Credit Corp Group Limited (CCP) AI Stock Analysis

• Market Cap: AU$655.48M
• Dividend Yield: 4.81%
• Average Volume (3M): 275.02K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 1.54
• Revenue Growth: 5.01%
• EPS Growth: 85.56%
• Country: AU
• Employees: 2,231
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.64
• Shares Outstanding: 68,066,860
• 10 Day Avg. Volume: 180,533
• 30 Day Avg. Volume: 275,021
• PEG Ratio: 0.12
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 607.48
• P/FCF Ratio: 18.03
• 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$19.53
• Price Target Upside: 37.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.53
• Revenue Forecast (FY): AU$584.63M

• Rating: 59 Neutral
• Price Target: AU$10.50 ▼(-25.90% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by mixed financial performance—severe revenue and gross profit weakness offset by profitability, a manageable balance sheet, and improved free cash flow. Technicals are a clear drag with price below all major moving averages and negative momentum indicators, while valuation helps support the overall score due to the low P/E and high dividend yield.

Positive Factors

Balance Sheet Strength

A moderate debt-to-equity ratio (0.48) and a described stable financial position indicate manageable leverage. This structural balance-sheet strength supports continued portfolio purchases, cushions credit stress, and preserves funding flexibility for operations and investments over the coming months.

Improved Cash Generation

A reported ~405% increase in free cash flow signals materially stronger cash conversion versus the prior period. Sustained higher FCF improves internal funding for debt ledger acquisitions, servicing and lending growth, while reducing near-term dependence on external financing and supporting capital allocation choices.

Durable Business Model

CCP's core model—buying discounted debt ledgers and extracting recoveries plus operating consumer lending—generates recurring, cash-focused revenue streams. The combination of collections income and lending interest creates durable cash generation and operational leverage across cycles and geographies.

Negative Factors

Severe Revenue and Gross Profit Weakness

A near-100% revenue decline and negative gross profit point to material deterioration in top-line and core margins. If sustained, this undermines the economics of debt purchases and lending, constraining reinvestment in collections capability and threatening medium-term profitability drivers.

Cash Flow Volatility

Although recent FCF improved sharply, historical volatility in operating and free cash flow creates uncertainty in the timing and scale of funds available for portfolio buys and lending. That unpredictability complicates capital allocation, dividend coverage and resilience through adverse credit cycles.

Dependence on Portfolio Supply and Regulation

CCP's returns materially depend on access to attractively priced debt ledgers, collection effectiveness and regulatory/economic settings. Structural sensitivity to portfolio supply, pricing shifts or regulatory changes across jurisdictions can materially reduce recoveries and long-term returns.

Credit Corp Group Limited Business Overview & Revenue Model

Company Description

Credit Corp Group Limited provides debt ledger purchase and collection, and consumer lending services in Australia and the United States. The company operates through three segments: Debt Ledger Purchasing – Australia and New Zealand; Debt Ledger Purchasing – United States; and Consumer Lending – Australia, New Zealand and the United States. The company offers debt sale, contingency and agency collection, local government debt recovery, and hardship and insolvency management services, as well as various loan products. It provides financial services under the Wallet Wizard, ClearCash, CarStart Finance, Resolvr, and Wizpay brands. The company was founded in 1992 and is headquartered in Sydney, Australia.

How the Company Makes Money

CCP primarily makes money through two core activities: (1) debt purchasing and collections, and (2) consumer lending. 1) Debt purchasing and collections (largest driver in most periods) - Portfolio (debt) purchases: CCP buys charged-off or overdue receivable portfolios (commonly referred to as debt ledgers) from banks, telecommunications providers, utilities and other credit issuers, typically at a significant discount to the face value of the accounts. This purchase price is recorded as an investment in receivables/portfolios. - Collections revenue: CCP then collects payments from customers over time via internal collections operations. The economic profit is the difference between (a) cash collected over the life of the portfolio and (b) the purchase price paid plus collection/operating costs. - Accounting recognition: While reported revenue can depend on accounting treatment, the underlying cash economics come from ongoing collections (including payment arrangements, settlements and recoveries). Performance is driven by the quality/price of purchased portfolios, collection effectiveness, and the pace and size of cash recoveries versus expectations. 2) Consumer lending - Loan origination: CCP originates and services consumer loans (including through its consumer finance brands). It earns interest income on the outstanding loan balances. - Fees and ancillary income: Depending on the product and jurisdiction, lending businesses may also generate fee income (e.g., establishment or account fees). Specific fee types/amounts are not provided here and are null. - Credit risk management: Profitability depends on net interest margin (interest received minus funding and operating costs) and credit losses (defaults and provisioning). Key factors that influence earnings - Supply of portfolios and pricing: Availability of debt ledgers from major creditors and the discount CCP can negotiate directly affect future collections profitability. - Collections efficiency and cost control: Better contact strategies, analytics, and operational efficiency improve recovery rates and reduce cost-to-collect. - Economic conditions and regulation: Consumer financial stress, employment levels, and regulatory settings can materially affect recoveries, lending defaults, and permissible collection/lending practices. Significant partnerships: null

