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Mortgage Choice

ASX:MOC
Snowflake Description

Good value with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MOC
ASX
A$173M
Market Cap
  1. Home
  2. AU
  3. Banks
Company description

Mortgage Choice Limited provides mortgage broking services in Australia. The last earnings update was 86 days ago. More info.


Add to Portfolio Compare Print
MOC Share Price and Events
7 Day Returns
3.7%
ASX:MOC
-3.3%
AU Mortgage
0%
AU Market
1 Year Returns
9.4%
ASX:MOC
42.3%
AU Mortgage
15.3%
AU Market
MOC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mortgage Choice (MOC) 3.7% -1.4% 26.8% 9.4% -38.3% -46.1%
AU Mortgage -3.3% 4.5% 21% 42.3% 19.4% -11.2%
AU Market 0% 0.5% 4.7% 15.3% 21.6% 20.7%
1 Year Return vs Industry and Market
  • MOC underperformed the Mortgage industry which returned 42.3% over the past year.
  • MOC underperformed the Market in Australia which returned 15.3% over the past year.
Price Volatility
MOC
Industry
5yr Volatility vs Market

Value

 Is Mortgage Choice undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mortgage Choice to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mortgage Choice.

ASX:MOC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= A$0.83 * 19.1%
A$0.16
Book Value of Equity per Share Median Book Value from the past 5 years. A$0.83
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:MOC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.84
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.838 (1 + (1- 30%) (1.44%))
0.897
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.897 * 5.96%)
7.66%

Discounted Cash Flow Calculation for ASX:MOC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Mortgage Choice is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:MOC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (19.1% – 7.66%) * A$0.83)
A$0.09
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.09 / (7.66% - 2.31%)
A$1.77
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$0.83 + A$1.77
A$2.6
ASX:MOC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.60
Current discount Discount to share price of A$1.40
= -1 x (A$1.40 - A$2.60) / A$2.60
46.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Mortgage Choice is available for.
Intrinsic value
46%
Share price is A$1.4 vs Future cash flow value of A$2.6
Current Discount Checks
For Mortgage Choice to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Mortgage Choice's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Mortgage Choice's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mortgage Choice's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mortgage Choice's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:MOC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.11
ASX:MOC Share Price ** ASX (2019-11-15) in AUD A$1.4
Global Mortgage Industry PE Ratio Median Figure of 174 Publicly-Listed Mortgage Companies 13.93x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mortgage Choice.

ASX:MOC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:MOC Share Price ÷ EPS (both in AUD)

= 1.4 ÷ 0.11

12.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mortgage Choice is good value based on earnings compared to the Global Mortgage industry average.
  • Mortgage Choice is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Mortgage Choice's expected growth come at a high price?
Raw Data
ASX:MOC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
1%per year
Global Mortgage Industry PEG Ratio Median Figure of 73 Publicly-Listed Mortgage Companies 1.02x
Australia Market PEG Ratio Median Figure of 346 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

ASX:MOC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.71x ÷ 1%

12.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mortgage Choice is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Mortgage Choice's assets?
Raw Data
ASX:MOC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$0.70
ASX:MOC Share Price * ASX (2019-11-15) in AUD A$1.4
Australia Mortgage Industry PB Ratio Median Figure of 6 Publicly-Listed Mortgage Companies 0.99x
Australia Market PB Ratio Median Figure of 1,585 Publicly-Listed Companies 1.71x
ASX:MOC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:MOC Share Price ÷ Book Value per Share (both in AUD)

