CCP 0.58% $15.74 credit corp group limited

Why Is Share Price Tanking?, page-10

  1. 1,113 Posts.
    lightbulb Created with Sketch. 150
    FY19 EPS 141.9 looks pretty much in-line with consensus at 141.3
    FY20 EPS (initial) guidance 138-140 which is surprisingly down 2-3% yoy
    This will be a negative surprise to the market given it was expecting around 8% growth next year.
    FY20 earnings forecasts may be cut up to 10% it seems...

    Forward looking ROE looks to be 16% versus FY19 21% and historically 22-24%.
    Noted, returns are less juiced due to less gearing and interest rates / cost of capital is falling, but this is still quite a significant drop.


 
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