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): 472
Equiv. Shares (M): 429

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 1.100 $ 1.115 $ 1.115 $ 1.100 $ 1.105 147,835 $ -0.005  -0.452 %

Current Broker Consensus Recommendation more
Recommendation: Buy (2)
Recommendation Date: 18th Sep 2014
Brokers Surveyed: 2

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 40.7 9.4 19.0 11.7 4.7 4.3 --
2015  F 34.0 7.9 41.1 13.9 4.4 4.0 --
2014  A 24.2 5.6 -29.1 18.9 2.0 1.9 100.0
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) $474 M -0.2979 0.4191 0.1965 19.8741 14.0051 11.7055 1.81 3.95 4.26
Super Retail Group (SUL) $1,683 M -0.0715 0.1206 0.1398 15.9843 14.2643 12.5146 4.68 4.52 5.04

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
CCV 0.80 18.1 1.90 0.60 1.44
Market 0.94 15.7 1.29 1.73 1.56
Sector 0.92 15.6 2.14 1.81 0.87

Directors
Name Position Start Date
Mr Peter Cumins Managing Director 26 April 1995
Mr Reginald Webb Non-Executive Chairman 22 October 1997
Mr Lachlan (Lachie) Given Non-Executive Director 22 August 2014

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

Substantial Shareholders
Holding Name
25,637,788 (6.05%) J P Morgan Nominees Australia Limited
44,158,749 (10.42%) National Nominees Limited
38,211,963 (9.02%) HSBC Custody Nominees (Australia) Limited
136,848,000 (32.29%) EZCORP, Inc and its associates

Calendar of Events
Date Event
20 August 2015 Report (Prelim)
16 February 2015 Report (Interim)
16 October 2014 Report (Annual)
30 September 2014 Div Pay Date
© 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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