From Motley Fool... Can't see any prospects from the business fundamental.Challenger Ltd (ASX: CGF)
The clear annuity leader of Australia has seen its share price fall by around 50% since January 2018. Falling interest rates have hurt profit expectations for the fund manager.
I sold out of my holding because of the low interest rate environment and the uncertainty surrounding how long rates could be low – just look at how long Japan has had low rates.
But, that doesn’t mean it can’t continue to provide attractive dividends and perhaps market-beating returns if people are attracted (or required) to have a guaranteed source of earnings in retirement.
The Challenger Ltd (ASX: CGF) share price has lost 20% of its value since the start of the year. The annuities company’s shares have come under pressure this year after weakness in Japanese annuity sales led to a profit downgrade. Challenger ultimately reported a full year net profit after tax of $307.8 million in FY 2019, which was a 4.6% decline on the prior corresponding period.
Unfortunately, things are expected to remain tough in FY 2020, with management providing normalised net profit before tax guidance of $500 million to $550 million. At worst this implies a year on year decline of 8.75% and at best it implies a 0.3% increase. Given this subdued outlook, I would stay clear of its shares until there has been a sustained improvement in its performance and would sooner buy Australia and New Zealand Banking Group (ASX: ANZ) shares.
Challenger Ltd (ASX: CGF) I’ve sold out of this business as the ultra-low rate environment sees margins, return on equity, profits, and product sales tumble. It looks risky to me and shares are at $7.10 today.
- Forums
- ASX - By Stock
- CGF
- News: CGF Challenger Ltd To Commence U.S. Dollar Annuity Reinsurance
News: CGF Challenger Ltd To Commence U.S. Dollar Annuity Reinsurance, page-56
-
- There are more pages in this discussion • 11 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add CGF (ASX) to my watchlist
|
|||||
Last
$7.34 |
Change
0.460(6.69%) |
Mkt cap ! $5.069B |
Open | High | Low | Value | Volume |
$7.34 | $7.57 | $7.11 | $17.35M | 2.361M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
18 | 4327 | $7.34 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$7.35 | 7245 | 24 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
25 | 5944 | 7.340 |
5 | 3240 | 7.330 |
7 | 2448 | 7.320 |
6 | 18058 | 7.310 |
8 | 3580 | 7.300 |
Price($) | Vol. | No. |
---|---|---|
7.350 | 1441 | 17 |
7.360 | 8105 | 12 |
7.370 | 9420 | 11 |
7.380 | 17441 | 9 |
7.390 | 6387 | 9 |
Last trade - 15.58pm 13/08/2024 (20 minute delay) ? |
Featured News
CGF (ASX) Chart |
The Watchlist
ACW
ACTINOGEN MEDICAL LIMITED
Steven Gourlay, Managing Director and CEO
Steven Gourlay
Managing Director and CEO
SPONSORED BY The Market Online