Credit Corp Group Limited Financial Statement Overview

Summary

Mixed fundamentals: the income statement is weak (revenue down -99.704% and negative gross profit), but the company remains profitable at the net income/EBIT level. The balance sheet is relatively solid with manageable leverage (debt-to-equity 0.48), and cash flow improved materially (free cash flow growth +405.063%), though cash metrics have shown volatility historically.

Income Statement

The income statement shows a significant decline in revenue for the most recent year, with a negative revenue growth rate of -99.704%. Despite this, the company maintains a positive net income and EBIT, indicating some level of operational efficiency. However, the negative gross profit suggests potential issues in cost management or revenue recognition.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.48, indicating manageable leverage. The equity ratio is healthy, and the return on equity has been positive, suggesting effective use of equity to generate profits. However, the increase in total debt over the years could pose a risk if not managed properly.

Cash Flow

The cash flow statement indicates a significant improvement in free cash flow growth, with a 405.063% increase in the most recent year. The operating cash flow to net income ratio is positive, suggesting good cash generation relative to net income. However, historical fluctuations in free cash flow and operating cash flow coverage ratios highlight potential volatility in cash management.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	557.70M	1.52M	399.71M	394.67M	373.56M	345.86M
Gross Profit	-29.31M	-34.73M	377.78M	394.67M	364.87M	299.39M
EBITDA	142.83M	178.40M	108.52M	156.51M	158.69M	142.71M
Net Income	94.08M	94.09M	50.71M	91.25M	100.72M	88.13M
Balance Sheet
Total Assets	1.44B	1.40B	1.32B	1.25B	974.61M	781.25M
Cash, Cash Equivalents and Short-Term Investments	46.21M	56.71M	34.85M	58.82M	23.70M	55.68M
Total Debt	487.75M	424.43M	411.90M	341.69M	157.96M	28.28M
Total Liabilities	543.48M	507.87M	498.66M	431.37M	233.97M	114.19M
Stockholders Equity	892.95M	890.27M	825.67M	817.42M	740.64M	667.06M
Cash Flow
Free Cash Flow	75.57M	51.07M	-50.05M	62.25M	-14.05M	89.00M
Operating Cash Flow	83.62M	52.56M	-48.58M	63.58M	-10.23M	91.79M
Investing Cash Flow	-94.41M	-1.49M	-1.47M	-164.36M	-93.89M	-26.84M
Financing Cash Flow	-2.56M	-28.77M	20.02M	136.65M	71.54M	-52.07M

Credit Corp Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CCP, the sentiment is Negative. The current price of 14.17 is above the 20-day moving average (MA) of 10.95, above the 50-day MA of 12.02, and above the 200-day MA of 13.69, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 23.29 is Positive, neither overbought nor oversold. The STOCH value of 3.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CCP.

Credit Corp Group 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%
SVR	67 Neutral	AU$290.85M	4.67	9.32%	7.73%	-4.26%	89.71%
CCP	59 Neutral	AU$655.48M	5.42	10.55%	4.81%	5.01%	85.56%
PPM	57 Neutral	AU$752.44M	9.15	12.70%	11.71%	-6.49%	-5.40%
HUM	56 Neutral	AU$342.51M	6.25	7.83%	2.84%	7.64%	463.49%
LFS	52 Neutral	AU$961.75M	11.50	7.72%	6.60%	14.81%	―
LFG	50 Neutral	AU$1.08B	4.10	12.13%	11.83%	2.11%	15.71%

Credit Corp Group Limited Corporate Events

Credit Corp Signs Confidentiality Deed for Possible Humm Group Acquisition

Credit Corp Group Limited has confirmed the execution of a confidentiality deed with Humm Group Limited, paving the way for due diligence on a non-binding indicative proposal to acquire Humm. The proposal, originally submitted in November 2025, remains uncertain, with Credit Corp stressing there is no assurance a transaction will proceed and committing to update shareholders in line with disclosure obligations.

