Challenger Past Earnings Performance

Past criteria checks 4/6

Challenger has been growing earnings at an average annual rate of 9.3%, while the Diversified Financial industry saw earnings declining at 1.1% annually. Revenues have been declining at an average rate of 17.1% per year. Challenger's return on equity is 8.2%, and it has net margins of 10.7%.

Key information

9.3%

Earnings growth rate

7.1%

EPS growth rate

Diversified Financial Industry Growth	9.1%
Revenue growth rate	-17.1%
Return on equity	8.2%
Net Margin	10.7%
Next Earnings Update	13 Aug 2024

Recent past performance updates

Recent updates

Revenue & Expenses Breakdown
Beta

How Challenger makes and spends money. Based on latest reported earnings, on an LTM basis.

Earnings and Revenue History

DB:GK9 Revenue, expenses and earnings (AUD Millions)
Date	Revenue	Earnings	G+A Expenses
31 Dec 23	2,966	318	377
30 Sep 23	2,670	307	370
30 Jun 23	2,373	296	362
31 Mar 23	418	109	363
31 Dec 22	-917	15	346
30 Sep 22	-624	140	339
30 Jun 22	-330	264	333
31 Mar 22	1,592	460	338
31 Dec 21	3,515	656	343
30 Sep 21	3,421	624	325
30 Jun 21	3,326	592	308
31 Mar 21	2,604	89	290
31 Dec 20	1,883	-414	272
30 Sep 20	1,848	-415	271
30 Jun 20	1,814	-416	270
31 Mar 20	2,694	53	284
31 Dec 19	3,575	522	297
30 Sep 19	3,428	415	294
30 Jun 19	3,280	308	291
31 Mar 19	2,968	221	297
31 Dec 18	2,655	133	303
30 Sep 18	2,760	228	302
30 Jun 18	2,865	323	302
31 Mar 18	2,997	357	298
31 Dec 17	3,128	392	293
30 Sep 17	3,035	395	285
30 Jun 17	2,941	398	277
31 Mar 17	2,490	346	320
31 Dec 16	2,040	295	363
30 Sep 16	2,039	311	360
30 Jun 16	2,038	328	356
31 Mar 16	2,017	365	347
31 Dec 15	1,996	403	338
30 Sep 15	1,950	351	337
30 Jun 15	1,904	299	337
31 Mar 15	2,094	302	347
31 Dec 14	2,284	304	358
30 Sep 14	2,190	323	342
30 Jun 14	2,096	341	325
31 Mar 14	1,768	351	277
31 Dec 13	1,441	361	229
30 Sep 13	1,582	389	229
30 Jun 13	1,724	417	230

Quality Earnings: GK9 has a large one-off loss of A$134.8M impacting its last 12 months of financial results to 31st December, 2023.

Growing Profit Margin: GK9's current net profit margins (10.7%) are higher than last year (-1.6%).

Free Cash Flow vs Earnings Analysis

Past Earnings Growth Analysis

Earnings Trend: GK9's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: GK9's earnings growth over the past year (2034.9%) exceeds its 5-year average (9.3% per year).

Earnings vs Industry: GK9 earnings growth over the past year (2034.9%) exceeded the Diversified Financial industry -11.4%.

Challenger Past Earnings Performance

Past criteria checks 4/6

Key information

Recent past performance updates

Challenger Limited to Report Fiscal Year 2024 Results on Aug 13, 2024

Full year 2023 earnings released: EPS: AU$0.42 (vs AU$0.38 in FY 2022)

First half 2023 earnings released: EPS: AU$0.18 (vs AU$0.42 in 1H 2022)

Full year 2022 earnings released: EPS: AU$0.38 (vs AU$0.88 in FY 2021)

Challenger Limited to Report Fiscal Year 2023 Results on Aug 15, 2023

First half 2022 earnings: EPS in line with analyst expectations despite revenue beat

Recent updates

Heartland Group Holdings Limited (NZSE:HGH) completed the acquisition of Challenger Bank Limited from Challenger Limited (ASX:CGF)

First half dividend of AU$0.13 announced

New major risk - Financial position

Challenger Limited Declares Interim Dividend for the Six Months Ended 31 December 2023, Payable on 19 March 2024

Now 20% undervalued after recent price drop

Challenger Limited Announces Quarterly Dividend of One Quarter Ended February 25, 2024, Payable on February 26, 2024

Challenger Limited Appoints Matthew Michelini as Director

Challenger Limited and Challenger Life Company Limited Announce the Appointment of Lisa Gray as Independent Non-Executive Director, Effective 9 November 2023

Now 20% undervalued after recent price drop

Now 20% undervalued after recent price drop

Challenger Limited Announces Board Changes

Challenger Limited Declares Ordinary Dividend for the Six Months Period Ended 30 June 2023, Payable on 20 September 2023

Upcoming dividend of AU$0.12 per share at 3.6% yield

Now 21% undervalued

New major risk - Financial position

Challenger Limited to Report Fiscal Year 2024 Results on Aug 13, 2024

Full year 2023 earnings released: EPS: AU$0.42 (vs AU$0.38 in FY 2022)

Elanor Investors Limited and Elanor Investment Fund completed the acquisition of Challenger Real Estate from Challenger Limited.

