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Pepper Money Ltd
(Sydney:PPM)
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Rating:60Neutral
Price Target:
AU$2.00
▲(22.70% Upside)
Action:Reiterated
Date:08/22/26
The score is primarily constrained by high financial risk—extreme leverage and a sharp deterioration in operating/free cash flow in 2025—despite strong revenue growth. Support comes from attractive valuation (low P/E and very high dividend yield) and constructive technical momentum, though the elevated RSI suggests the stock is somewhat overheated in the near term.
Positive Factors
Strong Revenue Growth
Material revenue expansion indicates increasing loan origination and servicing activity. If sustained, greater scale can support fixed-cost absorption, distribution reach and operating leverage over the next several months.
Negative Factors
Extreme Financial Leverage
Very high leverage leaves a limited equity buffer if arrears, defaults or asset values deteriorate. It also increases sensitivity to funding costs and can constrain flexibility when the credit cycle weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Material revenue expansion indicates increasing loan origination and servicing activity. If sustained, greater scale can support fixed-cost absorption, distribution reach and operating leverage over the next several months.
Read all positive factors
Pepper Money Ltd (PPM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$810.91M
Dividend Yield13.29%
Average Volume (3M)326.68K
Price to Earnings (P/E)8.1
Beta (1Y)1.23
Revenue Growth-0.65%
EPS Growth8.02%
CountryAU
Employees863
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding449,255,070
10 Day Avg. Volume338,103
30 Day Avg. Volume326,679
Financial Highlights & Ratios
PEG Ratio0.99
Price to Book (P/B)1.10
Price to Sales (P/S)0.66
P/FCF Ratio-1.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.03Price Target Upside24.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.25
Revenue Forecast (FY)AU$497.00M
Pepper Money Ltd Business Overview & Revenue Model
Company Description
Pepper Money Limited, an Australian non-bank financial institution established in 2000 and headquartered in North Sydney, serves clients in both Australia and New Zealand. It primarily operates as a lender within the mortgage and asset finance sec...
How the Company Makes Money
PPM makes money primarily by originating loans and earning net interest income and fee-based income over the life of those loans. Key revenue streams typically include: (1) Interest margin: PPM earns interest charged to borrowers on mortgages/loan...
Pepper Money Ltd Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.49B | 1.45B | 1.58B | 1.52B | 1.06B | 771.30M |
| Gross Profit | 1.43B | 1.39B | 1.53B | 417.70M | 987.60M | 699.60M |
| EBITDA | 1.14B | 1.13B | 1.29B | 170.60M | 801.90M | 545.10M |
| Net Income | 108.00M | 104.60M | 98.80M | 110.70M | 141.00M | 120.80M |
Balance Sheet | ||||||
| Total Assets | 19.93B | 18.40B | 17.47B | 20.21B | 19.92B | 17.27B |
| Cash, Cash Equivalents and Short-Term Investments | 935.40M | 1.27B | 1.24B | 1.53B | 1.24B | 1.31B |
| Total Debt | 18.90B | 17.42B | 16.47B | 19.26B | 18.98B | 16.52B |
| Total Liabilities | 19.04B | 17.53B | 16.62B | 19.34B | 18.99B | 16.63B |
| Stockholders Equity | 886.90M | 869.90M | 855.60M | 825.40M | 801.90M | 636.40M |
Cash Flow | ||||||
| Free Cash Flow | -2.67B | -720.50M | 2.59B | 91.20M | -2.31B | -3.00B |
| Operating Cash Flow | -2.67B | -714.80M | 2.60B | 98.30M | -2.30B | -2.99B |
| Investing Cash Flow | -2.40M | -5.70M | -49.30M | -7.50M | -87.60M | -266.40M |
| Financing Cash Flow | 2.61B | 761.30M | -2.85B | 194.30M | 2.32B | 3.68B |
Pepper Money Ltd Technical Analysis
Positive
1.63
Price Trends
1.68
Positive
1.70
Positive
1.90
Positive
Market Momentum
0.05
Negative
73.36
Negative
59.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PPM, the sentiment is Positive. The current price of 1.63 is below the 20-day moving average (MA) of 1.78, below the 50-day MA of 1.68, and below the 200-day MA of 1.90, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 73.36 is Negative, neither overbought nor oversold. The STOCH value of 59.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PPM.
