ASX:CGR

Stock Analysis Report

Executive Summary

CML Group Limited provides financial management and payroll services in Australia.

Snowflake

Fundamentals

Solid track record established dividend payer.


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


Market Performance


7 Day Return

2.2%

CGR

3.9%

AU Diversified Financial

1.7%

AU Market


1 Year Return

-9.6%

CGR

-41.1%

AU Diversified Financial

10.3%

AU Market

Return vs Industry: CGR exceeded the Australian Diversified Financial industry which returned -41.1% over the past year.

Return vs Market: CGR underperformed the Australian Market which returned 10.3% over the past year.


Shareholder returns

CGRIndustryMarket
7 Day2.2%3.9%1.7%
30 Day-6.0%-6.0%-0.4%
90 Day1.1%-4.1%-0.1%
1 Year-5.3%-9.6%-40.1%-41.1%16.7%10.3%
3 Year107.6%84.3%-56.8%-61.8%36.7%18.4%
5 Year176.6%118.6%-53.4%-62.4%50.9%16.9%

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?

11.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CGR (A$0.47) is trading above our estimate of fair value (A$0.25)

Significantly Undervalued: CGR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CGR is good value based on its PE Ratio (11.2x) compared to the Diversified Financial industry average (18.3x).

PE vs Market: CGR is good value based on its PE Ratio (11.2x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low 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 (2.1x) compared to the AU Diversified Financial industry average (2.1x).


Next Steps

Future Growth

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

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGR's forecast earnings growth (19.1% per year) is above the savings rate (2.3%).

Earnings vs Market: CGR's earnings (19.1% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: CGR's revenue (8.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: CGR's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CGR's Return on Equity is forecast to be high in 3 years time (23.3%)


Next Steps

Past Performance

How has CML Group performed over the past 5 years?

53.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CGR's earnings have grown significantly by 53.6% per year over the past 5 years.

Accelerating Growth: CGR's earnings growth over the past year (163.7%) exceeds its 5-year average (53.6% per year).

Earnings vs Industry: CGR earnings growth over the past year (163.7%) exceeded the Diversified Financial industry 7.7%.


Return on Equity

High ROE: CGR's Return on Equity (18.8%) is considered low.


Return on Assets

ROA vs Industry: CGR has a higher Return on Assets than the Diversified Financial industry average last year.


Return on Capital Employed

ROCE Improving: CGR has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CML 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: CGR has a low level of unsold assets or inventory.

Debt Coverage by Assets: CGR's debt is covered by short term assets (assets are 1.940100x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.96%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%2.5%markettop25%5.6%industryaverage3.3%forecastin3Years6.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CGR's dividend (5.96%) is higher than the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: CGR's dividend (5.96%) is in the top 25% of dividend payers in the Australian market (5.56%)

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 reasonable payout ratio (57.3%), CGR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CGR's dividends in 3 years are forecast to be covered by earnings (50.6% payout ratio).


Next Steps

Management

What is the CEO of CML Group's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average board tenure


CEO

Daniel Riley 0

9yrs

Tenure

AU$600,000

Compensation

Mr. Daniel Riley, B.Comm, CPA has been Managing Director and Chief Executive Officer of CML Group Limited since October 1, 2010. Mr. Riley serves as Managing Director at Zenith Management Services Group Pt ...


CEO Compensation Analysis

Compensation vs. Market: Daniel's total compensation ($USD405.08K) is about average for companies of similar size in the Australian market ($USD257.55K).

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


Board Age and Tenure

4.8yrs

Average Tenure

Experienced Board: CGR's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$52,56213 Sep 19
Geoffrey Sam
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$0.53
BuyAU$1,019,15423 May 19
First Samuel Limited
EntityCompany
Shares2,176,367
Max PriceAU$0.47
SellAU$800,20820 Mar 19
Daniel Riley
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares1,500,000
Max PriceAU$0.53
BuyAU$97,35920 Mar 19
Sue Healy
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares180,000
Max PriceAU$0.54
BuyAU$1,455,28018 Mar 19
First Samuel Limited
EntityCompany
Shares2,316,620
Max PriceAU$0.70
BuyAU$5,316,83411 Dec 18
Moelis Australia Asset Management Ltd
EntityCompany
Shares10,153,910
Max PriceAU$0.52

Ownership Breakdown


Management Team

  • Steve Shin

    CFO & Company Secretary

    • Tenure: 4.5yrs
    • Compensation: AU$265.25k
  • Daniel Riley

    CEO, MD & Executive Director

    • Tenure: 9yrs
    • Compensation: AU$600.00k
  • Shannon Stelfox

    Chief Operating Officer

    • Tenure: 0yrs

Board Members

  • Ilkka Tales

    Independent & Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$55.00k
  • Geoff Sam (65yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: AU$55.00k
  • Greg Riley

    Non-Executive Chairperson

    • Tenure: 4.9yrs
    • Compensation: AU$85.00k
  • Daniel Riley

    CEO, MD & Executive Director

    • Tenure: 9yrs
    • Compensation: AU$600.00k
  • Sue Healy

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: AU$55.00k

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: 2002
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: AU$91.792m
  • Shares outstanding: 201.74m
  • Website: https://www.CML-Group.com.au

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 management and payroll services in Australia. It operates through Finance, Equipment Finance, and Other Services segments. The Finance segment offers invoice financing  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:34
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.