Cuscal Limited (CCL) AI Stock Analysis

• Market Cap: AU$835.21M
• Dividend Yield: 1.26%
• Average Volume (3M): 221.34K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 1.12
• Revenue Growth: 0.91%
• EPS Growth: -9.16%
• Country: AU
• Employees: 631
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Diversified
• EPS (TTM): 0.09
• Shares Outstanding: 191,562,260
• 10 Day Avg. Volume: 280,981
• 30 Day Avg. Volume: 221,342
• PEG Ratio: -3.20
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 4.12
• P/FCF Ratio: 4.63
• 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$4.70
• Price Target Upside: 7.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: AU$4.00 ▼(-8.26% Downside)

Cuscal Limited's stock score is primarily influenced by its strong technical indicators, suggesting positive market momentum. However, financial performance is a concern due to declining revenue and high leverage, which could pose risks. The valuation indicates moderate pricing, but the low dividend yield limits income potential for investors.

Positive Factors

Profitability Margins

High profitability margins indicate efficient cost management, which can support financial resilience despite revenue challenges.

Cash Flow Generation

Strong cash generation relative to profits suggests good financial health, providing flexibility for investments and debt management.

Leverage Improvement

Improved leverage indicates better financial management, reducing risk and enhancing the company's ability to sustain operations.

Negative Factors

Declining Revenue

Declining revenue poses a challenge to long-term growth and market position, potentially impacting future profitability and competitiveness.

High Leverage

High leverage can strain financial flexibility and increase risk, especially if revenue challenges persist, affecting long-term stability.

Low Operating Cash Flow

Low conversion of income into cash may indicate inefficiencies in operations, potentially affecting liquidity and investment capacity.

Cuscal Limited Business Overview & Revenue Model

Company Description

Cuscal Limited provides payments and regulated data solutions. The Company offers real time payment platform, cards, digital payments, automated teller machine (ATMs) solutions, and consumer data services

How the Company Makes Money

Cuscal Limited generates revenue primarily through transaction fees charged for its payment processing services, which include card payments, direct debits, and digital wallet solutions. The company also earns income from card issuing services, where it provides financial institutions with the ability to issue branded payment cards to their customers. Additionally, Cuscal benefits from partnerships with various banks and fintech companies, allowing it to expand its service offerings and reach a broader market. Other revenue streams may include subscription fees for platform access and consulting services related to payment technology integration.

Cuscal Limited Financial Statement Overview

Summary

Cuscal Limited faces challenges with declining revenue and high leverage, impacting its financial stability. Despite these issues, the company demonstrates strong profitability margins and cash flow generation, which could support future financial resilience if revenue growth is addressed.

Income Statement

The income statement shows a significant decline in revenue growth, with a negative growth rate of -66.03% in the most recent year. Gross profit margin has also decreased substantially from previous years. However, the company maintains a relatively high net profit margin of 20.59% and strong EBIT and EBITDA margins, indicating efficient cost management despite revenue challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.85, indicating significant leverage, though improved from the previous year's 7.68. Return on equity is moderate at 7.62%, reflecting average profitability on shareholders' investments. The equity ratio suggests a stable asset base, but the high leverage poses potential financial risk.

Cash Flow

Cash flow analysis shows positive free cash flow growth of 9.73% and a strong free cash flow to net income ratio of 0.83, indicating good cash generation relative to profits. However, the operating cash flow to net income ratio is low at 0.07, suggesting potential issues in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	398.70M	139.40M	395.10M	218.40M	175.10M	4.78B
Gross Profit	139.70M	31.40M	254.20M	0.00	0.00	1.92B
EBITDA	56.00M	164.00M	177.90M	29.90M	33.10M	332.90M
Net Income	28.70M	28.70M	31.60M	26.10M	23.40M	145.00M
Balance Sheet
Total Assets	3.47B	3.47B	3.51B	3.08B	3.32B	6.12B
Cash, Cash Equivalents and Short-Term Investments	3.21B	3.21B	3.19B	2.80B	1.66B	1.06B
Total Debt	697.90M	697.90M	2.71B	2.47B	478.40M	1.71B
Total Liabilities	3.09B	3.09B	3.15B	2.78B	3.02B	4.50B
Stockholders Equity	376.40M	376.40M	352.60M	298.90M	293.20M	1.63B
Cash Flow
Free Cash Flow	35.00M	124.10M	395.90M	48.00M	769.80M	629.80M
Operating Cash Flow	51.00M	148.70M	403.20M	57.70M	795.90M	839.60M
Investing Cash Flow	-24.60M	-24.60M	-17.30M	-5.30M	-5.80M	-159.60M
Financing Cash Flow	18.00M	18.00M	-18.30M	-80.30M	-80.20M	-476.30M

Cuscal Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.36
• 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:CCL, the sentiment is Positive. The current price of 4.36 is above the 20-day moving average (MA) of 4.02, above the 50-day MA of 4.03, and above the 200-day MA of 3.30, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 68.73 is Neutral, neither overbought nor oversold. The STOCH value of 90.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CCL.

