Australian Ethical Investment Ltd (AEF) AI Stock Analysis

• Market Cap: €874.47M
• Dividend Yield: 1.43%
• Average Volume (3M): 174.41K
• Price to Earnings (P/E): 57.6
• Beta (1Y): 0.94
• Revenue Growth: 19.11%
• EPS Growth: 24.72%
• Country: AU
• Employees: 140
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 0.10
• Shares Outstanding: 113,419,780
• 10 Day Avg. Volume: 231,466
• 30 Day Avg. Volume: 174,405
• PEG Ratio: -0.47
• Price to Book (P/B): 19.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.14
• 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: €7.00
• Price Target Upside: -9.24% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: AU$8.00 ▲(3.76%Upside)

The strong financial performance drives the score, supported by robust revenue growth and effective cash management. Technical analysis indicates bullish trends, though caution is advised due to overbought signals. Valuation concerns arise from a high P/E ratio, suggesting overvaluation.

Australian Ethical Investment Ltd Business Overview & Revenue Model

Company Description

Australian Ethical Investment Ltd. is a publicly owned investment manager. The firm launches and manages equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity and fixed income markets across the globe. The firm invests in education, energy, electricity transmission & distribution, government, health & wellbeing, food production, telecommunications, transport, recycling and waste management, sustainable products & materials, Information technology, software and professional services, media, property, recreation financial services. The firm employs fundamental analysis to create its portfolios. Australian Ethical Investment Ltd. was founded in 1986 and is based in Sydney, Australia.

How the Company Makes Money

Australian Ethical Investment Ltd generates revenue primarily through management fees charged on its investment products, including managed funds and superannuation accounts. These fees are typically a percentage of the assets under management (AUM). The company also earns performance fees, which are contingent on exceeding certain benchmark returns. Additionally, AEF benefits from partnerships with financial advisors and institutions that promote their ethical investment offerings. The company’s focus on sustainability and ethical practices attracts a growing segment of investors seeking to align their financial goals with their ethical values, thereby contributing to its revenue growth.

Australian Ethical Investment Ltd Financial Statement Overview

Summary

Australian Ethical Investment Ltd presents a strong financial position with robust revenue growth, stable profitability, and effective cash management. The low leverage and high equity ratio underscore financial stability, while consistent improvements in profitability metrics indicate operational efficiency. The company is well-positioned for future growth with its solid financial foundation.

Income Statement

Australian Ethical Investment Ltd shows strong revenue growth with a five-year CAGR of approximately 16.5%. The company maintains a stable gross profit margin around 66% and a net profit margin improving from 8.2% to 11.5% over the last two years, indicating enhanced operational efficiency. The EBIT and EBITDA margins are robust, with EBIT margin rising to 22.1% reflecting effective cost management.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.09, suggesting minimal leverage risk. The equity ratio stands at 58.8%, indicating a healthy balance between equity and total assets. Return on equity has shown a positive trend, with a recent ROE of 38.3%, demonstrating effective use of equity to generate profits.

Cash Flow

The company exhibits a healthy cash flow position, with a free cash flow growth rate of 33% in the most recent year. The operating cash flow to net income ratio is approximately 1.93, indicating strong cash generation ability relative to net income. The free cash flow to net income ratio is 1.84, demonstrating effective cash management and reinvestment capabilities.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	99.12M	81.10M	70.78M	58.71M	49.90M
Gross Profit	81.75M	65.79M	59.38M	39.94M	31.71M
EBITDA	23.62M	14.52M	15.22M	16.32M	13.55M
Net Income	11.53M	6.58M	9.51M	11.12M	9.46M
Balance Sheet
Total Assets	51.23M	47.30M	41.94M	39.47M	33.82M
Cash, Cash Equivalents and Short-Term Investments	36.39M	32.73M	27.39M	27.81M	21.43M
Total Debt	2.77M	2.20M	834.00K	1.57M	1.64M
Total Liabilities	21.09M	20.55M	17.27M	15.29M	13.00M
Stockholders Equity	30.14M	26.75M	24.66M	24.18M	20.82M
Cash Flow
Free Cash Flow	21.27M	16.00M	15.40M	15.41M	8.09M
Operating Cash Flow	22.29M	16.20M	16.16M	15.50M	8.85M
Investing Cash Flow	-11.17M	-4.07M	-4.12M	-120.00K	613.00K
Financing Cash Flow	-11.86M	-6.79M	-12.46M	-9.00M	-6.86M

Australian Ethical Investment Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AEF, the sentiment is Positive. The current price of 7.71 is above the 20-day moving average (MA) of 6.41, above the 50-day MA of 6.18, and above the 200-day MA of 5.38, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 81.24 is Negative, neither overbought nor oversold. The STOCH value of 98.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
RPL	77 Outperform	AU$901.39M	11.76	9.29%	6.77%	142.41%	13664.71%
FID	76 Outperform	AU$368.71M	21.84	30.97%	3.99%	12.05%	23.63%
EQT	69 Neutral	AU$878.82M	50.08	4.53%	3.33%	9.40%	-27.34%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
AEF	65 Neutral	€874.47M	57.64	47.73%	1.43%	19.11%	24.72%
PIJ	―	€202.88M	12.51	9.63%	52.40%	―	―
MAF	50 Neutral	AU$1.37B	30.67	10.26%	2.55%	31.89%	45.79%

Australian Ethical Investment Ltd Corporate Events

Australian Ethical Investment Ltd Reduces Stake in Kinatico Limited

Australian Ethical Investment Ltd has announced a change in its substantial holding in Kinatico Limited, with its voting power decreasing from 7.75% to 6.29%. This change reflects a reduction in the number of ordinary shares held, which may impact the company’s influence in Kinatico Limited’s decision-making processes.