= 1.4 ÷ 0.70

2x

* Primary Listing of Mortgage Choice.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mortgage Choice is overvalued based on assets compared to the AU Mortgage industry average.
X
Value checks
We assess Mortgage Choice's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. Mortgage Choice has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Mortgage Choice expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mortgage Choice expected to grow at an attractive rate?
  • Mortgage Choice's earnings growth is positive but not above the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Mortgage Choice's earnings growth is positive but not above the Australia market average.
  • Mortgage Choice's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:MOC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:MOC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 1%
ASX:MOC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 3.6%
Global Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 7.5%
Global Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.8%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:MOC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:MOC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 188 14 1
2020-06-30 181 14 1
2019-11-15
ASX:MOC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 175 14 14
2019-03-31 191 16 6
2018-12-31 206 17 -1
2018-09-30 211 20 2
2018-06-30 215 22 4
2018-03-31 204 24 13
2017-12-31 193 26 22
2017-09-30 195 25 22
2017-06-30 197 24 22
2017-03-31 195 23 21
2016-12-31 193 21 20
2016-09-30 194 21 20

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mortgage Choice's earnings are expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
  • Mortgage Choice's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:MOC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Mortgage Choice Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MOC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.11 0.11 0.11 1.00
2020-06-30 0.11 0.11 0.11 1.00
2019-11-15
ASX:MOC Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.11
2019-03-31 0.05
2018-12-31 -0.01
2018-09-30 0.01
2018-06-30 0.03
2018-03-31 0.11
2017-12-31 0.18
2017-09-30 0.18
2017-06-30 0.18
2017-03-31 0.17
2016-12-31 0.16
2016-09-30 0.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mortgage Choice is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Mortgage Choice's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mortgage Choice has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Mortgage Choice performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mortgage Choice's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mortgage Choice's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Mortgage Choice's 1-year earnings growth exceeds its 5-year average (223.8% vs -16.9%)
  • Mortgage Choice's earnings growth has exceeded the Global Mortgage industry average in the past year (223.8% vs 17.8%).
Earnings and Revenue History
Mortgage Choice's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mortgage Choice Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MOC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 174.97 13.72 29.56
2019-03-31 190.59 6.46 31.51
2018-12-31 206.33 -0.81 33.47
2018-09-30 210.64 1.71 34.15
2018-06-30 214.81 4.24 34.83
2018-03-31 204.09 13.21 35.69
2017-12-31 193.38 22.18 36.55
2017-09-30 195.21 22.18 36.53
2017-06-30 197.05 22.18 36.50
2017-03-31 195.18 21.20 35.08
2016-12-31 193.32 20.22 33.67
2016-09-30 193.91 19.88 35.40
2016-06-30 194.51 19.54 37.13
2016-03-31 191.00 19.59 37.34
2015-12-31 187.50 19.63 37.54
2015-09-30 185.08 19.24 37.62
2015-06-30 182.67 18.86 37.69
2015-03-31 184.31 18.81 36.75
2014-12-31 185.94 18.77 35.81
2014-09-30 181.36 18.66 34.83
2014-06-30 176.78 18.55 33.86
2014-03-31 172.10 19.78 34.12
2013-12-31 167.43 21.02 34.38
2013-09-30 160.67 20.03 33.11
2013-06-30 153.91 19.03 31.84
2013-03-31 155.68 19.41 30.80
2012-12-31 157.45 19.78 29.75

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mortgage Choice has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Mortgage Choice used its assets more efficiently than the Global Mortgage industry average last year based on Return on Assets.
  • Mortgage Choice's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Mortgage Choice's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mortgage Choice has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Mortgage Choice's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Mortgage Choice's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mortgage Choice Company Filings, last reported 4 months ago.

