Australian Ethical Investment Ltd (AU:AEF)
ASX:AEF
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Australian Ethical Investment Ltd
(Sydney:AEF)
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Rating:64Neutral
Price Target:
AU$5.00
â–²(1.42% Upside)
Action:ReiteratedDate:12/02/25
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 & margins
Sustained revenue growth and high profitability margins indicate durable fee income and operational efficiency typical of established asset managers. Strong gross and net margins support cash generation, reinvestment in distribution, and resilience to market volatility over the next 2–6 months.
Negative Factors
Declining free cash flow growth
A sharp 61.6% decline in free cash flow growth constrains the company’s ability to invest, fund new product initiatives, or increase distributions without altering capital allocation. Even with solid FCF ratios, the negative trend could limit strategic flexibility if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & margins
Sustained revenue growth and high profitability margins indicate durable fee income and operational efficiency typical of established asset managers. Strong gross and net margins support cash generation, reinvestment in distribution, and resilience to market volatility over the next 2–6 months.
Read all positive factors
Australian Ethical Investment Ltd (AEF) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$589.64M
Dividend Yield2.7%
Average Volume (3M)152.18K
Price to Earnings (P/E)10.5
Beta (1Y)0.89
Revenue Growth18.80%
EPS Growth74.51%
CountryAU
Employees140
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.13
Shares Outstanding113,830,080
10 Day Avg. Volume113,253
30 Day Avg. Volume152,183
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)17.98
Price to Sales (P/S)6.09
P/FCF Ratio27.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$7.50Price Target Upside52.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.23
Revenue Forecast (FY)AU$128.48M
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. Th...
How the Company Makes Money
AEF primarily makes money by charging fees for managing client assets in its ethical investment products. Its main revenue stream is funds management income (typically management fees calculated as a percentage of funds under management) earned on...
Australian Ethical Investment Ltd Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 126.41M | 119.38M | 100.49M | 81.10M | 70.78M | 58.71M |
| Gross Profit | 93.98M | 80.12M | 81.75M | 65.79M | 59.38M | 47.70M |
| EBITDA | 39.92M | 38.05M | 25.27M | 15.67M | 15.22M | 16.32M |
| Net Income | 24.04M | 20.20M | 11.53M | 6.58M | 9.51M | 11.12M |
Balance Sheet | ||||||
| Total Assets | 69.90M | 69.73M | 51.23M | 47.30M | 41.94M | 39.47M |
| Cash, Cash Equivalents and Short-Term Investments | 39.92M | 38.84M | 36.39M | 32.73M | 27.39M | 27.81M |
| Total Debt | 3.00M | 2.18M | 2.77M | 2.20M | 834.00K | 1.57M |
| Total Liabilities | 23.66M | 29.28M | 21.09M | 20.55M | 17.27M | 15.29M |
| Stockholders Equity | 46.25M | 40.45M | 30.14M | 26.75M | 24.66M | 24.18M |
Cash Flow | ||||||
| Free Cash Flow | 28.67M | 26.61M | 21.27M | 16.00M | 15.40M | 15.41M |
| Operating Cash Flow | 28.82M | 26.89M | 22.29M | 16.20M | 16.16M | 15.50M |
| Investing Cash Flow | -20.45M | -21.85M | -11.17M | -4.07M | -4.12M | -120.00K |
| Financing Cash Flow | -16.02M | -12.59M | -11.86M | -6.79M | -12.46M | -9.00M |
Australian Ethical Investment Ltd Technical Analysis
Positive
4.93
Price Trends
4.59
Positive
4.93
Positive
5.98
Negative
Market Momentum
0.10
Negative
68.58
Neutral
85.32
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 4.93 is above the 20-day moving average (MA) of 4.59, above the 50-day MA of 4.59, and below the 200-day MA of 5.98, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 68.58 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | AU$948.77M | 8.64 | 14.51% | 4.92% | 21.81% | -43.93% | |
72 Outperform | AU$275.27M | 9.55 | 32.32% | 4.00% | 10.61% | 23.34% | |
69 Neutral | AU$544.68M | 7.80 | 9.94% | 4.63% | 4.26% | 79.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$589.64M | 10.53 | 55.44% | 2.70% | 18.80% | 74.51% | |
46 Neutral | AU$1.36B | 174.79 | 2.39% | 1.85% | 35.30% | 44.24% |
* Financial Sector Average
AU:AEF
Australian Ethical Investment Ltd
5.18
0.17
3.33%
AU:RPL
VGI Partners Ltd.
2.58
0.77
42.62%
AU:MAF
MA Financial Group Limited
7.27
0.94
14.83%
AU:FID
Fiducian Group Ltd
8.72
0.18
2.14%
AU:EQT
EQT Holdings Ltd.
20.33
-9.25
-31.28%
Australian Ethical Investment Ltd Corporate Events
Australian Ethical Investment Appoints New Director With No Current Equity Stake
Mar 11, 2026
Australian Ethical Investment Ltd has announced the appointment of Karen Orvad as a director effective 11 March 2026, signalling a change in the composition of its board. The company disclosed that Orvad currently holds no relevant interests in th...
Australian Ethical Tightens Governance on Trading of Its Securities and Products
Mar 4, 2026
Australian Ethical Group has formalised its Share Trading and Dealing in Australian Ethical Products Policy, outlining governance over how securities in the group and its products may be traded. The policy, approved by the boards of Australian Eth...
Australian Ethical Sets Date for FY26 Half-Year Results Update
Feb 25, 2026
Australian Ethical Investment Ltd has flagged the release of its FY26 half year results, to be presented by Managing Director and CEO John McMurdo alongside CFO Mark Simons on 26 February 2026. The announcement signals an upcoming update on the co...
Australian Ethical lifts profit and FUM as platform overhaul underpins growth
Feb 25, 2026
Australian Ethical Investment reported a strong first half to 31 December 2025, with underlying profit after tax rising 25% to $14.4 million and statutory net profit up 42% to $13.3 million, supported by a 13% lift in revenue to $65.8 million and ...
Australian Ethical Investment Declares Interim Dividend for December Half-Year
Feb 25, 2026
Australian Ethical Investment Ltd has declared a fully franked interim dividend of AUD 0.08 per ordinary share for the six-month period ended 31 December 2025. The dividend will trade ex-dividend on 5 March 2026, with a record date of 6 March 2026...
Australian Ethical Sets Date for Half-Year 2026 Results and Investor Briefing
Feb 11, 2026
Australian Ethical Investment Ltd will release its financial results for the half year ended 31 December 2025 on 26 February 2026, accompanied by a webcast briefing hosted by CEO and Managing Director John McMurdo and CFO Mark Simons, followed by ...
Australian Ethical Investment Ceases to Be Substantial Holder in Australian Clinical Labs
Jan 19, 2026
Australian Ethical Investment Ltd has notified the ASX that it has ceased to be a substantial holder in Australian Clinical Labs Limited, lodging a formal notice confirming its relevant interest in the pathology company’s voting securities f...
Australian Ethical Holds FUM at $14bn as Super Growth and Platform Efficiencies Offset Mandate Loss
Jan 15, 2026
Australian Ethical Investment reported funds under management of $14.08 billion as at 31 December 2025, a 1% decline over the quarter as positive retail and wholesale inflows, particularly in superannuation, were offset by negative investment perf...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.