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Resimac Group Limited
Financial Services · Mortgage Finance
Updated 12 hours ago
$0.90
MARKET CAP
$354.00M
P/E RATIO
10.4
DIV. YIELD
8.4%
FRANKING
100%
RMC has red flags on value, looks strong on dividends — see the full breakdown
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Resimac Group Limited provides residential mortgage and asset finance lending products in Australia and New Zealand. The company operates through Home Loan Lending business, New Zealand Lending, and Asset Finance Lending segments.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$2.36
Discounted cash flow estimate
$1.71
For 6% dividend yield
Business quality and balance-sheet durability.
Profit generated per $1 of shareholder investment
17.0% average ROE meets the threshold, but dropped to 8.3% in a weak year. Consistency matters in this framework.
Current Snapshot
10Y Avg
17.0%
Threshold
12.0%
Worst Year
8.3%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 17.0%, meaning each $1 of shareholder equity generates $0.17 in annual profit. The threshold is 12%, and the worst single year was 8.3%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
The average is solid, but the dip shows some vulnerability. At 17.0% ROE, every $1 retained generates $0.17 in annual profit — monitor whether the weak year was a one-off or a recurring pattern.
Sources
Real cash left after running the business
Negative free cash flow means the company is consuming cash. May need to raise debt or equity to fund operations.
Current Snapshot
Current FCF
$-431M
Pass Rule
> $0
Status
Negative
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $-431M in free cash flow — cash left after operating costs and capital expenditure. Negative FCF means the company is consuming more cash than it generates.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Negative cash flow means dividends may require borrowing - an unsustainable situation. The company is spending more cash than it generates, which can't continue indefinitely.
Sources
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
Consistency of profits over time
Is the business growing or shrinking over time?
Revenue has declined 37% over 4 years. Declining revenue in a financial institution may signal shrinking market share or margin compression.
Current Snapshot
Revenue Change
-37.3%
Debt Change
N/A (financials)
Trend State
Weakening
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by -37.3% across the displayed period.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue has declined 37% over 4 years. Declining revenue in a financial institution may signal shrinking market share or margin compression.
Sources
Annual dividends as percentage of stock price
11.37% yield significantly exceeds Barsi's 6% minimum. Based on 6-year average, not one-time spikes.
Current Snapshot
6Y Avg Yield
11.4%
6% Requirement
6.0%
Gross Yield
16.2%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.10 and a share price of $0.90, the Barsi yield is 11.4%. The minimum requirement is 6%. Including franking credits, the gross yield is 16.2%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Very high yields can signal trouble — the stock price may have dropped because the market expects a dividend cut. Verify the payout ratio is sustainable and the company can maintain this level of distributions before relying on this income.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| ~30 July 2026Est | ~10 July 2026 | ~$0.08 | 100% | ~$0.06 | $0.02 |
| ~23 Dec 2026Est | ~20 Jan 2027 | ~$0.08 | 100% | ~$0.06 | $0.02 |
Highest price to lock in 6% yield
Industry category of the business
Financial Services is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Mortgage Finance
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Mortgage Finance (Financial Services sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
A 56% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Current Snapshot
Latest Ratio
56.4%
Healthy Range
30%-75%
Zone
Healthy
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.19 dividend / $0.09 EPS equals 220.2% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
A 56% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Sources
Resimac Group Limited provides residential mortgage and asset finance lending products in Australia and New Zealand. The company operates through Home Loan Lending business, New Zealand Lending, and Asset Finance Lending segments. It offers prime and specialist lending products; SME/commercial finance products; and home, equipment, secured, novated leasing, and car loans. It also provides mortgage originator and trustee, lender, mortgage manager and broker, consumer and commercial lending, managed investment trust, and LMI captive insurer services.
In addition, it acts as a trust manager and servicer; warehouse mortgages; and an issuer of residential mortgage-backed securities. The company offers its products and services through brokers and wholesale channel primarily under the Resimac, Resimac (NZ), Resimac Asset Finance, and homeloans.com.au brand names. The company was formerly known as Homeloans Limited and changed its name to Resimac Group Resimac Group Limited in December 2018. Resimac Group Limited was founded in 1985 and is based in Sydney, Australia.
