Financials Challenger Limited

Equities

CGF

AU000000CGF5

Life & Health Insurance

Market Closed - Australian S.E. Other stock markets 11:40:30 06/05/2024 am IST			5-day change	1st Jan Change
6.22 ^AUD	-2.51%		-7.30%	-4.16%

30/04	Heartland Group Completes Challenger Bank Acquisition	MT
30/04	Heartland Group to Complete Challenger Bank Acquisition on Tuesday After Regulatory Approvals	MT

Valuation

Fiscal Period: June	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	4,022	3,168	3,639	4,652	4,443	4,261	-	-
Enterprise Value (EV) ¹	10,307	10,245	8,973	9,702	9,741	5,245	5,206	5,167
P/E ratio	13 x	-6.45 x	6.13 x	20.7 x	17.1 x	14.7 x	10.9 x	9.94 x
Yield	5.35%	3.97%	3.7%	3.36%	3.7%	4.13%	4.47%	4.86%
Capitalization / Revenue	4.9 x	3.97 x	5.34 x	5.99 x	5.28 x	4.61 x	4.23 x	3.95 x
EV / Revenue	12.6 x	12.8 x	13.2 x	12.5 x	11.6 x	5.67 x	5.16 x	4.79 x
EV / EBITDA	18.1 x	19.4 x	21.6 x	19.8 x	18.1 x	8.41 x	7.5 x	6.77 x
EV / FCF	17.4 x	21.5 x	5.24 x	26.7 x	-152 x	11.2 x	13.5 x	11.4 x
FCF Yield	5.75%	4.64%	19.1%	3.75%	-0.66%	8.96%	7.42%	8.79%
Price to Book	1.12 x	0.9 x	0.95 x	1.17 x	1.06 x	1.09 x	1.02 x	0.95 x
Nbr of stocks (in thousands)	6,05,797	7,18,368	6,72,656	6,80,146	6,85,714	6,85,028	-	-
Reference price ²	6.640	4.410	5.410	6.840	6.480	6.220	6.220	6.220
Announcement Date	12/08/19	10/08/20	09/08/21	16/08/22	14/08/23	-	-	-

¹AUD in Million²AUD

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: Juni	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	821	797.4	682	776.9	842.2	924.3	1,008	1,079
EBITDA ¹	568.9	528.3	416.3	490.4	539.2	623.9	694.5	763.4
EBIT ¹	553.6	513	401	476.4	524.7	604.3	671.8	725.8
Operating Margin	67.43%	64.33%	58.8%	61.32%	62.3%	65.39%	66.65%	67.24%
Earnings before Tax (EBT)	437.8	-590.6	830.6	357.3	408	-	661.5	704.7
Net income ¹	307.8	-416	592	253.7	287.5	329.4	441.9	479.2
Net margin	37.49%	-52.17%	86.8%	32.66%	34.14%	35.64%	43.84%	44.39%
EPS ²	0.5090	-0.6840	0.8820	0.3310	0.3790	0.4235	0.5700	0.6256
Free Cash Flow ¹	592.4	475.6	1,712	363.5	-63.9	470	386.2	454.4
FCF margin	72.16%	59.64%	250.97%	46.79%	-7.59%	50.85%	38.31%	42.1%
FCF Conversion (EBITDA)	104.13%	90.02%	411.15%	74.12%	-	75.33%	55.61%	59.53%
FCF Conversion (Net income)	192.46%	-	289.12%	143.28%	-	142.69%	87.4%	94.82%
Dividend per Share ²	0.3550	0.1750	0.2000	0.2300	0.2400	0.2571	0.2778	0.3022
Announcement Date	12/08/19	10/08/20	09/08/21	16/08/22	14/08/23	-	-	-

