ASX:RMC

Stock Analysis Report

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Executive Summary

Resimac Group Limited, a non-bank financial institution, provides residential mortgage solutions in Australia and New Zealand. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Resimac Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RMC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: RMC's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

RMC

12.7%

AU Mortgage

1.7%

AU Market


1 Year Return

59.3%

RMC

-14.5%

AU Mortgage

-1.6%

AU Market

Return vs Industry: RMC exceeded the Australian Mortgage industry which returned -14.5% over the past year.

Return vs Market: RMC exceeded the Australian Market which returned -1.6% over the past year.


Shareholder returns

RMCIndustryMarket
7 Day-2.8%12.7%1.7%
30 Day43.3%42.6%9.5%
90 Day43.3%52.8%9.2%
1 Year62.7%59.3%-11.9%-14.5%1.8%-1.6%
3 Year288.2%255.6%11.8%-12.2%24.8%9.2%
5 Yearn/a49.3%-7.9%56.1%25.0%

Long-Term Price Volatility Vs. Market

How volatile is Resimac Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Resimac Group undervalued compared to its fair value and its price relative to the market?

13.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMC (A$1.92) is trading above our estimate of fair value (A$1.03)

Significantly Below Fair Value: RMC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RMC is good value based on its PE Ratio (14x) compared to the XO Mortgage industry average (16x).

PE vs Market: RMC is good value based on its PE Ratio (14x) compared to the Australian market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: RMC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: RMC is overvalued based on its PB Ratio (3.2x) compared to the AU Mortgage industry average (1.1x).


Next Steps

Future Growth

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

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMC's forecast earnings growth (13% per year) is above the savings rate (2.3%).

Earnings vs Market: RMC's earnings (13% per year) are forecast to grow slower than the Australian market (17.8% per year).

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

Revenue vs Market: RMC's revenue (8.1% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: RMC's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RMC's Return on Equity is forecast to be high in 3 years time (21.8%)


Next Steps

Past Performance

How has Resimac Group performed over the past 5 years?

39.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMC has a high level of non-cash earnings.

Growing Profit Margin: RMC's current net profit margins (31.4%) are lower than last year (32.7%).


Past Earnings Growth Analysis

Earnings Trend: RMC's earnings have grown significantly by 39.4% per year over the past 5 years.

Accelerating Growth: RMC's earnings growth over the past year (18.4%) is below its 5-year average (39.4% per year).

Earnings vs Industry: RMC earnings growth over the past year (18.4%) exceeded the Mortgage industry 2.7%.


Return on Equity

High ROE: Whilst RMC's Return on Equity (23.17%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Resimac Group'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: RMC's Assets to Equity ratio (53.9x) is very high.

Allowance for Bad Loans: Insufficient data to determine if RMC has a sufficient allowance for bad loans.

Low Risk Liabilities: RMC reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

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

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

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


Next Steps

Dividend

What is Resimac Group current dividend yield, its reliability and sustainability?

1.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RMC's dividend (1.88%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.06%).

High Dividend: RMC's dividend (1.88%) is low compared to the top 25% of dividend payers in the Australian market (5.1%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RMC has been paying a dividend for less than 10 years.

Growing Dividend: RMC's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.8%), RMC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RMC's dividends in 3 years are forecast to be well covered by earnings (19.8% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Scott McWilliam

1.83yrs

Tenure

AU$1,164,878

Compensation

Mr. Scott McWilliam has been Chief Executive Officer of Resimac Group Ltd since January 18, 2019. He was Joint Chief Executive Officer of Resimac Group Ltd (formerly known as Homeloans Limited) since Octob...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD857.41K) is about average for companies of similar size in the Australian market ($USD697.17K).

Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott McWilliam
Chief Executive Officer1.83yrsAU$1.16m0.25%
A$ 1.9m
Jason Azzopardi
Chief Financial Officer2.33yrsAU$549.75k0.047%
A$ 368.6k
Danielle Corcoran
Co-Company Secretary2.17yrsAU$617.34k0.022%
A$ 175.3k
Andrew Marsden
General Manager Treasury and Securitisationno dataAU$542.60kno data
Marianne Hannah
General Manager of Operationsno datano datano data
Will Keall
Head of Marketingno datano datano data
Kym Carter
Head of Human Resourcesno datano datano data
Peter Fitzpatrick
Company Secretary4.08yrsno datano data
Matthew Hillier
General Manager of Finance2.33yrsno datano data

2.3yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Warren McLeland
Non-Executive Director4.08yrsAU$98.55k2.98%
A$ 23.6m
Duncan Saville
Non-Executive Director3yrsAU$70.00kno data
Caroline Waldron
Independent Non-Executive Directorno datano datano data
Wayne Spanner
Independent Non-Executive Director0.75yrAU$27.57k0.0039%
A$ 30.5k
Susan Wood-Hansen
Independent Non-Executive Director4.08yrsAU$135.13k0.049%
A$ 390.9k

3.5yrs

Average Tenure

63yo

Average Age

Experienced Board: RMC's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RMC 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

Resimac Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Resimac Group Limited
  • Ticker: RMC
  • Exchange: ASX
  • Founded: 1985
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: AU$791.056m
  • Shares outstanding: 407.76m
  • Website: https://www.resimac.com.au

Location

  • Resimac Group Limited
  • 45 Clarence Street
  • Level 9
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2016
RMCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2016

Biography

Resimac Group Limited, a non-bank financial institution, provides residential mortgage solutions in Australia and New Zealand. The company operates through Australian Lending Business and New Zealand Lendi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 07:05
End of Day Share Price2020/11/27 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.