ASX:MOC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 86.48 2.50 1.93
2019-03-31 86.48 2.50 1.93
2018-12-31 82.70 4.00 0.46
2018-09-30 82.70 4.00 0.46
2018-06-30 85.65 0.00 3.35
2018-03-31 85.65 0.00 3.35
2017-12-31 104.92 0.00 7.08
2017-09-30 104.92 0.00 7.08
2017-06-30 104.19 0.00 8.65
2017-03-31 104.19 0.00 8.65
2016-12-31 103.62 0.00 6.81
2016-09-30 103.62 0.00 6.81
2016-06-30 102.33 0.00 8.07
2016-03-31 102.33 0.00 8.07
2015-12-31 103.04 0.00 6.88
2015-09-30 103.04 0.00 6.88
2015-06-30 101.91 0.00 7.83
2015-03-31 101.91 0.00 7.83
2014-12-31 102.21 0.00 6.26
2014-09-30 102.21 0.00 6.26
2014-06-30 102.33 0.00 12.45
2014-03-31 102.33 0.00 12.45
2013-12-31 102.10 0.00 10.93
2013-09-30 102.10 0.00 10.93
2013-06-30 99.13 0.00 10.95
2013-03-31 99.13 0.00 10.95
2012-12-31 94.92 0.00 8.54
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Unable to establish if Mortgage Choice has an acceptable proportion of non-loan assets without balance sheet data.
  • Unable to establish if Mortgage Choice's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.
  • Mortgage Choice reports no customer deposits, loans are made up entirely of borrowed funds.
  • Mortgage Choice's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Unable to establish if Mortgage Choice has a sufficient allowance for bad loans without relevant financial data.
  • Unable to establish if Mortgage Choice has an acceptable level of bad loans without bad loans data.
X
Financial health checks
We assess Mortgage Choice's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mortgage Choice has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Mortgage Choice's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.3%
Current annual income from Mortgage Choice dividends. Estimated to be 4.3% next year.
If you bought A$2,000 of Mortgage Choice shares you are expected to receive A$86 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mortgage Choice's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.36%).
  • Mortgage Choice's dividend is below the markets top 25% of dividend payers in Australia (5.58%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:MOC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Global Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 131 Stocks 2.5%
Australia Market Average Dividend Yield Market Cap Weighted Average of 391 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:MOC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.06 1.00
2020-06-30 0.06 1.00
2019-11-15
ASX:MOC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-21 0.060 4.862
2019-02-20 0.060 5.989
2018-08-20 0.180 15.509
2018-02-21 0.180 10.364
2017-08-23 0.180 7.689
2017-02-22 0.170 7.546
2016-08-24 0.170 7.578
2016-02-17 0.160 8.746
2015-08-27 0.155 8.489
2015-08-18 0.155 7.661
2014-08-28 0.160 6.310
2014-08-20 0.160 5.321
2013-08-29 0.130 4.548
2013-08-21 0.130 5.202
2013-02-21 0.130 5.967
2012-08-29 0.130 7.666
2012-08-22 0.130 8.554
2011-08-24 0.130 9.945
2010-08-25 0.130 9.951
2009-08-21 0.103 8.457
2009-02-25 0.128 14.209

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Mortgage Choice's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Mortgage Choice's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mortgage Choice afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mortgage Choice has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Mortgage Choice's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Susan Mitchell
COMPENSATION A$753,087
TENURE AS CEO 1.6 years
CEO Bio

Ms. Susan R. Mitchell is the Chief Executive Officer at Mortgage Choice Limited since April 3, 2018 and was its acting Chief Financial Officer/Chief Financial Officer since February 27, 2009 until April 3, 2018. Ms. Mitchell served as Chief Financial Officer of Seiza Capital. Ms. Mitchell is an experienced Senior Finance Executive and Chief Financial Officer, having previously worked across ASX listed and start-up private equity backed financial institutions, subsidiaries of global banks and a major international accounting firm. Ms. Mitchell has a Bachelor of Fine Arts from the Tulane University, Louisiana and a Masters of Business Administration from the University of Texas. She is also US CPA Qualified and a graduate of the Australian Institute of Company Directors.

CEO Compensation
  • Susan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Susan's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Mortgage Choice management team in years:

1.3
Average Tenure
  • The average tenure for the Mortgage Choice management team is less than 2 years, this suggests a new team.
Management Team

