Credit Corp Group Ltd
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$23.20 | Rmxv | Ypcgzsw |
Credit Corp Group: Putting Fair Value Estimate Under Review as We Revisit Our Outlook
We place no-moat Credit Corp Group under review following the release of a disappointing trading update, and as we assess what this means for our future valuation assumptions. The firm anticipates impairing 14% of its U.S. debt ledger assets, which is estimated to reduce fiscal 2024’s net profit after tax by AUD 45 million—close to half of its prior guidance of AUD 90 million-AUD 100 million. We had expected growth in the U.S. debt ledger business to outstrip that of its Australian counterpart, making up 70% of debt ledger EBITDA by fiscal 2028, from 32% in fiscal 2023.