Australian Ethical Investment Ltd (AEF) AI Stock Analysis

• Market Cap: €800.74M
• Dividend Yield: 1.99%
• Average Volume (3M): 152.18K
• Price to Earnings (P/E): 39.0
• Beta (1Y): 0.70
• 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: 113,419,780
• 10 Day Avg. Volume: 113,253
• 30 Day Avg. Volume: 152,183
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 66 Neutral
• Price Target: AU$7.50 ▲(6.38% Upside)

Australian Ethical Investment Ltd's strong financial performance is a key strength, supported by robust revenue growth and profitability. However, technical indicators suggest short-term bearish momentum, and the high P/E ratio raises valuation concerns. The absence of earnings call data and corporate events means these factors do not influence the score.

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 shows strong 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.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	110.80M	119.38M	100.49M	81.10M	70.78M	58.71M
Gross Profit	81.73M	80.12M	81.75M	65.79M	59.38M	47.70M
EBITDA	33.35M	38.05M	25.27M	15.67M	15.02M	16.32M
Net Income	14.82M	20.20M	11.53M	6.58M	9.51M	11.12M
Balance Sheet
Total Assets	55.83M	69.73M	51.23M	47.30M	41.94M	39.47M
Cash, Cash Equivalents and Short-Term Investments	32.57M	38.84M	36.39M	32.73M	27.39M	27.81M
Total Debt	2.48M	2.18M	2.77M	2.20M	834.00K	1.57M
Total Liabilities	20.74M	29.28M	21.09M	20.55M	17.27M	15.29M
Stockholders Equity	35.09M	40.45M	30.14M	26.75M	24.66M	24.18M
Cash Flow
Free Cash Flow	26.78M	26.61M	21.27M	16.00M	15.40M	15.41M
Operating Cash Flow	27.21M	26.89M	22.29M	16.20M	16.16M	15.50M
Investing Cash Flow	-11.17M	-21.85M	-11.17M	-4.07M	-4.12M	-120.00K
Financing Cash Flow	-10.32M	-12.59M	-11.86M	-6.79M	-12.46M	-9.00M

Australian Ethical Investment Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 7.05 is below the 20-day moving average (MA) of 7.26, below the 50-day MA of 7.32, and above the 200-day MA of 6.24, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 38.32 is Neutral, 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
RPL	―	AU$1.15B	26.40	5.73%	5.26%	21.81%	-43.93%
FID	―	AU$396.81M	21.33	32.31%	3.66%	10.61%	23.34%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AEF	―	€800.74M	39.05	58.10%	1.99%	18.80%	74.51%
EQT	―	AU$569.04M	17.61	8.50%	4.78%	4.26%	79.41%
MAF	―	AU$1.66B	39.92	8.97%	2.04%	35.30%	44.24%

Australian Ethical Investment Ltd Corporate Events

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.

The most recent analyst rating on (AU:AEF) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Australian Ethical Investment Ltd stock, see the AU:AEF Stock Forecast page.

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.

The most recent analyst rating on (AU:AEF) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Australian Ethical Investment Ltd stock, see the AU:AEF Stock Forecast page.

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.

The most recent analyst rating on (AU:AEF) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Australian Ethical Investment Ltd stock, see the AU:AEF Stock Forecast page.

Australian Ethical Investment Ltd Declares Dividend for H1 2025

Australian Ethical Investment Ltd has announced a dividend distribution of AUD 0.09 per fully paid ordinary share, covering the six-month period ending June 30, 2025. The ex-dividend date is set for September 3, 2025, with a record date of September 4, 2025, and payment scheduled for September 19, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders while maintaining its ethical investment focus.

The most recent analyst rating on (AU:AEF) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Australian Ethical Investment Ltd stock, see the AU:AEF Stock Forecast page.

Australian Ethical Investment Ltd Reports Strong Financial Growth for FY2025

Australian Ethical Investment Ltd reported a significant increase in its financial performance for the year ended 30 June 2025, with revenues rising by 19% and net profit after tax increasing by 75% compared to the previous year. The company declared a final dividend of 9 cents per share, fully franked, reflecting its robust financial health and commitment to delivering value to shareholders.

The most recent analyst rating on (AU:AEF) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Australian Ethical Investment Ltd stock, see the AU:AEF Stock Forecast page.

Australian Ethical Investment Ltd to Release FY25 Financial Results

Australian Ethical Investment Ltd announced that its financial results for the year ending 30 June 2025 will be released on 28 August 2025. The announcement will be followed by a webcast hosted by CEO John McMurdo and CFO Mark Simons, providing insights into the company’s performance. This event is significant for stakeholders as it offers a detailed review of the company’s financial health and strategic direction.

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

Australian Ethical Investment Ltd has announced that it is no longer a substantial holder in Kinatico Limited, as indicated in the Form 605 Notice. This change may impact the company’s investment portfolio and its strategic positioning within the ethical investment sector, potentially influencing stakeholders’ perceptions and future investment decisions.