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Contango Asset Management Ltd. (AU:APL)
ASX:APL
Australian Market

Contango Asset Management Ltd. (APL) AI Stock Analysis

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AU

Contango Asset Management Ltd.

(Sydney:APL)

Rating:45Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Contango Asset Management Ltd.'s overall stock score is primarily influenced by its mixed financial performance and weak technical analysis. The financial performance score, despite some positive aspects, is hampered by ongoing profitability and cash flow challenges. Additionally, the technical analysis indicates strong bearish momentum, contributing to the low overall score. Valuation concerns, including a negative P/E ratio, further impact investor sentiment.

Contango Asset Management Ltd. (APL) vs. iShares MSCI Australia ETF (EWA)

Contango Asset Management Ltd. Business Overview & Revenue Model

Company DescriptionAssociate Global Partners Limited is a publicly owned investment manager. It manages large cap, mid cap, small cap, micro cap, and income focused mandates for its institutional clients. The company was formerly known as Contango Asset Management Limited and changed its name to Associate Global Partners Limited in November 2022. Associate Global Partners Limited is based in Sydney, Australia.
How the Company Makes MoneyContango Asset Management Ltd. generates revenue primarily through management fees charged on the assets under management (AUM). These fees are typically a percentage of the total AUM and are collected on an ongoing basis. Additionally, the company may earn performance fees, which are contingent on achieving specific investment return benchmarks or outperforming market indices. Contango's revenue is influenced by the performance of its investment products, market conditions, and its ability to attract and retain investors. Strategic partnerships and alliances within the financial sector can also play a role in expanding its client base and distribution channels, thereby contributing to its revenue growth.

Contango Asset Management Ltd. Financial Statement Overview

Summary
Contango Asset Management Ltd. shows modest revenue growth and improved gross profit margins, yet faces profitability challenges with negative EBIT and net income margins. The balance sheet indicates a stable equity position but diminishing stockholders' equity, while cash flow issues signal liquidity constraints despite recent improvements in operating cash flow.
Income Statement
45
Neutral
Contango Asset Management Ltd. has shown an improvement in gross profit margin from previous years, but continues to struggle with negative EBIT and net income margins. Revenue has seen moderate growth, but profitability remains a concern due to consistent losses. The company needs to address operational inefficiencies to improve its financial health.
Balance Sheet
60
Neutral
The company's balance sheet reflects a stable equity position with a reasonable debt-to-equity ratio, suggesting manageable leverage. However, the diminishing stockholders' equity over the years is a potential risk, and the firm needs to focus on strengthening its equity base to ensure long-term stability.
Cash Flow
50
Neutral
Contango's cash flow situation is challenging, with negative free cash flow and operating cash flow indicating liquidity constraints. Despite these challenges, the company improved its operating cash flow in the recent period, signaling some progress in cash management. Continued focus on cash generation is crucial for future sustainability.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue6.24M6.03M5.66M6.21M5.54M4.73M
Gross Profit5.31M5.08M3.85M4.32M3.94M3.13M
EBITDA-481.00K-421.00K-1.75M-425.00K-757.00K-1.36M
Net Income-877.00K-798.00K-1.99M-642.00K-800.00K-1.16M
Balance Sheet
Total Assets12.35M12.71M13.09M13.21M13.86M13.34M
Cash, Cash Equivalents and Short-Term Investments4.26M4.18M4.05M6.59M5.53M3.94M
Total Debt2.00M1.74M1.95M1.62M1.64M1.25M
Total Liabilities4.97M4.99M6.01M4.31M4.48M3.56M
Stockholders Equity7.38M7.72M7.08M8.90M9.37M9.79M
Cash Flow
Free Cash Flow-2.00K-495.00K-2.17M-833.00K-312.00K-1.25M
Operating Cash Flow4.00K-489.00K-2.16M-824.00K-307.00K-1.23M
Investing Cash Flow-255.00K-607.00K-307.00K1.82M1.82M-17.00K
Financing Cash Flow132.00K1.23M-71.00K76.00K70.00K750.00K

Contango Asset Management Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.11
Price Trends
50DMA
0.12
Negative
100DMA
0.14
Negative
200DMA
0.14
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
36.94
Neutral
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:APL, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.12, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:APL.

