Credit Corp Group Ltd

CCP: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$88.40	Fgrf	Blnymtfmq

Credit Corp Group: Putting Fair Value Estimate Under Review as We Revisit Our Outlook

Shaun Ler

Oct 18, 2023

We place no-moat Credit Corp Group under review following the release of a disappointing trading update, and as we assess what this means for our future valuation assumptions. The firm anticipates impairing 14% of its U.S. debt ledger assets, which is estimated to reduce fiscal 2024’s net profit after tax by AUD 45 million—close to half of its prior guidance of AUD 90 million-AUD 100 million. We had expected growth in the U.S. debt ledger business to outstrip that of its Australian counterpart, making up 70% of debt ledger EBITDA by fiscal 2028, from 32% in fiscal 2023.

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