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Pepper Money Ltd
(Sydney:PPM)
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Rating:57Neutral
Price Target:
AU$1.50
▼(-7.98% Downside)
Action:Reiterated
Date: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
Diversified lending revenue model
Pepper’s business combines interest margin, origination and servicing fees, plus securitisation economics. These multiple, structural revenue streams reduce dependence on any single source, support recurring fee income and allow earnings to compound as the loan book scales, sustaining revenue durability over months.
Negative Factors
Extreme leverage
Very high debt-to-equity leaves equity thin and magnifies downside in credit stress or mark-to-market funding moves. Structurally this limits financial flexibility, increases refinancing and covenant risk, and makes capital management and dividend sustainability highly sensitive to modest asset-quality or funding cost deterioration.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified lending revenue model
Pepper’s business combines interest margin, origination and servicing fees, plus securitisation economics. These multiple, structural revenue streams reduce dependence on any single source, support recurring fee income and allow earnings to compound as the loan book scales, sustaining revenue durability over months.
Read all positive factors
Pepper Money Ltd (PPM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$788.44M
Dividend Yield14.69%
Average Volume (3M)326.68K
Price to Earnings (P/E)7.3
Beta (1Y)1.28
Revenue Growth-8.26%
EPS Growth5.26%
CountryAU
Employees863
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding449,255,070
10 Day Avg. Volume338,103
30 Day Avg. Volume326,679
Financial Highlights & Ratios
PEG Ratio0.99
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$2.03Price Target Upside24.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.24
Revenue Forecast (FY)AU$433.64M
Pepper Money Ltd Business Overview & Revenue Model
Company Description
Pepper Money Limited, an Australian non-bank financial institution established in 2000 and headquartered in North Sydney, serves clients in both Australia and New Zealand. It primarily operates as a lender within the mortgage and asset finance sec...
How the Company Makes Money
PPM makes money primarily by originating loans and earning net interest income and fee-based income over the life of those loans. Key revenue streams typically include: (1) Interest margin: PPM earns interest charged to borrowers on mortgages/loan...
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 | 170.60M | 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
Positive
1.63
Price Trends
1.63
Positive
1.70
Positive
1.92
Negative
Market Momentum
0.02
Negative
68.13
Neutral
77.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PPM, the sentiment is Positive. The current price of 1.63 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.63, and below the 200-day MA of 1.92, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 68.13 is Neutral, neither overbought nor oversold. The STOCH value of 77.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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% | |
67 Neutral | AU$292.11M | 9.44 | 9.32% | 7.73% | -8.03% | 65.07% | |
57 Neutral | AU$788.44M | 7.31 | 12.70% | 15.82% | -8.26% | 5.26% | |
52 Neutral | AU$935.76M | 9.96 | 7.72% | 6.60% | 8.89% | 334.62% | |
51 Neutral | AU$3.18B | 30.07 | 15.91% | ― | 28.84% | ― | |
50 Neutral | AU$986.70M | 6.91 | 12.13% | 15.15% | -4.02% | 17.32% | |
43 Neutral | AU$63.41M | -1.26 | -43.76% | ― | 17.04% | -121.43% |
* Financial Sector Average
AU:PPM
Pepper Money Ltd
1.81
0.03
1.63%
AU:SVR
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1.61
0.18
12.20%
AU:ZIP
Zip Co Ltd.
2.56
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AU:LFS
Latitude Group Holdings Ltd.
0.90
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-14.69%
AU:MME
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0.08
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AU:LFG
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3.20
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-5.77%
Pepper Money Ltd Corporate Events
Pepper Money to service A$36bn HSBC loan book acquired by Blackstone
Jul 30, 2026
Pepper Money Limited has been selected to become the servicer of a substantial portfolio of Australian home and personal loans originated by HSBC Bank Australia, following the planned acquisition of that book by a Blackstone‑controlled entit...
Pepper Money Seeks ASX Quotation for Additional Ordinary Shares
Jun 10, 2026
Pepper Money Ltd has applied for quotation on the ASX of 36,857 new ordinary fully paid shares, to be traded under its existing ticker PPM. The new securities, issued on 10 June 2026, slightly increase the company’s listed share capital and ...
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.