Report
David Ellis
EUR 101.80 For Business Accounts Only

Earnings Challenges Mount for Thorn Group; FVE Cut 18% to AUD 1.35

Following our post AGM management meeting, we downgrade our near- to medium-term earnings forecasts and valuation on the back of mounting operational and regulatory challenges facing Thorn Group’s most important division, Radio Rentals. Materially lower earnings forecasts result in our fair value estimate reducing 18% to AUD 1.35 per share for the no-moat company. Our negative view on the firm’s earnings outlook is supported by tougher operating conditions, and increased legal and compliance cos...
Underlying
Thorn Group

Thorn Group is a financial service provider. Co. has four reportable segments: Consumer Leasing, which leases household products; Business Finance, which provides financial products to small and medium enterprises including equipment leasing, trade finance and invoice discounting; Receivables Management, which provides receivables management, debt recovery, credit information services, debt purchasing and other financial services; and Consumer Finance, which provides personal loans.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
David Ellis

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