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Challenger

ASX:CGF
Snowflake Description

Very undervalued with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CGF
ASX
A$3B
Market Cap
  1. Home
  2. AU
  3. Diversified Financials
Company description

Challenger Limited is a publicly owned investment manager. The last earnings update was 59 days ago. More info.


Add to Portfolio Compare Print
  • Challenger is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
  • Challenger has significant price volatility in the past 3 months.
CGF Share Price and Events
7 Day Returns
18.2%
ASX:CGF
-6.1%
AU Diversified Financial
-0.3%
AU Market
1 Year Returns
-35.3%
ASX:CGF
-36.5%
AU Diversified Financial
-17.5%
AU Market
CGF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Challenger (CGF) 18.2% -35.2% -40.9% -35.3% -61.6% -31.8%
AU Diversified Financial -6.1% -9.2% -29.5% -36.5% -70.9% -76.2%
AU Market -0.3% -9.4% -24.9% -17.5% -15.5% -14.7%
1 Year Return vs Industry and Market
  • CGF outperformed the Diversified Financial industry which returned -36.5% over the past year.
  • CGF underperformed the Market in Australia which returned -17.5% over the past year.
Price Volatility
CGF
Industry
5yr Volatility vs Market

CGF Value

 Is Challenger 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 Challenger 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 Challenger.

ASX:CGF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= A$5.48 * 10.8%
A$0.59
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. A$5.48
Discount Rate (Cost of Equity) See below 5.9%
Perpetual Growth Rate 10-Year AU Government Bond Rate 1.1%

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:CGF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 1.1%
Equity Risk Premium S&P Global 5.4%
Diversified Financial Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.731 (1 + (1- 30%) (247.22%))
0.893
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.08% + (0.893 * 5.44%)
5.94%

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

The calculations below outline how an intrinsic value for Challenger 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:CGF Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.8% – 5.94%) * A$5.48)
A$0.27
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.27 / (5.94% - 1.08%)
A$5.52
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$5.48 + A$5.52
A$11
ASX:CGF Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$11.00
Current discount Discount to share price of A$4.93
= -1 x (A$4.93 - A$11.00) / A$11.00
55.2%

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

Current Discount
Amount off the current price Challenger is available for.
Intrinsic value
>50%
Share price is A$4.93 vs Future cash flow value of A$11
Current Discount Checks
For Challenger to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Challenger's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Challenger'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 Challenger's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Challenger's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:CGF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in AUD A$0.86
ASX:CGF Share Price ** ASX (2020-04-09) in AUD A$4.93
Global Diversified Financial Industry PE Ratio Median Figure of 316 Publicly-Listed Diversified Financial Companies 9.79x
Australia Market PE Ratio Median Figure of 515 Publicly-Listed Companies 13.52x

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

** Primary Listing of Challenger.

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

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

= 4.93 ÷ 0.86

5.73x

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

  • Challenger is good value based on earnings compared to the Global Diversified Financial industry average.
  • Challenger is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Challenger's expected growth come at a high price?
Raw Data
ASX:CGF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
21.3%per year
Global Diversified Financial Industry PEG Ratio Median Figure of 54 Publicly-Listed Diversified Financial Companies 0.5x
Australia Market PEG Ratio Median Figure of 337 Publicly-Listed Companies 1.04x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.73x ÷ 21.3%

0.27x

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

  • Challenger is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Challenger's assets?
Raw Data
ASX:CGF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in AUD A$6.12
ASX:CGF Share Price * ASX (2020-04-09) in AUD A$4.93
Australia Diversified Financial Industry PB Ratio Median Figure of 13 Publicly-Listed Diversified Financial Companies 0.92x
Australia Market PB Ratio Median Figure of 1,614 Publicly-Listed Companies 1.32x
ASX:CGF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 4.93 ÷ 6.12

0.81x

* Primary Listing of Challenger.

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

  • Challenger is good value based on assets compared to the AU Diversified Financial industry average.
X
Value checks
We assess Challenger'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 Diversified Financial 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 Diversified Financial industry average (and greater than 0)? (1 check)
  5. Challenger has a total score of 6/6, 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.

