Credit Corp Group Limited (CCP) AI Stock Analysis

• Market Cap: €953.62M
• Dividend Yield: 4.8%
• Average Volume (3M): 275.02K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.58
• Revenue Growth: 5.01%
• EPS Growth: 85.56%
• Country: AU
• Employees: 2,231
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.73
• 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: €16.63
• Price Target Upside: 17.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: AU$13.50 ▼(-4.80% Downside)

The overall stock score of 57 reflects a mixed outlook for Credit Corp Group Limited. The most significant factor is the company's financial performance, which shows stability in its balance sheet and cash flow but struggles with revenue decline. Technical analysis indicates bearish momentum, which could lead to further price declines. However, the stock's valuation is attractive with a low P/E ratio and a high dividend yield, offering potential value for income-focused investors.

Positive Factors

Cash Flow Improvement

A substantial increase in free cash flow enhances the company's ability to reinvest in growth opportunities, pay down debt, and return capital to shareholders, contributing to long-term financial stability.

Stable Balance Sheet

A stable balance sheet with manageable leverage allows the company to withstand economic fluctuations and invest in strategic initiatives, supporting sustained growth.

Positive Net Income

Maintaining positive net income amidst revenue challenges suggests effective cost management and operational efficiency, which are crucial for long-term profitability.

Negative Factors

Revenue Decline

A sharp decline in revenue can hinder the company's ability to invest in growth and may indicate underlying issues in market demand or competitive positioning.

Gross Profit Issues

Negative gross profit indicates challenges in covering production costs, which could impact the company's ability to sustain operations and profitability over the long term.

Debt Increase Risk

Rising debt levels can strain financial resources and limit flexibility, potentially affecting the company's ability to invest in growth and manage economic downturns.

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

Credit Corp Group generates revenue primarily through its debt purchasing and management activities. The company acquires overdue debts at a discounted rate, then seeks to recover the full amount owed to generate profit. This model allows Credit Corp to earn significant returns on its investments in debt portfolios. Additionally, the company provides personal loans to consumers, which contribute to its revenue through interest payments. Key partnerships with financial institutions and utility providers facilitate a steady flow of debt acquisitions, enhancing its earnings potential. Overall, Credit Corp's revenue model is diversified through both debt recovery and consumer lending, allowing for resilience in varying market conditions.

Credit Corp Group Limited Financial Statement Overview

Summary

Credit Corp Group Limited shows a mixed financial performance. The income statement reveals significant revenue decline, but the balance sheet and cash flow statements indicate a stable financial structure and improved cash flow management. The company needs to address revenue decline and cost issues to enhance profitability and sustain growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	545.64M	1.52M	399.71M	394.67M	373.56M	345.86M
Gross Profit	-34.73M	-34.73M	377.78M	394.67M	364.87M	299.39M
EBITDA	142.16M	178.40M	108.52M	156.51M	158.69M	142.71M
Net Income	94.09M	94.09M	50.71M	91.25M	100.72M	88.13M
Balance Sheet
Total Assets	1.40B	1.40B	1.32B	1.25B	974.61M	781.25M
Cash, Cash Equivalents and Short-Term Investments	56.71M	56.71M	34.85M	58.82M	23.70M	55.68M
Total Debt	424.43M	424.43M	411.90M	341.69M	157.96M	28.28M
Total Liabilities	507.87M	507.87M	498.66M	431.37M	233.97M	114.19M
Stockholders Equity	890.27M	890.27M	825.67M	817.42M	740.64M	667.06M
Cash Flow
Free Cash Flow	135.78M	51.07M	-50.05M	62.25M	-14.05M	89.00M
Operating Cash Flow	137.28M	52.56M	-48.58M	63.58M	-10.23M	91.79M
Investing Cash Flow	-86.20M	-1.49M	-1.47M	-164.36M	-93.89M	-26.84M
Financing Cash Flow	-28.77M	-28.77M	20.02M	136.65M	71.54M	-52.07M

Credit Corp Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.18
• 50DMA: Negative
• 100DMA: Negative
• 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:CCP, the sentiment is Neutral. The current price of 14.18 is above the 20-day moving average (MA) of 13.57, below the 50-day MA of 14.21, and below the 200-day MA of 14.26, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.10 is Neutral, neither overbought nor oversold. The STOCH value of 78.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$298.19M	10.14	8.73%	7.82%	-4.26%	89.71%
PPM	65 Neutral	AU$1.10B	11.01	12.11%	11.98%	-6.49%	-5.40%
CCP	57 Neutral	€953.62M	10.13	11.07%	4.80%	5.01%	85.56%
HUM	56 Neutral	€313.05M	8.94	7.83%	3.17%	7.64%	463.49%
LFG	50 Neutral	AU$1.23B	9.18	11.19%	12.70%	2.11%	15.71%
LFS	46 Neutral	AU$1.18B	20.05	5.01%	6.36%	14.81%	―

Credit Corp Group Limited Corporate Events

Credit Corp Group Limited Issues New Performance Rights

Credit Corp Group Limited announced the issuance of 454,541 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, reflecting the company’s ongoing efforts to incentivize and retain key personnel, potentially impacting its operational efficiency and stakeholder interests.

Credit Corp Group Limited 2025 AGM: Strong Shareholder Support for Leadership and Strategy

Credit Corp Group Limited held its 2025 Annual General Meeting, where shareholders voted on several key resolutions. The re-election of directors Ms. Trudy Vonhoff and Mr. James M Millar was approved with strong support, as was the adoption of the Remuneration Report and the issuance of performance rights under the long-term incentive scheme. These outcomes reflect shareholder confidence in the company’s leadership and strategic direction, potentially strengthening its market position and stakeholder relations.

Credit Corp Group Limited Reports Strong Earnings Growth and Strategic Expansion

Credit Corp Group Limited reported a return to strong earnings growth and laid a foundation for sustained future growth at its Annual General Meeting. The company highlighted its strategic diversification efforts, particularly in consumer lending and US debt buying, which now account for over three-quarters of its earnings. Despite challenges in the Australian and New Zealand debt buying markets, there are signs of potential growth, and the US operations have shown improved performance with increased purchasing activity. The Australian lending business also saw significant earnings growth, setting a positive outlook for 2026.

Credit Corp Group Targets Growth with Strategic Debt Buying and Lending

Credit Corp Group Limited’s AGM Update highlights its strategic focus on leveraging large market opportunities in US debt buying and Australian/New Zealand lending. The company aims for long-term growth with a target return on equity of 16% to 18% and low gearing. Its operational strategies include diversified purchasing, efficient collection processes, and strong technology use, which position it well in the market. The update indicates a robust ongoing repayment arrangement of $1.2 billion, reflecting its strong market performance and stakeholder confidence.