Pepper Money Limited operates as a non-bank lender in the mortgage and asset finance markets in Australia and New Zealand.
No risks detected for PPM from our risk checks.
Pepper Money Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$2.45|
|52 Week High||AU$2.32|
|52 Week Low||AU$2.86|
|1 Month Change||-3.92%|
|3 Month Change||0%|
|1 Year Change||n/a|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-6.13%|
Recent News & Updates
|PPM||AU Mortgage||AU Market|
Return vs Industry: Insufficient data to determine how PPM performed against the Australian Mortgage industry.
Return vs Market: Insufficient data to determine how PPM performed against the Australian Market.
Stable Share Price: PPM is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: Insufficient data to determine PPM's volatility change over the past year.
About the Company
Pepper Money Limited operates as a non-bank lender in the mortgage and asset finance markets in Australia and New Zealand. The company provides home loans; personal, debt consolidation, renovation, holiday, car, and wedding loans; and asset finance solutions. It also operates as a loan servicer that manages its own-originated and third-party originated loan books across a range of real estate and consumer loan asset classes, as well as broker portal.
Pepper Money Fundamentals Summary
|PPM fundamental statistics|
Is PPM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PPM income statement (TTM)|
|Cost of Revenue||AU$44.43m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.26|
|Net Profit Margin||30.20%|
How did PPM perform over the long term?See historical performance and comparison
Is Pepper Money undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PPM (A$2.45) is trading below our estimate of fair value (A$2.87)
Significantly Below Fair Value: PPM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PPM is good value based on its PE Ratio (9.3x) compared to the Oceanic Mortgage industry average (14.7x).
PE vs Market: PPM is good value based on its PE Ratio (9.3x) compared to the Australian market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: PPM is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: PPM is overvalued based on its PB Ratio (2x) compared to the AU Mortgage industry average (0.9x).
How is Pepper Money forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PPM's forecast earnings growth (8.4% per year) is above the savings rate (1.9%).
Earnings vs Market: PPM's earnings (8.4% per year) are forecast to grow slower than the Australian market (11.7% per year).
High Growth Earnings: PPM's earnings are forecast to grow, but not significantly.
Revenue vs Market: PPM's revenue (7% per year) is forecast to grow faster than the Australian market (5.5% per year).
High Growth Revenue: PPM's revenue (7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PPM's Return on Equity is forecast to be low in 3 years time (19.4%).
How has Pepper Money performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PPM has high quality earnings.
Growing Profit Margin: PPM's current net profit margins (30.2%) are higher than last year (15.5%).
Past Earnings Growth Analysis
Earnings Trend: PPM's earnings have grown by 19.6% per year over the past 5 years.
Accelerating Growth: PPM's earnings growth over the past year (55.2%) exceeds its 5-year average (19.6% per year).
Earnings vs Industry: PPM earnings growth over the past year (55.2%) exceeded the Mortgage industry 28.3%.
Return on Equity
High ROE: Whilst PPM's Return on Equity (21.7%) is high, this metric is skewed due to their high level of debt.
How is Pepper Money's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: PPM's Assets to Equity ratio (28.7x) is very high.
Allowance for Bad Loans: Insufficient data to determine if PPM has a sufficient allowance for bad loans.
Low Risk Liabilities: PPM reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.
Loan Level: Insufficient data to determine if PPM has an appropriate level of Loans to Assets ratio.
Low Risk Deposits: PPM reports no customer deposits, loans are made up entirely of externally borrowed funds.
Level of Bad Loans: Insufficient data to determine if PPM has an appropriate level of bad loans.
What is Pepper Money current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PPM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate PPM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PPM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PPM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PPM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Mario Rehayem joined Pepper Money Limited in 2011 and has held various roles including Managing Director, Australian Mortgages and Personal Loans, Director of Sales and Distribution, Australian Mortgag...
Experienced Management: PPM's management team is seasoned and experienced (6.9 years average tenure).
Experienced Board: PPM's board of directors are considered experienced (3.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PPM insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: PPM only recently listed within the past 12 months.
Pepper Money Limited's employee growth, exchange listings and data sources
- Name: Pepper Money Limited
- Ticker: PPM
- Exchange: ASX
- Founded: 2000
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: AU$1.077b
- Shares outstanding: 439.51m
- Website: https://www.pepper.com.au
Number of Employees
- Pepper Money Limited
- 177 Pacific Highway
- Level 27
- North Sydney
- New South Wales
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/18 15:28|
|End of Day Share Price||2021/10/18 00:00|
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.