CGF Future Performance

 How is Challenger expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

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
21.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Challenger expected to grow at an attractive rate?
  • Challenger's earnings growth is expected to exceed the low risk savings rate of 1.1%.
Growth vs Market Checks
  • Challenger's earnings growth is expected to exceed the Australia market average.
  • Challenger's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:CGF Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:CGF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 21.3%
ASX:CGF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts -7.6%
Australia Diversified Financial Industry Earnings Growth Rate Market Cap Weighted Average 99.4%
Australia Diversified Financial Industry Revenue Growth Rate Market Cap Weighted Average -81%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.5%
Australia Market Revenue Growth Rate Market Cap Weighted Average 4%

*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:CGF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:CGF Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 1,011 505 1
2023-06-30 921 449 1
2022-06-30 809 297 373 9
2021-06-30 780 276 353 11
2020-06-30 815 -373 124 11
2020-04-09
ASX:CGF Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-12-31 3,575 939 522
2019-09-30 3,428 796 415
2019-06-30 3,280 652 308
2019-03-31 2,980 1,159 221
2018-12-31 2,655 1,665 133
2018-09-30 2,760 1,821 228
2018-06-30 2,865 1,977 323
2018-03-31 2,997 1,801 357
2017-12-31 3,128 1,624 392
2017-09-30 3,035 1,611 395
2017-06-30 2,941 1,597 398
2017-03-31 2,490 1,676 346

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Challenger's earnings are expected to grow significantly at over 20% yearly.
  • Challenger's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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:CGF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Challenger Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CGF Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30 0.81 0.81 0.81 1.00
2023-06-30 0.72 0.72 0.72 1.00
2022-06-30 0.56 0.78 0.42 7.00
2021-06-30 0.52 0.70 0.39 10.00
2020-06-30 -0.02 0.67 -0.74 8.00
2020-04-09
ASX:CGF Past Financials Data
Date (Data in AUD Millions) EPS *
2019-12-31 0.86
2019-09-30 0.69
2019-06-30 0.51
2019-03-31 0.36
2018-12-31 0.22
2018-09-30 0.38
2018-06-30 0.54
2018-03-31 0.61
2017-12-31 0.68
2017-09-30 0.69
2017-06-30 0.71
2017-03-31 0.62

*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.
  • Challenger is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Challenger'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 Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia 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.
Challenger has a total score of 3/6, 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.

CGF Past Performance

  How has Challenger 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 Challenger's growth in the last year to its industry (Diversified Financial).
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.
  • Challenger's year on year earnings growth rate has been positive over the past 5 years.
  • Challenger's 1-year earnings growth exceeds its 5-year average (292% vs 0.6%)
  • Challenger's earnings growth has exceeded the Global Diversified Financial industry average in the past year (292% vs 7.4%).
Earnings and Revenue History
Challenger'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 Challenger Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CGF Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 3,575.00 522.10 297.30
2019-09-30 3,427.50 414.95 293.90
2019-06-30 3,280.00 307.80 290.50
2019-03-31 2,979.95 220.50 296.50
2018-12-31 2,655.10 133.20 302.50
2018-09-30 2,760.00 227.85 302.25
2018-06-30 2,864.90 322.50 302.00
2018-03-31 2,996.60 357.00 297.55
2017-12-31 3,128.30 391.50 293.10
2017-09-30 3,034.60 394.55 285.00
2017-06-30 2,940.90 397.60 276.90
2017-03-31 2,490.20 346.25 319.85
2016-12-31 2,039.50 294.90 362.80
2016-09-30 2,038.85 311.30 359.55
2016-06-30 2,038.20 327.70 356.30
2016-03-31 2,017.30 365.45 347.20
2015-12-31 1,996.40 403.20 338.10
2015-09-30 1,950.00 351.10 337.40
2015-06-30 1,903.60 299.00 336.70
2015-03-31 2,093.70 301.70 347.45
2014-12-31 2,283.80 304.40 358.20
2014-09-30 2,190.00 322.50 341.65
2014-06-30 2,096.20 340.60 325.10
2014-03-31 1,768.40 350.85 277.05
2013-12-31 1,440.60 361.10 229.00
2013-09-30 1,582.45 388.95 229.40
2013-06-30 1,724.30 416.80 229.80

*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.
  • Challenger has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Challenger used its assets more efficiently than the Global Diversified Financial industry average last year based on Return on Assets.
  • Challenger has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Challenger'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 Diversified Financial 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.
Challenger has a total score of 5/6, 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.

CGF Health

 How is Challenger's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Challenger's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Challenger is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Challenger's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Challenger'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.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.3x debt.
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 Challenger Company Filings, last reported 3 months ago.

