Credit Corp Group Limited (CCP) AI Stock Analysis

• Market Cap: €1.13B
• Dividend Yield: 3.33%
• Average Volume (3M): 354.06K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.96
• Revenue Growth: 5.01%
• EPS Growth: 85.56%
• Country: AU
• Employees: 2,231
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 0.73
• Shares Outstanding: 68,066,860
• 10 Day Avg. Volume: 404,182
• 30 Day Avg. Volume: 354,065
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €19.70
• Price Target Upside: 19.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: AU$17.50 ▲(6.00% Upside)

The overall stock score is driven primarily by a stable financial structure and improved cash flow management, despite challenges in revenue generation. The technical analysis supports a positive short-term trend, and the valuation metrics suggest the stock may be undervalued with an attractive dividend yield.

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 shows a mixed financial performance. The income statement reveals challenges in revenue generation with a significant 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: Positive
• Last Price: 16.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 16.51 is below the 20-day moving average (MA) of 16.57, above the 50-day MA of 15.26, and above the 200-day MA of 15.01, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 44.62 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$1.35B	9.86	11.19%	5.66%	2.11%	15.71%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
PPM	65 Neutral	AU$954.35M	9.54	12.11%	5.63%	-6.49%	-5.40%
CCP	64 Neutral	€1.13B	11.50	11.07%	3.33%	5.01%	85.56%
SVR	64 Neutral	AU$323.11M	16.62	5.60%	6.55%	-0.55%	-40.11%
F5L	―	€173.48M	8.11	7.81%	―	―	―
LFS	51 Neutral	AU$1.17B	19.96	5.01%	2.64%	14.81%	―

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.