Pioneer Credit Ltd (PNC) AI Stock Analysis

• Market Cap: AU$83.47M
• Dividend Yield: N/A
• Average Volume (3M): 81.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -2.45%
• EPS Growth: -639.57%
• Country: AU
• Employees: 349
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): -0.07
• Shares Outstanding: 160,721,340
• 10 Day Avg. Volume: 79,226
• 30 Day Avg. Volume: 81,808
• PEG Ratio: -0.94
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.47
• 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$0.65
• Price Target Upside: 27.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: AU$0.50 ▼(-1.96%Downside)

Pioneer Credit Ltd's overall score is primarily impacted by its poor financial performance, characterized by declining revenues, high leverage, and negative cash flows. Valuation concerns are also significant, with negative earnings and no dividend yield affecting attractiveness. Technical analysis shows some short-term positive momentum but is overshadowed by longer-term weakness. The lack of earnings call data and notable corporate events limits further insights.

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 debt portfolios from financial institutions and other credit providers at a discount to their face value. It then seeks to recover the debt from the original debtors, collecting payments over time. The difference between the purchase price of the debt and the amount collected represents the company's profit. Additionally, Pioneer Credit may offer financial counseling and hardship solutions to debtors, which can also contribute to its revenue. The company may engage in partnerships with banks and other financial institutions to access and purchase these debt portfolios.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	35.04M	65.74M	77.48M	53.66M	52.73M	53.80M
Gross Profit	35.04M	65.74M	71.67M	48.15M	46.95M	45.34M
EBITDA	41.83M	13.45M	35.50M	8.93M	11.30M	-1.02M
Net Income	-8.38M	-10.04M	166.00K	-33.09M	-19.66M	-40.08M
Balance Sheet
Total Assets	370.70M	367.94M	326.75M	339.45M	270.32M	286.93M
Cash, Cash Equivalents and Short-Term Investments	645.00K	118.21M	114.51M	119.37M	83.77M	98.27M
Total Debt	274.21M	286.62M	275.72M	266.71M	207.47M	214.58M
Total Liabilities	314.95M	323.74M	284.82M	298.38M	215.65M	222.97M
Stockholders Equity	55.75M	44.19M	41.93M	41.08M	54.67M	63.96M
Cash Flow
Free Cash Flow	-22.17M	-29.54M	-20.44M	-47.57M	-18.45M	57.32M
Operating Cash Flow	-22.11M	-28.83M	-19.96M	-46.76M	-17.02M	57.98M
Investing Cash Flow	-292.00K	-707.00K	-478.00K	-812.00K	-28.96M	-60.89M
Financing Cash Flow	13.82M	25.28M	5.78M	60.27M	15.51M	2.74M

Pioneer Credit Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 0.51 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.49, and below the 200-day MA of 0.52, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 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
Sector *	61 Neutral	C$14.64B	6.10	22.26%	5.61%	27.38%	-22.40%
PNC	46 Neutral	AU$83.47M	―	-16.83%	―	-2.45%	-639.57%
2RC		€543.17M	8.19	13.05%	4.47%	―	―
PLT	77 Outperform	AU$162.54M	6.56	71.90%	―	22.94%	―
MME	54 Neutral	AU$124.01M	7.17	-13.74%	―	-14.61%	-325.81%
BTN	50 Neutral	AU$40.16M	―	-85.47%	―	4.91%	-29.86%
WZR	44 Neutral	AU$36.27M	―	-20.13%	―	-5.95%	-9.84%

Pioneer Credit Ltd Corporate Events

Pioneer Credit Addresses Late Lodgement of Director’s Interest Notices

Pioneer Credit Limited has acknowledged a late lodgement of Appendices 3Y for directors KR John and S Targett, which was due to an administrative oversight. The company has assured that this was an isolated incident and that its current practices are adequate to ensure compliance with ASX Listing Rule 3.19B, which requires timely disclosure of directors’ notifiable interests.

Pioneer Credit Announces Director’s Interest Change

Pioneer Credit Limited announced a change in the director’s interest, specifically concerning Stephen Targett. The change involved the expiration of 136,363 listed options on March 31, 2025, resulting in the director holding 211,363 fully paid ordinary shares and 80 medium-term notes. This update reflects a routine adjustment in the director’s portfolio, with no immediate impact on the company’s operations or market positioning.

Pioneer Credit Updates Director’s Interest Notice

Pioneer Credit Limited announced a change in the director’s interest notice, specifically for Director Keith Roy John. The change involved the expiration of 4,527,273 options on March 31, 2025, leaving the director with 17,247,934 fully paid ordinary shares and 2,807,766 indeterminate rights. This update reflects the company’s compliance with ASX listing rules and provides transparency regarding the director’s holdings.