ASX:CGF Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,743.80 6,978.60 21,639.10
2019-09-30 3,743.80 6,978.60 21,639.10
2019-06-30 3,622.80 7,395.20 11,222.30
2019-03-31 3,622.80 7,395.20 11,222.30
2018-12-31 3,403.10 7,122.80 19,336.50
2018-09-30 3,403.10 7,122.80 19,336.50
2018-06-30 3,485.80 6,898.30 8,725.00
2018-03-31 3,485.80 6,898.30 8,725.00
2017-12-31 3,483.60 6,349.40 17,063.90
2017-09-30 3,483.60 6,349.40 17,063.90
2017-06-30 2,901.30 6,658.90 7,287.20
2017-03-31 2,901.30 6,658.90 7,287.20
2016-12-31 2,794.00 6,304.80 14,982.20
2016-09-30 2,794.00 6,304.80 14,982.20
2016-06-30 2,684.00 6,263.60 7,040.00
2016-03-31 2,684.00 6,263.60 7,040.00
2015-12-31 2,784.20 5,525.50 12,345.10
2015-09-30 2,784.20 5,525.50 12,345.10
2015-06-30 2,638.60 5,427.40 6,578.10
2015-03-31 2,638.60 5,427.40 6,578.10
2014-12-31 2,610.10 5,353.80 11,307.40
2014-09-30 2,610.10 5,353.80 11,307.40
2014-06-30 2,276.10 5,426.50 5,884.10
2014-03-31 2,276.10 5,426.50 5,884.10
2013-12-31 2,416.20 5,647.00 10,232.50
2013-09-30 2,416.20 5,647.00 10,232.50
2013-06-30 2,294.20 5,961.20 5,839.30
  • Challenger's level of debt (186.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (205.1% vs 186.4% today).
  • Debt is not well covered by operating cash flow (13.5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Challenger'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. Challenger has a total score of 3/6, 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.

CGF Dividends

 What is Challenger'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
7.2%
Current annual income from Challenger dividends. Estimated to be 6.32% next year.
If you bought A$2,000 of Challenger shares you are expected to receive A$144 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?
  • Challenger's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.99%).
  • Challenger's dividend is below the markets top 25% of dividend payers in Australia (7.83%).
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:CGF 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 11 Analyst Estimates (S&P Global) See Below
Global Diversified Financial Industry Average Dividend Yield Market Cap Weighted Average of 161 Stocks 4.5%
Australia Market Average Dividend Yield Market Cap Weighted Average of 365 Stocks 5.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 3%
Australia Top 25% Dividend Yield 75th Percentile 7.8%

Industry and Market average data is calculated daily.

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

ASX:CGF Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2024-06-30 0.41 1.00
2023-06-30 0.36 1.00
2022-06-30 0.32 11.00
2021-06-30 0.30 13.00
2020-06-30 0.31 13.00
2020-04-09
ASX:CGF Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2020-02-10 0.355 6.005
2019-08-12 0.355 4.616
2019-02-11 0.355 4.741
2018-08-13 0.360 3.651
2018-02-12 0.350 2.887
2017-08-14 0.350 2.656
2017-02-13 0.340 2.676
2016-08-15 0.330 3.180
2016-03-18 0.320 3.586
2015-08-17 0.310 3.998
2015-02-16 0.290 4.163
2014-08-19 0.270 3.992
2013-08-19 0.200 3.162
2013-02-28 0.200 4.930
2012-08-20 0.170 4.955
2012-02-20 0.170 4.818
2011-08-22 0.165 3.751
2010-08-23 0.145 3.123
2010-02-22 0.135 3.555
2009-08-24 0.125 3.335

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Challenger's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Challenger's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - 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 Challenger afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Challenger has a total score of 5/6, see the detailed checks below.


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

CGF Management

 What is the CEO of Challenger'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
Richard Howes
COMPENSATION A$3,639,091
TENURE AS CEO 1.3 years
CEO Bio

Mr. Richard J. Howes has been the Managing Director, Director and Chief Executive Officer of Challenger Ltd. since January 02, 2019. Mr. Howes serves as Managing Director, Chief Executive Officer and Director at Challenger Life Company Ltd. since Mr. Howes served as the Chief Executive of Distribution, Product and Marketing at Challenger Limited from February 13, 2017 to December 12, 2018. In this role, Mr. Howes was responsible for the overall strategic direction and coordination of the Group’s distribution, product, marketing and research functions. Mr. Howes served as the Chief Executive of Challenger Life Company Limited at Challenger Limited until February 13, 2017 and was previously the Principal Executive Officer of CL2. Mr. Howes holds overall executive responsibility for the management of the firm’s APRA regulated life company. He joined Challenger in June 2003. He has also previously held the role of Challenger Life’s Chief Investment Officer. Previously, Mr. Howes was employed at Zurich Capital Markets where he provided risk management solutions to major companies and institutions globally. Prior to this, he spent few years within the financial markets divisions at Macquarie and Bankers Trust, where his primary responsibility was providing risk management solutions to major companies and institutions globally. Mr. Howes started his career in the strategy department at Queensland Investment Corporation in 1992, where he was successful in designing and implementing an investment performance attribution system. He is also on the Advisory Board of the University of Queensland Business School. He has a Bachelor of Commerce (hons) in Finance and Accounting and a Bachelor of Economics and has completed the Advanced Management Program at Harvard Business School.

