Challenger Shares Are Overvalued
Challenger is a major annuity provider in Australia, and its products are represented on platforms used by the majority of Australia’s financial advisors.
Challenger Ltd CGF
Bulls Say, Bears Say
Bulls
Challenger's annuities business is in a growth industry. We expect Challenger to capture an increasing share of funds moving from the accumulation phase into the retirement phase within Australia’s superannuation system.
Bears
Challenger is exposed to potential major value destruction if investment markets suffer a steep and prolonged fall.
Trading Information
- Previous Close Price
- A$9.89
- Day Range
- A$9.89–10.05
- 52-Week Range
- A$7.25–10.85
- Bid/Ask
- A$9.89 / A$10.25
- Shares Outstanding
- 678.89M
- Market Cap
- A$6.78B
- Volume/Avg
- 1M / 2M
Key Statistics
- Price/Earnings (Normalized)
- 16.80
- Price/Sales
- 2.74
- Dividend Yield (Trailing)
- 3.15%
- Dividend Yield (Forward)
- 3.20%
- Dividend Payment Schedule
- Mar, Sep
- Total Yield
- 4.91%
Company Profile
Challenger's core business is selling annuity products in the Australian retirement market and, since November 2016, selling Australian dollar-denominated annuities into Japan's large retirement market. The firm's annuity products provide investors guaranteed regular payments over an agreed term for an upfront lump sum investment, and are designed primarily to protect investors from the longevity risk of outliving their savings. Challenger also operates a funds management business, Challenger Investment Management, which primarily manages investments supporting its annuities business. In addition, Challenger holds a 45% minority stake in Channel Group, the merged entity of Fidante Partners and Channel Capital.
- Sector
- Financial Services
- Industry
- Insurance - Life
- Stock Style Box
- Mid Growth
- Total Number of Employees
- 770
- Website
- https://www.challenger.com.au
Competitors
Valuation
|
Metric
|
CGF
|
PNI
|
CBA
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.80 | 17.03 | 22.81 |
Price/Book Value | 1.68 | 2.71 | 3.22 |
Price/Sales | 2.74 | 20.60 | 8.48 |
Price/Cash Flow | 4.32 | 8.72 | — |
Price/Earnings
CGF
PNI
CBA
Financial Strength
|
Metric
|
CGF
|
PNI
|
CBA
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
Quick Ratio
No chart available
Profitability
|
Metric
|
CGF
|
PNI
|
CBA
|
|---|---|---|---|
Return on Assets (Normalized) | 0.00% | 14.69% | 0.78% |
Return on Equity (Normalized) | 0.00% | 17.63% | 14.04% |
Return on Invested Capital (Normalized) | — | — | — |
Return on Assets
CGF
PNI
CBA
Insurance - Life Industry Comparables
|
1-Day Chart
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United States