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Challenger Limited is an insurance-life business based in Australia. Challenger shares (CGF) are listed on the Australian Securities Exchange (ASX) and all prices are in Australian Dollars. Challenger has a trailing 12-month revenue of around $3.3 billion. If you're looking to buy shares, check out the steps below.
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| 52-week range | $4.3446 - $7.1473 |
|---|---|
| 50-day moving average | $6.36 |
| 200-day moving average | $5.8283 |
| Target price | $6.42 |
| PE ratio | 9.6765 |
| Dividend yield | $0.2 (3.09%) |
| Earnings per share (TTM) | $0.68 |
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Historical closes compared with the last close of A$6.97
| 1 week (2021-10-15) | 5.93% |
|---|---|
| 1 month (2021-09-22) | 14.26% |
| 3 months (2021-07-22) | 19.76% |
| 6 months (2021-04-22) | 36.13% |
| 1 year (2020-10-22) | 46.12% |
|---|---|
| 2 years (2019-10-22) | -10.87% |
| 3 years (2018-10-22) | -39.50% |
| 5 years (2016-10-21) | -33.24% |
Valuing Challenger stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Challenger's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Challenger's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 10x. In other words, Challenger shares trade at around 10x recent earnings.
That's relatively low compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Challenger's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $1.1 billion (£0.0 million).
The EBITDA is a measure of a Challenger's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $3.3 billion |
|---|---|
| Operating margin TTM | 32.54% |
| Gross profit TTM | $1.4 billion |
| Return on assets TTM | 2.33% |
| Return on equity TTM | 16.74% |
| Profit margin | 17.72% |
| Book value | 5.688 |
| Market capitalisation | $4.5 billion |
TTM: trailing 12 months
Dividend payout ratio: 28.99% of net profits
Recently Challenger has paid out, on average, around 28.99% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.19% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Challenger shareholders could enjoy a 3.19% return on their shares, in the form of dividend payments. In Challenger's case, that would currently equate to about A$0.2 per share.
While Challenger's payout ratio might seem fairly standard, it's worth remembering that Challenger may be investing much of the rest of its net profits in future growth.
The latest dividend was paid out to all shareholders who bought their shares by 29 August 2021 (the "ex-dividend date").
Challenger's shares were split on a 1:5 basis on 25 November 2004. So if you had owned 5 shares the day before before the split, the next day you'd have owned 1 share. This wouldn't directly have changed the overall worth of your Challenger shares – just the quantity. However, indirectly, the new 400% higher share price could have impacted the market appetite for Challenger shares which in turn could have impacted Challenger's share price.
Over the last 12 months, Challenger's shares have ranged in value from as little as $4.3446 up to $7.1473. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while Challenger's is 0.9623. This would suggest that Challenger's shares are less volatile than average (for this exchange).
Challenger Limited is a publicly owned investment manager. The company also provides retirement services to its clients. It manages equity mutual funds. The firm invests into the public equity markets across the world. Challenger Limited was founded in 1985 and is based in Australia, Asia and United Kingdom.
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