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

Average tenure of the Challenger management team in years:

8
Average Tenure
  • The average tenure for the Challenger management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Richard Howes

TITLE
MD, CEO & Director
COMPENSATION
A$4M
TENURE
1.3 yrs

Andrew Tobin

TITLE
Chief Financial Officer
COMPENSATION
A$2M
TENURE
8.2 yrs

Angela Murphy

TITLE
Chief Executive of Distribution
COMPENSATION
A$964K
TENURE
1.3 yrs

Stuart Kingham

TITLE
Head of Investor Relations
TENURE
8 yrs

Michael D. Vardanega

TITLE
Chief Executive of Group Strategy
TENURE
9.1 yrs

Jane Keeley

TITLE
Head of External Communications

Michelle Taylor

TITLE
Chief Executive of People
TENURE
1.3 yrs

Trent Alston

TITLE
Head of Property

Jeremy Cooper

TITLE
Chairman of Retirement Income
TENURE
9.4 yrs

Paul Marriage

TITLE
Acting Head of Corporate Affairs & Advocacy
Board of Directors Tenure

Average tenure and age of the Challenger board of directors in years:

2.3
Average Tenure
62
Average Age
  • The average tenure for the Challenger board of directors is less than 3 years, this suggests a new board.
Board of Directors

Peter Polson

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$526K
AGE
73
TENURE
15.8 yrs

Richard Howes

TITLE
MD, CEO & Director
COMPENSATION
A$4M
TENURE
1.3 yrs

JoAnne Stephenson

TITLE
Independent Non-Executive Director
COMPENSATION
A$266K
TENURE
7.5 yrs

Steve Gregg

TITLE
Independent Non-Executive Director
COMPENSATION
A$257K
AGE
58
TENURE
7.5 yrs

Melanie Victoria Willis

TITLE
Independent Non-Executive Director
COMPENSATION
A$230K
AGE
54
TENURE
2.3 yrs

John Green

TITLE
Independent Non-Executive Director
COMPENSATION
A$223K
AGE
66
TENURE
2.3 yrs

