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RMC

Resimac GroupASX:RMC Stock Report

Last Price

AU$1.84

Market Cap

AU$750.1m

7D

-1.3%

1Y

-16.6%

Updated

21 Jan, 2022

Data

Company Financials +
RMC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance5/6
Financial Health0/6
Dividends2/6

RMC Stock Overview

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

Resimac Group Competitors

Liberty Financial Group

ASX:LFG

AU$1.6b

Pepper Money

ASX:PPM

AU$914.2m

Australian Finance Group

ASX:AFG

AU$667.4m

Yellow Brick Road Holdings

ASX:YBR

AU$43.8m

Price History & Performance

Summary of all time highs, changes and price drops for Resimac Group
Historical stock prices
Current Share PriceAU$1.84
52 Week HighAU$2.80
52 Week LowAU$1.53
Beta1.99
1 Month Change-1.34%
3 Month Change-0.27%
1 Year Change-16.59%
3 Year Change252.89%
5 Year Change326.74%
Change since IPO317.05%

Recent News & Updates

Dec 13
Here's Why I Think Resimac Group (ASX:RMC) Is An Interesting Stock

Here's Why I Think Resimac Group (ASX:RMC) Is An Interesting Stock

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Sep 02
Resimac Group's (ASX:RMC) Upcoming Dividend Will Be Larger Than Last Year's

Resimac Group's (ASX:RMC) Upcoming Dividend Will Be Larger Than Last Year's

Resimac Group Limited ( ASX:RMC ) has announced that it will be increasing its dividend on the 21st of September to...

Apr 01
Is Resimac Group Limited (ASX:RMC) A Good Fit For Your Dividend Portfolio?

Is Resimac Group Limited (ASX:RMC) A Good Fit For Your Dividend Portfolio?

Dividend paying stocks like Resimac Group Limited ( ASX:RMC ) tend to be popular with investors, and for good reason...

Shareholder Returns

RMCAU MortgageAU Market
7D-1.3%-1.5%-0.5%
1Y-16.6%-2.6%8.4%

Return vs Industry: RMC underperformed the Australian Mortgage industry which returned -2.6% over the past year.

Return vs Market: RMC underperformed the Australian Market which returned 8.4% over the past year.

Price Volatility

Is RMC's price volatile compared to industry and market?
RMC volatility
RMC Average Weekly Movement5.5%
Mortgage Industry Average Movement3.9%
Market Average Movement8.6%
10% most volatile stocks in AU Market15.5%
10% least volatile stocks in AU Market3.6%

Stable Share Price: RMC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RMC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985n/aScott McWilliamhttps://www.resimac.com.au

Resimac Group Limited, a non-bank financial institution, provides residential mortgage and asset finance lending solutions in Australia and New Zealand. The company operates through Australian Lending Business and New Zealand Lending Business segments. It offers prime and specialist lending products; SME/commercial finance products; and home and car loans.

Resimac Group Fundamentals Summary

How do Resimac Group's earnings and revenue compare to its market cap?
RMC fundamental statistics
Market CapAU$750.08m
Earnings (TTM)AU$107.56m
Revenue (TTM)AU$257.95m

7.0x

P/E Ratio

2.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RMC income statement (TTM)
RevenueAU$257.95m
Cost of RevenueAU$35.19m
Gross ProfitAU$222.75m
ExpensesAU$115.20m
EarningsAU$107.56m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.26
Gross Margin86.36%
Net Profit Margin41.70%
Debt/Equity Ratio4,431.6%

How did RMC perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

24%

Payout Ratio

Valuation

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

29.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RMC (A$1.84) is trading below our estimate of fair value (A$2.61)

Significantly Below Fair Value: RMC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RMC is good value based on its PE Ratio (7x) compared to the Global Mortgage industry average (12.3x).

PE vs Market: RMC is good value based on its PE Ratio (7x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: RMC is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: RMC is overvalued based on its PB Ratio (2.3x) compared to the AU Mortgage industry average (1x).


Future Growth

How is Resimac Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMC's forecast earnings growth (7.2% per year) is above the savings rate (1.9%).

Earnings vs Market: RMC's earnings (7.2% per year) are forecast to grow slower than the Australian market (11.1% per year).

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

Revenue vs Market: RMC's revenue (25.6% per year) is forecast to grow faster than the Australian market (4.8% per year).

High Growth Revenue: RMC's revenue (25.6% per year) is forecast to grow faster 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 (23.3%)


Past Performance

How has Resimac Group performed over the past 5 years?

41.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMC has high quality earnings.

Growing Profit Margin: RMC's current net profit margins (41.7%) are higher than last year (31.3%).


Past Earnings Growth Analysis

Earnings Trend: RMC's earnings have grown significantly by 41.3% per year over the past 5 years.

Accelerating Growth: RMC's earnings growth over the past year (92.4%) exceeds its 5-year average (41.3% per year).

Earnings vs Industry: RMC earnings growth over the past year (92.4%) exceeded the Mortgage industry 28.2%.


Return on Equity

High ROE: Whilst RMC's Return on Equity (33.57%) is high, this metric is skewed due to their high level of debt.


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 (45.6x) 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.


Dividend

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

4.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RMC's dividend (4.36%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: RMC's dividend (4.36%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.3%), RMC's dividend payments are well 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?

3.4yrs

Average management tenure


CEO

Scott McWilliam

3yrs

Tenure

AU$1,108,103

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 Resimac Group Limited) since O...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD805.07K) is about average for companies of similar size in the Australian market ($USD742.62K).

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


Leadership Team

Experienced Management: RMC's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: RMC's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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
  • Implied Market Cap: AU$750.079m
  • Shares outstanding: 408.76m
  • Website: https://www.resimac.com.au

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 15:46
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.