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Cash Converters International Limited (AU:CCV)
:CCV
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Cash Converters International Limited (CCV) AI Stock Analysis

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AU:CCV

Cash Converters International Limited

(Frankfurt:CCV)

Rating:78Outperform
Price Target:
AU$0.50
▲(56.25%Upside)
Cash Converters International Limited shows a promising outlook with strong financial performance, attractive valuation, and positive technical indicators. Despite the high leverage and indications of overbought conditions in the stock, the overall prospects remain positive, driven by strong fundamentals and valuation metrics.

Cash Converters International Limited (CCV) vs. iShares MSCI Australia ETF (EWA)

Cash Converters International Limited Business Overview & Revenue Model

Company DescriptionCash Converters International Limited (CCV) is a global franchisor and operator of second-hand goods and financial services stores. Founded in Australia, the company operates in the retail and financial services sectors, providing consumers with options to buy and sell second-hand goods, as well as access short-term financing solutions. Cash Converters offers a range of products and services, including personal loans, pawnbroking services, and retail sales of pre-owned merchandise such as electronics, jewelry, and household goods.
How the Company Makes MoneyCash Converters International Limited generates revenue through a diversified business model that includes both retail and financial services. The company earns money primarily through the sale of second-hand goods in its stores, where it acquires inventory from customers who sell or pawn items. It also generates significant income from financial services, including interest and fees from personal loans and pawnbroking services. The interest on personal loans and the sale of forfeited pawned items constitute key revenue streams. Additionally, the company benefits from franchise operations, collecting fees and royalties from franchisees. Key factors contributing to its earnings include the demand for affordable goods and short-term credit, as well as strategic partnerships and a robust network of retail locations worldwide.

Cash Converters International Limited Financial Statement Overview

Summary
Cash Converters International Limited demonstrates a solid recovery with strong revenue and profit growth, effective operational performance, and improved cash flow. However, the company faces challenges with high leverage and historical cash flow volatility.
Income Statement
75
Positive
Cash Converters International Limited has shown a robust improvement in revenue with a notable growth from $300.95M in 2023 to $377.14M in 2024, indicating a significant revenue growth rate of approximately 25.3%. The Gross Profit Margin is strong at 24.5%, and the company achieved a positive Net Profit Margin of 4.6%, a turnaround from a negative margin in 2023. EBIT and EBITDA margins are healthy at 14.3% and 15.9%, respectively, showcasing operational efficiency. However, past volatility in net income reflects underlying risks.
Balance Sheet
68
Positive
The company's Debt-to-Equity Ratio stands at 1.02, which is relatively high and indicates significant leverage, posing potential risk. Return on Equity is modest at 8.2%, reflecting moderate profitability on shareholder investment. The Equity Ratio is at 44.2%, indicating a balanced capital structure but also highlighting exposure to liabilities. Overall, the balance sheet shows stability but with caution due to leverage.
Cash Flow
72
Positive
The Free Cash Flow has turned positive to $31.99M in 2024 from negative in 2023, reflecting significant improvement in liquidity. The Operating Cash Flow to Net Income Ratio of 2.21 suggests strong cash generation relative to profits. Free Cash Flow to Net Income Ratio is 1.84, indicating efficient conversion of profits into cash. However, past fluctuations in operating cash flow highlight potential volatility.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue377.14M262.02M212.21M200.32M276.05M
Gross Profit92.27M79.17M69.80M125.74M75.40M
EBITDA59.82M-67.85M35.97M40.45M16.50M
Net Income17.40M-97.16M11.18M16.20M-10.49M
Balance Sheet
Total Assets478.04M445.54M478.19M477.66M479.83M
Cash, Cash Equivalents and Short-Term Investments56.29M71.56M58.09M72.17M106.55M
Total Debt215.07M200.73M133.18M133.76M140.84M
Total Liabilities266.67M239.04M162.84M159.75M173.46M
Stockholders Equity211.37M206.49M315.35M317.90M306.37M
Cash Flow
Free Cash Flow31.99M-16.01M6.01M-1.91M65.94M
Operating Cash Flow38.45M-11.54M7.91M1.69M70.11M
Investing Cash Flow-33.06M-22.63M1.89M-6.45M-1.78M
Financing Cash Flow-20.67M47.01M-23.42M-29.77M-43.56M

Cash Converters International Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.32
Price Trends
50DMA
0.29
Positive
100DMA
0.27
Positive
200DMA
0.25
Positive
Market Momentum
MACD
0.01
Positive
RSI
61.65
Neutral
STOCH
60.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CCV, the sentiment is Positive. The current price of 0.32 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.29, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 61.65 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CCV.

Cash Converters International Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
AU$203.95M10.389.12%6.15%8.52%6.10%
75
Outperform
AU$136.02M18.9121.62%6.09%-2.09%-24.35%
68
Neutral
AU$72.82M40.674.65%5.51%244.64%
67
Neutral
AU$52.93M9.1913.17%7.03%5.42%-8.87%
63
Neutral
AU$241.51M83.722.78%1.03%-2.62%-70.47%
62
Neutral
AU$2.96B28.754.69%4.87%2.32%-33.09%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CCV
Cash Converters International Limited
0.33
0.12
61.69%
AU:DSK
Dusk Group Ltd.
0.88
0.04
4.76%
AU:ABY
Adore Beauty Group Ltd.
0.80
-0.20
-20.00%
AU:JYC
Joyce Corporation Ltd
4.65
0.84
22.05%
AU:BBN
Baby Bunting Group Ltd.
1.80
0.45
33.33%

Cash Converters International Limited Corporate Events

Cash Converters Expands UK Presence with Lloyds Bank Funding
Jun 1, 2025

Cash Converters International Limited has secured a £12 million finance facility from Lloyds Bank to support its strategic objective of acquiring franchise stores. The company has agreed to acquire 10 franchise stores in the UK for approximately £7.5 million, marking the first purchase funded by the new facility. This acquisition will increase the number of corporate stores in the UK to 58, enhancing the company’s earnings and strengthening its market position in the UK and Europe.

Cash Converters Updates Securities Trading Policy
May 16, 2025

Cash Converters International Limited has announced a revised Securities Trading Policy, which has been lodged with the ASX in compliance with ASX Listing Rule 12.10. This update reflects the company’s ongoing commitment to corporate governance and transparency, potentially impacting its operations and stakeholder relations positively.

Cash Converters Reinvents with Strategic Acquisitions and Digital Focus
May 13, 2025

Cash Converters International Limited has announced its strategic shift towards acquiring franchise stores and pivoting away from small and vehicle loans. This move is part of their ongoing transformation into a global, data-driven retailer and non-bank lender, with a focus on expanding their luxury inventory and enhancing their credit models using machine learning. The company’s recent acquisitions in New Zealand and the UK, along with the introduction of a lower-cost line of credit loans, highlight their commitment to reaching millions of customers worldwide.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025