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PPM

Pepper MoneyASX:PPM Stock Report

Market Cap

AU$1.1b

7D

0.8%

1Y

n/a

Updated

18 Oct, 2021

Data

Company Financials +
PPM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health0/6
Dividends0/6

PPM Overview

Pepper Money Limited operates as a non-bank lender in the mortgage and asset finance markets in Australia and New Zealand.

Pepper Money Competitors

Liberty Financial Group

ASX:LFG

AU$1.9b

Resimac Group

ASX:RMC

AU$776.7m

Australian Finance Group

ASX:AFG

AU$729.3m

Commonwealth Bank of Australia

ASX:CBA

AU$177.2b

Price History & Performance

Summary of all time highs, changes and price drops for Pepper Money
Historical stock prices
Current Share PriceAU$2.45
52 Week HighAU$2.32
52 Week LowAU$2.86
Beta0
1 Month Change-3.92%
3 Month Change0%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-6.13%

Recent News & Updates

Shareholder Returns

PPMAU MortgageAU Market
7D0.8%3.5%1.7%
1Yn/a33.4%20.3%

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.

Price Volatility

Is PPM's price volatile compared to industry and market?
PPM volatility
PPM Beta0
Industry Beta1.05
Market Beta1

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

FoundedEmployeesCEOWebsite
2000n/aMario Rehayemhttps://www.pepper.com.au

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

How do Pepper Money's earnings and revenue compare to its market cap?
PPM fundamental statistics
Market CapAU$1.08b
Earnings (TTM)AU$115.99m
Revenue (TTM)AU$384.11m

9.3x

P/E Ratio

2.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPM income statement (TTM)
RevenueAU$384.11m
Cost of RevenueAU$44.43m
Gross ProfitAU$339.68m
ExpensesAU$223.69m
EarningsAU$115.99m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.26
Gross Margin88.43%
Net Profit Margin30.20%
Debt/Equity Ratio2,756.2%

How did PPM perform over the long term?

See historical performance and comparison

Valuation

Is Pepper Money undervalued compared to its fair value and its price relative to the market?

14.7%

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).


Future Growth

How is Pepper Money forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.4%

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%).


Past Performance

How has Pepper Money performed over the past 5 years?

19.6%

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.


Financial Health

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


Balance Sheet


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.


Dividend

What is Pepper Money current dividend yield, its reliability and sustainability?

4.62%

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.


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Mario Rehayem

4.08yrs

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...


Leadership Team

Experienced Management: PPM's management team is seasoned and experienced (6.9 years average tenure).


Board Members

Experienced Board: PPM's board of directors are considered experienced (3.4 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: PPM only recently listed within the past 12 months.


Top Shareholders

Company Information

Pepper Money Limited's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Pepper Money Limited
  • 177 Pacific Highway
  • Level 27
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:28
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.