ASX:MOC

Stock Analysis Report

Mortgage Choice

Executive Summary

Mortgage Choice Limited provides mortgage broking services in Australia.


Snowflake Analysis

Undervalued with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.7%

MOC

2.1%

AU Mortgage

4.9%

AU Market


1 Year Return

-27.7%

MOC

-12.3%

AU Mortgage

-14.2%

AU Market

Return vs Industry: MOC underperformed the Australian Mortgage industry which returned -14.8% over the past year.

Return vs Market: MOC underperformed the Australian Market which returned -17.5% over the past year.


Shareholder returns

MOCIndustryMarket
7 Day4.7%2.1%4.9%
30 Day-21.3%-21.5%-8.9%
90 Day-46.8%-38.3%-22.7%
1 Year-22.3%-27.7%-0.7%-12.3%-10.3%-14.2%
3 Year-63.4%-71.0%-13.1%-33.9%2.6%-11.6%
5 Year-62.5%-74.4%-9.5%-47.4%13.9%-11.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MOC (A$0.67) is trading below our estimate of fair value (A$2.2)

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 (7.3x) compared to the Mortgage industry average (9.2x).

PE vs Market: MOC is good value based on its PE Ratio (7.3x) compared to the Australian market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: MOC is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MOC is overvalued based on its PB Ratio (0.9x) compared to the AU Mortgage industry average (0.9x).


Next Steps

Future Growth

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

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOC's forecast earnings growth (11.8% per year) is above the savings rate (1.1%).

Earnings vs Market: MOC's earnings (11.8% per year) are forecast to grow faster than the Australian market (10.5% per year).

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

Revenue vs Market: MOC's revenue (6.9% per year) is forecast to grow faster than the Australian market (4% per year).

High Growth Revenue: MOC's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MOC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Mortgage Choice performed over the past 5 years?

-18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MOC has high quality earnings.

Growing Profit Margin: MOC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MOC's earnings have declined by -18.4% per year over the past 5 years.

Accelerating Growth: MOC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MOC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage industry (10.9%).


Return on Equity

High ROE: MOC's Return on Equity (13%) 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 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?

9.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MOC's dividend (9.02%) is higher than the bottom 25% of dividend payers in the Australian market (2.99%).

High Dividend: MOC's dividend (9.02%) is in the top 25% of dividend payers in the Australian market (7.83%)


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: With its reasonable payout ratio (66%), MOC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Susan Mitchell

2s

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's total compensation ($USD469.18K) is above average for companies of similar size in the Australian market ($USD241.93K).

Compensation vs Earnings: Susan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Susan Mitchell
Chief Executive Officer2yrsAU$753.09k0.15% A$117.4k
Peter Higgins
Co-Founder & Non-Executive Director 30.42yrsAU$104.03k0.20% A$162.7k
Rodney Higgins
Co-Founder & Non-Executive Director 34.25yrsAU$104.03k12.26% A$9.7m
Ian Parkes
CFO & Company Secretary1.5yrsAU$351.36kno data
Vincent ten Krooden
General Manager of Technology1.25yrsAU$228.87kno data
Emma Dupont-Brown
General Manager of Product & Corporate Communicationsno dataAU$278.78k0.0075% A$5.9k
Melissa McCarney
General Manager of Group Marketingno dataAU$321.30k0.012% A$9.2k
Marie Pitton
General Manager of Human Resourcesno dataAU$222.34k0.0062% A$4.9k
Neill Rose-Innes
General Manager of Distribution4.42yrsAU$387.85k0.068% A$54.0k
Dean Thomas
Chief Advice Officer0.42yrno datano data

1.5yrs

Average Tenure

Experienced Management: MOC's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Higgins
Co-Founder & Non-Executive Director 30.42yrsAU$104.03k0.20% A$162.7k
Rodney Higgins
Co-Founder & Non-Executive Director 34.25yrsAU$104.03k12.26% A$9.7m
Vicki Allen
Independent Non-Executive Chairman2.75yrsAU$158.78k0.048% A$38.4k
Sean Clancy
Independent Non-Executive Director10.92yrsAU$114.98k0.097% A$76.8k
Dharmendra Chandran
Independent Non-Executive Director1.17yrsAU$37.48kno data
Andrew Gale
Independent Non-Executive Director2.08yrsAU$113.15k0.081% A$64.0k
Sarah Brennan
Independent Non-Executive Director2.08yrsAU$125.93k0.012% A$9.3k

2.8yrs

Average Tenure

59yo

Average Age

Experienced Board: MOC's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: MOC 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$79.455m
  • 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 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 car loans, equipment finance, general insurance, and personal loans to support personal and home pursuits and/or consolidate debts; and financial planning services. In addition, it offers life, mortgage and income protection, car, home building and contents, lenders mortgage, and landlord insurance 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 10:31
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.