ASX:CCA

Stock Analysis Report

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Executive Summary

Change Financial Limited operates as a fintech company in the United States.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Change Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.3%

CCA

3.6%

AU IT

-2.0%

AU Market


1 Year Return

46.3%

CCA

49.2%

AU IT

-12.1%

AU Market

Return vs Industry: CCA underperformed the Australian IT industry which returned 49.2% over the past year.

Return vs Market: CCA exceeded the Australian Market which returned -12.1% over the past year.


Shareholder returns

CCAIndustryMarket
7 Day4.3%3.6%-2.0%
30 Day0%18.5%-1.0%
90 Day118.2%80.6%12.0%
1 Year74.7%46.3%51.6%49.2%-8.5%-12.1%
3 Year-77.6%-81.3%146.5%131.5%15.2%-0.08%
5 Yearn/a142.8%115.4%28.7%0.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Change Financial undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Change Financial is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Change Financial has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of CCA’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Change Financial regulatory filings.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

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

44.4%

Forecasted Software 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 Change Financial 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.


Next Steps

Past Performance

How has Change Financial performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCA is currently unprofitable.

Growing Profit Margin: CCA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CCA is unprofitable, but has reduced losses over the past 5 years at a rate of 6.2% per year.

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

Earnings vs Industry: CCA is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-0.3%).


Return on Equity

High ROE: CCA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Change Financial's financial position?


Financial Position Analysis

Short Term Liabilities: CCA has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CCA has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CCA has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CCA's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


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: CCA has sufficient cash runway for 3 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: CCA is forecast to have sufficient cash runway for 2 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is Change Financial current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CCA'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?

1.6yrs

Average board tenure


CEO

Alastair Wilkie (61yo)

0.75

Tenure

Mr. Alastair Paterson Wilkie serves as Chief Executive Officer of Change Financial Limited since October 28, 2019. He served as Chief Operating Officer of Emerchants Limited from November 11, 2014 to April ...


Board Members

NamePositionTenureCompensationOwnership
Ian Leijer
Executive Director5.5yrsUS$68.25k1.49% $488.7k
Harley Dalton
Executive Director1.58yrsno data0.29% $96.5k
Benjamin Harrison
Chairman0.17yrUS$41.08kno data

1.6yrs

Average Tenure

Experienced Board: CCA's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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 been substantially diluted in the past year, with total shares outstanding growing by 177.3%.


Top Shareholders

Company Information

Change Financial Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Change Financial Limited
  • Ticker: CCA
  • Exchange: ASX
  • Founded: 2011
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: AU$32.896m
  • Shares outstanding: 274.13m
  • Website: https://www.changefinancial.com

Number of Employees


Location

  • Change Financial Limited
  • 82 Eagle Street
  • Level 11
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCACHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2016
CCAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2016
CNGF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2016

Biography

Change Financial Limited operates as a fintech company in the United States. It offers payment processor and mobile banking services to corporates, financial institutions, fintech companies, banks, and others. The company was formerly known as ChimpChange Limited and changed its name to Change Financial Limited in July 2017. Change Financial Limited was founded in 2011 and is based in Brisbane, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 10:45
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
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.