Duncan West

TITLE
Independent Non-Executive Director
COMPENSATION
A$147K
TENURE
1.6 yrs

Masahiko Kobayashi

TITLE
Non-Executive Director
TENURE
0.7 yrs

Hiroyuki Iioka

TITLE
Alternate Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Challenger individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
25. Mar 20 Sell UBS Asset Management Company 10. Mar 20 23. Mar 20 -10,148,333 A$5.29 A$-53,711,594
25. Mar 20 Buy UBS Asset Management Company 10. Mar 20 23. Mar 20 12,952,744 A$4.99 A$64,582,292
11. Mar 20 Sell UBS Asset Management Company 06. Mar 20 09. Mar 20 -2,111,996 A$7.28 A$-15,316,611
11. Mar 20 Buy UBS Asset Management Company 06. Mar 20 09. Mar 20 1,772,827 A$7.89 A$13,982,939
09. Mar 20 Sell UBS Asset Management Company 05. Mar 20 05. Mar 20 -1,042,709 A$8.86 A$-9,234,633
09. Mar 20 Buy UBS Asset Management Company 05. Mar 20 05. Mar 20 560,833 A$8.85 A$4,961,993
08. Mar 20 Sell UBS Asset Management Company 24. Feb 20 04. Mar 20 -6,287,661 A$9.45 A$-57,979,763
08. Mar 20 Buy UBS Asset Management Company 24. Feb 20 04. Mar 20 4,539,939 A$9.23 A$41,908,640
04. Mar 20 Sell BlackRock, Inc. Company 02. Mar 20 03. Mar 20 -70,837 A$9.00 A$-15,694
04. Mar 20 Buy BlackRock, Inc. Company 02. Mar 20 03. Mar 20 18,566 A$8.98 A$7,485
02. Mar 20 Buy BlackRock, Inc. Company 25. Feb 20 28. Feb 20 172,276 A$9.85 A$904,383
25. Feb 20 Sell UBS Asset Management Company 17. Jan 20 21. Feb 20 -9,565,436 A$9.42 A$-90,081,060
25. Feb 20 Buy UBS Asset Management Company 17. Jan 20 21. Feb 20 9,624,455 A$9.45 A$90,824,592
25. Feb 20 Sell BlackRock, Inc. Company 21. Feb 20 24. Feb 20 -49,656 A$10.35 A$-507,340
25. Feb 20 Buy BlackRock, Inc. Company 21. Feb 20 21. Feb 20 5,455 A$10.32 A$56,296
23. Feb 20 Buy BlackRock, Inc. Company 23. Oct 19 20. Feb 20 2,460,850 A$10.44 A$245,166
25. Feb 20 Buy JoAnne Stephenson Individual 20. Feb 20 20. Feb 20 2,000 A$10.32 A$20,640
20. Jan 20 Sell UBS Asset Management Company 20. Dec 19 16. Jan 20 -5,364,564 A$8.39 A$-44,985,507
20. Jan 20 Buy UBS Asset Management Company 20. Dec 19 16. Jan 20 4,461,805 A$8.36 A$37,207,459
23. Dec 19 Sell UBS Asset Management Company 04. Nov 19 19. Dec 19 -11,870,693 A$8.09 A$-95,773,363
23. Dec 19 Buy UBS Asset Management Company 04. Nov 19 19. Dec 19 11,362,807 A$8.11 A$91,579,102
05. Nov 19 Sell UBS Asset Management Company 17. Oct 19 01. Nov 19 -7,102,225 A$7.93 A$-56,177,261
05. Nov 19 Buy UBS Asset Management Company 17. Oct 19 01. Nov 19 10,575,393 A$7.78 A$72,083,226
20. Oct 19 Sell UBS Asset Management Company 10. Oct 19 16. Oct 19 -5,082,018 A$6.97 A$-35,400,490
20. Oct 19 Buy UBS Asset Management Company 10. Oct 19 16. Oct 19 4,819,581 A$7.02 A$33,820,577
13. Oct 19 Sell UBS Asset Management Company 04. Sep 19 09. Oct 19 -20,313,768 A$7.16 A$-145,474,731
13. Oct 19 Buy UBS Asset Management Company 04. Sep 19 09. Oct 19 19,299,091 A$7.27 A$136,349,315
05. Sep 19 Sell UBS Asset Management Company 29. Aug 19 03. Sep 19 -1,954,222 A$7.10 A$-13,855,590
05. Sep 19 Buy UBS Asset Management Company 29. Aug 19 03. Sep 19 2,113,189 A$6.74 A$13,824,413
01. Sep 19 Sell UBS Asset Management Company 14. Aug 19 28. Aug 19 -10,739,355 A$6.81 A$-72,168,249
01. Sep 19 Buy UBS Asset Management Company 14. Aug 19 28. Aug 19 9,380,503 A$6.71 A$62,985,624
15. Aug 19 Sell UBS Asset Management Company 15. Apr 19 13. Aug 19 -45,450,200 A$8.45 A$-322,876,736
15. Aug 19 Buy UBS Asset Management Company 15. Apr 19 13. Aug 19 42,003,428 A$8.07 A$298,647,552
18. Jun 19 Buy MS&AD Insurance Group Holdings, Inc., Asset Management Arm Company 29. May 19 14. Jun 19 6,962,148 A$8.23 A$52,300,115
26. May 19 Sell The Vanguard Group, Inc. Company 17. Jan 19 15. May 19 -421,998 A$9.32 A$-3,922,130
26. May 19 Buy The Vanguard Group, Inc. Company 17. Jan 19 16. May 19 1,966,391 A$9.29 A$18,240,005
16. Apr 19 Sell UBS Asset Management Company 15. Mar 19 12. Apr 19 -8,880,996 A$7.99 A$-69,912,911
16. Apr 19 Buy UBS Asset Management Company 15. Mar 19 12. Apr 19 13,065,886 A$7.96 A$102,072,714
X
Management checks
We assess Challenger'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. Challenger 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.

CGF News

Simply Wall St News

Why Challenger Limited (ASX:CGF) Should Have A Place In Your Portfolio

I've been keeping an eye on Challenger Limited (ASX:CGF) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe CGF has a lot to offer. … , dividend-paying company with a

Simply Wall St -

Is Challenger Limited (ASX:CGF) Undervalued?

