD 10. Aug 2004
Number of employees
Current staff
Staff numbers
0
Mortgage Choice employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 10:30
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/02/21
Last earnings filing: 2019/02/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.