Australian Ethical Investment Ltd (AEF) AI Stock Analysis

• Market Cap: €593.05M
• Dividend Yield: 2.73%
• Average Volume (3M): 152.18K
• Price to Earnings (P/E): 30.4
• Beta (1Y): 0.51
• Revenue Growth: 18.80%
• EPS Growth: 74.51%
• Country: AU
• Employees: 140
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.11
• Shares Outstanding: 113,830,080
• 10 Day Avg. Volume: 113,253
• 30 Day Avg. Volume: 152,183
• PEG Ratio: 0.45
• Price to Book (P/B): 17.98
• Price to Sales (P/S): 6.09
• P/FCF Ratio: 27.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: AU$5.50 ▲(4.56% Upside)

Australian Ethical Investment Ltd's strong financial performance is the most significant factor, supported by robust revenue growth and profitability. However, bearish technical indicators and a relatively high P/E ratio suggest caution. The lack of earnings call and corporate event data limits further insights.

Positive Factors

Revenue Growth

The company's strong revenue growth of 7.75% indicates expanding market reach and effective business strategies, supporting long-term financial stability.

Low Leverage

Minimal leverage reduces financial risk and enhances the company's ability to invest in growth opportunities without significant debt burden.

High Return on Equity

A high return on equity indicates efficient use of shareholder funds, enhancing investor confidence and supporting sustainable growth.

Negative Factors

Declining Free Cash Flow

Decreasing free cash flow growth could limit the company's ability to fund new investments and maintain financial flexibility, impacting future growth.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, which could affect profitability if not managed effectively.

Stockholders' Equity Growth Concern

Slower equity growth may limit the company's ability to fund expansion and take advantage of new market opportunities, impacting long-term growth potential.

Australian Ethical Investment Ltd Business Overview & Revenue Model

Company Description

Australian Ethical Investment Ltd (AEF) is a leading ethical investment firm based in Australia, specializing in sustainable and responsible investment solutions. The company focuses on providing a range of investment products, including managed funds, superannuation, and direct shares, all designed to align financial growth with positive social and environmental impact. AEF primarily serves retail and institutional investors who are looking to invest in companies that meet high ethical standards across various sectors such as renewable energy, healthcare, and sustainable agriculture.

How the Company Makes Money

AEF generates revenue primarily through management fees charged on the assets under management (AUM) in its investment funds. These fees are typically a percentage of the total assets managed, which can vary based on the type of fund and the level of service provided. In addition to management fees, AEF may also receive performance fees when investment returns exceed predetermined benchmarks. The company further diversifies its revenue streams through its superannuation offerings, which involve annual fees based on the account balances of members. Significant partnerships with financial advisors and platforms that promote ethical investing contribute to AEF's earnings by expanding its customer reach and enhancing its brand visibility in the market. Overall, AEF's commitment to ethical investing attracts a dedicated client base that values both financial returns and social responsibility.

Australian Ethical Investment Ltd Financial Statement Overview

Summary

Australian Ethical Investment Ltd exhibits strong financial health with robust revenue growth and profitability. The low leverage and high return on equity highlight effective financial management. However, the declining free cash flow growth poses a potential risk that needs to be addressed to sustain long-term financial stability and growth.

Income Statement

Australian Ethical Investment Ltd has demonstrated strong revenue growth with a 7.75% increase in the latest year. The company maintains healthy profitability margins, with a gross profit margin of 67.11% and a net profit margin of 16.92%. The EBIT and EBITDA margins are also robust at 31.49% and 31.87%, respectively, indicating efficient operational management. However, the slight decline in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.054, indicating minimal leverage and financial risk. The return on equity is impressive at 49.93%, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at 58.00%, suggesting a stable capital structure. However, the decrease in stockholders' equity growth compared to previous years might be a concern for future expansion.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 61.6%, which could impact future investment capabilities. Nevertheless, the operating cash flow to net income ratio of 1.01 and free cash flow to net income ratio of 0.99 indicate strong cash generation relative to earnings. The company needs to address the negative trend in free cash flow growth to maintain financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	119.38M	119.38M	100.49M	81.10M	70.78M	58.71M
Gross Profit	80.12M	80.12M	81.75M	65.79M	59.38M	47.70M
EBITDA	38.05M	38.05M	25.27M	15.67M	15.22M	16.32M
Net Income	20.20M	20.20M	11.53M	6.58M	9.51M	11.12M
Balance Sheet
Total Assets	69.73M	69.73M	51.23M	47.30M	41.94M	39.47M
Cash, Cash Equivalents and Short-Term Investments	38.84M	38.84M	36.39M	32.73M	27.39M	27.81M
Total Debt	2.18M	2.18M	2.77M	2.20M	834.00K	1.57M
Total Liabilities	29.28M	29.28M	21.09M	20.55M	17.27M	15.29M
Stockholders Equity	40.45M	40.45M	30.14M	26.75M	24.66M	24.18M
Cash Flow
Free Cash Flow	26.61M	26.61M	21.27M	16.00M	15.40M	15.41M
Operating Cash Flow	26.89M	26.89M	22.29M	16.20M	16.16M	15.50M
Investing Cash Flow	-21.85M	-21.85M	-11.17M	-4.07M	-4.12M	-120.00K
Financing Cash Flow	-12.59M	-12.59M	-11.86M	-6.79M	-12.46M	-9.00M

Australian Ethical Investment Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AEF, the sentiment is Negative. The current price of 5.26 is below the 20-day moving average (MA) of 5.80, below the 50-day MA of 6.57, and below the 200-day MA of 6.42, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 32.44 is Neutral, neither overbought nor oversold. The STOCH value of 18.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AEF.

