CHALLENGER LIMITED (CGF)
Share Price Analysis and Chart

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CGF

CGF - CHALLENGER LIMITED

FNArena Sector : Wealth Management & Investments
Year End: June
GICS Industry Group : Diversified Financials
Debt/EBITDA: N/A
Index: ASX100 | ASX200 | ASX300 | ALL-ORDS

Challenger Ltd is an Australian financial company that specialises in superannuation and annuities. It claims to be Australia's largest guaranteed income provider. Founded in 1985 it was listed in 2003.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$5.82

24 Mar
2025

-0.050

OPEN

$5.86

-0.85%

HIGH

$5.93

1,597,744

LOW

$5.82

TARGET
$6.947 19.4% upside
Franking for last dividend paid out: 100%
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FNARENA'S MARKET CONSENSUS FORECASTS
CGF: 1
Title FY23
Actual		 FY24
Actual		 FY25
Forecast		 FY26
Forecast
EPS (cps) xxx 19.0 60.5 xxx
DPS (cps) xxx 26.5 28.5 xxx
EPS Growth xxx - 55.0% 100.0% xxx
DPS Growth xxx 10.4% 7.5% xxx
PE Ratio xxx N/A 9.8 xxx
Dividend Yield xxx N/A 4.8% xxx
Div Pay Ratio(%) xxx 139.6% 47.1% xxx

Dividend yield today if purchased 3 years ago: 3.94%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 4.45

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: 26/08 - ex-div 13.50c (franking 100%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2025 FactSet UK Limited. All rights reserved
Title 201920202021202220232024
EPS Basic xxxxxxxxxxxxxxx19.0
DPS All xxxxxxxxxxxxxxx26.5
Sales/Revenue xxxxxxxxxxxxxxx2,907.7 M
Book Value Per Share xxxxxxxxxxxxxxx568.0
Net Operating Cash Flow xxxxxxxxxxxxxxx843.7 M
Net Profit Margin xxxxxxxxxxxxxxx4.63 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201920202021202220232024
Return on Capital Employed xxxxxxxxxxxxxxx3.35 %
Return on Invested Capital xxxxxxxxxxxxxxx2.45 %
Return on Assets xxxxxxxxxxxxxxx0.42 %
Return on Equity xxxxxxxxxxxxxxx3.35 %
Return on Total Capital xxxxxxxxxxxxxxx11.14 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx692.4 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 201920202021202220232024
Short-Term Debt xxxxxxxxxxxxxxx5,593 M
Long Term Debt xxxxxxxxxxxxxxx1,532 M
Total Debt xxxxxxxxxxxxxxx7,126 M
Goodwill - Gross xxxxxxxxxxxxxxx580 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx573 M
Price To Book Value xxxxxxxxxxxxxxx1.23

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201920202021202220232024
Capex xxxxxxxxxxxxxxx1.9 M
Capex % of Sales xxxxxxxxxxxxxxx0.07 %
Cost of Goods Sold xxxxxxxxxxxxxxx-
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx828 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx31,000 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

0.9

No. Of Recommendations

7
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Ord Minnett

xx/xx/xxxx

1

xxxxxxx xx xxx xxxx xxxx

$xx.xx

xx.xx%

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Citi

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Bell Potter

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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UBS

19/02/2025

1

Buy

$7.65

31.44%

Challenger reported 1H25 normalised net profit, which came in below expectations by -1% for UBS and -2% below consensus, with life earnings softer than anticipated, offset by more robust funds under management on increased performance fees, the broker explains.

UBS highlights cash operating earnings margins were "soft," with pressure on product cash margins, down -8bps on the previous half due to one-off factors, which the analyst suggests may be temporary.

Challenger reported robust life annuity sales, including stronger longer-duration Japanese annuity sales.

UBS slightly downgrades net profit after tax forecasts by -2.6% for FY25 and lifts FY26 by 4.3%. The broker tweaks EPS estimates, lifting FY25 by 4% and FY26 by 1% due to earnings changes on convertible notes net of dilution.

Target price $7.65.

FORECAST
UBS forecasts a full year FY25 EPS of 58.00 cents.
UBS forecasts a full year FY26 EPS of 61.00 cents.

Morgan Stanley

xx/xx/xxxx

3

xxxxx-xxxxxx

$xx.xx

xx.xx%

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Morgans

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Macquarie

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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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

Jarden

xx/xx/xxxx

2

xxxxxxxxxx

$xx.xx

xx.xx%

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Goldman Sachs

20/02/2025

1

Buy

$7.30

25.43%

Goldman Sachs highlights Challenger's 1H25 normalised net profit was slightly softer than expected but statutory profit was much weaker driven by adverse asset experience.

The company retained FY25 guidance, which implies a sharp improvement in 2H margins, and the broker is unconvinced this is likely.

The broker cut FY25 earnings forecast by -3.8% and FY26 by -5.1%, driven by weaker margin and softer book growth, offset partially by lower expenses. Target price drops to $7.3 from $7.6, Buy maintained.

FORECAST
Goldman Sachs forecasts a full year FY25 dividend of 28.00 cents and EPS of 58.00 cents.
Goldman Sachs forecasts a full year FY26 dividend of 29.00 cents and EPS of 60.00 cents.
Access Extra Coverage Research History >

CGF STOCK CHART

FNArena News on CGF

1
Weekly Ratings, Targets, Forecast Changes – 21-03-25

Mar 24 2025 - Weekly Reports
2
Australian Broker Call *Extra* Edition – Mar 12, 2025

Mar 12 2025 - Daily Market Reports
3
Weekly Ratings, Targets, Forecast Changes – 21-02-25

Feb 24 2025 - Weekly Reports
4
Australian Broker Call *Extra* Edition – Feb 20, 2025

Feb 20 2025 - Daily Market Reports
5
FNArena Corporate Results Monitor – 19-02-2025

Feb 19 2025 - Australia

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