ASX:CCP

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Average dividend payer with moderate 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

-3.8%

CCP

-2.8%

AU Consumer Finance

0.02%

AU Market


1 Year Return

64.3%

CCP

66.8%

AU Consumer Finance

14.6%

AU Market

Return vs Industry: CCP exceeded the Australian Consumer Finance industry which returned 66.8% over the past year.

Return vs Market: CCP exceeded the Australian Market which returned 14.6% over the past year.


Shareholder returns

CCPIndustryMarket
7 Day-3.8%-2.8%0.02%
30 Day9.2%0.7%0.2%
90 Day9.4%6.0%5.4%
1 Year69.2%64.3%70.7%66.8%19.7%14.6%
3 Year138.7%117.8%54.0%40.0%38.7%20.2%
5 Year259.3%208.7%38.1%11.8%50.6%17.1%

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?

8.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCP (A$37.19) is trading below our estimate of fair value (A$39.4)

Significantly Below Fair Value: CCP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CCP is poor value based on its PE Ratio (26.2x) compared to the Consumer Finance industry average (11.8x).

PE vs Market: CCP is poor value based on its PE Ratio (26.2x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CCP is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CCP is overvalued based on its PB Ratio (4.2x) compared to the AU Consumer Finance industry average (2.1x).


Next Steps

Future Growth

How is Credit Corp Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCP's forecast earnings growth (13% per year) is above the savings rate (1.1%).

Earnings vs Market: CCP's earnings (13% per year) are forecast to grow faster than the Australian market (9.3% per year).

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

Revenue vs Market: CCP's revenue (11.9% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: CCP's revenue (11.9% 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 (19.5%).


Next Steps

Past Performance

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

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCP has high quality earnings.

Growing Profit Margin: CCP's current net profit margins (24.8%) are lower than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: CCP's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: CCP's earnings growth over the past year (10.7%) is below its 5-year average (15% per year).

Earnings vs Industry: CCP earnings growth over the past year (10.7%) underperformed the Consumer Finance industry 10.7%.


Return on Equity

High ROE: CCP's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Credit Corp 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

Inventory Level: CCP has a low level of unsold assets or inventory.

Debt Coverage by Assets: CCP's debt is not covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

Asset Level: CCP's level of assets compared to its equity is low.

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

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

Loan Level: Insufficient data to determine if CCP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CCP has advanced significantly more loans than the customer deposits it holds.

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


Next Steps

Dividend

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

2.00%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Credit Corp Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.0%marketbottom25%2.3%markettop25%5.4%industryaverage2.9%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: CCP's dividend (1.94%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: CCP's dividend (1.94%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).


Stability and Growth of Payments

Stable Dividend: CCP's dividends per share have been stable in the past 10 years.

Growing Dividend: CCP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.7%), CCP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCP's dividends in 3 years are forecast to be well covered by earnings (49.6% payout ratio).


Next Steps

Management

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

11.3yrs

Average management tenure


CEO

Thomas Beregi 0

11.3yrs

Tenure

AU$2,422,869

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 ($USD1.61M) is about average for companies of similar size in the Australian market ($USD1.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Beregi
CEO & Company Secretary11.3yrsAU$2.42m0.071% A$1.4m
Michael Eadie
CFO & Company Secretary9.3yrsAU$735.97k0.00052% A$10.6k
Matthew Angell
Chief Operating Officer14.1yrsAU$1.38m0.00052% A$10.6k
Tim Cullen
Chief Information Officer0yrsno datano data
Tegan Pearson
Head of Human Resources0yrsno datano data
Matthew Stokes
Head of Collections0yrsno datano data
Michael Mifsud
Head of Analytics0yrsno datano data
Chris Midlam
Head of Business Services0yrsno datano data
Susan Maeng
Financial Controller0yrsno datano data

11.3yrs

Average Tenure

Experienced Management: CCP's management team is seasoned and experienced (11.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Dodd
Independent Non-Executive Director10.6yrsAU$131.40k0.0091% A$185.9k
Richard Thomas
Independent Non-Executive Director13.4yrsAU$120.45k0.023% A$478.7k
Donald McLay
Non-Executive Chairman11.7yrsAU$260.75k0.14% A$2.8m
John Nesbitt
Non Executive Director0.4yrsno data0.0082% A$167.3k
Leslie Martin
Independent Non-Executive Director5.9yrsAU$120.45k0.017% A$350.1k
Trudy Vonhoff
Non Executive Director0.4yrsno data0.010% A$206.1k

8.3yrs

Average Tenure

67yo

Average Age

Experienced Board: CCP's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CCP insiders have sold more shares than they have bought 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 11.1%.


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$2.042b
  • Shares outstanding: 54.92m
  • 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 New Zealand, Debt Ledger Purchasing – United States, and Consumer Lending – Australia and New Zealand. The company offers debt sale, contingency and agency collection, local government debt recovery, and hardship and insolvency management services, as well as various loan products. It provides financial services under the Wallet Wizard, ClearCash, CarStart Finance, Credit 2U, and CapTrove names. Credit Corp Group Limited was founded in 1992 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 10:35
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.