Contango Asset Management Ltd. (APL) AI Stock Analysis

• Market Cap: AU$10.36M
• Dividend Yield: N/A
• Average Volume (3M): 25.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 15.52%
• EPS Growth: 79.73%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management - Global
• EPS (TTM): N/A
• Shares Outstanding: 57,542,427
• 10 Day Avg. Volume: 63,547
• 30 Day Avg. Volume: 25,904
• PEG Ratio: 0.46
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 7.05
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: AU$0.19 ▲(2.78% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is primarily supported by improving financial trajectory (positive operating/free cash flow and reduced losses) and a strong technical uptrend above key moving averages. Offsetting these positives are continued net losses (negative P/E) and an overextended RSI that increases near-term pullback risk.

Positive Factors

High gross margin

Contango's ~97.7% gross margin reflects a fee-driven, low direct-cost model typical of asset managers. High gross profitability supports operating leverage, enabling the firm to convert modest revenue growth into operating cash and sustain margins over the medium term if fees and cost control remain stable.

Return to positive operating & free cash flow

A return to positive operating and free cash flow after multi-year burn demonstrates improved cash generation ability. Durable cash conversion reduces reliance on external financing, supports reinvestment or distributions, and is a key structural improvement if sustained beyond a single-year rebound.

Manageable leverage

Low debt-to-equity (~0.25) gives Contango financial flexibility and limits interest burden, which is important for an asset manager with variable fee income. Manageable leverage provides capacity to fund operations or opportunistic investments without materially increasing default or refinancing risk.

Negative Factors

Persistent net losses and negative ROE

Despite revenue gains and high gross margins, the business remains unprofitable at the bottom line with negative ROE. Continued net losses limit retained capital, impair shareholder returns, and constrain strategic investments unless the firm sustains margin recovery into consistent net profitability.

Declining equity base

A falling equity base reduces the firm's buffer against operating volatility and can tighten access to credit. For an investment manager, declining shareholder capital raises the risk of dilution on future raises and weakens capacity to scale funds or absorb redemptions during market stress.

Cash-flow recovery may be fragile

The 2025 cash-flow improvement follows several years of burn and a modest decline in free cash flow versus the prior period, indicating the recovery could be fragile. If revenue or fee pressures re-emerge, the company may revert to negative cash generation, straining operations.

Contango Asset Management Ltd. Business Overview & Revenue Model

Company Description

Associate 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 Money

Contango Asset Management Ltd. makes money through management fees charged on the assets they manage for clients. These fees are typically a percentage of the total assets under management (AUM) and can vary based on the investment products and strategies utilized. Additionally, the company may earn performance fees, which are contingent on achieving specific investment returns or benchmarks. Contango may also engage in strategic partnerships with other financial institutions to expand its product offerings and reach more clients, thereby increasing its revenue potential.

Contango Asset Management Ltd. Financial Statement Overview

Summary

Operational trend improved in 2025 with revenue up 6.7%, very high gross margin (~97.7%), and a return to positive operating and free cash flow (~$0.89m/~$0.88m). However, profitability remains negative (net margin ~-2.6%, ROE ~-2.2%), and the cash-flow turnaround is still early after prior-year burn.

Income Statement

Revenue has grown over time, with a solid uptick in the latest year (2025 revenue growth of 6.7%) and very high gross profitability in 2025 (gross margin ~97.7%). However, the company remains unprofitable at the operating and net level (2025 net margin ~-2.6%), and while losses have narrowed meaningfully versus 2023–2024, the business has not yet demonstrated consistent bottom-line profitability.

Balance Sheet

Leverage looks manageable with debt-to-equity around 0.25 in 2025, and equity remains a meaningful portion of the capital base. That said, profitability on shareholder capital is still negative (2025 return on equity ~-2.2%), and equity has trended down from 2022 to 2025, which can pressure flexibility if losses persist.

Cash Flow

Cash generation improved sharply in 2025, with positive operating cash flow (~$0.89m) and positive free cash flow (~$0.88m) after multiple years of cash burn (2020–2024). The key watch item is durability: 2024 operating and free cash flow were negative, and the latest free cash flow showed a modest decline versus the prior period (free cash flow growth of -44.2k), suggesting the turnaround is still early.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	6.66M	6.03M	5.66M	6.21M	5.54M
Gross Profit	6.50M	5.08M	3.85M	4.32M	3.94M
EBITDA	-42.00K	-421.00K	-1.75M	-425.00K	-757.00K
Net Income	-171.00K	-798.00K	-1.99M	-642.00K	-800.00K
Balance Sheet
Total Assets	12.58M	12.71M	13.09M	13.21M	13.86M
Cash, Cash Equivalents and Short-Term Investments	4.84M	4.18M	4.05M	6.59M	5.53M
Total Debt	1.93M	1.74M	1.95M	1.62M	1.64M
Total Liabilities	4.92M	4.99M	6.01M	4.31M	4.48M
Stockholders Equity	7.67M	7.72M	7.08M	8.90M	9.37M
Cash Flow
Free Cash Flow	882.00K	-495.00K	-2.17M	-833.00K	-312.00K
Operating Cash Flow	885.00K	-489.00K	-2.16M	-824.00K	-307.00K
Investing Cash Flow	-226.00K	-607.00K	-307.00K	1.82M	1.82M
Financing Cash Flow	0.00	1.23M	-71.00K	76.00K	70.00K

Contango Asset Management Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:APL, the sentiment is Neutral. The current price of 0.18 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.19, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.40 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:APL.

