Credit Corp Group Limited (CCP) AI Stock Analysis

• Market Cap: AU$1.18B
• Dividend Yield: 3.13%
• Average Volume (3M): 263.47K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.92
• Revenue Growth: 6.70%
• EPS Growth: 126.16%
• Country: AU
• Employees: 2,231
• Sector: Financial
• Sector Strength: 67
• Industry: Financial - Credit Services
• EPS (TTM): 0.73
• Shares Outstanding: 68,066,860
• 10 Day Avg. Volume: 420,033
• 30 Day Avg. Volume: 263,466
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$20.16
• Price Target Upside: 32.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: AU$17.00 ▲(11.40% Upside)

The overall score of 73 reflects a balance of strong technical momentum and attractive valuation against financial performance challenges. While the stock shows technical strength and appears undervalued, operational inefficiencies and negative cash flows pose risks. Investors should monitor these financial indicators closely.

Positive Factors

Growth Opportunities

Consumer Lending is another growth engine, with the potential for the auto lending product and digital credit card to significantly contribute to gross earnings.

Growth Potential

The US PDL business is seen as a major growth engine, with plans to expand purchases from A$150m to A$400m, indicating a strong growth potential.

Negative Factors

Earnings Expectations

The results for the 6 months to December were below expectations at the NPAT level, with a lower contribution from the PDL business.

Financial Performance

The market reacted negatively to the release of the h1 numbers, with the share price dropping by 10%, due to the run-up in price ahead of the release and numbers falling short of expectations.

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 Limited generates revenue primarily through two key business segments: debt purchasing and consumer lending. In the debt purchasing segment, the company acquires distressed debt portfolios at a discounted rate from financial institutions and other creditors. It then attempts to collect the full outstanding amounts, profiting from the difference between the purchase price and the amount collected. This segment is a significant revenue driver, as successful collections can yield substantial returns on investment. In the consumer lending segment, the company offers unsecured personal loans to customers via an online platform. Revenue in this segment is derived from interest and fees charged on these loans. The company's earnings are further supported by its robust data analytics capabilities, which enhance collection efficiency and loan underwriting processes, ultimately boosting profitability.

Credit Corp Group Limited Financial Statement Overview

Summary

Credit Corp Group Limited faces challenges with declining revenue and profitability, coupled with negative cash flows, indicating operational difficulties. Despite a stable equity position, increased leverage and reduced shareholder returns are concerning.

Income Statement

The company experienced a significant drop in revenue from 2023 to 2024, with a revenue growth rate of -15.54%. Gross profit margin is strong at 108.86%, indicating efficient cost management. However, net profit margin decreased substantially to 12.69%, reflecting reduced profitability. Both EBIT and EBITDA margins have decreased, showing declining operational efficiency.

Balance Sheet

The company maintains a stable equity position with an equity ratio of 62.34%. The debt-to-equity ratio increased to 0.50, indicating higher leverage but still within a reasonable range. ROE decreased to 6.14%, suggesting reduced returns for shareholders compared to previous years.

Cash Flow

There is a concerning reversal in cash flows, with both operating and free cash flows turning negative in 2024, reflecting cash management issues. The operating cash flow to net income ratio is negative, indicating poor cash conversion from earnings.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	511.44M	399.71M	394.67M	373.56M	345.86M	286.19M
Gross Profit	415.95M	377.78M	394.67M	364.87M	299.39M	256.25M
EBITDA	139.89M	108.52M	156.51M	158.69M	142.71M	44.01M
Net Income	106.97M	50.71M	91.25M	100.72M	88.13M	15.45M
Balance Sheet
Total Assets	1.40B	1.32B	1.25B	974.61M	781.25M	722.65M
Cash, Cash Equivalents and Short-Term Investments	61.16M	34.85M	58.82M	23.70M	55.68M	48.66M
Total Debt	397.15M	411.90M	341.69M	157.96M	28.28M	52.06M
Total Liabilities	511.97M	498.66M	431.37M	233.97M	114.19M	128.44M
Stockholders Equity	885.00M	825.67M	817.42M	740.64M	667.06M	594.21M
Cash Flow
Free Cash Flow	10.11M	-50.05M	62.25M	-14.05M	89.00M	124.38M
Operating Cash Flow	11.24M	-48.58M	63.58M	-10.23M	91.79M	127.53M
Investing Cash Flow	-1.26M	-1.47M	-164.36M	-93.89M	-26.84M	-82.74M
Financing Cash Flow	19.64M	20.02M	136.65M	71.54M	-52.07M	-18.84M

