How to buy Challenger (CGF) shares
Learn how to easily invest in Challenger shares.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Challenger 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 $3.5 billion. If you're looking to buy shares, check out the steps below.
How to buy shares in Challenger
- Compare share trading platforms. To buy shares listed in Australia, you'll need to sign up to a broker with access to the ASX. Our table can help you choose.
- Open and fund your brokerage account. Complete an application with your personal and financial details, such as your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
- Search for Challenger. Find the share by name or ticker symbol: CGF. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Challenger reaches your desired price. Look into dollar-cost averaging to spread out your risk, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At today's price, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
- Check on your investment. Congratulations, you own a part of Challenger. Optimise your portfolio by tracking how your stock and the business performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that affect your stock.
What's in this guide?
- Challenger key stats
- Compare share trading platforms
- Is Challenger stock a buy or sell?
- Challenger performance over time
- Are Challenger shares over-valued?
- Challenger's financials
- How volatile are Challenger shares?
- Does Challenger pay a dividend?
- Have Challenger shares ever split?
- Other common questions
Challenger stock price (ASX:CGF)Use our graph to track the performance of CGF stocks over time.
Challenger shares at a glance
|52-week range||$5.1702 - $7.725|
|50-day moving average||$7.152|
|200-day moving average||$6.7167|
|Dividend yield||$0.22 (3.45%)|
|Earnings per share (TTM)||$0.743|
Compare share trading platforms
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Is it a good time to buy Challenger stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. 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.
Challenger price performance over time
|1 week (2022-06-24)||5.43%|
|1 month (2022-06-02)||-5.16%|
|3 months (2022-04-01)||5.11%|
|6 months (2021-12-31)||7.04%|
|1 year (2021-07-02)||26.86%|
|2 years (2020-07-02)||50.65%|
|3 years (2019-07-02)||4.33%|
|5 years (2017-06-30)||-47.60%|
Is Challenger under- or over-valued?
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 P/E ratio
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 9x. In other words, Challenger shares trade at around 9x 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 $1.2 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||$3.5 billion|
|Operating margin TTM||33.44%|
|Gross profit TTM||$1.4 billion|
|Return on assets TTM||2.54%|
|Return on equity TTM||17.21%|
|Market capitalisation||$4.8 billion|
TTM: trailing 12 months
Challenger share dividends
Dividend payout ratio: 28.95% of net profits
Recently Challenger has paid out, on average, around 28.95% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.45% 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 3.45% return on their shares, in the form of dividend payments. In Challenger's case, that would currently equate to about A$0.22 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 24 February 2022 (the "ex-dividend date").
Have Challenger's shares ever split?
Challenger's shares were split on a 1:5 basis on 26 November 2004. So if you had owned 5 shares the day before the split, the next day you would own 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.
Challenger share price volatility
Over the last 12 months, Challenger's shares have ranged in value from as little as $5.1702 up to $7.725. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (AU average) beta is 1, while Challenger's is 0.8884. 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.
Stocks similar to Challenger
Challenger in the news
Earnings are growing at Challenger (ASX:CGF) but shareholders still don't like its prospects
Frequently asked questions
More guides on Finder
How to buy Dusk (DSK) shares
Steps to owning and managing Dusk shares.
How to invest in the Octava Minerals IPO
Everything we know about the Octava Minerals IPO, plus information on how to buy in.
How to invest in the Australia Sunny Glass Group IPO
Everything we know about the Australia Sunny Glass Group IPO, plus information on how to buy in.
How to buy Kincora Copper (KCC) shares
Steps to owning and managing Kincora Copper shares.
How to invest in the Dragon Mountain Gold IPO
Everything we know about the Dragon Mountain Gold IPO, plus information on how to buy in.
How to buy Arcadia Minerals (AM7) shares
Steps to owning and managing Arcadia Minerals shares.
How to buy Nexgen Energy (NXG) shares
Steps to owning and managing Nexgen Energy shares.
How to buy Keypath Education (KED) shares
Steps to owning and managing Keypath Education shares.
What are green bonds and how do they impact the world?
If you want to directly fund climate solutions a green bond is a great place to start. Here is how they work.
5 best ways to invest money in Australia in 2022
What's the best way to invest money in Australia? Find out about robo advisors, index funds, cryptocurrency and more in this guide.
Ask an Expert