Contango Asset Management Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAM	72 Outperform	AU$64.02M	7.05	32.22%	6.39%	22.67%	19.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ARA	58 Neutral	AU$103.82M	24.32	2.66%	1.96%	40.89%	175.00%
APL	55 Neutral	AU$10.36M	-60.00	-2.22%	―	15.52%	79.73%
CIW	53 Neutral	AU$30.12M	53.68	2.42%	2.03%	18.17%	―
SHN	52 Neutral	AU$105.68M	-36.15	-15.05%	―	―	76.36%

Contango Asset Management Ltd. Corporate Events

Associate Global Partners Director Increases Holding via Dividend Reinvestment

Associate Global Partners Limited has disclosed a change in director Nerida Campbell’s indirect interests, with an increase of 257 units in the WCM Quality Global Growth Fund – Active ETF via the fund’s dividend reinvestment plan. Following the transaction, Campbell’s indirect holdings now comprise 320,074 ordinary shares in the company and 22,231 units in the ETF, signalling routine portfolio adjustment through reinvested distributions rather than strategic on-market trading, with no changes reported in any related contracts or dealings during a closed period.

The most recent analyst rating on (AU:APL) stock is a Hold with a A$0.20 price target. To see the full list of analyst forecasts on Contango Asset Management Ltd. stock, see the AU:APL Stock Forecast page.

Associate Global Partners Director Increases Holding in WCMQ ETF via Dividend Reinvestment

Associate Global Partners has disclosed a change in director Jason Craig Billings’ indirect interests, following the issue of additional units in the WCM Quality Global Growth Fund – Active ETF to his superannuation entity under the fund’s dividend reinvestment plan. Through Jasbaat Super Pty Ltd as trustee for his superannuation account, Billings’ holding in the ETF increased by 229 units across October 2025 and January 2026, taking his total ETF units to 10,100 while his 1,006,432 fully paid ordinary shares in the company remain unchanged, signalling a modest reinvestment-driven uplift in his exposure to the firm’s managed products rather than a strategic shareholding move.

The most recent analyst rating on (AU:APL) stock is a Hold with a A$0.20 price target. To see the full list of analyst forecasts on Contango Asset Management Ltd. stock, see the AU:APL Stock Forecast page.

Associate Global Partners Director Lifts Fund Units via Dividend Reinvestment

Associate Global Partners Limited has disclosed a change in director Brett Peter Cairns’ indirect interests, stemming from his roles as director, shareholder and beneficiary in various Euclid Pty Limited–related entities that hold securities and units in funds managed by the group’s subsidiary. Cairns’ indirect holding in the WCM Quality Global Growth Fund Active ETF increased modestly from 9,983 to 10,100 units through the fund’s dividend reinvestment plan, with no change to his substantial ordinary shareholding in the company; the notice signals ongoing alignment between the director’s personal investments and the firm’s managed products but does not indicate any broader strategic or operational shift for the business.

The most recent analyst rating on (AU:APL) stock is a Hold with a A$0.20 price target. To see the full list of analyst forecasts on Contango Asset Management Ltd. stock, see the AU:APL Stock Forecast page.

Director of Associate Global Partners Limited Increases Shareholding

Associate Global Partners Limited announced a recent adjustment in the shareholding interests of its director, Brett Peter Cairns. This change reflects an on-market purchase of additional fully paid ordinary shares, enhancing the director’s overall stake in the company and potentially signaling confidence in its growth and performance trajectory.

The most recent analyst rating on (AU:APL) stock is a Hold with a A$0.15 price target. To see the full list of analyst forecasts on Contango Asset Management Ltd. stock, see the AU:APL Stock Forecast page.

Director’s Interest Update at Associate Global Partners

Associate Global Partners Limited announced a change in the director’s interest notice, indicating that Martin Francis Switzer has converted 100,000 performance rights into an equivalent number of fully paid ordinary shares. This change reflects an increase in Switzer’s direct holdings in the company, which may impact the company’s governance and shareholder dynamics.

The most recent analyst rating on (AU:APL) stock is a Hold with a A$0.15 price target. To see the full list of analyst forecasts on Contango Asset Management Ltd. stock, see the AU:APL Stock Forecast page.

APL Gains ASX Relief from Quarterly Reporting

Associate Global Partners Limited, operating under the ASX ticker APL, has announced that the Australian Securities Exchange (ASX) has lifted the requirement for the company to submit quarterly cash flow and activities reports. This decision comes after APL achieved four consecutive quarters of positive net operating cash flows, indicating a stable financial performance. The company’s positive cash flow trend, with notable figures in the last three quarters of FY25 and the first quarter of FY26, reflects its strong operational efficiency and financial health, potentially enhancing its market credibility and investor confidence.

The most recent analyst rating on (AU:APL) stock is a Hold with a A$0.15 price target. To see the full list of analyst forecasts on Contango Asset Management Ltd. stock, see the AU:APL Stock Forecast page.

Director Increases Stake in Contango Asset Management

Contango Asset Management Ltd., operating under the name Associate Global Partners Limited, has announced a change in the director’s interest notice. Brett Peter Cairns, a director of the company, has increased his indirect interest in the company’s ordinary shares through an on-market purchase of 537 fully paid ordinary shares at a price of $0.1550 per share. This change reflects a slight increase in his holdings, potentially indicating confidence in the company’s future performance.