Australian Ethical Investment Ltd Ceases Substantial Holding in IPH Limited

Australian Ethical Investment Ltd has announced that it has ceased to be a substantial holder in IPH Limited as of July 17, 2025. This change reflects a shift in the company’s investment portfolio, which may impact its market positioning and influence its stakeholders’ perception regarding its investment strategies.

Australian Ethical Investment Achieves Record 34% FUM Growth in FY25

Australian Ethical Investment Ltd has reported a 34% growth in funds under management (FUM) for the financial year ending June 30, 2025, reaching a record high of $13.94 billion. This growth is attributed to strong quarterly net flows, investment performance, and strategic acquisitions, such as Altius Asset Management. The company has seen increased demand for its ethical investment approach, with significant contributions from superannuation and institutional channels. The integration of Altius has enhanced their fixed income capabilities, contributing to positive institutional net flows. The company’s disciplined investment strategy, limited exposure to fossil fuels, and focus on high-quality opportunities have driven strong investment performance, further solidifying its position in the ethical investment industry.

Australian Ethical Investment Increases Stake in Oncosil Medical

Australian Ethical Investment Ltd has increased its stake in Oncosil Medical Limited, with its voting power rising from 5.15% to 6.93%. This change in substantial holding reflects the company’s strategic move to enhance its influence in Oncosil Medical, potentially impacting its market positioning and stakeholder interests.

Australian Ethical Investment Reduces Stake in Austco Healthcare

Australian Ethical Investment Ltd has announced a change in the interests of a substantial shareholder in Austco Healthcare Limited. The company’s voting power in Austco Healthcare has decreased from 15.59% to 14.06%, indicating a reduction in their stake. This change in shareholding could impact Australian Ethical’s influence in Austco Healthcare, potentially affecting their strategic decisions and stakeholder relationships.

Australian Ethical Investment Ltd Ceases Substantial Holding in PEXA Group

Australian Ethical Investment Ltd has announced that it has ceased to be a substantial holder in PEXA Group Limited as of June 24, 2025. This change in holding may impact Australian Ethical’s investment strategy and its influence within the PEXA Group, potentially affecting stakeholders’ perceptions of both companies.

Australian Ethical Investment Becomes Substantial Holder in Oncosil Medical

Australian Ethical Investment Ltd has become a substantial holder in Oncosil Medical Limited, acquiring a 5.15% voting power through 732,568 ordinary shares. This move signifies Australian Ethical’s strategic interest in the medical sector, potentially enhancing its influence and decision-making capacity within Oncosil Medical, which could impact stakeholders and the company’s market positioning.

Australian Ethical Investment Increases Stake in Nuix Limited

Australian Ethical Investment Ltd has increased its stake in Nuix Limited, raising its voting power from 6.10% to 7.15%. This change in substantial holding reflects the company’s strategic decision to enhance its influence in Nuix Limited, potentially impacting its operations and market positioning.

Australian Ethical Investment Ltd Acquires Substantial Holding in IPH Limited

Australian Ethical Investment Ltd has announced its initial substantial holding in IPH Limited, with a voting power of 5.06% through 13,187,892 ordinary shares. This move signifies Australian Ethical’s strategic interest in IPH Limited, potentially impacting its market positioning and offering new opportunities for stakeholders in the ethical investment sector.

Australian Ethical Investment Adjusts Stake in Urbanise.com

Australian Ethical Investment Ltd has announced a change in its substantial holding in Urbanise.com Limited, with its voting power decreasing from 9.11% to 7.44%. This adjustment in shareholding reflects a strategic decision that may influence the company’s influence and decision-making power within Urbanise.com Limited.

Australian Ethical Investment Increases Stake in Siteminder

Australian Ethical Investment Ltd has increased its stake in Siteminder Limited, as indicated by a recent change in the interests of a substantial shareholder. The company’s voting power in Siteminder has risen from 5.04% to 6.31%, reflecting a strategic move that may enhance its influence and decision-making capacity within the company, potentially impacting Siteminder’s future direction and operations.

Australian Ethical Investment Increases Stake in Nuix Limited

Australian Ethical Investment Ltd has increased its stake in Nuix Limited, as indicated by a change in the interests of a substantial shareholder. The company’s voting power in Nuix Limited has risen from 5.10% to 6.10%, reflecting a strategic move to strengthen its influence and investment in the company. This change could potentially impact Nuix’s shareholder dynamics and Australian Ethical’s positioning within the market.