ASX:CLH

Stock Analysis Report

Executive Summary

Collection House Limited provides debt collection and receivables management services in Australia and New Zealand.

Snowflake

Fundamentals

6 star dividend payer and undervalued.

Share Price & News

How has Collection House's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.5%

ASX:CLH

0.5%

AU Consumer Finance

0.5%

AU Market


1 Year Return

-19.7%

ASX:CLH

32.3%

AU Consumer Finance

6.3%

AU Market

CLH underperformed the Consumer Finance industry which returned 32.3% over the past year.

CLH underperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

CLHIndustryMarket
7 Day8.5%0.5%0.5%
30 Day15.3%14.1%4.5%
90 Day1.6%17.4%2.5%
1 Year-15.1%-19.7%37.4%32.3%12.4%6.3%
3 Year25.8%5.4%41.2%26.6%41.3%22.3%
5 Year-21.4%-40.2%57.7%22.8%47.8%14.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Collection House undervalued based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Collection House's share price is below the future cash flow value, and at a moderate discount (> 20%).

Collection House's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Collection House is good value based on earnings compared to the AU Consumer Finance industry average.

Collection House is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Collection House earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Collection House is good value based on assets compared to the AU Consumer Finance industry average.


Next Steps

Future Growth

How is Collection House expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

-0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Collection House's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

Collection House's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Collection House's revenue growth is expected to exceed the Australia market average.

Collection House's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

Collection House's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Collection House is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Collection House performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Collection House's year on year earnings growth rate has been positive over the past 5 years.

Collection House's 1-year earnings growth exceeds its 5-year average (17.5% vs 7%)

Collection House's earnings growth has exceeded the AU Consumer Finance industry average in the past year (17.5% vs 15.9%).


Return on Equity

Collection House has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Collection House used its assets more efficiently than the AU Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Collection House has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Collection House's financial position?


Financial Position Analysis

Collection House is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Collection House's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Collection House's level of debt (91.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (64.5% vs 91.9% today).

Debt is well covered by operating cash flow (41.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Collection House's current dividend yield, its reliability and sustainability?

7.26%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Collection House before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Collection House's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

Collection House's dividend is above the markets top 25% of dividend payers in Australia (5.52%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Anthony Rivas 0

3.2yrs

Tenure

AU$1,311,897

Compensation

Mr. Anthony Rivas has been the Chief Executive Officer of Collection House Limited since July 6, 2016 and has been its Managing Director since November 24, 2017 and Director since December 15, 2017. Mr. Ri ...


CEO Compensation Analysis

Anthony's remuneration is higher than average for companies of similar size in Australia.

Anthony's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

The tenure for the Collection House management team is about average.


Board Age and Tenure

1.8yrs

Average Tenure

The average tenure for the Collection House board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Collection House individual insiders in the past 3 months.


Recent Insider Transactions

BuyAU$24,43610 Sep 19
Michael Knox
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceAU$1.22
BuyAU$48,74906 Sep 19
Leigh Berkley
EntityIndividual
Role
Chairman of the Board
Non Executive Independent Chairman
Shares41,666
Max PriceAU$1.17
BuyAU$25,20023 Apr 19
Michael Knox
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceAU$1.26
BuyAU$12,50011 Apr 19
Michael Knox
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$1.25
BuyAU$50,89014 Mar 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares40,619
Max PriceAU$1.25
SellAU$76,77414 Mar 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares58,820
Max PriceAU$1.31
SellAU$49,47420 Nov 18
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares34,922
Max PriceAU$1.42
BuyAU$41,20520 Nov 18
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares29,775
Max PriceAU$1.38
SellAU$11128 Sep 18
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares70
Max PriceAU$1.59
BuyAU$14,65028 Sep 18
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares9,543
Max PriceAU$1.62
BuyAU$12,54921 Sep 18
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares7,760
Max PriceAU$1.62

Ownership Breakdown


Management Team

  • Doug McAlpine

    CFO & Company Secretary

    • Tenure: 0.2yrs
    • Compensation: AU$217.76k
  • Anthony Rivas

    CEO, MD & Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$1.31m
  • Anand Adusumilli

    Chief Data Scientist Officer

    • Tenure: 2.2yrs
    • Compensation: AU$397.76k
  • Jonathon Idas

    Chief Legal Officer

    • Tenure: 2yrs
    • Compensation: AU$353.54k
  • Kevin Donaldson

    Head of Lion Finance

    • Tenure: 0yrs
  • Denica Saunders

    Chief Operating Officer

    • Tenure: 1.2yrs
    • Compensation: AU$403.81k
  • Jos Basson

    Head of CLH Lawyers

    • Tenure: 0yrs
  • Cassandra Brown

    Head of Government Services

    • Tenure: 0yrs

Board Members

  • Catherine McDowell

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$98.87k
  • Anthony Rivas

    CEO, MD & Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$1.31m
  • Michael Knox

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: AU$101.29k
  • Leigh Berkley

    Non Executive Independent Chairman

    • Tenure: 1.8yrs
    • Compensation: AU$213.88k
  • Sandra Birkensleigh (64yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$98.87k

Company Information

Collection House Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Collection House Limited
  • Ticker: CLH
  • Exchange: ASX
  • Founded: 1992
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: AU$179.140m
  • Shares outstanding: 139.95m
  • Website: https://www.collectionhouse.com.au

Number of Employees


Location

  • Collection House Limited
  • 100 Skyring Terrace
  • Level 12
  • Newstead
  • Queensland
  • 4006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLHS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2000
CLHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2000
CLHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2000
LWUDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2000

Biography

Collection House Limited provides debt collection and receivables management services in Australia and New Zealand. The company operates through Collection Services and Purchased Debt Ledgers segments. It  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 10:32
End of Day Share Price2019/09/13 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.