ClearView Wealth (ASX:CVW) - Share price, News & Analysis

Q: What is the Fair Price of CVW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CVW (A$0.69) is trading above our estimate of [[fair value]] (A$0.64)

CVW fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	1/6
Financial Health	4/6
Dividends	0/6

CVW Stock Overview

ClearView is an Australian financial services company with businesses that offer life insurance, superannuation and investment products and services under the ClearView brand. ClearView generates its revenue through the provision and distribution of life insurance, investment, superannuation and retirement income products. ClearView historically provided financial advice services through its ClearView Financial Advice, Matrix and Lavista Licensee Solutions brands.

Risk Analysis

Earnings have declined by 23.7% per year over past 5 years

Profit margins (1%) are lower than last year (3.9%)

ClearView Wealth Competitors

Challenger

ASX:CGF

AU$4.8b

OFX Group

ASX:OFX

AU$558.4m

EQT Holdings

ASX:EQT

AU$525.0m

Australian Ethical Investment

ASX:AEF

AU$531.6m

Price History & Performance

Summary of all time highs, changes and price drops for ClearView Wealth
Historical stock prices
Current Share Price	AU$0.69
52 Week High	AU$0.84
52 Week Low	AU$0.43
Beta	0.94
1 Month Change	-8.67%
3 Month Change	-9.27%
1 Year Change	34.31%
3 Year Change	-2.14%
5 Year Change	-53.40%
Change since IPO	-25.54%

Recent News & Updates

Nov 04

Here's Why Shareholders May Want To Be Cautious With Increasing ClearView Wealth Limited's (ASX:CVW) CEO Pay Packet

Shareholders of ClearView Wealth Limited ( ASX:CVW ) will have been dismayed by the negative share price return over...

Shareholder Returns

	CVW	AU Diversified Financial	AU Market
7D	-0.7%	0.3%	-2.4%
1Y	34.3%	6.8%	-12.0%

Return vs Industry: CVW exceeded the Australian Diversified Financial industry which returned 6.6% over the past year.

Return vs Market: CVW exceeded the Australian Market which returned -12.2% over the past year.

Price Volatility

Is CVW's price volatile compared to industry and market?
CVW volatility
CVW Average Weekly Movement	5.7%
Diversified Financial Industry Average Movement	5.7%
Market Average Movement	9.9%
10% most volatile stocks in AU Market	16.5%
10% least volatile stocks in AU Market	4.4%

Stable Share Price: CVW is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CVW's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1976	n/a	Simon Swanson	https://www.clearview.com.au

ClearView Wealth Fundamentals Summary

How do ClearView Wealth's earnings and revenue compare to its market cap?
CVW fundamental statistics
Market Cap	AU$452.81m
Earnings (TTM)	AU$5.70m
Revenue (TTM)	AU$543.74m

79.5x

P/E Ratio

0.8x

P/S Ratio

Is CVW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CVW income statement (TTM)
Revenue	AU$543.74m
Cost of Revenue	AU$156.03m
Gross Profit	AU$387.72m
Other Expenses	AU$382.02m
Earnings	AU$5.70m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.0086
Gross Margin	71.30%
Net Profit Margin	1.05%
Debt/Equity Ratio	7.2%

How did CVW perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

111%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CVW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CVW?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CVW. This is calculated by dividing CVW's market cap by their current preferred multiple.
What is CVW's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$452.81m

CVW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2x
Enterprise Value/EBITDA	9.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does CVW's PE Ratio compare to its peers?

CVW PE Ratio vs Peers

The above table shows the PE ratio for CVW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	24.7x
CGF Challenger	7.3x	9.3%	AU$4.8b
OFX OFX Group	22.8x	20.2%	AU$558.4m
EQT EQT Holdings	21.5x	9.3%	AU$525.0m
AEF Australian Ethical Investment	47.1x	n/a	AU$531.6m
CVW ClearView Wealth	79.5x	n/a	AU$452.8m

Forward PE

Price-To-Earnings vs Peers: CVW is expensive based on its Price-To-Earnings Ratio (79.5x) compared to the peer average (24.7x).

Price to Earnings Ratio vs Industry

How does CVW's PE Ratio compare vs other companies in the Global Diversified Financial Industry?

Price-To-Earnings vs Industry: CVW is expensive based on its Price-To-Earnings Ratio (79.5x) compared to the Global Diversified Financial industry average (11.8x)

Price to Earnings Ratio vs Fair Ratio

What is CVW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CVW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	79.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CVW's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of CVW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CVW (A$0.69) is trading above our estimate of fair value (A$0.64)

Significantly Below Fair Value: CVW is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CVW's PEG Ratio to determine if it is good value.

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Future Growth

How is ClearView Wealth forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

28.1%

Forecasted Diversified Financials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ClearView Wealth has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine ClearView Wealth's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
ClearView Wealth competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has ClearView Wealth performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-23.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CVW has high quality earnings.

Growing Profit Margin: CVW's current net profit margins (1%) are lower than last year (3.9%).

Past Earnings Growth Analysis

Earnings Trend: CVW's earnings have declined by 23.7% per year over the past 5 years.

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

Earnings vs Industry: CVW had negative earnings growth (-52.7%) over the past year, making it difficult to compare to the Diversified Financial industry average (24.1%).

Return on Equity

High ROE: CVW's Return on Equity (8.3%) is considered low.

Discover strong past performing companies

Financial Health

How is ClearView Wealth's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CVW's short term assets (A$295.2M) exceed its short term liabilities (A$9.1M).

Long Term Liabilities: CVW's short term assets (A$295.2M) do not cover its long term liabilities (A$1.6B).

Debt to Equity History and Analysis

Debt Level: CVW has more cash than its total debt.

Reducing Debt: Insufficient data to determine if CVW's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CVW's debt is well covered by operating cash flow (229.3%).

Interest Coverage: CVW's interest payments on its debt are well covered by EBIT (14.2x coverage).

Balance Sheet

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Dividend

What is ClearView Wealth current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.46%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CVW's dividend (1.46%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.75%).

High Dividend: CVW's dividend (1.46%) is low compared to the top 25% of dividend payers in the Australian market (6.87%).

Stability and Growth of Payments

Stable Dividend: CVW is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: CVW is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: CVW is not paying a notable dividend for the Australian market.

Cash Payout to Shareholders

Cash Flow Coverage: CVW is not paying a notable dividend for the Australian market.

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Management

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

3.5yrs

Average management tenure

CEO

Simon Swanson (64 yo)

12.33yrs

Tenure

AU$1,039,088

Compensation

Mr. Simon Swanson, BEC, BBus, ANZIIF (Fellow), CIP, FCPA, is an internationally experienced financial services executive having worked across life insurance, funds management, general insurance and health...

CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD705.33K) is about average for companies of similar size in the Australian market ($USD854.74K).

Compensation vs Earnings: Simon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: CVW's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: CVW's board of directors are considered experienced (5.6 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30