Change Financial Ltd (CCA) AI Stock Analysis

• Market Cap: $48.08M
• Dividend Yield: N/A
• Average Volume (3M): 208.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 51.36%
• EPS Growth: -6.67%
• Country: AU
• Employees: 79
• Sector: Technology
• Sector Strength: 89
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 686,853,000
• 10 Day Avg. Volume: 278,334
• 30 Day Avg. Volume: 208,857
• PEG Ratio: 0.12
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.80
• Enterprise Value/Market Cap: 0.20
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: -1.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

The overall score of 48 reflects the company's strong revenue growth potential but significant challenges in profitability and cash management. Technical analysis shows a bullish trend, but overbought conditions imply short-term risks. The negative P/E ratio suggests valuation challenges, highlighting the need for improved earnings and financial health to enhance investor confidence.

Change Financial Ltd Business Overview & Revenue Model

Company Description

Change Financial Ltd (CCA) is a fintech company that specializes in providing innovative financial solutions and digital banking services. Operating primarily in the financial technology sector, the company offers a range of products and services that help financial institutions, banks, and businesses enhance their digital banking capabilities. Its core offerings include payment processing solutions, card management services, and software platforms that enable seamless and secure financial transactions.

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 21.64% increase in sales. However, profitability is a key issue with negative EBIT and net profit margins, reflecting operational inefficiencies. The balance sheet is stable with low leverage but struggles to convert equity into returns. Cash flow challenges persist, indicating a 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
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: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.51 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, 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	74 Outperform	AU$79.94M	95.00	3.26%	―	5.37%	-45.95%
COS	70 Outperform	AU$106.46M	11.63	12.90%	3.42%	23.66%	-7.71%
CCG	63 Neutral	AU$29.70M	62.22	1.16%	4.46%	48.72%	―
EML	62 Neutral	$424.13M	37.91	7.22%	―	-27.00%	―
CCR	57 Neutral	AU$93.42M	―	-7.65%	―	20.24%	27.33%
Sector *	50 Neutral	AU$1.44B	1.83	-28.24%	3.29%	15.64%	-7.01%
CCA	48 Neutral	$48.08M	―	-39.85%	―	51.36%	-6.67%

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.