Centrepoint Alliance Limited (CAF) AI Stock Analysis

• Market Cap: AU$84.52M
• Dividend Yield: 7.14%
• Average Volume (3M): 158.77K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.69
• Revenue Growth: 10.88%
• EPS Growth: -9.18%
• Country: AU
• Employees: 187
• Sector: Financial
• Sector Strength: 78
• Industry: Asset Management
• EPS (TTM): 0.02
• Shares Outstanding: 198,881,880
• 10 Day Avg. Volume: 196,981
• 30 Day Avg. Volume: 158,773
• PEG Ratio: -0.12
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.50
• Price Target Upside: 19.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: AU$0.50 ▲(19.05%Upside)

Centrepoint Alliance Limited demonstrates strong technical momentum and an attractive valuation with a low P/E ratio and high dividend yield. The company's solid financial performance supports long-term stability, despite some areas for operational improvement.

Centrepoint Alliance Limited Business Overview & Revenue Model

Company Description

Centrepoint Alliance Limited, together with its subsidiaries, engages in the financial services industry in Australia. It operates through Licensee and Advice Services, Fund Management and Administration, and Consulting Services segments. The Licensee and Advice Services segment offers license services, which include licensing, systems, compliance, training, and technical advises to financial advisers and their clients, as well as mortgage aggregation services to mortgage brokers. The Fund Management and Administration segment provides investor directed portfolio services and investment management services to financial advisers, accountants, and their clients. The Consulting Services segment provides consulting services to self-licensed advisers and licensees. The company also provides lending solutions, such as mortgage lending, asset financing, and commercial finance. In addition, it offers loans to advisers, packages investment platforms, and managed funds; and financial advisory, support, and salaried advisory services, as well as employee share plans. The company was formerly known as Alliance Finance Corporation Limited and changed its name to Centrepoint Alliance Limited in September 2005. Centrepoint Alliance Limited was founded in 1982 and is headquartered in Sydney, Australia.

How the Company Makes Money

Centrepoint Alliance Limited generates revenue primarily through its financial advice services and associated support offerings. The company earns money by providing licensing and compliance support to financial advisers, which includes a fee structure based on the services rendered to each adviser. Additionally, Centrepoint Alliance offers training programs and access to technology platforms, which are monetized through subscription fees or usage-based charges. The company also partners with various financial product providers, earning commissions or service fees based on the distribution of these financial products through their adviser network. Significant factors contributing to its earnings include the scale of its adviser network, the breadth of services offered, and its ability to maintain strong partnerships with key financial institutions.

Centrepoint Alliance Limited Financial Statement Overview

Summary

Centrepoint Alliance Limited exhibits a robust financial trajectory with consistent revenue and profit growth, supported by a stable balance sheet and positive cash flow generation. While operational efficiency and return on equity could be improved, the company's financial health remains solid.

Income Statement

Centrepoint Alliance Limited has demonstrated consistent revenue growth with an impressive increase from $130.96 million in 2020 to $288.41 million in 2024. The gross profit margin has improved, indicating efficient cost management, and the net profit margin has also shown enhancement due to growing net income. However, the EBIT and EBITDA margins, while positive, suggest room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity base with a healthy equity ratio, reflecting a stable financial structure. The debt-to-equity ratio remains low, suggesting prudent leverage management. Despite these strengths, the return on equity has room for improvement, indicating potential inefficiencies in generating returns from shareholder investments.

Cash Flow

Cash flow analysis reveals positive trends in operating and free cash flows, with notable growth in free cash flow. The operating cash flow to net income ratio indicates a strong ability to convert income into cash, though the free cash flow to net income ratio suggests some challenges in cash generation relative to earnings.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	288.41M	273.85M	228.53M	139.18M	130.96M
Gross Profit	16.85M	32.66M	29.33M	26.48M	27.91M
EBITDA	8.57M	8.82M	4.43M	3.37M	-530.00K
Net Income	7.77M	6.34M	6.49M	1.85M	-2.00M
Balance Sheet
Total Assets	59.01M	48.11M	49.32M	27.04M	32.65M
Cash, Cash Equivalents and Short-Term Investments	12.21M	15.61M	14.74M	11.13M	12.19M
Total Debt	5.36M	803.00K	2.52M	490.00K	988.00K
Total Liabilities	25.68M	16.94M	21.00M	15.85M	17.80M
Stockholders Equity	33.34M	31.05M	28.20M	11.07M	14.73M
Cash Flow
Free Cash Flow	5.93M	3.82M	6.76M	2.94M	4.24M
Operating Cash Flow	7.23M	4.40M	7.12M	3.01M	4.45M
Investing Cash Flow	-6.76M	966.00K	1.00M	2.50M	790.00K
Financing Cash Flow	-3.87M	-4.50M	-4.51M	-6.57M	-971.00K

Centrepoint Alliance Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CAF, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.38, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.25 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CAF.