Contango Asset Management Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUMAM
73
Outperform
AU$71.86M9.6234.01%6.91%19.50%31.19%
67
Neutral
$16.81B11.859.77%3.76%12.07%-8.35%
AUCIW
58
Neutral
AU$31.04M-9.28%0.61%-13.78%50.00%
AUAPL
45
Neutral
AU$6.21M-11.26%3.13%35.15%
AUAYI
AU$20.53M
AUARA
55
Neutral
AU$89.61M19.662.75%2.17%11.31%
AUSHN
32
Underperform
AU$25.05M-47.04%-30.23%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:APL
Contango Asset Management Ltd.
0.11
>-0.01
-8.33%
AU:AYI
A1 Investments & Resources Ltd
AU:CIW
Clime Investment Management Ltd
0.41
0.11
36.67%
AU:MAM
Microequities Asset Management Group Ltd.
0.52
0.03
6.12%
AU:ARA
Ariadne Australia Limited
0.47
-0.02
-4.08%
AU:SHN
Sunshine Gold Ltd
0.01
0.00
0.00%

Contango Asset Management Ltd. Corporate Events

Associate Global Partners Issues Unquoted Performance Rights
Jul 7, 2025

Associate Global Partners Limited has announced the issuance of 1,822,000 unquoted APL Performance Rights as part of a previously announced transaction. This issuance, which is not intended to be quoted on the ASX, reflects the company’s ongoing strategic initiatives and may impact its market positioning by enhancing its capital structure.

Associate Global Partners Limited Announces Proposed Securities Issue
Jul 4, 2025

Associate Global Partners Limited has announced a proposed issue of 1,822,000 APL Performance Rights securities. This move is part of a placement or other type of issue, with the proposed issue date set for July 4, 2025. The announcement signifies the company’s strategic efforts to enhance its financial operations through the issuance of new securities, potentially impacting its market positioning and offering implications for stakeholders.

Associate Global Partners Updates CEO Remuneration
Jul 1, 2025

Associate Global Partners Limited, listed on the ASX, has announced an update regarding the remuneration of its CEO and Managing Director, Mr. Martin Switzer. Effective July 1, 2025, Mr. Switzer’s annual remuneration package will increase by $50,000, bringing it to $590,000, inclusive of superannuation. This adjustment follows a periodic review by the company’s Board, while all other terms of his employment remain unchanged.

Associate Global Partners Reports Resilient Performance Amid Market Volatility
Apr 22, 2025

Associate Global Partners Limited reported a 4% decline in Funds Under Management (FUM) to $1.650 billion for the quarter ending March 31, 2025, due to weaker global equities markets and market volatility. Despite this, the company achieved positive operating cash inflows for the second consecutive quarter and increased its cash balance to $4.616 million while reducing loan debt. The company’s diversified product suite and strong relationships with advisers and investors helped offset some outflows, highlighting its resilience in a volatile market.

Associate Global Partners Updates Registry Address
Apr 16, 2025

Associate Global Partners Limited, listed on the ASX as APL, has announced a change in the address of its registry office in Sydney. The registry, managed by MUFG Corporate Markets (AU) Limited, has moved to a new location at Liberty Place, Level 41, 161 Castlereagh Street, Sydney, NSW, effective from April 14, 2025. This change is in compliance with ASX Listing Rule 3.15.1, and the telephone numbers and mailing addresses remain unchanged.

Associate Global Partners Limited Announces Cessation of Securities
Apr 14, 2025

Associate Global Partners Limited, a company listed on the Australian Securities Exchange (ASX), announced the cessation of 350,000 performance rights under the ASX security code APLAA. The cessation occurred due to the lapse of conditional rights that were not met or became incapable of being satisfied as of April 11, 2025. This announcement may affect the company’s capital structure and could have implications for stakeholders who were relying on these securities for future performance incentives.

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.Date of analysis: Jun 26, 2025