Change Financial Ltd (CCA) AI Stock Analysis

• Market Cap: AU$41.21M
• Dividend Yield: N/A
• Average Volume (3M): 225.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 51.36%
• EPS Growth: -6.67%
• Country: AU
• Employees: 79
• Sector: Technology
• Sector Strength: 77
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 686,853,000
• 10 Day Avg. Volume: 82,758
• 30 Day Avg. Volume: 225,047
• PEG Ratio: N/A
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 107.39
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 7.02
• Enterprise Value/Ebitda: -2.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Change Financial Ltd's stock is rated at 51, reflecting moderate potential with significant risks. The company's revenue growth is a positive indicator, but persistent profitability issues, negative cash flow, and weak valuation metrics weigh heavily on the stock. Technical indicators suggest a neutral outlook, with the stock trading near its short-term averages. Overall, while the revenue growth is promising, substantial improvements in profitability and cash management are crucial for a higher score.

Change Financial Ltd Business Overview & Revenue Model

Company Description

Change Financial Limited, a fintech company, offers payment-as-a-service solutions in South East Asia, Oceania, Latin America, the United States, and internationally. It provides Vertexon PaaS, a physical and virtual card issuing and transaction processing platform; and PaySim, payment testing solution. The company was formerly known as ChimpChange Limited and changed its name to Change Financial Limited in July 2017. Change Financial Limited was incorporated in 2011 and is based in Brisbane, Australia.

How the Company Makes Money

Change Financial Ltd generates revenue through a diversified model that includes transaction fees, subscription fees for its software platforms, and service charges for its card management solutions. The company partners with financial institutions and businesses to provide them with tailored digital banking services, which often involve setting up and maintaining infrastructure for payment processing and card issuance. These partnerships are significant contributors to its earnings as they often involve long-term contracts and recurring revenue streams. Additionally, Change Financial may also earn revenue from licensing its financial technology solutions to other companies looking to enhance their digital offerings.

Change Financial Ltd Financial Statement Overview

Summary

Change Financial Ltd shows potential in revenue growth with a notable increase in sales. However, profitability remains a key issue, with negative margins across the board. The balance sheet is stable with low leverage, but the company struggles to convert equity into returns. Cash flow challenges persist, reflecting the need for better cash management and profitability improvements.

Income Statement

Change Financial Ltd displayed a significant revenue growth of 21.64% from the previous year, indicating a positive trajectory in sales. However, the company continues to face challenges with profitability as evidenced by a negative EBIT margin of -8.63% and a net profit margin of -24.44%. This points to ongoing operational inefficiencies and cost management issues. Despite the improvement in revenue, the overall profitability remains a concern.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio of 0.03, suggesting conservative leverage and potential for future borrowing if needed. However, the return on equity is negative at -43.71%, reflecting the ongoing struggles to generate positive returns for shareholders. The equity ratio is healthy at 45.41%, indicating a solid equity base relative to total assets, but the balance sheet reveals a need for improved profitability to enhance shareholder value.

Cash Flow

Free cash flow remains negative, although it improved compared to the prior year, indicating better cash management. The operating cash flow to net income ratio is 0.18, suggesting challenges in converting income into cash. The overall negative cash flow from operations highlights the need for stronger operational performance to support cash generation.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
10.51M	8.64M	8.16M	6.13M	4.10K
	Gross Profit
3.06M	-795.08K	-2.88M	-1.54M	-2.62M
	EBIT
-2.36M	-3.81M	-5.23M	-3.69M	-4.71M
	EBITDA
-621.17K	-1.26M	-2.53M	-2.31M	-3.26M
	Net Income Common Stockholders
-2.57M	-2.92M	-3.77M	-3.48M	-3.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.59M	5.35M	1.50M	4.02M	2.97M
	Total Assets
12.94M	15.30M	10.35M	12.72M	3.56M
	Total Debt
156.93K	136.25K	1.29M	561.76K	332.68K
	Net Debt
-2.43M	-5.21M	-207.61K	-3.46M	-2.63M
	Total Liabilities
7.07M	6.86M	7.00M	5.70M	1.23M
	Stockholders Equity
5.88M	8.44M	3.34M	7.02M	2.33M
Cash Flow		Free Cash Flow
-2.39M	-3.12M	-4.08M	-3.02M	-4.16M
	Operating Cash Flow
-464.97K	-1.59M	-2.64M	-2.32M	-4.16M
	Investing Cash Flow
-2.09M	-1.80M	-1.26M	-5.17M	347.65K
	Financing Cash Flow
-102.15K	6.89M	710.79K	7.56M	3.97M

Change Financial Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CCA, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.18 is Neutral, neither overbought nor oversold. The STOCH value of 44.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CCA.

