ASX (ASX) AI Stock Analysis

• Market Cap: $13.62B
• Dividend Yield: 3.03%
• Average Volume (3M): 419.84K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.75
• Revenue Growth: 9.70%
• EPS Growth: 2.64%
• Country: AU
• Employees: 1,140
• Sector: Financial
• Sector Strength: 89
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 1.31
• Shares Outstanding: 194,299,420
• 10 Day Avg. Volume: 450,974
• 30 Day Avg. Volume: 419,836
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $63.61
• Price Target Upside: -13.69% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

ASX Limited shows a strong financial foundation with robust profitability and a conservative leverage strategy, contributing significantly to its score. The stock's technical indicators suggest stability but lack momentum. Valuation metrics indicate a fair market valuation with a reasonable dividend yield. Despite strong financial results, regulatory challenges and specific segment declines pose risks. Overall, ASX is financially sound but faces operational and regulatory challenges.

ASX Business Overview & Revenue Model

Company Description

ASX Limited operates as a multi-asset class and integrated exchange company in Australia and internationally. It operates markets for a range of asset classes, including equities, fixed income, commodities, and energy. The company provides listings, trading, clearing, settlement, registry, technical and information, and other post-trade services; securities and derivatives exchange, and ancillary services; and central counterparty clearing services. It is also involved in the depository, and settlement activities, as well as delivery-versus-payment clearing of financial products; and provision of data and technology services to intermediaries, banks, information vendors, and software developers to enable them to make decisions, offer services to their clients, and connect with one another. The company was incorporated in 1987 and is based in Sydney, Australia.

How the Company Makes Money

ASX Limited generates revenue through multiple streams primarily associated with its core exchange operations. Key revenue sources include listing fees from companies that choose to go public and list their shares on the ASX platform. Transaction fees are another significant revenue stream, collected from the trading of securities on the exchange. Additionally, ASX earns clearing and settlement fees, derived from the processes that ensure the transfer of securities and funds between buyers and sellers. The company also offers market data and information services, providing valuable insights and analytics to participants, which constitutes another important revenue stream. ASX has strategic partnerships and collaborations that enhance its service offerings, thereby contributing to its overall revenue. The company's diversified revenue model ensures a stable income stream, driven by the vibrant activity within the Australian and global financial markets.

ASX Financial Statement Overview

Summary

ASX Limited presents a solid financial position with strong profitability and efficient cost management. The company maintains a conservative leverage strategy, enhancing financial stability. However, operational efficiency pressures and limited cash flow growth visibility could pose future challenges.

Income Statement

ASX Limited shows a stable revenue stream with a modest revenue growth rate of 3.45% from 2023 to 2024. The gross profit margin is robust at 147.56%, indicating efficient cost management. The net profit margin improved to 45.12%, reflecting strong profitability. However, EBIT and EBITDA margins have decreased over the years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.09, indicating low leverage. The equity ratio stands at 22.06%, showing a stable capital structure. However, the return on equity has declined over recent periods to 12.73%, suggesting moderate returns for shareholders.

Cash Flow

ASX Limited has demonstrated significant improvement in free cash flow to net income ratio, indicating better cash generation relative to net income. Operating cash flow has also improved substantially from previous negative figures. However, the free cash flow growth rate is not provided, which limits the assessment of cash flow growth dynamics.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.05B	1.02B	1.04B	962.30M	1.10B
	Gross Profit
1.55B	976.80M	989.30M	906.70M	1.05B
	EBIT
614.70M	780.30M	703.10M	647.10M	808.40M
	EBITDA
1.18B	819.40M	796.50M	757.40M	860.50M
	Net Income Common Stockholders
474.20M	317.30M	508.50M	480.90M	498.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.42B	13.51B	14.46B	13.38B	13.86B
	Total Assets
16.89B	16.83B	18.24B	16.60B	17.41B
	Total Debt
334.30M	78.60M	67.60M	72.40M	12.76B
	Net Debt
-908.80M	-930.00M	-4.90B	-5.29B	12.29B
	Total Liabilities
13.16B	13.19B	14.43B	12.86B	13.69B
	Stockholders Equity
3.72B	3.64B	3.81B	3.74B	3.72B
Cash Flow		Free Cash Flow
544.40M	-3.51B	97.60M	4.99B	2.32B
	Operating Cash Flow
682.20M	-3.40B	203.40M	5.09B	2.40B
	Investing Cash Flow
-93.00M	-121.30M	-126.90M	-125.40M	-105.80M
	Financing Cash Flow
-149.60M	-447.20M	-450.80M	-464.40M	-702.60M

