ASX:CCP

Stock Analysis Report

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Executive Summary

Credit Corp Group Limited provides debt purchase and collection, and consumer lending services in Australia and the United States. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CCP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

CCP

-0.6%

AU Consumer Finance

-0.5%

AU Market


1 Year Return

-34.1%

CCP

-1.8%

AU Consumer Finance

-6.2%

AU Market

Return vs Industry: CCP underperformed the Australian Consumer Finance industry which returned -1.8% over the past year.

Return vs Market: CCP underperformed the Australian Market which returned -6.2% over the past year.


Shareholder returns

CCPIndustryMarket
7 Day1.5%-0.6%-0.5%
30 Day20.9%13.0%6.8%
90 Day19.8%5.1%4.4%
1 Year-33.3%-34.1%-0.9%-1.8%-2.9%-6.2%
3 Year10.9%1.7%69.5%56.5%17.9%2.9%
5 Year168.2%133.1%101.3%72.1%43.9%14.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

80.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CCP (A$20.44) is trading above our estimate of fair value (A$12.79)

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


Price To Earnings Ratio

PE vs Industry: CCP is poor value based on its PE Ratio (80.2x) compared to the AU Consumer Finance industry average (23.1x).

PE vs Market: CCP is poor value based on its PE Ratio (80.2x) compared to the Australian market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: CCP is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: CCP's PB Ratio (2.3x) is in line with the AU Consumer Finance industry average.


Next Steps

Future Growth

How is Credit Corp Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCP's forecast earnings growth (27.1% per year) is above the savings rate (2.3%).

Earnings vs Market: CCP's earnings (27.1% per year) are forecast to grow faster than the Australian market (17.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CCP's revenue (12% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: CCP's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCP's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Credit Corp Group performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCP has high quality earnings.

Growing Profit Margin: CCP's current net profit margins (6%) are lower than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: CCP's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: CCP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CCP had negative earnings growth (-78%) over the past year, making it difficult to compare to the Consumer Finance industry average (-5.1%).


Return on Equity

High ROE: CCP's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Credit Corp Group's financial position?


Financial Position Analysis

Short Term Liabilities: CCP's short term assets (A$200.6M) exceed its short term liabilities (A$66.5M).

Long Term Liabilities: CCP's short term assets (A$200.6M) exceed its long term liabilities (A$61.9M).


Debt to Equity History and Analysis

Debt Level: CCP's debt to equity ratio (3.8%) is considered satisfactory.

Reducing Debt: CCP's debt to equity ratio has reduced from 36.2% to 3.8% over the past 5 years.

Debt Coverage: CCP's debt is well covered by operating cash flow (515.8%).

Interest Coverage: Insufficient data to determine if CCP's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

3.09%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CCP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CCP'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 CCP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CCP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CCP is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CCP'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?

12.0yrs

Average management tenure


CEO

Thomas Beregi

12yrs

Tenure

AU$665,468

Compensation

Mr. Thomas Beregi, BEc, LLB(Hons), CPA, has been the Chief Executive Officer of Credit Corp Group Limited since October 1, 2008 and has been its Company Secretary since September 21, 2007. Mr. Beregi serve ...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD473.17K) is below average for companies of similar size in the Australian market ($USD924.55K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Beregi
CEO & Company Secretary12yrsAU$665.47k0.061%
A$ 863.6k
Michael Eadie
CFO & Company Secretary9.92yrsAU$308.73k0%
A$ 0
Matthew Angell
Chief Operating Officer14.75yrsAU$401.24k0.00059%
A$ 8.3k
Tim Cullen
Chief Information Officerno datano datano data
Adam Carpenter
Head of Legal Compliance & Operational Strategyno datano datano data
David Brand
Head of Marketing & Product Developmentno datano datano data
Stephanie Palmer
Head of Human Resourcesno datano datano data
Matthew Stokes
Head of Collectionsno datano datano data
Christopher Midlam
Head of Client Servicesno datano datano data
Martin Wu
Head of Analyticsno datano datano data
Sean Egan
Head of Collections – USAno datano datano data
Daniel Todd
Head of Contingent Collectionsno datano datano data

12.0yrs

Average Tenure

Experienced Management: CCP's management team is seasoned and experienced (12 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Dodd
Independent Non-Executive Director11.25yrsAU$118.77k0.010%
A$ 145.6k
Richard Thomas
Independent Non-Executive Director14.08yrsAU$108.87k0.026%
A$ 363.1k
Donald McLay
Independent Non-Executive Chairman12.33yrsAU$237.29k0.50%
A$ 7.0m
John Nesbitt
Independent Non Executive Director1.08yrsAU$82.19k0.0089%
A$ 126.5k
Leslie Martin
Independent Non-Executive Director6.58yrsAU$108.87k0.016%
A$ 232.5k
Trudy Vonhoff
Independent Non Executive Director1.08yrsAU$76.56k0.013%
A$ 188.6k

8.9yrs

Average Tenure

66.5yo

Average Age

Experienced Board: CCP's board of directors are considered experienced (8.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CCP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Credit Corp Group Limited
  • Ticker: CCP
  • Exchange: ASX
  • Founded: 1992
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: AU$1.415b
  • Shares outstanding: 67.32m
  • Website: https://www.creditcorp.com.au

Number of Employees


Location

  • Credit Corp Group Limited
  • 201 Kent Street
  • Level 15
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2000
CCPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2000
2RCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2000

Biography

Credit Corp Group Limited provides debt purchase and collection, and consumer lending services in Australia and the United States. It operates through three segments: Debt Ledger Purchasing – Australia and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 10:37
End of Day Share Price2020/10/23 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.