Credit Corp Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CCP, the sentiment is Positive. The current price of 15.26 is below the 20-day moving average (MA) of 15.51, above the 50-day MA of 14.39, and above the 200-day MA of 15.04, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 75.50 is Negative, neither overbought nor oversold. The STOCH value of 75.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
LFG	74 Outperform	AU$1.23B	9.96	10.43%	6.33%	10.37%	-9.02%
CCP	73 Outperform	AU$1.18B	12.59	11.07%	3.13%	6.70%	126.16%
Sector *	67 Neutral	¥764.29B	11.15	7.42%	3.20%	7.66%	14.08%
PPM	65 Neutral	AU$852.26M	8.56	11.75%	6.42%	3.70%	-10.93%
SVR	64 Neutral	AU$310.49M	15.92	5.60%	6.92%	-0.55%	-40.11%
HUM	61 Neutral	AU$278.23M	8.27	7.81%	4.39%	16.13%	―
LFS	51 Neutral	AU$1.20B	55.29	2.49%	2.61%	11.26%	―

Credit Corp Group Limited Corporate Events

CBA Ceases to be Substantial Holder in Credit Corp Group

The Commonwealth Bank of Australia (CBA) and its related entities have ceased to be substantial holders in Credit Corp Group Limited as of May 29, 2025. This change in substantial holding could impact Credit Corp’s shareholder structure and potentially influence its market positioning and strategic decisions moving forward.

The most recent analyst rating on (AU:CCP) stock is a Buy with a A$20.90 price target. To see the full list of analyst forecasts on Credit Corp Group Limited stock, see the AU:CCP Stock Forecast page.

KKR Entities Cease Substantial Holding in Credit Corp Group

Comet Asia Holdings II Pte. Ltd., along with other KKR entities, has ceased to be a substantial holder in Credit Corp Group Ltd as of May 27, 2025. This change in substantial holding may impact Credit Corp’s shareholder structure and could influence its market positioning, as KKR entities were significant stakeholders.

The most recent analyst rating on (AU:CCP) stock is a Buy with a A$20.90 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 Director Acquires Shares, Signaling Confidence

Credit Corp Group Limited announced a change in the director’s interest, with Sarah Brennan acquiring 3,720 fully-paid ordinary shares through an on-market trade, valued at $49,997. This acquisition reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and aligning her interests with those of the shareholders.

The most recent analyst rating on (AU:CCP) stock is a Buy with a A$20.90 price target. To see the full list of analyst forecasts on Credit Corp Group Limited stock, see the AU:CCP Stock Forecast page.

Superannuation and Investments HoldCo Ceases Substantial Holding in Credit Corp

Superannuation and Investments HoldCo Pty Ltd and its related bodies have ceased to be substantial holders in Credit Corp Group Limited as of May 27, 2025. This change in substantial holding could impact Credit Corp’s shareholder structure and influence its market positioning, potentially affecting investor sentiment and stakeholder interests.

The most recent analyst rating on (AU:CCP) stock is a Buy with a A$20.90 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 Group Issues Performance Rights Under Employee Incentive Scheme

Credit Corp Group Limited announced the issuance of 12,945 performance rights under an employee incentive scheme. These unquoted securities are subject to transfer restrictions and are not listed on the ASX until the restrictions are lifted, potentially impacting employee retention and motivation strategies.

The most recent analyst rating on (AU:CCP) stock is a Buy with a A$20.90 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 Group Targets Growth in FY25 with Strategic Market Focus

Credit Corp Group Limited has released its FY25 market update, highlighting its strategic focus on leveraging large market opportunities in US debt buying and maintaining strong operational capabilities in Australian and New Zealand lending and debt buying. The company aims for long-term growth with a target return on equity of 16% to 18%, supported by low gearing and efficient cost management. The update underscores Credit Corp’s commitment to responsible lending and market disruption through lower pricing, positioning itself as a leader in the credit-impaired consumer segment.