Change Financial Ltd (CCA) AI Stock Analysis

• Market Cap: $59.07M
• Dividend Yield: N/A
• Average Volume (3M): 448.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: 51.36%
• EPS Growth: -6.67%
• Country: AU
• Employees: 79
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 686,853,000
• 10 Day Avg. Volume: 749,521
• 30 Day Avg. Volume: 448,880
• PEG Ratio: N/A
• Price to Book (P/B): 4.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 166.52
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 11.46
• Enterprise Value/Ebitda: -4.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

The overall stock score for Change Financial Ltd is primarily impacted by its financial performance, which indicates potential in revenue growth but significant challenges in profitability. Technical analysis shows positive momentum, though caution is advised due to potential overbought conditions. Valuation remains a concern with a negative P/E ratio and no dividend yield, reflecting ongoing profitability challenges. These factors combined result in a moderate overall score.

Change Financial Ltd Business Overview & Revenue Model

Company Description

Change Financial Ltd (CCA) is a financial technology company that operates primarily in the digital banking and payments sector. The company provides innovative solutions for financial institutions, enabling them to offer a wide range of digital banking services to their customers. Change Financial's core products include a cloud-based platform that supports card issuing, payment processing, and other banking operations, designed to enhance the customer experience and streamline financial services.

How the Company Makes Money

Change Financial Ltd generates revenue through its fintech platform, which provides software-as-a-service (SaaS) solutions to financial institutions. The company earns money by charging subscription fees for the use of its platform, as well as transaction-based fees for payment processing and card issuing services. Additionally, Change Financial may engage in strategic partnerships with banks and other financial entities to expand its service offerings and customer base, contributing to its overall revenue growth.

Change Financial Ltd Financial Statement Overview

Summary

Change Financial Ltd shows potential in revenue growth, but profitability remains a key issue with negative margins and cash flow challenges. The balance sheet is stable with low leverage, but the company struggles to convert equity into returns. Overall, significant work is needed to enhance operational efficiency and profitability.

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
EBITDA	-621.17K	-1.26M	-2.53M	-2.31M	-3.26M
Net Income	-2.57M	-2.92M	-3.77M	-3.48M	-3.51M
Balance Sheet
Total Assets	12.94M	15.30M	10.35M	12.72M	3.56M
Cash, Cash Equivalents and Short-Term Investments	2.59M	5.35M	1.50M	4.02M	2.97M
Total Debt	156.93K	136.25K	1.29M	561.76K	332.68K
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: 0.09
• 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:CCA, the sentiment is Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.90 is Neutral, neither overbought nor oversold. The STOCH value of 61.17 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
KYP	70 Outperform	AU$103.70M	120.00	3.26%	―	5.37%	-45.95%
COS	65 Neutral	AU$108.28M	11.83	12.90%	3.36%	23.66%	-7.71%
CCR	63 Neutral	AU$112.53M	―	-7.65%	―	20.24%	27.33%
EML	62 Neutral	$428.54M	36.60	7.22%	―	-27.00%	―
CCG	60 Neutral	AU$28.11M	58.89	1.16%	2.28%	48.72%	―
Sector *	57 Neutral	HK$14.24B	5.26	-5.75%	6.39%	9.34%	-42.23%
CCA	52 Neutral	$59.07M	―	-39.85%	―	51.36%	-6.67%

Change Financial Ltd Corporate Events

Change Financial Exceeds FY25 Revenue Targets and Projects Positive Growth for FY26

Change Financial Limited has announced that it exceeded its FY25 revenue guidance, achieving a 42% increase from FY24 with a revenue of US$15.1 million. The company expects to deliver its first positive Underlying EBITDA result for FY25. For FY26, Change Financial anticipates revenue between US$16.5 million and US$18.0 million, with a significant increase in Underlying EBITDA. The company expects to be net cash flow positive, marking a significant milestone as it continues to scale and improve its EBITDA margin with incremental client wins.

Change Financial Ltd Announces Cessation of 700,000 Share Rights

Change Financial Ltd has announced the cessation of 700,000 share rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders, as it reflects a change in the company’s securities status.

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.