Australian Ethical Investment Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FID	69 Neutral	AU$375.02M	20.16	32.31%	3.82%	10.61%	23.34%
EQT	69 Neutral	AU$670.58M	20.75	8.50%	4.40%	4.26%	79.41%
RPL	68 Neutral	AU$1.02B	23.51	5.73%	5.37%	21.81%	-43.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AEF	64 Neutral	€593.05M	30.37	58.10%	2.73%	18.80%	74.51%
MAF	45 Neutral	AU$1.78B	42.84	8.97%	1.96%	35.30%	44.24%

Australian Ethical Investment Ltd Corporate Events

Australian Ethical Investment Responds to APRA’s License Conditions

Australian Ethical Investment Ltd (AEF) has announced that the Australian Prudential Regulation Authority (APRA) has imposed additional license conditions on its subsidiary, Australian Ethical Superannuation Pty Ltd (AES). These conditions require AES to appoint an independent expert to review related-party arrangements with AEF. AEF does not believe these conditions will materially affect the price or value of its securities, and the company remains confident in its governance and operational strategies. The review is seen as an opportunity to strengthen AES’s decision-making processes without financial penalties, and AEF anticipates no negative impact on members’ retirement savings.

Australian Ethical Releases Corporate Governance Statement

Australian Ethical Investment Ltd has released its Corporate Governance Statement, which aligns with the ASX Corporate Governance Council Principles and Recommendations. This announcement underscores the company’s dedication to maintaining high standards of corporate governance, potentially enhancing its reputation and trust among stakeholders.

Australian Ethical Superannuation Faces APRA License Conditions

Australian Ethical Superannuation Pty Ltd, a trustee of Australian Ethical Investment Ltd, has received additional license conditions from APRA, requiring an independent review of related-party arrangements. Despite these conditions, the company assures that members’ retirement savings remain secure, and the fund has achieved strong returns in the past year. The company has proactively enhanced its governance processes and remains committed to ethical investing and members’ financial interests.

Australian Ethical Investment Issues Shares for Employee Plan

Australian Ethical Investment Limited has announced the issuance of 410,304 ordinary fully paid shares to the Trustee of the Australian Ethical Investment Employee Share Plan. These shares are intended to benefit employees under the plan, with an issue price based on the 20-day volume-weighted average price of the company’s shares. This move is part of the company’s broader strategy to incentivize and retain talent, potentially impacting its operational dynamics and stakeholder relations positively.

Australian Ethical Investment Ltd AGM Results: Key Resolutions Passed

Australian Ethical Investment Ltd held its Annual General Meeting, where key resolutions were passed, including the re-election and election of directors and the approval of long-term performance share rights for the CEO. These decisions reflect the company’s strategic focus on leadership stability and incentivizing executive performance, potentially impacting its market positioning and stakeholder confidence positively.

Australian Ethical Investment Ltd: Leading the Way in Value-Aligned Investments

Australian Ethical Investment Ltd, a leading ethical investment manager, continues to focus on providing value-aligned investment products. With over $14 billion in funds under management, the company is well-positioned in the ethical investment space, emphasizing long-term, risk-adjusted returns guided by its Ethical Charter.

Australian Ethical Investment Ltd: Leading with Values in Investment Management

Australian Ethical Investment Ltd, a leading ethical investment manager in Australia, emphasizes its commitment to providing value-aligned investment products and maintaining significant funds under management. The company’s operations are deeply rooted in its ethical charter, which influences its culture and vision, positioning it strongly in the ethical investment market.

Australian Ethical Investment Increases Stake in Eroad Limited

Australian Ethical Investment Ltd has increased its substantial holding in Eroad Limited, as disclosed in a recent notice. The company’s stake in Eroad Limited has risen from 12.90% to 15.02% following multiple on-market transactions, indicating a strategic move to strengthen its position in the company.

Australian Ethical Investment Ltd Ceases to be Substantial Holder in Siteminder Limited

Australian Ethical Investment Ltd has announced that it has ceased to be a substantial holder in Siteminder Limited as of October 28, 2025. This change may impact the company’s investment portfolio and influence its market strategy, reflecting a shift in its holdings and potentially affecting stakeholders associated with Siteminder Limited.

Australian Ethical Enhances Transparency in Fund Reporting

Australian Ethical Investment Ltd has announced a change in reporting for its funds under management (FUM), particularly highlighting the movements in capital management funds used by institutional clients. This change aims to provide clearer and more transparent reporting of FUM drivers, although it has a minimal revenue impact due to the low margin on these funds.

Australian Ethical Investment Ltd Announces Hybrid AGM for 2025

Australian Ethical Investment Ltd has announced its Annual General Meeting (AGM) scheduled for November 11, 2025, which will be conducted as a hybrid event, allowing shareholders to participate both in person and virtually. The meeting will address ordinary business matters, including the consideration of financial statements and the re-election of a director, Sandra McCullagh, reflecting the company’s commitment to transparent governance and stakeholder engagement.