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.

Risks

  • Mortgage Choice has significant price volatility in the past 3 months.
  • Mortgage Choice is covered by less than 3 analysts.

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

-0.5%

ASX:MOC

4.4%

AU Mortgage

1.4%

AU Market


1 Year Return

-38.5%

ASX:MOC

2.1%

AU Mortgage

1.9%

AU Market

MOC underperformed the Mortgage industry which returned 2.1% over the past year.

MOC underperformed the Market in Australia which returned 1.9% over the past year.


Share holder returns

MOCIndustryMarket
7 Day-0.5%4.4%1.4%
30 Day-7.2%-0.5%-3.3%
90 Day6.8%14.6%0.8%
1 Year-33.2%-38.5%12.2%2.1%7.6%1.9%
3 Year-42.2%-54.0%21.0%-6.3%31.7%14.6%
5 Year-47.6%-62.6%14.8%-33.0%38.9%8.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Mortgage Choice is good value based on earnings compared to the Global Mortgage industry average.

Mortgage Choice is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Mortgage Choice is poor value based on expected growth next year.


Price Based on Value of Assets

Mortgage Choice is overvalued based on assets compared to the AU Mortgage industry average.


Next Steps

Future Growth

How is Mortgage Choice expected 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 Estimates


Future Annual Growth Analysis

Mortgage Choice's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Mortgage Choice's earnings are expected to grow by 1% yearly, however this is not considered high growth (20% yearly).

Mortgage Choice's revenue growth is positive but not above the Australia market average.

Mortgage Choice's earnings growth is positive but not above the Australia market average.

Mortgage Choice's earnings growth is positive but not above the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Mortgage Choice is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Mortgage Choice's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Mortgage Choice's 1-year earnings growth exceeds its 5-year average (223.8% vs -16.9%)

Mortgage Choice's earnings growth has exceeded the Global Mortgage industry average in the past year (223.8% vs 21.3%).


Return on Equity

Mortgage Choice has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Mortgage Choice used its assets more efficiently than the Global Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

Mortgage Choice's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Unable to establish if Mortgage Choice has an acceptable proportion of non-loan assets without balance sheet data.

Unable to establish if Mortgage Choice has a sufficient allowance for bad loans without relevant financial 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's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Mortgage Choice reports no customer deposits, loans are made up entirely of borrowed funds.

Unable to establish if Mortgage Choice has an acceptable level of bad loans without bad loans data.


Next Steps

Dividend

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

5.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Mortgage Choice's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.53%).

Mortgage Choice's dividend is below the markets top 25% of dividend payers in Australia (5.8%).

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

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Susan Mitchell 0

1.3yrs

Tenure

AU$615,074

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

Susan's remuneration is higher than average for companies of similar size in Australia.

Susan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.4yrs

Average Tenure

The average tenure for the Mortgage Choice management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.1yrs

Average Tenure

59yo

Average Age

The average tenure for the Mortgage Choice board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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BuyAU$3,091,99214 Mar 19
Spheria Asset Management Pty Ltd
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BuyAU$463,77428 Feb 19
Stephen Jermyn
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Shares500,000
Max PriceAU$0.95
SellAU$823,76911 Feb 19
Colonial First State Asset Management (Australia) Limited
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Shares1,050,038
Max PriceAU$1.03
BuyAU$1,894,14710 Jan 19
Realindex Investments Pty Limited
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Shares895,930
Max PriceAU$2.11
SellAU$3,332,63910 Jan 19
Colonial First State Asset Management (Australia) Limited
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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
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Shares158,276
Max PriceAU$1.22
BuyAU$3,308,55218 Oct 18
Spheria Asset Management Pty Ltd
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Shares2,563,372
Max PriceAU$1.53

Ownership Breakdown


Management Team

  • Peter Higgins (59yo)

    Co-Founder & Non-Executive Director

    • Tenure: 29.8yrs
    • Compensation: AU$104.03k
  • Rodney Higgins (64yo)

    Co-Founder & Non-Executive Director

    • Tenure: 33.6yrs
    • Compensation: AU$104.03k
  • Neill Rose-Innes

    General Manager of Distribution

    • Tenure: 3.8yrs
    • Compensation: AU$467.39k
  • Susan Mitchell

    Chief Executive Officer

    • Tenure: 1.3yrs
    • Compensation: AU$615.07k
  • Vincent ten Krooden

    Head of IT

    • Tenure: 1.4yrs
    • Compensation: AU$232.45k
  • Ian Parkes

    CFO & Company Secretary

    • Tenure: 0.8yrs
  • Melissa McCarney

    General Manager of Group Marketing

    • Tenure: 0.0yrs
    • Compensation: AU$349.66k
  • Emma Dupont-Brown

    General Manager of Product & Corporate Communications

    • Tenure: 0.0yrs
    • Compensation: AU$299.77k
  • Tania Milnes

    General Manager of Financial Planning

    • Tenure: 0.0yrs
    • Compensation: AU$297.17k
  • Marie Pitton

    General Manager of Human Resources

    • Tenure: 0.0yrs
    • Compensation: AU$221.75k

Board Members

  • Peter Higgins (59yo)

    Co-Founder & Non-Executive Director

    • Tenure: 29.8yrs
    • Compensation: AU$104.03k
  • Rodney Higgins (64yo)

    Co-Founder & Non-Executive Director

    • Tenure: 33.6yrs
    • Compensation: AU$104.03k
  • Vicki Allen (57yo)

    Independent Non-Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: AU$162.20k
  • Sean Clancy (59yo)

    Independent Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: AU$105.44k
  • Dharma Chandran (55yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Andrew Gale (62yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$29.08k
  • Sarah Brennan (52yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$31.92k

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$140.909m
  • 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 three segments: Mortgage Choice Franchised Mortgage Broking, Mortgage Choice Financial Planning, and Help Me ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 10:31
End of Day Share Price2019/08/23 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.