Susan Mitchell

TITLE
Chief Executive Officer
COMPENSATION
A$753K
TENURE
1.6 yrs

Peter Higgins

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
A$104K
AGE
59

Rodney Higgins

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
A$104K
AGE
64

Ian Parkes

TITLE
CFO & Company Secretary
COMPENSATION
A$351K
TENURE
1.1 yrs

Vincent ten Krooden

TITLE
General Manager of Technology
COMPENSATION
A$229K
TENURE
0.8 yrs

Emma Dupont-Brown

TITLE
General Manager of Product & Corporate Communications
COMPENSATION
A$279K

Melissa McCarney

TITLE
General Manager of Group Marketing
COMPENSATION
A$321K

Marie Pitton

TITLE
General Manager of Human Resources
COMPENSATION
A$222K

Neill Rose-Innes

TITLE
General Manager of Distribution
COMPENSATION
A$388K
TENURE
4 yrs

Tania Milnes

TITLE
General Manager of Financial Planning
COMPENSATION
A$262K
Board of Directors Tenure

Average tenure and age of the Mortgage Choice board of directors in years:

2.3
Average Tenure
59
Average Age
  • The average tenure for the Mortgage Choice board of directors is less than 3 years, this suggests a new board.
Board of Directors

Vicki Allen

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$159K
AGE
57
TENURE
2.3 yrs

Peter Higgins

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
A$104K
AGE
59
TENURE
30 yrs

Rodney Higgins

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
A$104K
AGE
64
TENURE
33.8 yrs

Sean Clancy

TITLE
Independent Non-Executive Director
COMPENSATION
A$115K
AGE
59
TENURE
10.5 yrs

Andrew Gale

TITLE
Independent Non-Executive Director
COMPENSATION
A$113K
AGE
62
TENURE
1.7 yrs

Sarah Brennan

TITLE
Independent Non-Executive Director
COMPENSATION
A$126K
AGE
52
TENURE
1.7 yrs

Dharma Chandran

TITLE
Independent Non-Executive Director
COMPENSATION
A$37K
AGE
55
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
12. Jun 19 Buy Spheria Asset Management Pty Ltd Company 20. May 19 12. Jun 19 1,428,994 A$1.23 A$1,549,802
17. May 19 Buy Spheria Asset Management Pty Ltd Company 03. Apr 19 17. May 19 799,408 A$0.97 A$729,055
02. Apr 19 Buy Spheria Asset Management Pty Ltd Company 15. Mar 19 02. Apr 19 1,367,823 A$1.01 A$1,341,832
14. Mar 19 Buy Spheria Asset Management Pty Ltd Company 11. Jan 19 14. Mar 19 3,483,903 A$0.98 A$3,091,992
28. Feb 19 Buy Stephen Jermyn Individual 25. Feb 19 28. Feb 19 500,000 A$0.95 A$463,774
11. Feb 19 Sell First Sentier Investors (Australia) IM Ltd Company 22. Jan 19 07. Feb 19 -1,050,038 A$1.03 A$-823,769
10. Jan 19 Sell First Sentier Investors (Australia) IM Ltd Company 23. Jul 15 09. Jan 19 -2,118,143 A$2.42 A$-3,332,639
09. Jan 19 Buy Spheria Asset Management Pty Ltd Company 28. Dec 18 07. Jan 19 2,958,850 A$0.98 A$2,891,337
X
Management checks
We assess Mortgage Choice's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mortgage Choice has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Dividend Investors: Don't Be Too Quick To Buy Mortgage Choice Limited (ASX:MOC) For Its Upcoming Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Mortgage Choice Limited (ASX:MOC) is about to go ex-dividend in just 4 days. … Mortgage Choice's next dividend payment will be AU$0.03 per share, on the back of last year when the company paid a total of AU$0.06 to shareholders. … View our latest analysis for Mortgage Choice Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut.

Simply Wall St -

What Kind Of Investor Owns Most Of Mortgage Choice Limited (ASX:MOC)?

If you want to know who really controls Mortgage Choice Limited (ASX:MOC), then you'll have to look at the makeup of its share registry. … See our latest analysis for Mortgage Choice ASX:MOC Ownership Summary, August 27th 2019 What Does The Institutional Ownership Tell Us About Mortgage Choice? … Insider Ownership Of Mortgage Choice While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Have Insiders Been Buying Mortgage Choice Limited (ASX:MOC) Shares This Year?

