ASX:CCR
Credit Clear Ltd
Investment Summary
The fund managers believe Credit Clear Ltd (CCR) is a promising fintech company poised to disrupt the traditional debt collection industry with its innovative digital debt collection platform. They emphasize the company's significant scalability advantages and efficiency, driven by AI and machine learning systems, which provides a distinct competitive edge and is expected to generate a maiden profit this year. Moreover, CCR’s strong relationships with tier-1 clients in sectors like telecommunications and energy contribute to its growth potential, with revenue growth projected at ~20% and double-digit growth anticipated as the company achieves economies of scale. Fund managers regard CCR as undervalued, trading at attractive multiples, specifically 10x FY26e EV/EBITDA and 14x FY26 P/E, while noting the company has improved net promoter scores, reflecting customer satisfaction. Overall, they see strong growth potential through FY28.
Commentary From The Managers
Endeavor Asset Management
28 Feb 2025
$0.28
- Credit Clear (CCR) has released its 1H25 results, aligning with preliminary figures from January.
- Despite meeting expectations, the lack of a guidance upgrade resulted in a share price decline.
- CCR is well-positioned for EBITDA margin expansion as new client onboarding nears completion.
- The business is expected to benefit from economies of scale, anticipating double-digit revenue growth while nearly 40% of operating expenses remain fixed.
- Increased digital collections should further improve efficiency.
- CCR is on track for its first profit this year, driven by ~17% revenue growth.
- The company appears undervalued at 14x FY26 P/E.
Cyan Investment Management
31 Oct 2024
$0.31
- Cyan Investment Management entered a new position in Credit Clear Ltd (CCR), a debt collection company.
- Credit Clear has significantly transformed since acquiring customer debt servicing business ARMA.
- Unlike traditional debt collection firms, Credit Clear collaborates with tier-1 clients, including telcos and energy companies.
- The company utilizes AI and machine learning systems to manage outstanding debts effectively.
- As a result, Credit Clear achieves strong net promoter scores (NPS) and maintains sustained revenue growth.
- Recently, the company confirmed expectations to meet or exceed previous revenue guidance growth of ~20%.
Endeavor Asset Management
30 Sept 2024
$0.32
- Endeavor Asset Management initiated a position in Credit Clear (CCR), a fintech company with a digital debt collection platform.
- The technology has the potential to disrupt the traditional debt collection industry.
- Credit Clear offers significant scalability advantages through its innovative approach.
- The platform leverages digital engagement, enhancing efficiency and reducing costs.
- Endeavor Asset Management anticipates significant growth for CCR in the coming years.
- The company is projected to generate its first profit this year.
- CCR is currently trading at an attractive 10x FY26e EV/EBITDA.
- Strong growth is expected through FY28.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.