Pepper Money Ltd (AU:PPM)
ASX:PPM
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Pepper Money Ltd
(Sydney:PPM)
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Rating:57Neutral
Price Target:
AU$1.50
▼(-31.51% Downside)
Action:ReiteratedDate:03/18/26
The score is primarily constrained by financial risk—extreme leverage and volatile cash flow (including negative 2025 cash generation). Valuation is a key positive with a low P/E and very high dividend yield, but weak technical positioning below major moving averages limits near-term confidence.
Positive Factors
Specialist non-bank lending niche
A focused franchise on specialist/non‑conforming mortgages distributed via brokers creates a durable competitive niche. Higher-risk products typically command wider spreads and lower direct bank competition, supporting structural margin advantage and customer stickiness across credit cycles.
Negative Factors
Extremely high leverage
Very elevated debt relative to equity materially constrains financial flexibility and amplifies downside risk. In adverse credit or funding conditions, losses and margin compression hit equity quickly, raising refinancing stress and limiting capacity for opportunistic investment or buffer against shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialist non-bank lending niche
A focused franchise on specialist/non‑conforming mortgages distributed via brokers creates a durable competitive niche. Higher-risk products typically command wider spreads and lower direct bank competition, supporting structural margin advantage and customer stickiness across credit cycles.
Read all positive factors
Pepper Money Ltd (PPM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$804.10M
Dividend Yield11.71%
Average Volume (3M)326.68K
Price to Earnings (P/E)9.2
Beta (1Y)1.31
Revenue Growth-6.49%
EPS Growth-5.40%
CountryAU
Employees863
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.13
Shares Outstanding449,218,200
10 Day Avg. Volume338,103
30 Day Avg. Volume326,679
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)1.10
Price to Sales (P/S)0.66
P/FCF Ratio-1.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.38Price Target Upside8.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.24
Revenue Forecast (FY)AU$380.52M
Pepper Money Ltd Business Overview & Revenue Model
Company Description
Pepper Money Limited operates as a non-bank lender in the mortgage and asset finance markets in Australia and New Zealand. It operates through three segments: Mortgages, Asset Finance, and Loan and Other Servicing. The Mortgages segment engages in...
How the Company Makes Money
PPM primarily makes money by originating and managing loans and earning income from the spread between (a) interest it receives from borrowers and (b) its own funding costs (including wholesale funding and securitisation). Key revenue streams typi...
Pepper Money Ltd Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.45B | 1.58B | 1.52B | 1.06B | 771.30M |
| Gross Profit | 1.39B | 1.53B | 417.70M | 987.60M | 699.60M |
| EBITDA | 1.13B | 1.29B | 0.00 | 801.90M | 545.10M |
| Net Income | 104.60M | 98.80M | 110.70M | 141.00M | 120.80M |
Balance Sheet | |||||
| Total Assets | 18.40B | 17.47B | 20.21B | 19.92B | 17.27B |
| Cash, Cash Equivalents and Short-Term Investments | 1.27B | 1.24B | 1.53B | 1.24B | 1.31B |
| Total Debt | 17.42B | 16.47B | 19.26B | 18.98B | 16.52B |
| Total Liabilities | 17.53B | 16.62B | 19.34B | 18.99B | 16.63B |
| Stockholders Equity | 869.90M | 855.60M | 825.40M | 801.90M | 636.40M |
Cash Flow | |||||
| Free Cash Flow | -720.50M | 2.59B | 91.20M | -2.31B | -3.00B |
| Operating Cash Flow | -714.80M | 2.60B | 98.30M | -2.30B | -2.99B |
| Investing Cash Flow | -5.70M | -49.30M | -7.50M | -87.60M | -266.40M |
| Financing Cash Flow | 761.30M | -2.85B | 194.30M | 2.32B | 3.68B |
Pepper Money Ltd Technical Analysis
Negative
2.19
Price Trends
2.01
Negative
2.07
Negative
2.01
Negative
Market Momentum
-0.07
Negative
42.96
Neutral
82.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PPM, the sentiment is Negative. The current price of 2.19 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 2.01, and above the 200-day MA of 2.01, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:PPM.