Change Financial Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TYR	77 Outperform	AU$483.44M	15.31	15.36%	―	7.50%	204.66%
HUB	76 Outperform	€6.72B	114.47	11.42%	0.56%	22.81%	32.47%
Sector *	60 Neutral	$11.60B	10.64	-6.04%	2.94%	7.87%	-11.74%
CCA	51 Neutral	AU$41.21M	―	-39.85%	―	51.36%	-6.67%
EML	51 Neutral	$393.35M	33.01	7.22%	―	-27.00%	―

Change Financial Ltd Corporate Events

Change Financial Reports Record Revenue and Strategic Shift

Change Financial Ltd reported a record revenue quarter with a 30% increase in Q3 FY25 revenue, driven by a 386% rise in active cards on its Vertexon PaaS platform. The company has substantially completed the wind down of its US operations, leading to improved operational efficiency and a focus on profitable revenue growth. With new client acquisitions and increased sales activity, Change Financial is confident in achieving its FY25 financial targets, including over 30% revenue growth and a positive EBITDA.

Change Financial to Release Q3 FY25 Results and Host Investor Webinar

Change Financial Limited announced that it will release its Quarterly Activities Report and Appendix 4C Quarterly Cashflow Report for Q3 FY25 on April 29, 2025. The company will host a live webinar and Q&A session with its CEO and Executive Director to discuss the results, providing stakeholders an opportunity to engage directly with the company’s leadership. This announcement highlights Change Financial’s commitment to transparency and stakeholder engagement, potentially impacting investor confidence and market positioning.

Change Financial Director Increases Shareholding

Change Financial Ltd announced a change in the director’s interest, with Geoffrey Sam acquiring 478,139 ordinary class shares through on-market trades, increasing his total holdings to 4,219,066 shares. This acquisition reflects a strategic move that could strengthen the company’s leadership stake and potentially influence its market positioning, signaling confidence in the company’s future prospects.

Change Financial Announces Passing of Chairman Eddie Grobler

Change Financial Limited announced the passing of its Chairman, Eddie Grobler, who was a respected figure in the payments industry. His leadership and contributions since joining the board in 2021 and becoming Chairman in 2022 were highly valued. Geoff Sam has been appointed as the new Chairman, effective immediately.

Change Financial Appoints New Director with Significant Shareholding

Change Financial Limited has announced the appointment of Michael Giles as a director, effective March 31, 2025. Giles holds a significant interest in the company through his directorship and shareholding in Fintech HQ Pty Ltd, which owns 137,000,000 ordinary class shares. This appointment is expected to strengthen the company’s leadership and potentially enhance its strategic direction in the fintech industry.

Change Financial Announces Key Board Changes to Drive Growth

Change Financial Limited has announced significant changes to its Board of Directors, with Michael Giles joining as a Non-Executive Director and Geoff Sam assuming the role of Chairman following Eddie Grobler’s retirement. These changes come at a pivotal time for the company, which is poised for growth in the card issuing and payments industry in New Zealand and Australia, as well as expanding its global payments testing market presence. The new appointments are expected to drive the next phase of growth and unlock value for shareholders.

Change Financial Ltd Director Acquires Additional Shares

Change Financial Ltd announced a change in the director’s interest, with Director Thomas Russell acquiring 400,000 ordinary class shares through an on-market trade. This transaction reflects a strategic move within the company, potentially impacting its market positioning and signaling confidence in its future growth prospects.

Change Financial Director Increases Stake, Signaling Confidence

Change Financial Ltd announced a change in the director’s interest, with Geoffrey Sam acquiring 407,594 ordinary shares through an on-market trade, increasing his total holding to 3,740,927 shares. This acquisition reflects a strategic move that could potentially strengthen the company’s leadership position and align the director’s interests with those of the shareholders, indicating confidence in the company’s future performance.

Change Financial Ltd Highlights Innovation in H1 FY25 Investor Presentation

Change Financial Ltd has announced its H1 FY25 investor presentation, highlighting its continued innovation in payment solutions. The company leverages its core products, Vertexon and PaySim, to offer tailored solutions in the banking and payments ecosystem. With 80% of its revenue derived from digital payments and card issuing, and 20% from payment testing and simulation, Change Financial is well-positioned to maintain its influence in the global market. This announcement underscores the company’s commitment to expanding its services and enhancing its market presence, impacting stakeholders positively by ensuring robust and scalable payment solutions.

Change Financial Reports Strong H1 FY25 Results and Strategic US Exit

Change Financial Ltd reported a strong performance for the first half of FY25, with a 61% increase in revenue to US$7.2 million, largely driven by its PaaS clients. The company has successfully exited its loss-making US operations, which is expected to improve future financial performance. With 78% of revenue coming from recurring income and a strategic focus on expanding in Australia, Change Financial is poised for continued growth. The company is strengthening its commercial team to capitalize on strategic opportunities and is confident in achieving its FY25 financial targets, including a revenue growth of over 30% and a positive EBITDA result.

Change Financial to Release H1 FY25 Results and Host Investor Webinar

Change Financial Limited announced it will release its Half Year Report for the period ending 31 December 2024 on 27 February 2025. The company will host a live investor webinar and Q&A session on the same day, led by CEO Tony Sheehan and Executive Director Tom Russell. This announcement highlights Change Financial’s commitment to transparency and engagement with its investors, potentially impacting its market positioning and stakeholder relations.