ASX:ECX

Stock Analysis Report

Executive Summary

Eclipx Group Limited provides vehicle fleet leasing, fleet management, and diversified financial services in Australia and New Zealand.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ECX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

38.3%

ECX

17.0%

AU Consumer Finance

5.0%

AU Market


1 Year Return

-23.1%

ECX

-24.5%

AU Consumer Finance

-19.2%

AU Market

Return vs Industry: ECX exceeded the Australian Consumer Finance industry which returned -24.5% over the past year.

Return vs Market: ECX underperformed the Australian Market which returned -19.2% over the past year.


Shareholder returns

ECXIndustryMarket
7 Day38.3%17.0%5.0%
30 Day-54.4%-44.5%-20.3%
90 Day-57.0%-49.9%-25.8%
1 Year-23.1%-23.1%-22.9%-24.5%-15.6%-19.2%
3 Year-80.9%-82.6%-36.6%-42.3%-3.6%-16.8%
5 Yearn/a-43.3%-54.0%6.6%-17.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ECX (A$0.65) is trading below our estimate of fair value (A$2.02)

Significantly Below Fair Value: ECX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ECX is unprofitable, so we can't compare its PE Ratio to the Consumer Finance industry average.

PE vs Market: ECX is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ECX is good value based on its PB Ratio (0.4x) compared to the AU Consumer Finance industry average (1x).


Next Steps

Future Growth

How is Eclipx Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

51.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

Earnings vs Market: ECX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ECX's is expected to become profitable in the next 3 years.

Revenue vs Market: ECX's revenue is expected to decline over the next 3 years (-6.4% per year).

High Growth Revenue: ECX's revenue is forecast to decline over the next 3 years (-6.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECX's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Eclipx Group performed over the past 5 years?

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECX is currently unprofitable.

Growing Profit Margin: ECX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ECX is unprofitable, and losses have increased over the past 5 years at a rate of -8.6% per year.

Accelerating Growth: Unable to compare ECX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ECX is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (14.1%).


Return on Equity

High ROE: ECX has a negative Return on Equity (-9.84%), as it is currently unprofitable.


Next Steps

Financial Health

How is Eclipx 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: ECX has a low level of unsold assets or inventory.

Debt Coverage by Assets: ECX's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ECX has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: ECX has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

9.78%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ECX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ECX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ECX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ECX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ECX is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ECX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Julian Russell

0.92

Tenure

AU$901,692

Compensation

Mr. Julian Russell serves as Chief Executive Officer at Eclipx Group Limited since May 13, 2019. He was the Co-Head of the Financial Institutions Group at UBS Australia and has had a distinguished career a ...


CEO Compensation Analysis

Compensation vs Market: Julian's total compensation ($USD541.85K) is above average for companies of similar size in the Australian market ($USD238.58K).

Compensation vs Earnings: Insufficient data to compare Julian's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Julian Russell
Chief Executive Officer0.92yrAU$901.69kno data
Bevan Guest
Chief Commercial Officer1.42yrsAU$1.11m0.13% A$260.5k
Jason Muhs
Acting Chief Financial Officer0.75yrno datano data
Matthew Sinnamon
Company Secretary & Group General Counsel5.5yrsno datano data
Jodi Sampson
Acting Head of Human Resources0.75yrno datano data
David Brudenell
Managing Director of Consumer3.5yrsno datano data
Russell Webber
Managing Director of FleetPartners New Zealand1.25yrsno datano data
James Allaway
Group Head of Strategy0.083yrno datano data
Dom Di Gori
Group Treasurer0.083yrno datano data

0.9yrs

Average Tenure

Experienced Management: ECX's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Linda Jenkinson
Independent Non-Executive Director2.25yrsAU$167.50k0.0010% A$2.1k
Kerry Chishoim Roxburgh
Independent Non-Executive Chairman5.08yrsAU$305.00k0.075% A$155.8k
Russell Shields
Independent Non-Executive Director5.08yrsAU$167.50k0.090% A$185.7k
Trevor Allen
Independent Non-Executive Director5.08yrsAU$192.50k0.056% A$116.9k
Gail Pemberton
Independent Non-Executive Director5.08yrsAU$192.50k0.13% A$278.5k

5.1yrs

Average Tenure

66yo

Average Age

Experienced Board: ECX's board of directors are considered experienced (5.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Eclipx Group Limited
  • Ticker: ECX
  • Exchange: ASX
  • Founded: 1987
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: AU$207.423m
  • Shares outstanding: 319.11m
  • Website: https://www.eclipxgroup.com

Number of Employees


Location

  • Eclipx Group Limited
  • 601 Pacific Highway
  • Level 6
  • St Leonards
  • New South Wales
  • 2065
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECXASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDApr 2015
ECXCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDApr 2015

Biography

Eclipx Group Limited provides vehicle fleet leasing, fleet management, and diversified financial services in Australia and New Zealand. The company operates in Australia Commercial, Australia Consumer, and New Zealand segments. It offers vehicle fleet leasing and management, commercial equipment finance and leasing, novated leasing, and consumer motor vehicle finance solutions. The company offers a suite of diversified financial services under the FleetPartners, FleetPlus, FleetChoice, Georgie, CarLoans.com.au, Right2Drive, AutoSelect, and Eclipx Commercial brands. Eclipx Group Limited was founded in 1987 and is headquartered in St Leonards, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 10:58
End of Day Share Price2020/04/03 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.