Pepper Money Ltd Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$147.59M | 6.29 | 72.15% | ― | 19.38% | ― | |
59 Neutral | AU$722.19M | 5.42 | 10.55% | 4.81% | 5.01% | 85.56% | |
57 Neutral | AU$804.10M | 9.15 | 12.70% | 11.71% | -6.49% | -5.40% | |
52 Neutral | AU$951.36M | 11.50 | 7.72% | 6.60% | 14.81% | ― | |
50 Neutral | AU$1.04B | 4.10 | 12.13% | 11.83% | 2.11% | 15.71% | |
43 Neutral | AU$68.27M | -1.10 | -43.76% | ― | -9.56% | -392.31% |
* Financial Sector Average
AU:PPM
Pepper Money Ltd
1.79
0.61
51.69%
AU:CCP
Credit Corp Group Limited
10.61
-1.24
-10.44%
AU:PLT
Plenti Group Ltd.
0.81
0.07
9.46%
AU:LFS
Latitude Group Holdings Ltd.
0.92
-0.14
-13.27%
AU:MME
MoneyMe Ltd.
0.08
-0.04
-30.00%
AU:LFG
Liberty Financial Group Ltd
3.44
0.73
26.80%
Pepper Money Ltd Corporate Events
Challenger Trims Bid but Labels Offer for Pepper Money ‘Best and Final’
Mar 16, 2026
Challenger Limited has submitted a revised confidential, non-binding and conditional joint proposal with Pepper Group ANZ HoldCo Limited to acquire Pepper Money Limited. The new offer cuts the bid from $2.60 to $2.25 per Pepper Money share, adjust...
Challenger Cuts Takeover Offer for Pepper Money Amid Weakening Market Conditions
Mar 16, 2026
Pepper Money has disclosed that Challenger Limited has revised its non-binding indicative proposal to acquire 100% of Pepper Money’s shares via a scheme of arrangement, cutting the offer price from A$2.60 to A$2.25 per share. The new price i...
Pepper Money updates market on director Mario Rehayem’s revised equity holdings
Mar 10, 2026
Pepper Money Limited has disclosed a change in the interests of its director, Mario Rehayem, involving a rebalancing between performance-based rights and fully paid ordinary shares. The notice details that 764,560 vested executive performance righ...
Pepper Money Seeks ASX Quotation for Additional Ordinary Shares
Mar 9, 2026
Pepper Money Ltd has applied for quotation of 39,490 new ordinary fully paid shares on the Australian Securities Exchange, with an issue date of 9 March 2026. The modest increase in quoted securities follows previously announced transactions and w...
Pepper Money to List 4.7 Million New Ordinary Shares on ASX
Mar 9, 2026
Pepper Money Ltd has applied to the ASX for quotation of 4,663,780 new ordinary fully paid shares, to be issued and listed on 9 March 2026 under its existing ticker PPM. The additional securities arise from the exercise or conversion of existing o...
Pepper Money Reports Lapse of Executive Rights and Change in Issued Capital
Mar 9, 2026
Pepper Money has notified the market of a change in its issued capital structure following the lapse of certain executive rights. The company reported that 293,151 executive rights, classified as PPMAA securities, have ceased because the performan...
Pepper Money Issues New Tranche of Unquoted Employee Rights
Mar 9, 2026
Pepper Money Limited has notified the market of the issue of 18,589 unquoted employee rights under its employee incentive scheme, effective 9 March 2026. The new rights, which are not intended to be quoted on the ASX, reflect the company’s c...
Pepper Money Plans Modest Equity Placement on ASX
Mar 9, 2026
Pepper Money has notified the ASX of a proposed issue of up to 39,490 ordinary fully paid shares under a placement or similar mechanism. The new securities, to be issued and quoted on 9 March 2026 subject to ASX procedures, represent a modest equi...
Pepper Money Updates CEO Mario Rehayem’s Equity Incentive Holdings
Feb 25, 2026
Pepper Money has reported changes to the equity interests of managing director Mario Rehayem, reflecting updates to his direct and indirect holdings in the company and related entities. His interests include ordinary shares held personally and via...
Challenger Confirms Talks on Strategic Joint Bid for Pepper Money
Feb 8, 2026
Challenger Limited has confirmed it is in advanced talks over a potential transaction to jointly acquire Pepper Money Limited, partnering with Pepper Group ANZ HoldCo Limited. Under the proposed scheme of arrangement, Pepper Group would initially ...
Pepper Money Sets Date for 2025 Full-Year Results and Investor Briefing
Jan 20, 2026
Pepper Money has scheduled the release of its full-year results for the 12 months to 31 December 2025 on 19 February 2026, and will host a virtual briefing that morning led by Chief Executive Officer Mario Rehayem and Chief Financial Officer There...
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.