Credit Clear Limited (CCR) AI Stock Analysis

• Market Cap: AU$112.53M
• Dividend Yield: N/A
• Average Volume (3M): 414.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 20.24%
• EPS Growth: 27.33%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 93
• Industry: Information Technology Services
• EPS (TTM): 0.00
• Shares Outstanding: 424,648,650
• 10 Day Avg. Volume: 424,450
• 30 Day Avg. Volume: 414,394
• PEG Ratio: N/A
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.42
• 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$0.46
• Price Target Upside: 76.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: AU$0.50 ▲(92.31%Upside)

Credit Clear Limited shows promising growth in revenue and improvements in cash flow management, which are crucial for long-term sustainability. Technical indicators support a stable market trend. However, the negative P/E ratio and lack of dividend yield suggest caution in valuation. Continuous focus on improving profitability and cash management will be key for future success.

Positive Factors

Client Growth

Continued new client wins of potential tier-1 and 2 clients provides ample runway for sustained earnings growth and operating leverage.

Operational Efficiency

The recent implementation of CCR’s cost-out strategy paired with continued growth in onboarding clients supports significant operating leverage for the business in the coming years.

Revenue Growth

Revenue from Insurance clients grew from $2.9m to $4.4m YoY, reflecting capability to grow into a sector once they developed customised solutions for the industry.

Negative Factors

Market Risks

Risks include change in market dynamics towards PDP, customer retention, competition, adverse regulatory change, cyber-attack, continued availability of qualified personnel, and wage inflation.

Revenue Guidance

The company revised revenue guidance from $48-$50m to $46-$47m.

Credit Clear Limited Business Overview & Revenue Model

Company Description

Credit Clear Limited engages in the development and implementation of receivables management platform, and provision of receivable collection services. The company operates in two segments, Receivable Collections and Legal Services. It offers technology-enabled communications platform that helps organizations to drive financial outcomes by changing the way customers manage their re-payments. The company also provides credit legal services. It serves the consumer, trade credit, automotive, financial services, government, utility, and insurance industries in Australia and New Zealand. The company was incorporated in 2015 and is based in Southbank, Australia.

How the Company Makes Money

Credit Clear Limited generates revenue primarily through its digital debt collection services. The company employs a software-as-a-service (SaaS) model, charging clients subscription fees for access to its platform. Additionally, CCR may earn performance-based fees linked to the successful recovery of debts. The company's partnerships with various financial institutions, utilities, and telecommunications companies are significant contributors to its earnings, as these relationships expand its client base and broaden its market reach. By continuously improving its technology and expanding its service offerings, CCR aims to increase its revenue streams and maintain competitive advantage in the digital collections industry.

Credit Clear Limited Financial Statement Overview

Summary

Credit Clear Limited is experiencing strong revenue growth and improved gross profit margins, indicating effective cost management. However, profitability remains a challenge with negative earnings, despite improvements in cash flow. The balance sheet shows financial stability with low leverage.

Income Statement

Credit Clear Limited demonstrated a strong revenue growth rate of 20.17% from the previous year, reflecting an upward trajectory in its market presence. However, the company faces challenges with profitability, as indicated by negative EBIT and net profit margins, despite improvements. Gross profit margins have improved significantly, suggesting effective cost management.

Balance Sheet

The balance sheet shows strength with a high equity ratio of 75.92%, indicating a solid capital structure. The company has a low debt-to-equity ratio of 0.07, reflecting minimal leverage and financial risk. However, the declining equity over the years could be a concern if the trend continues.

Cash Flow

Cash flow analysis reveals a remarkable turnaround in operating cash flow, moving from negative to positive, indicating better cash management. The free cash flow has also improved, although the free cash flow to net income ratio is impacted by negative net income. Continuous improvement in cash flow is essential for future stability.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	42.00M	34.95M	21.46M	10.98M	6.47M
Gross Profit	18.32M	-5.70M	-9.38M	-4.47M	-854.09K
EBITDA	2.46M	-4.83M	-10.50M	-6.09M	-3.43M
Net Income	-4.50M	-11.06M	-11.13M	-8.02M	-4.29M
Balance Sheet
Total Assets	78.08M	76.84M	74.38M	22.33M	13.86M
Cash, Cash Equivalents and Short-Term Investments	18.82M	16.07M	14.37M	11.40M	2.97M
Total Debt	4.27M	5.14M	1.67M	1.10M	1.41M
Total Liabilities	18.81M	15.56M	13.99M	5.98M	4.98M
Stockholders Equity	59.27M	61.29M	60.39M	16.35M	8.87M
Cash Flow
Free Cash Flow	2.16M	-4.54M	-7.36M	-4.54M	-2.21M
Operating Cash Flow	3.69M	-2.78M	-5.93M	-3.97M	-2.19M
Investing Cash Flow	-2.20M	-2.04M	-29.30M	-855.00K	-5.25M
Financing Cash Flow	-346.00K	6.62M	34.69M	13.38M	8.13M

Credit Clear Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CCR, the sentiment is Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.23, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.27 is Neutral, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CCR.