It’s trading around 16% above my intrinsic value, which means if you buy Challenger today, you’d be paying a relatively fair price for it. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … CGF’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

Does Challenger Limited's (ASX:CGF) Past Performance Indicate A Stronger Future?

Today I will examine Challenger Limited's (ASX:CGF) latest earnings update (31 December 2017) and compare these figures against its performance over the past couple of years, in addition to how the rest of CGF's industry performed. … I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … Eyeballing growth from a sector-level, the Australian diversified financial industry has been growing, albeit, at a subdued single-digit rate of 2.62% over the previous year, and 9.82% over the past half a decade.

Simply Wall St -

Why Challenger Limited (ASX:CGF) Is A Top Dividend Stocks

See our latest analysis for Challenger 5 checks you should do on a dividend stock If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … Is its earnings sufficient to payout dividend at the current rate? … Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you.

Simply Wall St -

Is Now The Right Time To Buy Challenger Limited (ASX:CGF)?

This indicates an estimated earnings growth rate of 10.63% per year, on average, which signals a market-beating outlook in the upcoming years. … As the legendary value investor Ben Graham once said, “Price is what you pay, value is what you get.” Challenger is trading at price-to-earnings (PE) ratio of 18.41x, which tells us the stock is undervalued based on its latest annual earnings update compared to the diversified financial average of 18.7x , and overvalued compared to the AU market average ratio of 17.49x. … A PE ratio of 18.41x and expected year-on-year earnings growth of 10.63% give Challenger a higher PEG ratio of 1.73x.

Simply Wall St -

Should You Buy Challenger Limited (ASX:CGF) At This PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for CGF Price per share = A$12.4 Earnings per share = A$0.679 ∴ Price-Earnings Ratio = A$12.4 ÷ A$0.679 = 18.3x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you are inadvertently comparing lower risk firms with CGF, then CGF’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price. … If this assumption does not hold true, CGF’s lower P/E ratio may be because firms in our peer group are being overvalued by the market.

Simply Wall St -

Challenger Limited (ASX:CGF) Delivered A Better ROE Than The Industry, Here’s Why

Since Challenger’s return covers its cost in excess of 1.83%, its use of equity capital is efficient and likely to be sustainable. … ROE can be broken down into three different ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity ASX:CGF Last Perf Feb 21st 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.

Simply Wall St -

Challenger Limited (ASX:CGF): Risks You Need To Consider Before Buying

See our latest analysis for Challenger An interpretation of CGF's beta Challenger's beta of 0.88 indicates that the stock value will be less variable compared to the whole stock market. … CGF’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

Simply Wall St -

Should You Buy Challenger Limited (ASX:CGF) For Its Dividend?

View our latest analysis for Challenger 5 checks you should do on a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is their annual yield among the top 25% of dividend payers? … Going forward, analysts expect CGF's payout to remain around the same level at 51.10% of its earnings, which leads to a dividend yield of around 2.86%. … Relative to peers, Challenger generates a yield of 2.52%, which is on the low-side for industry stocks.Next Steps: Taking into account the dividend metrics, Challenger ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers.

Simply Wall St -

Have Investors Already Priced In Challenger Limited's (ASX:CGF) Growth?

Challenger Limited (ASX:CGF), a diversified financial services company based in Australia, saw a decent share price growth in the teens level on the ASX over the last few months. … This means that the opportunity to buy Challenger at a good price has disappeared! … If you believe Challenger should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

CGF Company Info

Description

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. Challenger Limited was founded in 1985 and is based in Australia, Asia and United Kingdom.

Details
Name: Challenger Limited
CGF
Exchange: ASX
Founded: 1985
A$2,851,233,304
607,938,871
Website: http://challenger.com.au
Address: Challenger Limited
5 Martin Place,
Level 2,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX CGF Ordinary Shares Australian Securities Exchange AU AUD 23. Dec 2003
DB GK9 Ordinary Shares Deutsche Boerse AG DE EUR 23. Dec 2003
CHIA CGF Ordinary Shares Chi-X Australia AU AUD 23. Dec 2003
OTCPK CFIG.Y UNSPONSORD ADR Pink Sheets LLC US USD 04. Nov 2008
Number of employees
Current staff
Staff numbers
717
Challenger employees.
Industry
Other Diversified Financial Services
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 10:41
End of day share price update: 2020/04/09 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/02/10
Last earnings reported: 2019/12/31
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.