Professional
Added to YB: 2020-05-07
Pitch date: 2020-05-07
CAF.AX [bullish]
Centrepoint Alliance Limited
+578.44%
current return
Author Info
Hurdle Rate is an Australian Unit Trust run by a CPA who shares global stock pitches on their website. Sign up for the newsletter.
Company Info
Centrepoint Alliance Limited, together with its subsidiaries, provides financial advice and licensee support services in Australia.
Market Cap
AUD 96.9M
Pitch Price
AUD 0.05
Price Target
N/A
Dividend
6.19%
EV/EBITDA
8.50
P/E
20.21
EV/Sales
0.27
Sector
Capital Markets
Category
N/A
Centrepoint Alliance (ASX: CAF)
Centrepoint Alliance: AU financial services co. Shifting from rebate to fixed-fee model (86% uptake). Legacy claims impacting cash flow, expected resolved by 2021. $8.4m cash, no debt. $51m tax losses, $17.5m franking credits. 3% buyback completed, 7% authorized. Industry consolidation opportunity. 37% price increase planned but paused due to COVID-19. Trading at 1.3x net cash. Profitability inflection potential as claims roll off.
Read full article (1 min)