PEPPER MONEY LIMITED (PPM)
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PPM - PEPPER MONEY LIMITED

FNArena Sector : Business & Consumer Credit
Year End: December
GICS Industry Group : Banks
Debt/EBITDA: 15.06
Index: ALL-ORDS

Pepper Money Limited is a consumer finance company specialising in consumer lending and residential mortgages. It is part of the Pepper Financial Services Group and listed on the ASX in May 2021.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$1.415

23 Dec
2024

0.005

OPEN

$1.42

0.35%

HIGH

$1.43

103,703

LOW

$1.39

TARGET
$1.55 9.5% upside
Franking for last dividend paid out: 100%
OTHER COMPANIES IN THE SAME SECTOR
BTN . CCP . CGR . COG . EML . EPY . FSA . HUM . JDO . LFS . MME . PLT . QAL . SIV . SMP . SQ2 . SVR . TYR . WZR . ZIP .
FNARENA'S MARKET CONSENSUS FORECASTS
PPM: 1
Title FY22
Actual		 FY23
Actual		 FY24
Forecast		 FY25
Forecast
EPS (cps) xxx 25.2 20.1 xxx
DPS (cps) xxx 8.5 10.0 xxx
EPS Growth xxx - 21.5% - 20.2% xxx
DPS Growth xxx - 19.0% 17.6% xxx
PE Ratio xxx N/A 6.9 xxx
Dividend Yield xxx N/A 7.2% xxx
Div Pay Ratio(%) xxx 33.8% 49.8% xxx

Dividend yield today if purchased 3 years ago: 4.05%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 6.14

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 11/09 - ex-div 3.5c (franking 100%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201820192020202120222023
EPS Basic xxxxxxxxxxxxxxx25.2
DPS All xxxxxxxxxxxxxxx8.5
Sales/Revenue xxxxxxxxxxxxxxx1,523.7 M
Book Value Per Share xxxxxxxxxxxxxxx187.7
Net Operating Cash Flow xxxxxxxxxxxxxxx98.3 M
Net Profit Margin xxxxxxxxxxxxxxx7.27 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201820192020202120222023
Return on Capital Employed xxxxxxxxxxxxxxx13.61 %
Return on Invested Capital xxxxxxxxxxxxxxx0.55 %
Return on Assets xxxxxxxxxxxxxxx0.55 %
Return on Equity xxxxxxxxxxxxxxx13.61 %
Return on Total Capital xxxxxxxxxxxxxxx6.10 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx53.4 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201820192020202120222023
Short-Term Debt xxxxxxxxxxxxxxx0 M
Long Term Debt xxxxxxxxxxxxxxx19,290 M
Total Debt xxxxxxxxxxxxxxx19,290 M
Goodwill - Gross xxxxxxxxxxxxxxx-
Cash & Equivalents - Generic xxxxxxxxxxxxxxx1,529 M
Price To Book Value xxxxxxxxxxxxxxx0.66

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201820192020202120222023
Capex xxxxxxxxxxxxxxx7.1 M
Capex % of Sales xxxxxxxxxxxxxxx0.47 %
Cost of Goods Sold xxxxxxxxxxxxxxx77 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx188 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx18,451 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

0.5

No. Of Recommendations

2
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Macquarie

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Citi

30/08/2024

3

Neutral

$1.55

9.54%

Pepper Money reported 1H24 net profit some -4% below Citi and consensus expectations, although the make-up was mixed.

Net interest margins were slightly above expectations, as was net interest income, the analyst observes on first take, but bad debts were higher than estimated. Increased whole loan sales were well ahead of the historical average offsetting bad debts.

The analyst proposes a slightly better revenue outlook with tailwinds from funding against a decline in asset quality.

Earnings forecasts are tweaked by 3% in FY24 and 1% in FY25. Neutral rating retained.
Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

2

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Goldman Sachs

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Jarden

04/09/2024

2

Overweight

$1.60

13.07%

First half profits fell -22% as higher loan losses were largely offset by Pepper Money's record income from the partial sale of existing loans. Jarden found the volume weak although accepts this is set to improve.

The business should manage the margin versus volume trade-off well and there is a solid base for an earnings recovery, the broker adds. Estimates for 2024 and 2025 EPS are reduced by -5% and -8%, respectively. Overweight. Target is raised to $1.60 from $1.55.

FORECAST
Jarden forecasts a full year FY24 dividend of 10.00 cents and EPS of 19.00 cents.
Jarden forecasts a full year FY25 dividend of 10.00 cents and EPS of 21.00 cents.
Access Extra Coverage Research History >

PPM STOCK CHART

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