Cuscal Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PLT	67 Neutral	AU$210.48M	6.00	95.31%	―	19.38%	―
PPM	65 Neutral	AU$995.71M	9.98	12.11%	11.71%	-6.49%	-5.40%
CCL	59 Neutral	AU$835.21M	29.11	8.22%	1.26%	0.91%	-9.16%
COG	55 Neutral	AU$444.90M	22.32	12.36%	2.86%	-26.30%	40.12%
AFG	52 Neutral	AU$581.57M	16.56	16.81%	4.21%	14.37%	20.75%
LFS	46 Neutral	AU$1.10B	18.73	5.01%	6.60%	14.81%	―

Cuscal Limited Corporate Events

Cuscal Limited Appoints New Director with No Initial Securities Interest

Cuscal Limited has announced the appointment of Peter Hooper Wright as a director, effective December 1, 2025. This appointment is part of the company’s strategic efforts to strengthen its leadership team, although the notice indicates that Wright currently holds no relevant interests in securities or contracts with the company.

Cuscal Limited Completes Strategic Acquisition of Indue Limited

Cuscal Limited has completed its acquisition of Indue Limited, a strategic move aimed at enhancing diversification, resilience, and growth. The acquisition is expected to generate significant cost synergies and improve earnings per share by over 25% by 2029. The integration will involve non-recurring costs, but the long-term financial benefits are anticipated to be substantial. Additionally, Peter Wright has been appointed as an Independent Non-Executive Director on the Cuscal Board, bringing extensive experience in the payments and technology sectors. This acquisition and board appointment are poised to strengthen Cuscal’s market position and deliver enhanced outcomes for shareholders and clients.

Cuscal Receives APRA Approval for Indue Acquisition

Cuscal Limited has received approval from the Australian Prudential Regulation Authority for its acquisition of Indue Limited, marking the final regulatory step needed for the transaction. The completion of this acquisition is expected by December 1, 2025, which will potentially enhance Cuscal’s market position and operational capabilities in the financial services sector.

Cuscal Limited Director’s Interest Update

Cuscal Limited announced a change in the director’s interest, with Craig Nicholas Kennedy acquiring additional performance rights under the company’s Long Term Incentive Plan. This change reflects the company’s strategy to retain key personnel and align their interests with long-term corporate goals, potentially impacting the company’s operational focus and stakeholder confidence.

Cuscal Limited Successfully Passes All Resolutions at 2025 AGM

Cuscal Limited announced the successful passage of all resolutions at its 2025 Annual General Meeting, including the adoption of the remuneration report and the re-election of Trudy Vonhoff as a director. The approval of the long-term incentive plan and an increase in the non-executive directors’ fee pool were also confirmed, reflecting the company’s commitment to strategic growth and governance.

Cuscal Limited Reports Strong FY25 Results and Strategic Indue Acquisition

Cuscal Limited reported a strong financial performance for FY25, surpassing its pro forma forecasts in key metrics such as Net Operating Income, EBITDA, and NPAT. The company achieved an 8% increase in total transaction volumes and maintained a robust balance sheet with a tier 1 capital ratio of 27.3%. Cuscal’s strategic acquisition of Indue is expected to be significantly accretive, enhancing shareholder value, client outcomes, and creating opportunities for its workforce. The acquisition, supported by the ACCC, is projected to complete by the end of the year, with anticipated earnings per share uplift of over 25% by FY29.

Cuscal Limited Reports Strong FY25 Performance and Strategic Growth Initiatives

Cuscal Limited’s 2025 Annual General Meeting highlighted a successful year marked by its ASX listing, strong financial performance, and strategic acquisition of Indue Limited. The acquisition, pending regulatory approval, is expected to enhance shareholder value through operational efficiencies and innovation. Cuscal’s commitment to risk management and regulatory compliance remains a priority, ensuring sustainable growth and resilience.

Cuscal Limited’s Strategic Focus on Payment Solutions at 2025 AGM

Cuscal Limited has released a presentation related to its 2025 Annual General Meeting, emphasizing its commitment to advancing payment solutions. The announcement highlights the company’s strategic focus on integrating new acquisitions, such as Indue, to enhance its market position and operational capabilities. The presentation contains forward-looking statements that outline potential future earnings and market trends, although these are subject to change due to various risks and uncertainties.

Cuscal’s Acquisition of Indue Limited Approved by ACCC

Cuscal Limited has received a positive decision from the Australian Competition and Consumer Commission (ACCC) regarding its acquisition of Indue Limited. With this approval, and pending further regulatory consent from the Australian Prudential Regulation Authority (APRA), the acquisition is expected to be completed by the end of the year, potentially enhancing Cuscal’s market position and operational capabilities in the payments sector.

ACCC Approves Cuscal’s Acquisition of Indue, Ensuring Competitive Payment Solutions

The Australian Competition and Consumer Commission (ACCC) has decided not to oppose Cuscal Limited’s proposed acquisition of Indue Limited, as it is unlikely to significantly reduce competition in the payment facilitation services market. The acquisition is expected to deliver efficiencies and support continued investment in products and innovation, benefiting small and mutual bank customers and fintechs. Despite Cuscal and Indue being major players, the presence of multiple suppliers ensures competitive options remain available, and the increasing digitization of payments may further reduce barriers to entry.

Cuscal Limited Releases 2025 Annual General Meeting Notice

Cuscal Limited has announced the release of its 2025 Notice of Annual General Meeting, which includes essential documents such as the Voting/Proxy Form and Online Meeting Guide. This announcement highlights Cuscal’s ongoing commitment to transparency and stakeholder engagement, reinforcing its position as a key player in the Australian financial services sector.