Earnings Report Pioneer Credit(PNC.AX)
· The debt collection company continues to grow its Revenue and Profitability.
· The company continues to grow its business exponentially.
· The company has new projects in the pipeline to expand its foot-print in financial services.
Pioneer Credit is a financial services company that focuses on the acquisition and servicing, collection of unsecured retail debt portfolios. PNC focuses on credit card debt, personal loans and car loans. The company also offers credit checks, refinancing and has legal arm called Sphere Legal.
The company reported 2017 Revenue of $56.27 million up 18% from 2016. Net Profit After Tax was $10.75 million up 14% from the previous year. Earnings Per Share remained flat as a result of the equity issue in 2017. The company has maintained a strong EBITDA margin of 30%, the company’s management has done well to manage expenses while increasing the company’s revenue.
The outlook for the company remains positive, the company recently invested $70 million for the acquisition of new portfolios. Management has maintained a disciplined approach of only purchasing Tier 1 debt, this approach has resulted in strong returns for the company. The company is also looking to increase its product range through partnerships with Goldfields Money.
The main concern for PNC would be changes in Monetary Policy and the rising consumer credit levels, as it currently looks RBA may reduce rates in 2018 which would be a net positive for PNC as less credit pressure will result in its customers paying down more of their debt. The Price to Earnings ratio for PNC is at 11.91 below the competitor average of 17.11. In my opinion the stock remains undervalued and has room to grow substantially.
Disclosure: I hold a substantial position in Pioneer Credit.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: This article is intended for information, engagement & entertainment purposes only, and is not to be construed as investment advice or direction. Investors are strongly encouraged to perform due diligence and/or consult with their financial advisor.