CHALLENGER LIMITED (CGF)
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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

$8.31

04 Sep
2025

0.100

OPEN

$8.24

1.22%

HIGH

$8.31

1,571,674

LOW

$8.23

TARGET
$8.766 5.5% upside
Franking for last dividend paid out: 100%
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FNARENA'S MARKET CONSENSUS FORECASTS
CGF: 1
Title FY24
Actual		 FY25
Actual		 FY26
Forecast		 FY27
Forecast
EPS (cps) xxx 28.0 64.8 xxx
DPS (cps) xxx 29.5 30.3 xxx
EPS Growth xxx 47.5% 100.0% xxx
DPS Growth xxx 11.3% 2.7% xxx
PE Ratio xxx N/A 13.0 xxx
Dividend Yield xxx N/A 3.6% xxx
Div Pay Ratio(%) xxx 105.4% 46.8% xxx

Dividend yield today if purchased 3 years ago: 4.70%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 3.51

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 202020212022202320242025
EPS Basic xxxxxxxxxxxxxxx28.0
DPS All xxxxxxxxxxxxxxx29.5
Sales/Revenue xxxxxxxxxxxxxxx3,116.1 M
Book Value Per Share xxxxxxxxxxxxxxx563.7
Net Operating Cash Flow xxxxxxxxxxxxxxx399.6 M
Net Profit Margin xxxxxxxxxxxxxxx6.17 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 202020212022202320242025
Return on Capital Employed xxxxxxxxxxxxxxx4.97 %
Return on Invested Capital xxxxxxxxxxxxxxx3.62 %
Return on Assets xxxxxxxxxxxxxxx0.56 %
Return on Equity xxxxxxxxxxxxxxx4.97 %
Return on Total Capital xxxxxxxxxxxxxxx9.99 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx208.1 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 202020212022202320242025
Short-Term Debt xxxxxxxxxxxxxxx6,936 M
Long Term Debt xxxxxxxxxxxxxxx1,332 M
Total Debt xxxxxxxxxxxxxxx8,268 M
Goodwill - Gross xxxxxxxxxxxxxxx580 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx650 M
Price To Book Value xxxxxxxxxxxxxxx1.43

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 202020212022202320242025
Capex xxxxxxxxxxxxxxx0.2 M
Capex % of Sales xxxxxxxxxxxxxxx0.01 %
Cost of Goods Sold xxxxxxxxxxxxxxx-
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx802 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx32,809 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

0.6

No. Of Recommendations

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

Macquarie

xx/xx/xxxx

1

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$xx.xx

xx.xx%

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xx/xx/xxxx

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xxx

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Morgan Stanley

20/08/2025

5

Underweight

$6.90

-16.97%

Morgan Stanley highlights Challenger's FY25 normalised net profit and FY26 guidance met expectations but there was a wide miss on reported net profit. This was due to actual investment returns lagging normalised.

The broker notes the FY26 normalised EPS in-line guidance represents 4% growth but it is slower than 9% achieved in FY25, and is due to tight credit spreads dragging on margins. 

The broker reckons the two RBA rate cuts in FY25 are a headwind and with two more cuts expected from here, margins could come under pressure. The forecast is for stable COE margin in FY26 at 319bps but a -3bps decline in FY27.

The broker believes proposed capital reforms, if adopted, will improve balance sheet efficiency and reduce volatility, but the persistent statutory-to-normalised earnings gap is a concern

Target lifted to $6.90 from $6.60 on valuation roll-forward. Underweight. Industry View: In-Line.

FORECAST
Morgan Stanley forecasts a full year FY26 dividend of 27.50 cents and EPS of 68.70 cents.
Morgan Stanley forecasts a full year FY27 dividend of 29.00 cents and EPS of 72.80 cents.

Bell Potter

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Ord Minnett

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Morgans

xx/xx/xxxx

3

xxxxxxxxx xx xxxx xxxx xxx

$xx.xx

xx.xx%

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Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

1

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

20/08/2025

2

Overweight

$8.60

3.49%

Challenger’s FY25 profit of $455.5m was broadly in line with forecasts by Jarden and consensus, with Life earnings offsetting softer funds management. Life sales rose strongly in the fourth quarter, particularly from Australian institutions, while Japanese sales fell.

The cost-to-income ratio declined to 32.3%, at the low end of guidance, and return on equity (ROE) was above target for a second consecutive half, highlight the analysts.

FY26 guidance is for profit of $455-495m and EPS of 66-72c, implying around 4% growth at the midpoint. Jarden believes Life will drive growth, supported by lower maturities and stronger sales, while fee pressure continues to weigh on funds management.

Jarden cuts its EPS forecasts by -1.6% for FY25 and -4.4% for FY26, with capital changes from APRA remaining the key near-term catalyst. The broker sees potential for more than $1bn in capital returns and a stronger ROE profile.

The target price falls to $8.60 from $8.70. Overweight rating maintained.

FORECAST
Jarden forecasts a full year FY26 dividend of 27.60 cents and EPS of 63.70 cents.
Jarden forecasts a full year FY27 dividend of 29.10 cents and EPS of 67.90 cents.
Access Extra Coverage Research History >

CGF STOCK CHART

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