ASX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ASX, the sentiment is Positive. The current price of 73.7 is above the 20-day moving average (MA) of 69.67, above the 50-day MA of 67.18, and above the 200-day MA of 64.61, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 73.29 is Negative, neither overbought nor oversold. The STOCH value of 89.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ASX.

ASX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASX	69 Neutral	$13.62B	28.09	13.33%	3.03%	9.70%	2.64%
NWL	66 Neutral	AU$7.03B	68.92	65.17%	1.10%	24.24%	33.94%
Sector *	64 Neutral	$12.57B	9.74	7.88%	16985.68%	12.42%	-5.45%

ASX Corporate Events

UniSuper Reduces Stake in ASX Limited

UniSuper Limited, acting as a trustee for UniSuper and UniSuper Management Pty Limited, has reduced its voting power in ASX Limited from 12.40% to 10.69%. This change in substantial holding reflects a decrease in UniSuper’s influence over ASX Limited, potentially impacting its strategic decisions and stakeholder interests.

ASX Reports Decline in April 2025 Capital Raisings

In April 2025, ASX Limited reported a significant decrease in new capital quoted, totaling $2.1 billion compared to $4.4 billion in the previous corresponding period. The total net new capital quoted also saw a decline to $1.9 billion from $3.1 billion. Despite these decreases, the year-to-date total net new capital quoted showed a slight increase, indicating resilience in the market. The report highlights a challenging environment for capital raisings, with a notable reduction in secondary capital raised and a decrease in the number of new listed entities, reflecting broader market trends and potential impacts on stakeholders.

ASX Limited Announces Change of Registry Address

ASX Limited has announced a change in the registry address for its registry service provider, MUFG Corporate Markets (AU) Limited, effective from April 14, 2025. The new location is at Liberty Place, 161 Castlereagh Street, Sydney, while contact details remain the same. This move is part of ASX’s ongoing efforts to streamline its operations and maintain efficient communication with its stakeholders.

ASX Reports Decline in March 2025 Capital Activity

The ASX Group’s Monthly Activity Report for March 2025 reveals a significant decline in new capital quoted, totaling $2.5 billion compared to $5.2 billion in the previous corresponding period. The report highlights a negative net new capital quoted of $0.5 billion, a stark contrast to the positive $4.7 billion in the prior year, indicating challenges in capital raising activities. This downturn in capital activity may impact ASX’s market positioning and stakeholder confidence, as the total quoted market capitalization of entities delisted increased to $3.0 billion from $0.5 billion in the previous year.

ASX Limited Addresses Regulatory Actions Following CHESS Settlement Incident

ASX Limited has received a joint letter from the Reserve Bank of Australia and the Australian Securities and Investments Commission regarding regulatory actions following a CHESS settlement incident in December 2024. The incident highlighted issues with the CHESS system’s memory allocation, leading to a failed batch settlement. In response, ASX is implementing an action plan to enhance system resilience and address regulatory concerns, including appointing an expert to review the CHESS system. The company is also advancing its technology modernization strategy, emphasizing the replacement of CHESS with a modern, modular architecture to meet market needs. ASX’s leadership is committed to restoring confidence in its operations and improving risk management and business resilience.

ASX Limited Responds to Speculation on Regulatory Actions Post-CHESS Incident

ASX Limited has addressed media reports concerning potential regulatory actions by the Reserve Bank of Australia and the Australian Securities and Investments Commission following a CHESS batch settlement incident in December 2024. The company has received communications from these regulatory bodies and anticipates further announcements regarding the matter, which could have implications for its operations and regulatory compliance.