Who owns the company's shares and how much leadership has at stake
Management's wealth moves with yours
Large fund blocks can amplify price swings unrelated to business quality
Shares freely traded on the ASX by individual investors like you
Insiders hold a meaningful 12.4%, showing management confidence. But institutions dominate at 64.7% — this means fund managers collectively control most voting power. Large institutional blocks can cause price swings during quarterly rebalancing that have nothing to do with company performance.
Current Snapshot
Insider %
12.4%
Institutional %
64.7%
Float %
22.9%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 12.4% and institutions own 64.7%, public float is 22.9%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
Insiders hold a meaningful 12.4%, showing management confidence. But institutions dominate at 64.7% — this means fund managers collectively control most voting power. Large institutional blocks can cause price swings during quarterly rebalancing that have nothing to do with company performance.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 30 June 2025 | Muhammad (Majid) Divisional Officer | Unknown | 325K | — |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
Strong value. 9.6% earnings yield exceeds the threshold, and multiple valuation checks confirm it's attractively priced.
Current Snapshot
Current Yield
9.6%
Required Yield
7.5%
Spread
+2.1pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.09 and a share price of $0.90, earnings yield is 9.6%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Multiple ways of measuring value agree: you're getting a fair deal. The stock offers solid returns compared to what you'd earn from safe bonds.
Sources
How current price compares with estimated intrinsic value
Stock is trading 46% BELOW the fair-value threshold (includes 30% margin of safety).
Current Snapshot
Current Margin
61.9%
Industry Threshold
30%
Status
46% Undervalued
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $2.36 per share, current price is $0.90, and margin of safety is 61.9%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
Price is below your required threshold, so you retain a margin-of-safety buffer against normal valuation error and market volatility.
Sources
10/10 positive EPS years demonstrates highly predictable earnings through multiple economic cycles.
Current Snapshot
Positive Years
10/10
Allowed Losses
2
EPS CAGR
6.4%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 10 of the last 10 years. The allowed loss tolerance for this industry is 2 years. EPS growth rate (CAGR) is 6.4%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
A perfect track record through multiple economic cycles means this company generates profits in good times and bad. Your dividend has a solid foundation.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 6 Mar 2026Interim | 24 Mar 2026 | $0.19 | 100% | $0.13 | $0.06 |
| 4 Sept 2025Final | 19 Sept 2025 | $0.05 | 100% | $0.04 | $0.01 |
| 5 June 2025Special | 10 July 2025 | $0.17 | 100% | $0.12 | $0.05 |
| 5 Mar 2025Interim | 21 Mar 2025 | $0.05 | 100% | $0.04 | $0.01 |
| 5 Sept 2024Final | 10 Oct 2024 | $0.05 | 100% | $0.04 | $0.01 |
| 4 Mar 2024Interim | 19 Mar 2024 | $0.05 | 100% | $0.04 | $0.01 |
| 7 Sept 2023Final | 20 Sept 2023 | $0.06 | 100% | $0.04 | $0.02 |
| 9 Mar 2023Interim | 24 Mar 2023 | $0.06 | 100% | $0.04 | $0.02 |
| 8 Sept 2022Final | 23 Sept 2022 | $0.06 | 100% | $0.04 | $0.02 |
| 2 Mar 2022Interim | 24 Mar 2022 | $0.06 | 100% | $0.04 | $0.02 |
Excellent track record. 11 years of consistent dividends through multiple market cycles.
Current Snapshot
History
11yr
Predictability
Variable
Payout Health
One-off event
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 11 years of dividend history (2016–2026). No suspensions detected — 11 consecutive years of payments. Predictability: Variable. Payout health: One-off event. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A 11-year track record through multiple economic cycles gives confidence your income will continue. This company has proven it prioritises shareholder returns.
Sources
Priced well below ceiling. 47% below means you're locking in well over 6% yield.
Current Snapshot
Current Price
$0.90
Max Buy Price
$1.71
Delta
+47.4%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $0.90 and a ceiling of $1.71, the entry is 47.4% below the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
Buying this far below the ceiling locks in a yield well above 6% based on proven historical dividends. Your income starts strong from day one.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
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