Challenger Limited is a publicly owned investment manager.
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$7.10|
|52 Week High||AU$4.57|
|52 Week Low||AU$7.37|
|1 Month Change||13.97%|
|3 Month Change||25.22%|
|1 Year Change||49.79%|
|3 Year Change||-32.38%|
|5 Year Change||-33.89%|
|Change since IPO||178.43%|
Recent News & Updates
|CGF||AU Diversified Financial||AU Market|
Return vs Industry: CGF exceeded the Australian Diversified Financial industry which returned 20.3% over the past year.
Return vs Market: CGF exceeded the Australian Market which returned 24.4% over the past year.
Stable Share Price: CGF is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: CGF's weekly volatility (4%) has been stable over the past year.
About the Company
Challenger Limited is a publicly owned investment manager. The company also provides retirement services to its clients. It manages equity mutual funds.
Challenger Fundamentals Summary
|CGF fundamental statistics|
Is CGF overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CGF income statement (TTM)|
|Cost of Revenue||AU$1.91b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 17, 2022
|Earnings per share (EPS)||0.88|
|Net Profit Margin||17.72%|
How did CGF perform over the long term?See historical performance and comparison
3.0%Current Dividend Yield
Is Challenger undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CGF (A$7.1) is trading above our estimate of fair value (A$6.91)
Significantly Below Fair Value: CGF is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CGF is good value based on its PE Ratio (8.1x) compared to the Australian Diversified Financial industry average (17.2x).
PE vs Market: CGF is good value based on its PE Ratio (8.1x) compared to the Australian market (20x).
Price to Earnings Growth Ratio
PEG Ratio: CGF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CGF's PB Ratio (1.3x) is in line with the AU Diversified Financial industry average.
How is Challenger forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CGF's earnings are forecast to decline over the next 3 years (-3.3% per year).
Earnings vs Market: CGF's earnings are forecast to decline over the next 3 years (-3.3% per year).
High Growth Earnings: CGF's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CGF's revenue is expected to decline over the next 3 years (-34.1% per year).
High Growth Revenue: CGF's revenue is forecast to decline over the next 3 years (-34.1% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CGF's Return on Equity is forecast to be low in 3 years time (9.3%).
How has Challenger performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CGF has high quality earnings.
Growing Profit Margin: CGF became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CGF's earnings have declined by 25.6% per year over the past 5 years.
Accelerating Growth: CGF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: CGF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Diversified Financial industry (-19%).
Return on Equity
High ROE: CGF's Return on Equity (15.5%) is considered low.
How is Challenger's financial position?
Financial Position Analysis
Short Term Liabilities: CGF's short term assets (A$14.9B) exceed its short term liabilities (A$9.3B).
Long Term Liabilities: CGF's short term assets (A$14.9B) do not cover its long term liabilities (A$16.8B).
Debt to Equity History and Analysis
Debt Level: CGF's debt to equity ratio (174.5%) is considered high.
Reducing Debt: CGF's debt to equity ratio has reduced from 233.3% to 174.5% over the past 5 years.
Debt Coverage: CGF's debt is well covered by operating cash flow (38.6%).
Interest Coverage: CGF's interest payments on its debt are well covered by EBIT (3.4x coverage).
What is Challenger current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CGF's dividend (2.96%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).
High Dividend: CGF's dividend (2.96%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).
Stability and Growth of Payments
Stable Dividend: CGF's dividend payments have been volatile in the past 10 years.
Growing Dividend: CGF's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.7%), CGF's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CGF's dividends in 3 years are forecast to be covered by earnings (55.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Richard J. Howes has been the Managing Director, Director and Chief Executive Officer of Challenger Ltd. since January 02, 2019. He has been a Director of Financial Services Council Ltd since November...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD2.68M) is above average for companies of similar size in the Australian market ($USD1.79M).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
Experienced Management: CGF's management team is considered experienced (2.1 years average tenure).
Experienced Board: CGF's board of directors are considered experienced (3.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CGF insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Challenger Limited's employee growth, exchange listings and data sources
- Name: Challenger Limited
- Ticker: CGF
- Exchange: ASX
- Founded: 1985
- Industry: Other Diversified Financial Services
- Sector: Diversified Financials
- Market Cap: AU$4.717b
- Shares outstanding: 674.77m
- Website: https://challenger.com.au
Number of Employees
- Challenger Limited
- 5 Martin Place
- Level 2
- New South Wales
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/26 07:01|
|End of Day Share Price||2021/10/26 00:00|
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.