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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 listed in Australian Dollars. Challenger has a trailing 12-month revenue of around $1.8 billion.
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Since the stock market crash in March caused by coronavirus, Challenger's share price has had significant negative movement.
Its last market close was $4.77, which is 53.78% down on its pre-crash value of $10.32 and 69.15% up on the lowest point reached during the March crash when the shares fell as low as $2.82.
If you had bought $1,000 worth of Challenger shares at the start of February 2020, those shares would have been worth $340.21 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $546.40.
52-week range | $2.82 - $10.2487 |
---|---|
50-day moving average | $6.1562 |
200-day moving average | $4.798 |
Target price | $12.06 |
PE ratio | 5.4557 |
Dividend yield | $0.35 (8.77%) |
Earnings per share (TTM) | $0.68 |
Standard brokerage - Australian shares
Competitive broker fees on Australian and international shares
Important: Share trading carries risk of capital loss.
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 close of A$4.77 on 2020-10-22
1 week (2021-01-08) | -28.49% |
---|---|
1 month (2020-12-16) | -19.29% |
3 months (2020-10-16) | 6.95% |
6 months (2020-07-16) | 6.00% |
1 year (2020-01-15) | -42.74% |
---|---|
2 years (2019-01-15) | -48.10% |
3 years (2018-01-15) | -65.48% |
5 years (2016-01-15) | -40.30% |
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 5x. In other words, Challenger shares trade at around 5x 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 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 | $1.8 billion |
---|---|
Gross profit TTM | $65.7 million |
Return on assets TTM | -0.57% |
Return on equity TTM | -12.26% |
Profit margin | -23.09% |
Book value | 4.901 |
Market capitalisation | $4.7 billion |
TTM: trailing 12 months
We're not expecting Challenger to pay a dividend over the next 12 months.
Challenger's shares were split on a 1:5 basis on 26 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 $2.82 up to $10.2487. 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 1.1062. This would suggest that Challenger's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
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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