Contango Asset Management Ltd. (APL) AI Stock Analysis

• Market Cap: AU$6.21M
• Dividend Yield: N/A
• Average Volume (3M): 14.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: 3.13%
• EPS Growth: 35.15%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 80
• Industry: Asset Management - Global
• EPS (TTM): -0.01
• Shares Outstanding: 56,492,428
• 10 Day Avg. Volume: 13,100
• 30 Day Avg. Volume: 14,561
• PEG Ratio: -0.04
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.69
• 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: 1

• Rating: 45 Neutral
• 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. 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. 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

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

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

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	6.24M	6.03M	5.66M	6.21M	5.54M	4.73M
Gross Profit	5.31M	5.08M	3.85M	4.32M	3.94M	3.13M
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 Assets	12.35M	12.71M	13.09M	13.21M	13.86M	13.34M
Cash, Cash Equivalents and Short-Term Investments	4.26M	4.18M	4.05M	6.59M	5.53M	3.94M
Total Debt	2.00M	1.74M	1.95M	1.62M	1.64M	1.25M
Total Liabilities	4.97M	4.99M	6.01M	4.31M	4.48M	3.56M
Stockholders Equity	7.38M	7.72M	7.08M	8.90M	9.37M	9.79M
Cash Flow
Free Cash Flow	-2.00K	-495.00K	-2.17M	-833.00K	-312.00K	-1.25M
Operating Cash Flow	4.00K	-489.00K	-2.16M	-824.00K	-307.00K	-1.23M
Investing Cash Flow	-255.00K	-607.00K	-307.00K	1.82M	1.82M	-17.00K
Financing Cash Flow	132.00K	1.23M	-71.00K	76.00K	70.00K	750.00K

Contango Asset Management Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAM	73 Outperform	AU$71.86M	9.62	34.01%	6.91%	19.50%	31.19%
Sector *	67 Neutral	$16.81B	11.85	9.77%	3.76%	12.07%	-8.35%
CIW	58 Neutral	AU$31.04M	―	-9.28%	0.61%	-13.78%	50.00%
APL	45 Neutral	AU$6.21M	―	-11.26%	―	3.13%	35.15%
AYI		AU$20.53M	―		―	―	―
ARA	55 Neutral	AU$89.61M	19.66	2.75%	2.17%	11.31%	―
SHN	32 Underperform	AU$25.05M	―	-47.04%	―	―	-30.23%

Contango Asset Management Ltd. Corporate Events

Associate Global Partners Issues Unquoted Performance Rights

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

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

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

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

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

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.