¹AUD in Million²AUD

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: June	2020 S1	2020 S2	2021 S1	2021 S2	2022 S1	2022 S2	2023 S1	2023 S2	2024 S1	2024 Q3	2024 S2	2025 S1	2025 S2	2026 S1	2026 S2
Net sales ¹	422.7	374.7	325.3	356.7	386.5	390.4	410.5	431.7	447.2	180	478.7	500.4	501.1	523.5	532.6
EBITDA	288.9	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT	281.1	231.9	198.5	202.5	239.4	237	252.4	272.3	292.6	-	312.9	335.3	317.2	336.8	-
Operating Margin	66.5%	61.89%	61.02%	56.77%	61.94%	60.71%	61.49%	63.08%	65.43%	-	65.37%	67%	63.3%	64.34%	-
Earnings before Tax (EBT)	321.9	-	-	518.2	391.4	-	-	-	84.8	-	-	-	-	-	-
Net income	220.4	-636.4	222.8	369.2	282	-28.3	122.7	164.8	56.3	-	322.4	-	-	-	-
Net margin	52.14%	-169.84%	68.49%	103.5%	72.96%	-7.25%	29.89%	38.17%	12.59%	-	67.35%	-	-	-	-
EPS	-	-	-	-	0.3390	-0.008000	0.1720	0.2070	0.0810	-	0.4630	-	-	-	-
Dividend per Share	0.2500	-	0.0950	0.1050	0.1150	0.1150	0.1200	0.1200	0.1300	-	0.1252	-	-	-	-
Announcement Date	10/02/20	10/08/20	08/02/21	09/08/21	16/02/22	16/08/22	13/02/23	14/08/23	12/02/24	-	-	-	-	-	-

¹AUD in Million

Estimates

Balance Sheet Analysis

Fiscal Period: June	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	6,285	7,077	5,334	5,050	5,298	984	945	907
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	11.05 x	13.4 x	12.81 x	10.3 x	9.825 x	1.577 x	1.361 x	1.188 x
Free Cash Flow ¹	592	476	1,712	364	-63.9	470	386	454
ROE (net income / shareholders' equity)	11.4%	10%	7.9%	8.1%	8.9%	10.2%	10.9%	11%
ROA (Net income/ Total Assets)	1.5%	1.23%	2.03%	1.08%	1.2%	1.69%	1.75%	1.79%
Assets ¹	20,498	-33,841	29,190	23,532	23,956	19,548	25,247	26,835
Book Value Per Share ²	5.940	4.900	5.690	5.860	6.090	5.730	6.120	6.530
Cash Flow per Share ²	0.8300	0.8000	2.810	2.850	1.400	0.3700	0.5200	0.6100
Capex ¹	59.9	9.3	12.9	2.9	7.9	150	124	93.5
Capex / Sales	7.3%	1.17%	1.89%	0.37%	0.94%	16.22%	12.3%	8.66%
Announcement Date	12/08/19	10/08/20	09/08/21	16/08/22	14/08/23	-	-	-

¹AUD in Million²AUD

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Challenger Limited

Trading Rating

Investor Rating

ESG Refinitiv

B+

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

6.22 AUD

Average target price

7.548 AUD

Spread / Average Target

+21.36%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Life Insurance

	1st Jan change	Capi.
CHALLENGER LIMITED	-4.16%	2.89B
CHINA LIFE INSURANCE COMPANY LIMITED	+10.47%	98.91B
PING AN INSURANCE (GROUP) COMPANY OF CHINA, LTD.	+5.43%	98.63B
AIA GROUP LIMITED	-8.16%	87.94B
LIFE INSURANCE CORPORATION OF INDIA	+12.19%	74.27B
CHINA PACIFIC INSURANCE (GROUP) CO., LTD.	+13.12%	31.02B
JAPAN POST HOLDINGS CO., LTD.	+20.29%	29.23B
FUBON FINANCIAL HOLDING CO., LTD.	+8.02%	27.81B
SBI LIFE INSURANCE COMPANY LIMITED	+0.56%	17.33B
HDFC LIFE INSURANCE COMPANY LIMITED	-14.17%	14.6B

Life Insurance