The most recent analyst rating on (AU:CCP) stock is a Hold with a A$12.50 price target. To see the full list of analyst forecasts on Credit Corp Group Limited stock, see the AU:CCP Stock Forecast page.

Credit Corp Declares Interim Dividend of 32 Cents a Share

Credit Corp Group Limited has declared an interim dividend of AUD 0.32 per ordinary fully paid share for the six-month period ended 31 December 2025. The stock will trade ex-dividend on 17 March 2026, with a record date of 18 March 2026 and payment scheduled for 27 March 2026, underscoring the company’s ongoing practice of distributing profits to shareholders in line with its reporting cycle.

The most recent analyst rating on (AU:CCP) stock is a Hold with a A$13.50 price target. To see the full list of analyst forecasts on Credit Corp Group Limited stock, see the AU:CCP Stock Forecast page.

Credit Corp Targets Long-Term Growth as It Leans on Leadership in Credit-Impaired Segment

Credit Corp Group has outlined its H1 FY2026 performance and strategic positioning, highlighting leadership across Australian, New Zealand and US debt buying and lending operations. The group reports a large and diversified US debt-buying opportunity, strong purchasing discipline in Australia and New Zealand supported by accurate pricing and high asset turnover, and a substantial $1.1 billion book of ongoing repayment arrangements. Management stresses operational efficiency, with low collection costs, strong technology and productive onshore and offshore platforms, alongside a strategy focused on payment arrangements rather than litigation. The company is targeting long-term growth with a return on equity of 16% to 18% while maintaining low gearing, signalling a focus on sustainable expansion and disciplined capital management for stakeholders.

The most recent analyst rating on (AU:CCP) stock is a Hold with a A$13.50 price target. To see the full list of analyst forecasts on Credit Corp Group Limited stock, see the AU:CCP Stock Forecast page.

Credit Corp Holds Profit, Reaffirms Growth as US and Lending Businesses Gain Momentum

Credit Corp reported flat first-half FY26 net profit after tax of $44.1 million as strong growth in its loan book and temporary disruptions to Australian and New Zealand debt purchases weighed on earnings, but the company reaffirmed guidance for full-year NPAT growth of 6–17%. US operations continued to strengthen, with collections up 23% and productivity 41% higher than a year earlier, supporting increased forward-flow commitments that lift expected US debt-investment to $160–180 million and underpin an anticipated rise in group return on equity to 13% in FY26. In its AU/NZ consumer lending arm, refreshed marketing and better execution drove record lending volumes and 7% loan book growth, with Wallet Wizard increasing share in the credit‑impaired segment and Wizit scaling to a $17 million book, while preparations advance to launch lending in the UK in the second half. The AU/NZ debt-buying business rebounded late in the half as issuers resumed debt sales, pushing the FY26 investment pipeline to $120–150 million and positioning the segment for stronger second-half collections despite a still-competitive post‑COVID market. Credit Corp maintained conservative gearing and a 32 cent interim dividend, and is pursuing a potential acquisition of Humm Group that would add a point‑of‑sale lending platform, UK scale and a leading commercial leasing arm, while management stresses that substantial organic growth opportunities remain even if a deal is not concluded.

The most recent analyst rating on (AU:CCP) stock is a Hold with a A$13.50 price target. To see the full list of analyst forecasts on Credit Corp Group Limited stock, see the AU:CCP Stock Forecast page.

Credit Corp Releases Interim Financial Statements for Half-Year to 31 December 2025

Credit Corp Group Limited has released its Appendix 4D and consolidated interim financial statements for the half-year ended 31 December 2025, providing investors with updated financial information across income, cash flow, balance sheet and equity movements. The report, which is designed to be read alongside the 30 June 2025 annual accounts and other continuous disclosure announcements, outlines segment performance, tax and dividend details, contingent liabilities, fair value measurements and subsequent events, providing the market with an interim view of the company’s financial position and performance and supporting ongoing transparency for shareholders and regulators.

The most recent analyst rating on (AU:CCP) stock is a Hold with a A$13.50 price target. To see the full list of analyst forecasts on Credit Corp Group Limited stock, see the AU:CCP Stock Forecast page.