Pepper Money Ltd Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$324.77M | 11.24 | 8.80% | 7.73% | -6.45% | -0.06% | |
60 Neutral | AU$810.91M | 8.08 | 12.70% | 15.82% | -0.65% | 8.02% | |
52 Neutral | AU$57.72M | -1.45 | -43.76% | ― | 28.46% | 40.67% | |
52 Neutral | AU$953.30M | 6.81 | 12.13% | 15.15% | -4.02% | 17.32% | |
51 Neutral | AU$3.80B | 28.06 | 15.91% | ― | 24.44% | 46.79% | |
50 Neutral | AU$935.76M | 8.86 | 7.72% | 6.60% | 4.20% | 85.51% |
* Financial Sector Average
AU:PPM
Pepper Money Ltd
1.94
-0.06
-2.81%
AU:SVR
Money3 Corporation Limited
1.74
0.23
15.46%
AU:ZIP
Zip Co Ltd.
2.57
-1.18
-31.47%
AU:LFS
Latitude Group Holdings Ltd.
0.93
-0.11
-11.00%
AU:MME
MoneyMe Ltd.
0.07
-0.06
-46.67%
AU:LFG
Liberty Financial Group Ltd
3.20
-0.49
-13.19%
Pepper Money Ltd Corporate Events
Pepper Money Declares Interim Dividend of AUD 0.072 per Share
Aug 19, 2026
Pepper Money Ltd has declared an ordinary fully paid share dividend of AUD 0.072 for the six-month period ended 30 June 2026, reinforcing its capital management and shareholder return practices. The distribution will be based on a record date of 9...
Pepper Money Releases 2026 Half-Year Investor Presentation
Aug 19, 2026
Pepper Money has released an investor presentation for its 2026 half-year results dated 20 August 2026, offering stakeholders an overview of its financial performance and operational developments for the period. The document also includes a formal...
Pepper Money Hits Record Assets and Profit as Originations Surge
Aug 19, 2026
Pepper Money reported a record $24.0 billion in assets under management for the first half of 2026, driven by $6.3 billion in originations, the highest half-year level in its history. Mortgage originations rose strongly, with prime loans now compr...
Pepper Money lifts half‑year profit and increases interim dividend
Aug 19, 2026
Pepper Money reported a strong half‑year to 30 June 2026, with net interest income rising 17.3% to $184.5 million and total operating income up 10.3% to $204.0 million compared with the prior year period. Net profit after tax increased 7.2% ...
Pepper Money Issues New Unquoted Equity Under Staff Incentive Schemes
Aug 19, 2026
Pepper Money Ltd has notified the market of the issuance of a substantial tranche of unquoted equity securities under its employee incentive schemes. The new awards, comprising restricted rights and other employee and executive rights, will not be...
Pepper Money seals RAMS mortgage deal to boost servicing scale
Aug 2, 2026
Pepper Money Limited has completed, as part of a consortium with KKR- and PIMCO-managed funds, the acquisition of the RAMS home loan portfolio from Westpac Banking Corporation, comprising about $15.4 billion in residential mortgages as at 1 August...
Pepper Money to service A$36bn HSBC loan book acquired by Blackstone
Jul 30, 2026
Pepper Money Limited has been selected to become the servicer of a substantial portfolio of Australian home and personal loans originated by HSBC Bank Australia, following the planned acquisition of that book by a Blackstone‑controlled entit...
Pepper Money Seeks ASX Quotation for Additional Ordinary Shares
Jun 10, 2026
Pepper Money Ltd has applied for quotation on the ASX of 36,857 new ordinary fully paid shares, to be traded under its existing ticker PPM. The new securities, issued on 10 June 2026, slightly increase the company’s listed share capital and ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.