Challenger Limited Intrinsic Value – In 2023, Challenger Limited Demands Bold Reforms for Superannuation Shake-Up.

March 29, 2023

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In 2023, Challenger Limited ($ASX:CGF) is calling for a major overhaul of Australia’s superannuation system. Crucially, Challenger is pushing for bold reforms to go hand-in-hand with any shake-up, reforms that would ensure Australians have greater access to retirement income. Challenger is advocating for increased flexibility in how and when individuals can access their superannuation funds. This would give Australians greater control over when and how they can access their retirement savings.

They are also proposing the implementation of new digital solutions for superannuation, to make managing funds easier and more efficient. Challenger believes these reforms are necessary to ensure Australians have a secure future as they approach retirement age. They are urging the government to consider the long-term impact of any superannuation shake-up, and to pair it with meaningful reforms that can provide people with greater access to the funds they need in their later years.

Stock Price

On Monday, CHALLENGER LIMITED, one of the largest superannuation fund providers in Australia, saw their stock open at AU$6.2 and close at AU$6.0, down by 1.6% from prior closing price of 6.2. This marks a sharp contrast to the positive news sentiment CHALLENGER LIMITED has been receiving, with speculations that the company is likely to make bold reforms to the superannuation industry in 2023. These reforms are necessary in order to shake up the existing system, and to enable more Australians to save and invest for their retirement. It remains to be seen what these reforms may be, but CHALLENGER LIMITED is already making strides in this direction, and it will be exciting to observe the company’s progress in the coming months. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Challenger Limited. More…

    Total Revenues Net Income Net Margin
    1.49k 94.4 6.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Challenger Limited. More…

    Operations Investing Financing
    2.17k -2.3k -50.5
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Challenger Limited. More…

    Total Assets Total Liabilities Book Value Per Share
    30.73k 26.68k 5.92
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Challenger Limited are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    -1.0% -5.2% 11.3%
    FCF Margin ROE ROA
    145.0% 2.6% 0.3%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Challenger Limited Intrinsic Value

    At GoodWhale, we have analyzed the health of CHALLENGER LIMITED and our proprietary Valuation Line has determined that the intrinsic value of its shares is AU$7.0. This means that the current trading price of AU$6.0 is a fair price, but is undervalued by 14.7%. This presents an opportunity for investors to get in at this discounted rate and benefit from the expected uptick in value. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • Peers

    It competes in the same space as Dai-ichi Life Holdings Inc, KD DD, and CapMan Oyj, all of whom provide similar offerings to their customers. All four companies strive to provide their customers with the best financial solutions and services.

    – Dai-ichi Life Holdings Inc ($TSE:8750)

    Dai-ichi Life Holdings Inc is a leading financial services company based in Japan. It provides life insurance, health insurance, and other related services. As of 2022, the company has a market capitalization of 3.03T and a Return on Equity of 8.18%. This is indicative of the company’s strong performance and financial stability. The market capitalization of Dai-ichi Life Holdings Inc reflects the trust that customers and investors have in the company and its products, as well as its leadership in the financial services industry. The company’s strong ROE further demonstrates its commitment to maximizing shareholder value, making it an attractive investment for potential investors.

    – KD DD ($LTS:0M5A)

    KD Digital (DD) is a business-oriented technology company that specializes in providing innovative digital solutions to its clients. The company has a market cap of 48.18 million dollars as of 2022, which reflects the company’s strong financial performance and potential for further growth. Despite its relatively small market capitalization, KD Digital is well-regarded in the industry and has earned a Return on Equity of -0.99%. This indicates that the company is generating a return on its shareholders’ investment, although it is still not quite reaching the average return of the industry. KD Digital is committed to providing innovative solutions that help its customers reach their goals, making it an attractive option for businesses looking for a reliable technology partner.

    – CapMan Oyj ($BER:AP6)

    CapMan Oyj is a Nordic investment and asset management company that was established in 1989. The company focuses on private equity, real estate, and infrastructure investments. As of 2022, the company has a market cap of 417.99M, which is relatively healthy considering its long-term presence in the industry. Furthermore, the company has an impressive Return on Equity (ROE) of 27.73%, which is higher than the average for similar companies. This indicates that the company is performing strongly and is well-positioned to grow its market cap in the future.

    Summary

    Challenger Limited, the financial services provider, is proposing significant changes to the Australian superannuation system in 2023. Analysts suggest this reform is likely to benefit investors, with Challenger’s recent financial results showing a strong outlook for the company’s performance in the future. Investors should consider their risk appetite and investment goals before making any decisions, as the proposed reforms could create opportunities for growth or potentially lead to losses.

    Investors should also watch for potential changes in sentiment surrounding the proposed reforms, as news about it has been mostly positive so far. Ultimately, careful analysis of the reforms and their impact on Challenger’s finances should help investors make better decisions when it comes to investing in the company.

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