ASX:MOC

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Mortgage Choice

Executive Summary

Mortgage Choice Limited provides mortgage broking services in Australia. More Details


Snowflake Analysis

Average dividend payer and slightly overvalued.


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

Stable Share Price: MOC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: MOC's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

MOC

5.8%

AU Mortgage

2.3%

AU Market


1 Year Return

-7.1%

MOC

-21.6%

AU Mortgage

-0.3%

AU Market

Return vs Industry: MOC exceeded the Australian Mortgage industry which returned -21.8% over the past year.

Return vs Market: MOC underperformed the Australian Market which returned -1% over the past year.


Shareholder returns

MOCIndustryMarket
7 Day0.8%5.8%2.3%
30 Day18.2%28.6%7.2%
90 Day80.6%44.5%8.7%
1 Year1.4%-7.1%-19.2%-21.6%3.1%-0.3%
3 Year-32.1%-46.3%3.3%-18.7%24.2%8.8%
5 Year5.6%-28.2%35.3%-16.5%55.4%24.4%

Long-Term 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?

11.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MOC (A$1.3) is trading below our estimate of fair value (A$1.46)

Significantly Below Fair Value: MOC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MOC is poor value based on its PE Ratio (17.2x) compared to the XO Mortgage industry average (15.2x).

PE vs Market: MOC is good value based on its PE Ratio (17.2x) compared to the Australian market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: MOC is poor value based on its PEG Ratio (8.2x)


Price to Book Ratio

PB vs Industry: MOC is overvalued based on its PB Ratio (1.8x) compared to the AU Mortgage industry average (1.1x).


Next Steps

Future Growth

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

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOC's forecast earnings growth (2.1% per year) is below the savings rate (2.3%).

Earnings vs Market: MOC's earnings (2.1% per year) are forecast to grow slower than the Australian market (17.9% per year).

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

Revenue vs Market: MOC's revenue (1.7% per year) is forecast to grow slower than the Australian market (5.2% per year).

High Growth Revenue: MOC's revenue (1.7% 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 (12%).


Next Steps

Past Performance

How has Mortgage Choice performed over the past 5 years?

-20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MOC has high quality earnings.

Growing Profit Margin: MOC's current net profit margins (5.4%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: MOC's earnings have declined by 20.5% per year over the past 5 years.

Accelerating Growth: MOC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MOC had negative earnings growth (-31.3%) over the past year, making it difficult to compare to the Mortgage industry average (2.7%).


Return on Equity

High ROE: MOC's Return on Equity (10.6%) is considered low.


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


Financial Institutions Analysis

Asset Level: MOC's Assets to Equity ratio (4.6x) 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, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if MOC has an appropriate level of Loans to Assets ratio.

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

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


Next Steps

Dividend

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

5.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MOC's dividend (5.38%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: MOC's dividend (5.38%) is in the top 25% of dividend payers in the Australian market (5.06%)


Stability and Growth of Payments

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: At its current payout ratio (86.2%), MOC's 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 (81.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Susan Mitchell

2.58yrs

Tenure

AU$1,035,574

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's total compensation ($USD753.64K) is above average for companies of similar size in the Australian market ($USD279.23K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Susan Mitchell
Chief Executive Officer2.58yrsAU$1.04m0.20%
A$ 325.6k
Peter Higgins
Co-Founder & Non-Executive Director 31yrsAU$104.03k0.20%
A$ 333.1k
Rodney Higgins
Co-Founder & Non-Executive Director 34.83yrsAU$104.03k12.39%
A$ 20.2m
Ian Parkes
Chief Financial Officer2.08yrsAU$591.61kno data
Vincent ten Krooden
General Manager of Technology1.83yrsAU$401.34kno data
Emma Dupont-Brown
General Manager of Product & Corporate Communicationsno dataAU$430.45k0.0075%
A$ 12.2k
Stephan Gervois
General Manager of Marketingno dataAU$335.43kno data
Marie Pitton
General Manager of Human Resourcesno dataAU$254.34k0.0062%
A$ 10.1k
Neill Rose-Innes
General Manager of Distribution5yrsAU$387.75kno data
David Zammit
General Manager of Distribution & Wealthno dataAU$370.87kno data
Scott Stierli
Company Secretaryno datano datano data

2.3yrs

Average Tenure

Experienced Management: MOC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Higgins
Co-Founder & Non-Executive Director 31yrsAU$104.03k0.20%
A$ 333.1k
Rodney Higgins
Co-Founder & Non-Executive Director 34.83yrsAU$104.03k12.39%
A$ 20.2m
Vicki Allen
Independent Non-Executive Chairman3.33yrsAU$158.78k0.048%
A$ 78.6k
Sean Clancy
Independent Non-Executive Director11.5yrsAU$114.98k0.097%
A$ 157.2k
Dharmendra Chandran
Independent Non-Executive Director1.75yrsAU$104.03kno data
Andrew Gale
Independent Non-Executive Director2.67yrsAU$114.98k0.081%
A$ 131.0k
Sarah Brennan
Independent Non-Executive Director2.67yrsAU$125.93k0.012%
A$ 19.2k

3.3yrs

Average Tenure

60yo

Average Age

Experienced Board: MOC's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$162.721m
  • Shares outstanding: 124.21m
  • 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. It operates through two segments, Mortgage Choice Franchised Mortgage Broking and Mortgage Choice’s Financial Planning Arm. The comp...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 10:43
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.