ASX:CGR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

CML Group Limited provides financial solutions SME businesses in Australia. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

CGR

3.7%

AU Diversified Financial

0.01%

AU Market


1 Year Return

-29.0%

CGR

-26.5%

AU Diversified Financial

-5.7%

AU Market

Return vs Industry: CGR underperformed the Australian Diversified Financial industry which returned -26.5% over the past year.

Return vs Market: CGR underperformed the Australian Market which returned -5.7% over the past year.


Shareholder returns

CGRIndustryMarket
7 Day-2.9%3.7%0.01%
30 Day-5.7%8.4%5.4%
90 Day4.8%-11.8%4.0%
1 Year-25.5%-29.0%-23.5%-26.5%-2.4%-5.7%
3 Year6.7%-5.7%-61.5%-65.7%18.0%3.0%
5 Year158.8%100.0%-56.3%-64.8%42.1%13.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CGR (A$0.33) is trading below our estimate of fair value (A$0.33)

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


Price To Earnings Ratio

PE vs Industry: CGR is poor value based on its PE Ratio (19x) compared to the AU Diversified Financial industry average (18.3x).

PE vs Market: CGR is good value based on its PE Ratio (19x) compared to the Australian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: CGR is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: CGR is overvalued based on its PB Ratio (1.3x) compared to the AU Diversified Financial industry average (1.2x).


Next Steps

Future Growth

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

32.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGR's forecast earnings growth (32.4% per year) is above the savings rate (2.3%).

Earnings vs Market: CGR's earnings (32.4% per year) are forecast to grow faster than the Australian market (17.5% per year).

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

Revenue vs Market: CGR's revenue (7.8% per year) is forecast to grow faster than the Australian market (4.7% per year).

High Growth Revenue: CGR's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CGR's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has CML Group performed over the past 5 years?

42.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGR has a large one-off loss of A$2.4M impacting its June 30 2020 financial results.

Growing Profit Margin: CGR's current net profit margins (7.7%) are lower than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: CGR has become profitable over the past 5 years, growing earnings by 42.5% per year.

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

Earnings vs Industry: CGR had negative earnings growth (-56.2%) over the past year, making it difficult to compare to the Diversified Financial industry average (-3.5%).


Return on Equity

High ROE: CGR's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is CML Group's financial position?


Financial Position Analysis

Short Term Liabilities: CGR's short term assets (A$220.3M) exceed its short term liabilities (A$159.7M).

Long Term Liabilities: CGR's short term assets (A$220.3M) exceed its long term liabilities (A$122.9M).


Debt to Equity History and Analysis

Debt Level: CGR's debt to equity ratio (344.5%) is considered high.

Reducing Debt: CGR's debt to equity ratio has reduced from 353.7% to 344.5% over the past 5 years.

Debt Coverage: CGR's debt is not well covered by operating cash flow (1%).

Interest Coverage: CGR's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

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

5.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CGR's dividend (5.3%) is higher than the bottom 25% of dividend payers in the Australian market (2.14%).

High Dividend: CGR's dividend (5.3%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


Stability and Growth of Payments

Stable Dividend: CGR's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100.7%), CGR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CGR's dividends in 3 years are forecast to be covered by earnings (50.9% payout ratio).


Next Steps

Management

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

5.8yrs

Average board tenure


CEO

Daniel Riley

10yrs

Tenure

AU$635,905

Compensation

Mr. Daniel Riley, B.Comm, CPA, has been Managing Director and Chief Executive Officer of CML Group Limited since October 1, 2010 and has been its Executive Director. Mr. Riley serves as Managing Director a ...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD448.45K) is above average for companies of similar size in the Australian market ($USD275.98K).

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


Board Members

NamePositionTenureCompensationOwnership
Daniel Riley
CEO, MD & Executive Director10yrsAU$635.91k0.97%
A$ 731.1k
Ilkka Tales
Independent Non-Executive Director3.08yrsAU$63.75k0.091%
A$ 68.0k
Geoffrey Sam
Independent Non-Executive Director5.58yrsAU$63.75k1.05%
A$ 786.9k
Gregory Riley
Non-Executive Chairperson5.92yrsAU$105.00k8.09%
A$ 6.1m
Sue Healy
Independent Non-Executive Director7.92yrsAU$63.75k0.30%
A$ 223.4k

5.8yrs

Average Tenure

Experienced Board: CGR's board of directors are considered experienced (5.8 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 been diluted in the past year, with total shares outstanding growing by 9.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: CML Group Limited
  • Ticker: CGR
  • Exchange: ASX
  • Founded: 2001
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: AU$75.078m
  • Shares outstanding: 220.82m
  • Website: https://www.cashflowfinance.com.au/cml-group

Number of Employees


Location

  • CML Group Limited
  • 201 Miller Street
  • Level 11
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CGRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2010
CGRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2010

Biography

CML Group Limited provides financial solutions SME businesses in Australia. It operates through Finance, Equipment Finance, and Other Services segments. The company offers invoice factoring and discounting ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 10:50
End of Day Share Price2020/10/21 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.