Independent Non-Executive Chairman recently bought €61k worth of stock

Challenger Limited Declares Ordinary Dividend for the Six Months Period Ended 31 December 2022, Payable on 21 March 2023

First half 2023 earnings released: EPS: AU$0.18 (vs AU$0.42 in 1H 2022)

Challenger Limited Announces CFO Transition

Heartland Group Holdings Limited (NZSE:HGH) signed a conditional share purchase agreement for the purchase of Challenger Bank Limited from Challenger Limited (ASX:CGF) for AUD 36 million.

Challenger Limited Appoints Mandy Mannix as Chief Executive, Customer, Effective 2 November 2022

Challenger Limited and Apollo Announces Management Changes

Challenger Limited Announces Ordinary Fully Franked Dividend on CAP NOTE 3-BBSW+4.60% PERP NON-CUM RED T-05-26 Securities for the Quarter Ending November 24, 2022, Payable on November 25, 2022

Upcoming dividend of AU$0.12 per share

Full year 2022 earnings released: EPS: AU$0.38 (vs AU$0.88 in FY 2021)

Challenger Limited Declares Fully Franked Final FY22 Dividend, Payable on 21 September 2022

Challenger Limited to Report Fiscal Year 2023 Results on Aug 15, 2023

Challenger Limited Appoints Victor Rodriguez to the Role of Chief Executive, Funds Management, Effective 1 August 2022

Challenger Limited Announces Quarterly Dividend of CAP NOTE 3-BBSW+4.60% PERP NON-CUM RED T-05-26, Payment Date 25/8/2022

Challenger Limited Announces Dividend for Security Cgfpb - Cap Note 3-Bbsw+4.40% Perp Non-Cum Red T-05-23 for the Quarter Ended August 21, 2022, Payable on August 22, 2022

Challenger Announces New Leadership Structure

Challenger Limited Declares Ordinary Dividend on CGFPA - CNV PREF 3-BBSW+3.40% PERP SUB NON-CUM RED T-05-22 For the Quarter Ending May 24, 2022, Payable on May 25, 2022

Challenger Limited Announces Ordinary Dividend on CGFPB - CAP NOTE 3-BBSW+4.40% PERP NON-CUM RED T-05-23 for the Quarter Ending May 22, 2022, Payable on May 5, 2022

CountPlus Limited (ASX:CUP) acquired Accurium Holdings Pty Ltd from Challenger Limited (ASX:CGF) for $7.737 million.

Investor sentiment improved over the past week

First half 2022 earnings: EPS in line with analyst expectations despite revenue beat

Challenger Limited Announces an Interim Dividend for the First Half Ended December 31, 2021, Payable on 22 March 2022

Patrizia AG (XTRA:PAT) completed the acquisition of a 30% stake in Whitehelm Capital from Challenger Limited (ASX:CGF) on February 2, 2022.

VGI Reportedly Ponders Merger Deals

High number of new directors

MD, CEO & Director recently sold €2.1m worth of stock

Upcoming dividend of AU$0.10 per share

Full year 2021 earnings released: EPS AU$0.88 (vs AU$0.68 loss in FY 2020)

Challenger Limited Declares Dividend on CGFPA - CNV PREF 3-BBSW+3.40% PERP SUB NON-CUM RED T-05-22 for the Quarter Ending August 24, 2021, Payable on August 25, 2021

Challenger Limited Announces Dividend on CGFPB - CAP NOTE 3-BBSW+4.40% PERP NON-CUM RED T-05-23 for the Quarter Ending August 22, 2021, Payable on August 23, 2021

Challenger Announces Payment of Distribution Distribution, Payable on May 25, 2021

Challenger Reaffirms Earning Guidance for the Year 2021

Challenger Limited Announces Executive Changes, Effective on March 15, 2020

Challenger Announces Chief Financial Officer Changes

First half 2021 earnings released: EPS AU$0.33 (vs AU$0.36 in 1H 2020)

New 90-day high: €4.50

Michael Vardanega Steps Down as Company Secretary of Challenger Limited

Challenger Limited Announces the Appointment of Heather Smith as an Independent Non-Executive Director of Both Challenger Limited and Challenger Life Company Limited

New 90-day high: €4.48

Challenger Limited Announces Executive Changes

New 90-day high: €3.96

Challenger Limited (ASX:CGF) entered into an agreement to acquire Mylifemyfinance Limited from MyLifeMyMoney Superannuation Fund. for AUD 35 million.

New 90-day high: €3.58

Challenger Limited Announces Executive Changes, Effective December 7, 2020

New 90-day high: €3.06

New 90-day high: €2.80

Challenger Limited Announces Resignation of Andrew Tobin, CFO in March 2021

New 90-day low - €2.26

Challenger Limited to Report Fiscal Year 2021 Results on Aug 10, 2021

Challenger Limited has completed a Follow-on Equity Offering in the amount of AUD 34.992 million.

Revenue & Expenses BreakdownBeta

Revenue & Expenses Breakdown
Beta