So we'll take a look at whether insiders have been buying or selling shares in Mortgage Choice Limited (ASX:MOC). … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' View our latest analysis for Mortgage Choice Mortgage Choice Insider Transactions Over The Last Year insider Stephen Jermyn made the biggest insider purchase in the last 12 months. … ASX:MOC Recent Insider Trading, August 6th 2019 Does Mortgage Choice Boast High Insider Ownership?

Simply Wall St -

If You Had Bought Mortgage Choice (ASX:MOC) Stock Five Years Ago, You'd Be Sitting On A 58% Loss, Today

Over five years Mortgage Choice's earnings per share dropped significantly, falling to a loss, with the share price also lower. … As well as measuring the share price return, investors should also consider the total shareholder return (TSR). … As it happens, Mortgage Choice's TSR for the last 5 years was -39%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Should You Be Concerned About Mortgage Choice Limited's (ASX:MOC) Historical Volatility?

If you're interested in Mortgage Choice Limited (ASX:MOC), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … View our latest analysis for Mortgage Choice What we can learn from MOC's beta value Given that it has a beta of 0.83, we can surmise that the Mortgage Choice share price has not been strongly impacted by broader market volatility (over the last 5 years). … Very small companies often have a low beta value because their share prices are not well correlated with market volatility.

Simply Wall St -

Is Mortgage Choice Limited (ASX:MOC) An Attractive Dividend Stock?

Dividend paying stocks like Mortgage Choice Limited (ASX:MOC) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … With Mortgage Choice yielding 6.8% and having paid a dividend for over 10 years, many investors likely find the company quite interesting.

Simply Wall St -

What Kind Of Shareholder Owns Most Mortgage Choice Limited (ASX:MOC) Stock?

A look at the shareholders of Mortgage Choice Limited (ASX:MOC) can tell us which group is most powerful. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Mortgage Choice is a smaller company with a market capitalization of AU$115m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

How Many Insiders Bought Mortgage Choice Limited (ASX:MOC) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Mortgage Choice Limited (ASX:MOC). … The Last 12 Months Of Insider Transactions At Mortgage Choice. … In the last twelve months there was more buying than selling by Mortgage Choice insiders

Simply Wall St -

Some Mortgage Choice Shareholders Have Taken A Painful 76% Share Price Drop

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Looking back five years, both Mortgage Choice's share price and EPS declined; the latter at a rate of 26% per year. … So it's fair to say the share price has been responding to changes in EPS.

Simply Wall St -

Does Mortgage Choice Limited (ASX:MOC) Have A Particularly Volatile Share Price?

If you're interested in Mortgage Choice Limited (ASX:MOC), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Company Info

Description

Mortgage Choice Limited provides mortgage broking services in Australia. The company operates in two segments, Mortgage Choice Franchised Mortgage Broking and Mortgage Choice Financial Planning. It offers assistance in determining the borrowing capacities of residential mortgage borrowers; and assessment of a range of home loans products, as well as submits loan applications on behalf of borrowers. The company also provides assistance with car loans, equipment finance, general insurance, and personal loans to support personal and home pursuits and/or consolidate debts; and financial planning services. In addition, it offers life, mortgage and income protection, car, home building and contents, lenders mortgage, and landlord insurance products. The company provides loan origination services through its franchise network. Mortgage Choice Limited was founded in 1992 and is headquartered in North Sydney, Australia.

Details
Name: Mortgage Choice Limited
MOC
Exchange: ASX
Founded: 1992
A$173,188,002
124,149,106
Website: http://www.mortgagechoice.com.au
Address: Mortgage Choice Limited
100 Pacific Highway,
Level 10,
North Sydney,
New South Wales, 2060,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX MOC Ordinary Shares Australian Securities Exchange AU AUD 10. Aug 2004
CHIA MOC Ordinary Shares Chi-X Australia AU AUD 10. Aug 2004
Number of employees
Current staff
Staff numbers
0
Mortgage Choice employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 10:30
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/10/16
Last earnings filing: 2019/08/21
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.