Pioneer Credit Ltd (PNC) AI Stock Analysis

• Market Cap: AU$90.63M
• Dividend Yield: N/A
• Average Volume (3M): 123.92K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.19
• Revenue Growth: -0.51%
• EPS Growth: N/A
• Country: AU
• Employees: 349
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 0.05
• Shares Outstanding: 160,721,340
• 10 Day Avg. Volume: 43,654
• 30 Day Avg. Volume: 123,920
• 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$0.71
• Price Target Upside: 20.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 42 Neutral
• Price Target: AU$0.50 ▼(-15.25% Downside)

Pioneer Credit Ltd faces significant financial difficulties, reflected in its low overall stock score. The most significant factors are the substantial revenue decline and profitability issues, combined with high leverage and negative cash flows. Technical indicators offer some potential for upside, but valuation metrics remain unattractive due to negative earnings and lack of dividends.

Pioneer Credit Ltd Business Overview & Revenue Model

Company Description

Pioneer Credit Limited, together with its subsidiaries, provides financial services in Australia. It acquires and services retail debt portfolios. The company was incorporated in 2002 and is headquartered in Perth, Australia.

How the Company Makes Money

Pioneer Credit Ltd generates revenue primarily through the acquisition and management of distressed debt portfolios. The company purchases these portfolios at a discount from face value and then works to recover the maximum amount possible through negotiations, payment plans, and legal actions if necessary. This process allows Pioneer Credit Ltd to realize a profit on the difference between the purchase price and the amount collected. Additionally, the company may earn service fees for managing debt recovery on behalf of other institutions, providing a secondary revenue stream. Significant partnerships with banks and financial institutions enhance its ability to secure and manage large debt portfolios, contributing to its earnings.

Pioneer Credit Ltd Financial Statement Overview

Summary

Pioneer Credit Ltd faces significant financial challenges, with declining revenues and profitability, high leverage, and negative cash flows. The income statement shows a severe drop in revenue and profits, while the balance sheet indicates high leverage risks. Cash flow issues further compound the company's financial difficulties, suggesting a need for strategic restructuring to improve financial health and stability.

Income Statement

Pioneer Credit Ltd has experienced declining revenue from $77.48M in 2023 to $32.98M in 2024, indicating a significant revenue drop of nearly 57.4%. This decrease is also reflected in the negative net income and EBIT margins, with a net profit margin of -30.4% and EBIT margin of -39.8% in 2024. The gross profit margin remains relatively high at 81.7%, but this is overshadowed by the negative bottom-line figures. Overall, the income statement reveals substantial challenges in revenue generation and profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 6.49, suggesting significant leverage risk. There is a positive equity ratio of 12.0%, indicating some level of stability. However, the return on equity is negative at -22.7%, highlighting poor profitability from the equity base. The financial position is strained due to high liabilities compared to equity, posing potential risks for financial stability.

Cash Flow

The cash flow analysis reveals negative operating cash flow of -$28.83M in 2024, deteriorating from previous years. There is a negative free cash flow of -$29.54M, indicating challenges in cash generation. The operating cash flow to net income ratio is not favorable, and the free cash flow to net income ratio highlights continued cash flow issues. This indicates financial difficulties in maintaining liquidity and funding operations.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	65.74M	77.48M	53.66M	52.73M	53.80M
Gross Profit	65.74M	71.67M	48.15M	46.95M	45.34M
EBITDA	13.45M	35.50M	8.93M	11.30M	-1.02M
Net Income	-10.04M	166.00K	-33.09M	-19.66M	-40.08M
Balance Sheet
Total Assets	367.94M	326.75M	339.45M	270.32M	286.93M
Cash, Cash Equivalents and Short-Term Investments	118.21M	114.51M	119.37M	83.77M	98.27M
Total Debt	286.62M	275.72M	266.71M	207.47M	214.58M
Total Liabilities	323.74M	284.82M	298.38M	215.65M	222.97M
Stockholders Equity	44.19M	41.93M	41.08M	54.67M	63.96M
Cash Flow
Free Cash Flow	-29.54M	-20.44M	-47.57M	-18.45M	57.32M
Operating Cash Flow	-28.83M	-19.96M	-46.76M	-17.02M	57.98M
Investing Cash Flow	-707.00K	-478.00K	-812.00K	-28.96M	-60.89M
Financing Cash Flow	25.28M	5.78M	60.27M	15.51M	2.74M

Pioneer Credit Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PNC, the sentiment is Positive. The current price of 0.59 is above the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.53, and above the 200-day MA of 0.52, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.26 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PNC.

Pioneer Credit Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLT	73 Outperform	AU$227.59M	9.05	71.90%	―	22.94%	―
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
MME	53 Neutral	AU$104.01M	7.17	-42.59%	―	-9.56%	-392.31%
BTN	47 Neutral	AU$32.67M	―	-26.29%	―	8.28%	84.45%
WZR	46 Neutral	AU$54.40M	―	-19.44%	―	-2.35%	13.33%
PNC	42 Neutral	AU$90.63M	13.92	12.72%	―	-0.51%	―
2RC	―	€631.84M	11.11	11.07%	―	―	―

Pioneer Credit Ltd Corporate Events

Pioneer Credit Announces Performance Rights Vesting and Strategic Financial Goals

Pioneer Credit Limited announced the vesting of 100,000 Performance Rights into fully paid ordinary shares, with stringent conditions leading to the lapse of 342,974 Rights. No new shares were issued for this vesting, as Pacific Custodians Pty Ltd acquires shares on the market to satisfy the vesting under the Pioneer Equity Incentive Plan. The company aims for further vesting of 7,034,266 Rights contingent on achieving a statutory net profit after tax of $18 million for FY26, highlighting its strategic focus on financial growth and operational efficiency.

The most recent analyst rating on (AU:PNC) stock is a Buy with a A$0.80 price target. To see the full list of analyst forecasts on Pioneer Credit Ltd stock, see the AU:PNC Stock Forecast page.