CCV - cash converters

 CCV

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Over the last five years, Cash Converters International (ASX:CCV) has recovered from pandemic-era disruptions to grow its revenue and stabilize profitability. Annual revenue has expanded from roughly $201 million up to nearly $377 million, while net profit rebounded to around $24.48 million in FY2025, supported by steady loan book growth and store acquisitions. [1, 2, 3, 4, 5]

Profit and Revenue Trends

Revenue Growth: Scaled from $201.3 million (FY2021) to approximately $377.4 million (Trailing Twelve Months), driven by strong personal and vehicle finance demand. [1, 2, 3]
Net Profit: Swung from earlier volatility and occasional losses back to consistent profitability, posting a net income of $24.48 million in FY2025 and around $22.47 million over the last 12 months. [1, 2, 3]
Margins: Net profit margins normalized in the mid-single digits (approx. 5.5% to 7.2%). [1]

Debt and Capital Structure

Total Debt: Maintained a moderate funding structure to support its lending operations, with combined short-term and long-term borrowings fluctuating around $200 million to $215 million. [1, 2]
Debt-to-Equity: Ranged between 0.75 and 1.02 over recent years, reflecting typical leverage used to fund consumer loan books. [1]
https://stockanalysis.com/quote/asx/CCV/financials/ratios/
Dividends: Maintained a consistent policy, rewarding shareholders with fully franked dividends (hovering around a 2-cent annual per share payout) backed by solid operating cash flows. [1, 2]

Return on Equity (ROE) & Efficiency

ROE Recovery: Rebounded from negative territory during pandemic lows to a healthier ~11.15% in FY2024–FY2025, sitting around 9.5% recently.
Return on Assets (ROA): Stabilized in the 4% to 5% range as asset turnover improved across corporate stores and franchise operations. [1, 2, 3]

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Over the last 10 years, the Price-to-Earnings (P/E) ratio for Cash Converters International Limited (ASX: CCV) has experienced high volatility, fluctuating from deeply negative values during periods of net statutory losses to peaks above 12x during periods of stable profitability. As of August 2026, CCV trades at a trailing P/E ratio of approximately 9.3x to 10.5x. [1, 2, 3]

Historical Annual P/E Ratios (2016–2025)

The table below breaks down the annual fiscal year P/E ratios for ASX:CCV over the last decade according to historical financial data compiled by Wisesheets and Investing.com: [1]

Fiscal Year	P/E Ratio	Key Drivers & Financial Context
2025	7.14x to 8.54x	Higher statutory NPAT (~$24.5M) compressed the multiple as earnings recovered solidly.
2024	6.83x to 7.55x	Improved core earnings offset by minor abnormal items; low single-digit P/E relative to market.
2023	-1.41x	Skewed negative due to non-cash class action settlement impacts and structural statutory adjustments.
2022	12.78x	Peaked over the 5-year medium term as share prices recovered out of COVID-19 lows faster than trailing earnings.
2021	6.57x to 7.40x	Strong operational cash flows during pandemic-driven credit demands normalized multiples.
2020	-10.29x	Negative earnings reflecting impairment charges and COVID-19 transaction disruptions.
2019	-59.26x	Hit a 10-year low due to heavy regulatory compliance costs and massive restructuring provisions.
2018	6.81x	A period of steady operational metrics following earlier regulatory compliance updates.
2017	7.43x	Subdued multiples following extensive class action remediation liabilities.
2016	-18.91x	Negative due to significant regulatory fines from ASIC regarding small-amount lending practices.

3 Key Valuation Insights

Macro Mean Discrepancies: Due to sporadic, heavily negative earnings years (2016, 2019, 2020, 2023), the literal 10-year arithmetic mean P/E sits at roughly -4.16x. However, the 10-year median P/E when profitable rests between 6.6x and 7.6x, indicating that the stock structurally trades as a low-multiple, deep-value asset. [1, 3]
Discount to Broader Market: CCV consistently trades at a significant discount to the wider Australian market. Its historical P/E relative to the ASX averages roughly 48% to 52% of the market multiple, meaning it trades at roughly a 50% discount to average ASX industrials. [1]
Current Yield Alignment: Because the stock maintains a compressed P/E ratio under 10x, it features a highly elevated historical dividend yield generally hovering between 6% and 9%, fully franked

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For Cash Converters International (ASX:CCV), exact year-by-year 10-year tracking of Return on Invested Capital (ROIC) versus Weighted Average Cost of Capital (WACC) is not published as a consolidated historical table by financial data providers. However, current live metrics indicate an ROIC of approximately 5.59% to 8.17% against a WACC of roughly 4.09% to 7.57%, showing that the company's recent return profile hovers near or moderately above its cost of capital. [1, 2, 3]

Understanding ROIC vs. WACC for CCV

Value Creation Spread: A company creates economic value when its ROIC exceeds its WACC. [1]
Historical Context: Over the past decade, Cash Converters has navigated major regulatory changes in Australian consumer credit, shifts away from legacy payday and vehicle financing products, and store network consolidations, causing historical returns on capital to fluctuate generally in the double-digit or high single-digit range (historical return on capital reported around 11%–12% in stable periods). [1, 2, 3, 4, 5]
Current Estimates: Recent tracking places ROIC at ~5.6%–8.2% and WACC at ~4.1%–7.6%, maintaining a modest positive or neutral spread as the business executes its strategic turnaround

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