Insights

Why the Money3 (ASX:MNY) share price is on watch today

The Money3 share price is on watch today after the company announced the full completion of its Automotive Financial Services acquisition.
The post Why the Money3 (ASX:MNY) share price is on watch today appeared first on The Motley Fool Australia. –

woman looking up as if watching asx share price

The Money3 Corporation Limited (ASX: MNY) share price is one to watch on Tuesday, as the company announced the full completion of its Automotive Financial Services (AFS) acquisition.

The acquisition was first announced to the market on 3 December.

The Money3 share price closed on Monday at $2.86.

Why is the Money3 share price in focus today?

It will be interesting to watch the performance of the Money3 share price today after the company advised its AFS acquisition has been completed in full. The acquisition comprises a total purchase consideration of $10.8 million, made up of a cash settlement of $3.24 million and the issue of 2.88 million ordinary shares of Money3 Corporation Limited.

The non-bank lender says the acquisition of AFS will boost Money3’s product offering in Australia, and accelerate the company’s growth into the new, used and commercial vehicle finance market.

AFS specialises in vehicle loans of up to $100,000.

Money3 has advised that AFS is a good strategic fit and aligns with its own strategy of financing a broader market.  The deal will also boost the company’s product offering along the credit curve.

According to Money3, the acquisition will add $48.8 million of gross loan book as of 1 January 2021. Money3 also reported that AFS has a strong loan book quality, with less than 1% of the loan book in 30+ days arrears.

The acquisition will also be earnings accretive immediately, and is expected to improve Money3’s FY22 earnings by $2 million in net profit after tax (NPAT), with improving NPAT contribution in future years.

Money3 Managing Director and CEO Scott Baldwin said the acquisition will strengthen Money3’s addressable market, stating:

The acquisition increases the company’s market share to approximately 4% of the $6bn annual used vehicle finance market.

Money3 has experienced strong demand for vehicle finance during the first half of FY21 with record new loan originations in November 2020 and the strongest half year result the company has ever produced.

This acquisition will enable us to continue to increase our market share further in 2021. 

More about Money3

Money3 is a specialist provider of consumer finance for the purchase and maintenance of vehicles in Australia and New Zealand.

According to the company, its unique approach to customer care attracts customers that are underserved by mainstream banks.

The company estimates that 1 in every 450 registered vehicles in Australia and 1 in every 700 registered vehicles in New Zealand are financed by Money3.  

About the Money3 share price

The Money3 share price has returned around 20% over the past year. 

In November, the company announced positive first quarter results, with statutory net profits after tax (NPAT) increasing by 33.3% against the prior period.

It also announced a new, low-cost warehouse facility of $250 million from international bank Credit Suisse Group (NYSE: CS), which would save the company more than $10 million per year in funding costs. 

Based on the current Money3 share price, the company commands a market capitalisation of around $578 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Money3 (ASX:MNY) share price is on watch today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!