Credit Clear Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCR	63 Neutral	AU$112.53M	―	-7.65%	―	20.24%	27.33%
Sector *	57 Neutral	HK$14.14B	5.06	-5.75%	5.40%	9.34%	-42.23%
EMCHF	―	$273.47M	35.10	7.22%	―	―	―
OVT	―	AU$29.92M	―	-48.02%	―	―	―
KYP	68 Neutral	AU$97.22M	112.50	3.26%	―	5.37%	-45.95%
COS	65 Neutral	AU$108.28M	11.93	12.90%	3.36%	23.66%	-7.71%
CCG	60 Neutral	AU$26.52M	55.56	1.16%	4.94%	48.72%	―

Credit Clear Limited Corporate Events

Credit Clear Limited Issues Unquoted Share Rights

Credit Clear Limited announced the issuance of 157,995 unquoted share rights under an employee incentive scheme, which are not intended to be listed on the ASX. This move is part of the company’s strategy to enhance employee engagement and align their interests with corporate goals, potentially impacting its operational dynamics and stakeholder relations positively.

The most recent analyst rating on (AU:CCR) stock is a Buy with a A$0.53 price target. To see the full list of analyst forecasts on Credit Clear Limited stock, see the AU:CCR Stock Forecast page.

Credit Clear Limited Announces Cessation of Securities

Credit Clear Limited announced the cessation of certain securities, specifically the lapse of conditional rights to 2,950,000 options due to unmet conditions. This development could impact the company’s capital structure and may influence investor perceptions regarding the company’s financial strategies and operational execution.

The most recent analyst rating on (AU:CCR) stock is a Buy with a A$0.53 price target. To see the full list of analyst forecasts on Credit Clear Limited stock, see the AU:CCR Stock Forecast page.

Credit Clear Limited on Track for Strong FY25 Earnings Amid Strategic Growth Initiatives

Credit Clear Limited is on track to achieve its earnings guidance for FY25, with strong earnings growth and a focus on expanding client revenue. Despite a slight revision in revenue guidance due to external factors, the company anticipates record revenues for May and June 2025. Credit Clear is also engaging in cost rationalization and process improvements to enhance productivity and service delivery. The company is exploring potential acquisitions and remains open to opportunities that align with its growth objectives, while maintaining a strong balance sheet and considering capital management strategies to maximize shareholder value.

The most recent analyst rating on (AU:CCR) stock is a Buy with a A$0.51 price target. To see the full list of analyst forecasts on Credit Clear Limited stock, see the AU:CCR Stock Forecast page.

TIGA Trading Increases Stake in Credit Clear Limited

TIGA Trading Pty Ltd has increased its stake in Credit Clear Limited, as indicated by a change in substantial holding from 16.37% to 17.50%. This adjustment in voting power reflects a series of market purchases by TIGA Trading and associated entities, potentially signaling confidence in Credit Clear’s market position and future prospects.

The most recent analyst rating on (AU:CCR) stock is a Buy with a A$0.51 price target. To see the full list of analyst forecasts on Credit Clear Limited stock, see the AU:CCR Stock Forecast page.

Thorney Technologies Increases Stake in Credit Clear Limited

Credit Clear Limited, a company listed on the ASX, has experienced a change in the interests of its substantial holder, Thorney Technologies Ltd. This change, effective from May 20, 2025, involves several market purchases by Thorney Technologies and its associated entities, increasing their voting power from 16.37% to 17.50%. This adjustment in shareholding reflects Thorney Technologies’ continued investment interest in Credit Clear Limited, potentially impacting the company’s market position and stakeholder dynamics.

The most recent analyst rating on (AU:CCR) stock is a Buy with a A$0.51 price target. To see the full list of analyst forecasts on Credit Clear Limited stock, see the AU:CCR Stock Forecast page.