ASX:PNC

Stock Analysis Report

Executive Summary

Pioneer Credit Limited provides financial services in Australia.

Snowflake

Fundamentals

Slightly overvalued unattractive dividend payer.

Share Price & News

How has Pioneer Credit's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

PNC

3.0%

AU Diversified Financial

-0.2%

AU Market


1 Year Return

-15.2%

PNC

-40.6%

AU Diversified Financial

10.5%

AU Market

Return vs Industry: PNC exceeded the Australian Diversified Financial industry which returned -40.6% over the past year.

Return vs Market: PNC underperformed the Australian Market which returned 10.5% over the past year.


Shareholder returns

PNCIndustryMarket
7 Day0%3.0%-0.2%
30 Day0%-6.1%-1.4%
90 Day3.8%-0.2%-1.0%
1 Year-13.4%-15.2%-39.6%-40.6%16.9%10.5%
3 Year52.4%36.7%-55.6%-60.7%36.9%18.6%
5 Year75.4%42.2%-54.7%-63.5%50.2%16.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pioneer Credit undervalued compared to its fair value and its price relative to the market?

10.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PNC (A$2.46) is trading below our estimate of fair value (A$2.74)

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


Price To Earnings Ratio

PE vs Industry: PNC is poor value based on its PE Ratio (35.7x) compared to the Diversified Financial industry average (12.7x).

PE vs Market: PNC is poor value based on its PE Ratio (35.7x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PNC is good value based on its PB Ratio (1.5x) compared to the AU Diversified Financial industry average (1.8x).


Next Steps

Future Growth

How is Pioneer Credit forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

97.7%

Forecasted Diversified Financials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PNC's forecast earnings growth is above the savings rate (2.3%).

Earnings vs Market: Insufficient data to determine if PNC's earnings are forecast to grow faster than the Australian market

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

Revenue vs Market: Insufficient data to determine if PNC's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if PNC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PNC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pioneer Credit performed over the past 5 years?

23.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PNC's earnings have grown significantly by 23.7% per year over the past 5 years.

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

Earnings vs Industry: PNC had negative earnings growth (-75.7%) over the past year, making it difficult to compare to the Diversified Financial industry average (7.7%).


Return on Equity

High ROE: PNC's Return on Equity (4.2%) is considered low.


Return on Assets

ROA vs Industry: PNC's Return on Assets is below or equal to the Diversified Financial industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate PNC's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Pioneer Credit'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: PNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: PNC's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Pioneer Credit's current dividend yield, its reliability and sustainability?

4.89%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.4%markettop25%5.6%industryaverage3.2%forecastin3Years7.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PNC's dividend (4.89%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: PNC's dividend (4.89%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).

Stable Dividend: PNC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PNC's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.6%), PNC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Keith John 0

0yrs

Tenure

AU$1,372,317

Compensation

Mr. Keith Roy John is the Founder of Pioneer Credit Limited and serves as its Managing Director. Mr. John has over 20 years experience in the receivables management industry. He has a long and distinguishe ...


CEO Compensation Analysis

Compensation vs. Market: Keith's total compensation ($USD941.75K) is about average for companies of similar size in the Australian market ($USD259.85K).

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


Management Age and Tenure

6.5yrs

Average Tenure

Experienced Management: PNC's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

Experienced Board: PNC's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Sue Symmons (56yo)

    Company Secretary

    • Tenure: 4yrs
    • Compensation: AU$471.71k
  • Keith John

    Founder

    • Tenure: 0yrs
    • Compensation: AU$1.37m
  • Leslie Crockett

    Chief Financial Officer

    • Tenure: 6.8yrs
    • Compensation: AU$854.49k
  • Richard Brown

    Senior Manager of Compliance

    • Tenure: 10.3yrs
  • Jonty Gibbs

    Group Financial Controller

    • Tenure: 6.1yrs

Board Members

  • Mark Dutton (51yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: AU$109.50k
  • Mike Smith

    Independent Non-Executive Chairman

    • Tenure: 5.7yrs
    • Compensation: AU$175.20k
  • Keith John

    Founder

    • Tenure: 0yrs
    • Compensation: AU$1.37m
  • Andrea Hall

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: AU$109.50k
  • Ann Robinson

    Independent Non-executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$109.50k

Company Information

Pioneer Credit Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pioneer Credit Limited
  • Ticker: PNC
  • Exchange: ASX
  • Founded:
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: AU$155.960m
  • Shares outstanding: 63.40m
  • Website: https://www.pioneercredit.com.au

Number of Employees


Location

  • Pioneer Credit Limited
  • 108 St Georges Terrace
  • Level 6
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2014
PNCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2014

Biography

Pioneer Credit Limited provides financial services in Australia. It acquires and services unsecured retail debt portfolios. The company is headquartered in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 10:42
End of Day Share Price2019/08/23 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.