Credit Corp’s annual general meeting trading update showed US debt collections rose 23% excluding currency moves, on only 2% more staff. ANZ collections per staff fell 7%, and the consumer loan book stayed between AUD 509 million and AUD 513 million for three quarters.
A relatively prudent business model allows for better countercyclical investment and cash collections, which helps fund more purchases and issue more loans. This also supports continued funding and prevents excessive potential value destruction.
Competition for PDLs may be stronger moving forward, with larger peers having the ability to persistently outbid Credit Corp for better-quality bad debts, and competition from credit card alternatives for consumers.
|
Metric
|
CCP
|
ZIP
|
CBA
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.46 | 13.25 | 24.58 |
Price/Book Value | 1.09 | 3.00 | 3.47 |
Price/Sales | 1.70 | 1.56 | 9.14 |
Price/Cash Flow | 367.52 | — | — |
|
Metric
|
CCP
|
ZIP
|
CBA
|
|---|---|---|---|
Quick Ratio | 7.09 | 1.17 | — |
Current Ratio | 7.19 | 1.21 | — |
Interest Coverage | 4.93 | 1.65 | — |
|
Metric
|
CCP
|
ZIP
|
CBA
|
|---|---|---|---|
Return on Assets (Normalized) | 7.32% | 3.53% | 0.78% |
Return on Equity (Normalized) | 11.74% | 19.56% | 14.04% |
Return on Invested Capital (Normalized) | 9.64% | 9.59% | — |
|
1-Day Chart
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United States