Centrepoint Alliance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAF	76 Outperform	AU$84.52M	11.30	22.42%	7.14%	10.88%	-9.18%
Sector *	64 Neutral	$6.64B	10.23	7.22%	200.95%	24.10%	5.12%
HH4	―		―		―	―	―
WTL	76 Outperform	AU$44.48M	11.71	13.04%	1.60%	33.80%	-8.26%
MAM	73 Outperform	AU$69.24M	9.27	34.01%	6.98%	19.50%	31.19%
PFG	70 Outperform	AU$58.62M	13.65	7.76%	7.04%	26.27%	32.82%
CIW	50 Neutral	AU$28.39M	―	-9.28%	0.67%	-13.78%	50.00%

Centrepoint Alliance Limited Corporate Events

Centrepoint Alliance Reports Strong FY25 Financial and Operational Growth

Centrepoint Alliance Limited announced its unaudited financial results for FY25, showcasing a robust performance with a 16% increase in EBITDA to $10.6 million and a 30% rise in NPBT to $7.3 million. The company also reported a 13% growth in both gross and net revenue. Operationally, Centrepoint achieved significant milestones, including a 40% increase in funds under management and the successful launch of the IconiQ Superannuation and Investment platform. The acquisition of Brighter Super’s advice review book further expanded its adviser network, positioning Centrepoint for continued growth and market leadership.

Centrepoint Alliance Completes Acquisition of Brighter Super’s Advice Book

Centrepoint Alliance Limited has completed the acquisition of the Annual Review service advice book from Brighter Super, a Queensland-based industry superannuation fund. The transaction, valued at $1,221,750, was executed through Centrepoint’s wholly owned subsidiary, Financial Advice Matters Pty Ltd, enhancing Centrepoint’s strategic advisory capabilities and expanding its managed funds portfolio.

Centrepoint Alliance Announces Registry Office Relocation

Centrepoint Alliance Limited has announced a change in the location of its registry office, Computershare Investor Services, which will now be situated at Level 4, 44 Martin Place, Sydney NSW 2000, effective from 10 June 2025. This relocation is in accordance with ASX Listing Rules and is part of the company’s ongoing operational adjustments, potentially impacting stakeholders by centralizing registry operations in a prominent Sydney location.

Centrepoint Alliance Announces Cessation of Performance Rights

Centrepoint Alliance Limited has announced the cessation of 218,077 performance rights due to unmet conditions, effective April 4, 2025. This development may impact the company’s capital structure and could have implications for its stakeholders, reflecting potential challenges in meeting performance targets.

Centrepoint Alliance Substantial Holder Reduces Stake

Centrepoint Alliance Limited, a company listed on the ASX, has experienced a change in the interests of its substantial holder, TIGA Trading Pty Ltd. The notice indicates a decrease in TIGA Trading’s voting power from 26.54% to 21.83%, following a significant market sale of 10 million ordinary shares. This change in shareholding could impact the company’s market perception and influence within its industry.

Sage Capital Group Increases Stake in Centrepoint Alliance

Sage Capital Group Pty Ltd, a subsidiary of Sequoia Financial Group Limited, has increased its voting power in Centrepoint Alliance Limited from 6.06% to 16.52% through on-market trades. This significant change in shareholding reflects a strategic move that could impact Centrepoint Alliance’s operations and influence its market positioning, potentially affecting stakeholders and future company decisions.

COG Financial Services Sells Stake in Centrepoint Alliance

Centrepoint Alliance Limited, a company listed on the Australian Securities Exchange (ASX: CAF), has experienced a change in its substantial shareholders. COG Financial Services Limited (ASX: COG) has ceased to be a substantial holder of Centrepoint Alliance as of May 21, 2025, following the sale of over 39 million shares valued at approximately $13.8 million. This change in shareholding may impact Centrepoint Alliance’s market dynamics and stakeholder interests.

Centrepoint Alliance Finalizes Acquisition of Brighter Super’s Advice Book

Centrepoint Alliance Limited has announced the completion timetable for its acquisition of the Annual Review service advice book from Brighter Super, a Queensland-based industry fund. The transaction, executed through Centrepoint’s Financial Advice Matters Pty Ltd, involves transitioning approximately 316 members to Centrepoint’s network, with settlement scheduled for June 13, 2025. This acquisition is expected to enhance Centrepoint’s strategic advice offerings and expand its client base, reinforcing its position in the financial services industry.