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ChallengerASX:CGF +0.61%58 Cash-to-Debt is 4.05 as of Jun. 2026, which is 36% above its 10-year median of 2.97. GuruFocus rates ASX:CGF with a GF Score™ of 58/100 and a GF Value™ of A$5.67 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 486 Insurance companies, Challenger ranks better than 58.23% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Challenger's cash to debt ratio for the quarter that ended in Jun. 2026 was 4.05.
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. Here we can see, Challengercould pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for Challenger's Cash-to-Debt or its related term are showing as below:
ASX:CGF'
s Cash-to-Debt Range Over the Past 10 Years
Min: 1.08 Med: 2.97 Max: 4.78
Current: 4.05
During the past 13 years, Challenger's highest Cash to Debt Ratio was 4.78. The lowest was 1.08. And the median was 2.97.
ASX:CGF's Cash-to-Debt is ranked better than 58.23% of 486
companies
in the Insurance industry
Industry Median: 2.17
vs ASX:CGF: 4.05
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Challenger Cash-to-Debt Related Terms
Challenger Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Challenger's Cash-to-Debt can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Insurance - Life subindustry, Challenger's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Challenger Cash-to-Debt vs Insurance Industry
For the Insurance industry and Financial Services sector, Challenger's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Challenger's Cash-to-Debt falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Challenger (ASX:CGF) has a Cash-to-Debt of 4.05 as of Jun. 2026. This is 36% above median its historical median of 2.97. Over the past decade, Challenger's Cash-to-Debt has ranged from 1.08 to 4.78. According to the industry distribution chart, Challenger ranks #203 out of 486 companies in the Insurance industry, placing it in the top 41.8%.
Is Challenger's Cash-to-Debt too high?
Challenger's current Cash-to-Debt of 4.05 is 36% above median its 10-year median of 2.97. Over the past 10 years, this metric has ranged from a low of 1.08 to a high of 4.78. The Insurance industry median Cash-to-Debt is 2.17. Challenger's value of 4.05 is 86.6% above this industry median. Based on the distribution chart, Challenger ranks #203 out of 486 companies in the Insurance industry, which is above the industry midpoint. Overall, Challenger has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Challenger's Cash-to-Debt compare to MET and AFL?
According to the Insurance industry distribution chart, Challenger ranks #203 out of 486 companies for Cash-to-Debt. This puts Challenger in the upper half of its industry. The industry median Cash-to-Debt is 2.17. Challenger's value of 4.05 is 86.6% above this benchmark. Historically, Challenger's own Cash-to-Debt has ranged from 1.08 to 4.78 over the past decade. While the company's 10-year median is 2.97 vs. the industry median of 2.17, Challenger has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for an Insurance company?
The median Cash-to-Debt among Insurance companies is 2.17, based on 486 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Challenger's current Cash-to-Debt of 4.05 is 86.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Insurance industry, the median Cash-to-Debt is 2.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Challenger's current Cash-to-Debt is 4.05, which is 36% above median its own 10-year median of 2.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Challenger stock overvalued right now?
Based on GuruFocus' analysis, Challenger (ASX:CGF) is currently considered Significantly Overvalued. The stock's GF Value™ is A$5.67, compared to a current price of A$9.97 — trading 75.8% above its estimated fair value. The current Cash-to-Debt is 4.05, which is 36% above median its 10-year median of 2.97 and 86.6% above the Insurance industry median of 2.17. Challenger's overall GF Score™ is 58/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Challenger (ASX:CGF), the current Cash-to-Debt is 4.05 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Challenger (ASX:CGF) Overvalued in 2026?
Based on GuruFocus' analysis, Challenger stock appears to be overvalued.
The current stock price of A$9.97 is trading 75.8% above its estimated GF Value™ of A$5.67.
GuruFocus considers Challenger to be Significantly Overvalued.
Key valuation signals for ASX:CGF:
Cash-to-Debt: 4.05 (36% above median its 10-year median of 2.97)
GF Value™: A$5.67 vs. price of A$9.97 (75.8% above fair value)
Industry Position: 86.6% above the Insurance median (#203 of 486)
No single metric tells the full story. See the ASX:CGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Challenger's core business is selling annuity products in the Australian retirement market and, since November 2016, selling Australian dollar-denominated annuities into Japan's large retirement market. The firm's annuity products provide investors guaranteed regular payments over an agreed term for an upfront lump sum investment and is designed primarily to protect investors from the longevity risk of outliving their savings. Challenger also operates a funds management business, Fidante Partners, which has minority stakes in several boutique global investment managers, and Challenger Investment Management, which primarily manages investments supporting its annuities business.
58GF Score
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