A$6.32
Challenger is an insurance - life business based in Australia. Challenger shares (CGF) are listed on the Australian Securities Exchange (ASX) and all prices are in Australian dollars. Challenger has a trailing 12-month revenue of around $3.3 billion. If you're looking to buy shares, check out the steps below.
How to buy shares in Challenger
To buy shares listed in Australia such as Challenger, you'll need to sign up to a broker with access to the ASX. Our table can help you compare share trading platforms and choose or you can see our list of the best share trading platforms in Australia. Then follow these steps.
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Open and fund your brokerage account. Complete an application with your personal and financial details, including your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
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Search for Challenger. Find the share by name or ticker symbol: CGF. Research its history to confirm it's a solid investment against your financial goals.
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Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Challenger reaches your desired price. Look into dollar-cost averaging to spread out your risk, which smooths out buying at consistent intervals and amounts.
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Decide on how many to buy. At today's price, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
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Check on your investment. Congratulations, you own a part of Challenger. Optimise your portfolio by tracking how your stock and the business performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that affect your stock.
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Challenger stock price (ASX:CGF)
Use our graph to track the performance of CGF stocks over time.Challenger shares at a glance
52-week range | $5.4617 - $7.4275 |
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50-day moving average | $6.9428 |
200-day moving average | $6.6545 |
Target price | $7.66 |
PE ratio | 36.2105 |
Dividend yield | $0.265 (3.92%) |
Earnings per share (TTM) | $0.19 |
Where to buy Challenger shares
Is it a good time to buy Challenger stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Challenger price performance over time
Historical closes compared with the last close of A$6.23
1 week (2024-08-29) | -10.49% |
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1 month (2024-08-06) | -3.86% |
3 months (2024-06-06) | -6.88% |
6 months (2024-03-06) | -7.29% |
1 year (2023-09-06) | -2.04% |
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2 years (2022-09-06) | -0.64% |
3 years (2021-09-06) | -3.71% |
5 years (2019-09-06) | -10.49% |
Is Challenger under- or over-valued?
Valuing Challenger stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Challenger's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Challenger's P/E ratio
Challenger's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 36x. In other words, Challenger shares trade at around 36x recent earnings.
That's relatively high compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Challenger's EBITDA
Challenger's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $1.6 billion (£0.0 million).
The EBITDA is a measure of a Challenger's overall financial performance and is widely used to measure stock profitability.
Challenger financials
Revenue TTM | $3.3 billion |
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Operating margin TTM | 56.49% |
Gross profit TTM | $932 million |
Return on assets TTM | 3.16% |
Return on equity TTM | 3.45% |
Profit margin | 3.97% |
Book value | 5.68 |
Market capitalisation | $4.8 billion |
TTM: trailing 12 months
Challenger share dividends
Dividend payout ratio: 135.04% of net profits
Recently Challenger has paid out, on average, around 135.04% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.92% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Challenger shareholders could enjoy a 3.92% return on their shares, in the form of dividend payments. In Challenger's case, that would currently equate to about A$0.265 per share.
Challenger's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 25 August 2024 (the "ex-dividend date").
Have Challenger's shares ever split?
Challenger's shares were split on a 1:5 basis on 25 November 2004. So if you had owned 5 shares the day before the split, the next day you would own 1 share. This wouldn't directly have changed the overall worth of your Challenger shares – just the quantity. However, indirectly, the new 400% higher share price could have impacted the market appetite for Challenger shares which in turn could have impacted Challenger's share price.
Challenger share price volatility
Over the last 12 months, Challenger's shares have ranged in value from as little as $5.4617 up to $7.4275. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (AU average) beta is 1, while Challenger's is 1.005. This would suggest that Challenger's shares are a little bit more volatile than the average for this exchange and represent, relatively speaking, a slightly higher risk (but potentially also market-beating returns).
Challenger overview
Challenger Limited is a publicly owned investment manager. The company also provides retirement services to its clients. It manages equity mutual funds. The firm invests into the public equity markets across the world. Challenger Limited was founded in 1985 and is based in Australia, Asia and United Kingdom.
Challenger in the news
Challenger's (ASX:CGF) Dividend Will Be Increased To A$0.13
Does Challenger (ASX:CGF) Deserve A Spot On Your Watchlist?
With 46% stake, Challenger Limited (ASX:CGF) seems to have captured institutional investors' interest
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