ASX:CCA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent 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 is more volatile than 90% of Australian stocks over the past 3 months, typically moving +/- 22% a week.

Volatility Over Time: CCA's weekly volatility (22%) has been stable over the past year, but is still higher than 75% of Australian stocks.


Market Performance


7 Day Return

-26.5%

CCA

-8.0%

AU IT

-1.6%

AU Market


1 Year Return

-13.8%

CCA

83.4%

AU IT

5.8%

AU Market

Return vs Industry: CCA underperformed the Australian IT industry which returned 83.4% over the past year.

Return vs Market: CCA underperformed the Australian Market which returned 5.8% over the past year.


Shareholder returns

CCAIndustryMarket
7 Day-26.5%-8.0%-1.6%
30 Day-7.4%-5.5%-0.9%
90 Day-16.7%16.2%3.9%
1 Year7.3%-13.8%85.6%83.4%9.3%5.8%
3 Year-85.8%-88.6%174.6%158.9%28.5%13.0%
5 Yearn/a106.3%82.4%66.2%33.9%

Long-Term 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?

11.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CCA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CCA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CCA is unprofitable, so we can't compare its PE Ratio to the AU IT industry average.

PE vs Market: CCA 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 CCA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CCA is overvalued based on its PB Ratio (11.4x) compared to the AU IT industry average (4.4x).


Next Steps

Future Growth

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

45.4%

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?

11.9%

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 11.9% 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 (-10.9%).


Return on Equity

High ROE: CCA has a negative Return on Equity (-151.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is Change Financial's financial position?


Financial Position Analysis

Short Term Liabilities: CCA's short term assets ($3.4M) exceed its short term liabilities ($1.1M).

Long Term Liabilities: CCA's short term assets ($3.4M) exceed its long term liabilities ($179.4K).


Debt to Equity History and Analysis

Debt Level: CCA is debt free.

Reducing Debt: CCA had no debt 5 years ago.


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 more than a year based on its current free cash flow.

Forecast Cash Runway: CCA has less than a year of cash runway if free cash flow continues to grow at historical rates of 6.4% each year.


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?

0.3yrs

Average management tenure


CEO

Alastair Wilkie (61 yo)

1.33yrs

Tenure

US$300,259

Compensation

Mr. Alastair Paterson Wilkie serves as Chief Executive Officer of Change Financial Limited since October 25 2019. He served as Chief Operating Officer of Emerchants Limited from November 11, 2014 to April ...


CEO Compensation Analysis

Compensation vs Market: Alastair's total compensation ($USD300.26K) is about average for companies of similar size in the Australian market ($USD298.12K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alastair Wilkie
Chief Executive Officer1.33yrsUS$300.26k0.78%
$ 420.7k
Clayton Fossett
Chief Operating Officerno dataUS$256.25k0.0097%
$ 5.2k
Ian Leijer
Executive Director & Finance Director6.08yrsUS$68.05k1.21%
$ 649.8k
John Nicholson
Vice President Finance & Administration0.33yrno datano data
Vinnie D'Alessandro
Chief Technology officerno datano datano data
Nick Roberts
Chief Marketing Officerno dataUS$197.60kno data
Akhila Iyer
Human Resources Manager0.33yrno datano data
Andrew Groat
Head of Business Solutions0.33yrno datano data
Ewan Wilson
Head of Testing Solutions0.33yrno datano data
Richard Scown
Chief Architect0.33yrno datano data
Arnold Lee
Group Manager & Head of Application0.33yrno datano data
Javier Carrillo
Head of Development-LATAM0.33yrno datano data

0.3yrs

Average Tenure

Experienced Management: CCA's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ian Leijer
Executive Director & Finance Director6.08yrsUS$68.05k1.21%
$ 649.8k
Benjamin Harrison
Chairman0.58yrUS$59.82kno data
Harley Dalton
Non-Executive Director2.17yrsUS$59.82k0.68%
$ 367.7k

2.2yrs

Average Tenure

Experienced Board: CCA's board of directors are not considered experienced ( 2.2 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 286.9%.


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$53.715m
  • Shares outstanding: 397.89m
  • 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 provides payment processor and mobile banking services through its mobile application. The company was formerly known as Chim...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/25 07:04
End of Day Share Price2021/02/25 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.