AustralianSuper Increases Stake in ASX Limited

AustralianSuper Pty Ltd has increased its voting power in ASX Limited from 10.56% to 11.56%, reflecting a significant change in its substantial holding. This change in interest could impact ASX Limited’s operations and influence its strategic decisions, as AustralianSuper strengthens its position as a key stakeholder.

ASX Limited Reports Robust Capital Growth in February 2025

In February 2025, ASX Limited reported a significant increase in new capital quoted, amounting to $33.9 billion compared to $2.5 billion in the previous corresponding period. The total net new capital quoted was $32.1 billion, showing substantial growth from $0.7 billion in the previous period, indicating a strong performance in capital raisings. The number of new listed entities increased to 56, while 17 entities were de-listed, resulting in a total of 2,101 listed entities, a slight decrease from the previous year. This activity reflects a robust market environment and highlights ASX’s pivotal role in facilitating capital growth, impacting stakeholders positively by enhancing market liquidity and investment opportunities.

ASX Limited Updates Dividend Distribution Details

ASX Limited announced an update to its previous dividend distribution notification, specifying the NZD currency exchange rate, the NZD equivalent amount per security, and the dividend reinvestment plan price. This update is pertinent for stakeholders as it clarifies the financial details associated with the dividend distribution for the period ending December 31, 2024, ensuring transparency and accurate financial planning.

ASX Limited: Director’s Stake Increase in Ordinary Shares

ASX Limited announced a change in the interests of its director, David Clarke, with the acquisition of 1,500 fully paid ordinary shares through the Tiwhaite Family Trust. This change, authorized by the Group General Counsel and Company Secretary, may influence the director’s stake and potentially impact stakeholder perceptions.

ASX Limited Reports Change in Director’s Shareholding

ASX Limited announced a change in the director’s interest notice for Wayne Byres, who acquired 500 additional fully paid ordinary shares, increasing his holdings to 2,500 shares. This update may impact stakeholders by indicating the director’s confidence in the company’s performance and future prospects.

ASX Limited Announces 2025 Half-Year Financial Results

ASX Limited has released its 2025 half-year financial results, presented by CEO Helen Lofthouse and CFO Andrew Tobin. This presentation, done virtually, highlights the company’s financial performance for the first half of the fiscal year ending December 2024. The announcement reflects ASX Limited’s commitment to transparency and provides stakeholders with insights into the company’s financial health and strategic directions.

ASX Limited Releases 2025 Half-Year Financial Results

ASX Limited announced its 2025 half-year financial results, providing stakeholders with insights into its operational performance for the period. This announcement could have implications for the company’s market positioning and investor relations, as it reflects the company’s financial health and strategic direction.

ASX Limited Reports Record Revenue in First Half of 2025

ASX Limited reported a record operating revenue of $541.9 million for the first half of 2025, marking a 5.9% increase from the previous year. This growth was driven by strong performance in its Markets, Technology & Data, and Securities & Payments divisions. The company reported a statutory net profit after tax of $243.5 million, a 5.6% rise, and an underlying NPAT of $253.7 million, up 10.1%. The interim dividend per share increased by 9.9% to 111.2 cents, reflecting effective expense management despite higher equipment costs. ASX continues executing its five-year strategy, emphasizing technology modernization and a strategic corporate office relocation to support modern work environments.

ASX Limited Declares Dividend for H2 2024

ASX Limited announced a dividend distribution for its ordinary fully paid securities, with a payment amount of AUD 1.112 per share. The dividends are related to a six-month period ending December 31, 2024, and will be paid on March 21, 2025. This announcement reflects ASX Limited’s ongoing commitment to returning value to its shareholders and highlights its stable financial performance. The distribution requires no additional approvals, signifying a streamlined process for shareholders.

ASX Limited Reports Robust Half-Year Financial Results with Increased Revenue and Profit

ASX Limited announced its half-year financial results for the period ending December 31, 2024, reporting a 10.9% increase in revenue from ordinary activities to $855.9 million. The net profit after tax rose by 5.6% to $243.5 million, with an underlying net profit growth of 10.1%. The company declared an interim dividend of 111.2 cents per share, maintaining a 30% tax rate, and continues its dividend reinvestment plan. These results indicate strong operational performance and suggest solid financial health, reinforcing ASX’s position as a leader in the securities exchange sector.