Cash Converters International (CCV)



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General Information
Company Name: Cash Converters International
Stock Code: CCV
Website: www.cashconverters.com
GICS Sub-Industry: Specialty Stores
Market Cap ($M): 491
Equiv. Shares (M): 479

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 1.025 $ 0.965 $ 1.030 $ 0.940 $ 0.955 2,954,272 $ 0.070  7.330 %

Current Broker Consensus Recommendation more
Recommendation: Hold (3)
Recommendation Date: 18th Dec 2014
Brokers Surveyed: 1

Company Overview

Business Description:
Cash Converters International (CCV) is a franchised retail network which specializes in the sale of second-hand goods. The core business of CCV is the ownership and franchising of retail and financial services stores, which operate as retailers of second hand goods and suppliers of financial products.

Strategy Analysis:
CCV´s vision is to turn second-hand goods stores into professional retail outlets. The franchise business is involved in buying and selling second-hand goods for cash. The company franchises its store operation with the national advertising and marketing programs support. The business has recently repositioned itself by significantly changing the look and feel of its stores. This is expected to make the company more appealing and contemporary. With the acquisition of Safrock, Mon-e and 17 corporate stores in four states there have been integration and control issues, which CCV will have to monitor over the next few years. Cash Converters reported a net profit of $18.43m for the half-year ended 31 December 2012. Revenues from ordinary activities were $134.92m. Diluted EPS was 4.6 cents compared to 3.4 cents last year. Net operating cash flow was $3.2m compared to $1.38m last year. The interim dividend declared was 2 cents compared with 1.75 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F -- 10.3 91.1 9.9 4.6 4.5 --
2015  F -- 5.4 -2.7 18.9 4.3 4.2 --
2014  A 21.1 5.6 -29.8 18.9 4.0 3.8 100.0
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Cash Converters International (CCV) $457 M -0.2979 -0.0270 0.9113 17.1763 17.6525 9.2360 4.19 4.51 4.86
Super Retail Group (SUL) $1,350 M -0.0715 0.0447 0.1476 12.8061 12.2584 10.6814 5.84 5.70 6.36

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
CCV 0.70 18.7 1.77 0.51 1.35
Market 0.90 15.0 1.19 1.94 1.48
Sector 0.88 13.9 1.77 1.65 0.79

Directors
Name Position Start Date
Mr Peter Cumins Managing Director 26 April 1995
Mr Stuart Ian Grimshaw Non-Executive Director 01 November 2014
Mr David Noel Carter Non-Executive Director 01 December 2014
Mr Lachlan (Lachie) P Given Non-Executive Director 22 August 2014
Mr Reginald Webb Non-Executive Director,Non-Executive Chairman 22 October 1997

Management
Name Position
David Patrick Chief executive officer, UK
Glen Fee Chief information officer
Mike Osborne Company secretary / chief financial officer, UK
Derek Ralph Groom Company Secretary,Chief Financial Officer
Ian Day General manager, Australia
Michael Cooke Group legal counsel

Substantial Shareholders
Holding Name
36,259,086 (8.45%) Citicorp Nominees Pty Limited
30,523,546 (7.11%) RBC Investor Services Australia Nominee Pty Limited
30,248,935 (7.05%) J P Morgan Nominees Australia Limited
23,513,302 (5.48%) National Nominees Limited
40,760,766 (9.50%) HSBC Custody Nominees (Australia) Limited
136,848,000 (31.88%) EZCORP, Inc and its associates

Calendar of Events
Date Event
19 October 2015 Report (Annual)
20 August 2015 Report (Prelim)
16 February 2015 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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