ASX Limited (AU:ASX)
ASX:ASX
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ASX
(Sydney:ASX)
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Rating:52Neutral
Price Target:
AU$53.00
â–¼(-10.23% Downside)
Action:Reiterated
Date:05/28/26
The score is held back primarily by weak financial quality signals (sharp revenue and free-cash-flow declines and poor cash conversion) and bearish technicals (below major moving averages with negative momentum). These risks are partly offset by attractive valuation (low P/E and solid dividend yield) and an earnings-call picture that is positive on revenue/modernization progress but tempered by higher cost guidance, regulatory remediation, and leadership transition risk.
Positive Factors
Diversified fee-based market infrastructure
ASX’s core model of transaction, clearing, data and technology fees creates recurring, largely sticky revenue tied to market activity and client connectivity. This diversified fee mix supports predictable cash inflows and resilience to individual product cycles, underpinning long-term stability.
Negative Factors
Regulatory findings and governance shortcomings
ASIC’s critical findings signal multiyear remediation, higher compliance costs and closer oversight that can constrain operational freedom and increase execution risk. Governance weaknesses require structural fixes and sustained management focus, raising uncertainty through the remediation horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified fee-based market infrastructure
ASX’s core model of transaction, clearing, data and technology fees creates recurring, largely sticky revenue tied to market activity and client connectivity. This diversified fee mix supports predictable cash inflows and resilience to individual product cycles, underpinning long-term stability.
Read all positive factors
ASX (ASX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$9.86B
Dividend Yield4.28%
Average Volume (3M)654.95K
Price to Earnings (P/E)19.0
Beta (1Y)0.60
Revenue Growth-10.38%
EPS Growth7.07%
CountryAU
Employees1,140
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)2.69
Shares Outstanding195,409,850
10 Day Avg. Volume836,253
30 Day Avg. Volume654,953
Financial Highlights & Ratios
PEG Ratio4.71
Price to Book (P/B)3.49
Price to Sales (P/S)7.90
P/FCF Ratio44.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$54.32Price Target Upside-8.00% Downside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)2.73
Revenue Forecast (FY)AU$1.25B
ASX Business Overview & Revenue Model
Company Description
ASX Limited operates as a comprehensive, integrated exchange entity, managing diverse asset classes both within Australia and across global markets. The company facilitates marketplaces for various types of assets, such as shares, bonds, raw mater...
How the Company Makes Money
ASX makes money primarily by charging fees for operating market infrastructure across the trade lifecycle and for selling data and technology-related services. Key revenue streams include: (1) Trading-related fees: charges tied to on-exchange cash...
ASX Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong top-line revenue growth across Markets, Securities & Payments and Technology & Data and meaningful progress on modernization and regulatory commitments are positive. However, the ASIC inquiry's critical findings, a CEO transition, materially higher expense guidance (20% growth), one-off ASIC-related costs, reduced payout ratio and elevated project/operational delivery risks temper the outlook. Management has initiated tangible remediation and governance actions but faces multiyear work and cost impacts.Positive Updates
Strong Operating Revenue Growth
Operating revenue of $602.8 million, up 11.2% versus the prior corresponding period, reflecting diversified business strength.
Negative Updates
ASIC Inquiry Findings and Cultural/Governance Concerns
ASIC inquiry interim report contained serious findings about stewardship, culture and regulatory engagement; management acknowledged complacency/insularity and committed to multiyear remediation.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Operating Revenue Growth
Operating revenue of $602.8 million, up 11.2% versus the prior corresponding period, reflecting diversified business strength.
Read all positive updates
Company Guidance
ASX guided FY26 total expense growth of 20–23% (13–15% excluding ASIC‑response costs), expects ASIC‑inquiry related costs at the upper end of the prior $25–35m range (H1 ASIC costs $17.3m), and reiterated FY26 CapEx of $170–180m (FY27 CapEx $160–180m); it will accumulate an additional $150m above current NTA by 30 June 2027 funded by at least three dividends paid at a 75% underlying NPAT payout (interim dividend $1.018 per share) and a 2.5% DRP discount; medium‑term targets include underlying ROE of 12.5–14% and D&A rising ~$20m p.a. for the medium term; CHESS Release 1 is targeted for April 2026 (Release 2 primary build complete by end‑2027, go‑live targeted 2029), the new derivatives trading platform is now targeted for late FY28, the net interest spread on collateral is expected to stay around 18 bps for the remainder of FY26, and ASX will provide FY27 total expense growth and FY28 CapEx guidance by the end of the financial year.ASX Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
70
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.50B | 1.71B | 1.59B | 1.42B | 1.10B | 1.02B |
| Gross Profit | 1.32B | 1.61B | 1.51B | 1.34B | 991.70M | 911.80M |
| EBITDA | 1.04B | 1.27B | 1.18B | 819.40M | 796.50M | 757.40M |
| Net Income | 522.70M | 502.60M | 474.20M | 317.30M | 508.50M | 480.90M |
Balance Sheet | ||||||
| Total Assets | 16.02B | 17.57B | 16.89B | 16.83B | 18.24B | 16.60B |
| Cash, Cash Equivalents and Short-Term Investments | 12.23B | 13.90B | 13.42B | 13.51B | 14.46B | 13.38B |
| Total Debt | 11.45B | 12.60B | 334.30M | 78.60M | 67.60M | 72.40M |
| Total Liabilities | 12.11B | 13.70B | 13.16B | 13.19B | 14.43B | 12.86B |
| Stockholders Equity | 3.90B | 3.87B | 3.72B | 3.64B | 3.81B | 3.74B |
Cash Flow | ||||||
| Free Cash Flow | -199.20M | 302.90M | 544.40M | -3.51B | 97.60M | 4.99B |
| Operating Cash Flow | -28.10M | 1.02B | 682.20M | -405.70M | 1.66B | 120.20M |
| Investing Cash Flow | -120.50M | -132.80M | -93.00M | -121.30M | -126.90M | -125.40M |
| Financing Cash Flow | -426.40M | -408.30M | -149.60M | -447.20M | -450.80M | -464.40M |
ASX Technical Analysis
Neutral
59.04
Price Trends
55.60
Negative
54.07
Negative
55.08
Negative
Market Momentum
-1.95
Negative
46.91
Neutral
97.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ASX, the sentiment is Neutral. The current price of 59.04 is above the 20-day moving average (MA) of 50.84, above the 50-day MA of 55.60, and above the 200-day MA of 55.08, indicating a neutral trend. The MACD of -1.95 indicates Negative momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 97.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ASX.
ASX Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | AU$197.99M | 10.98 | 16.49% | 17.89% | 29.80% | 68.37% | |
70 Outperform | AU$20.82B | 30.85 | 21.78% | 2.69% | 7.21% | -10.01% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$90.38B | 19.57 | 13.72% | 3.27% | 4.80% | 30.56% | |
52 Neutral | AU$9.86B | 19.03 | 13.44% | 4.28% | -10.38% | 7.07% | |
52 Neutral | AU$1.01B | 25.00 | 9.94% | 1.26% | 0.68% | 26.29% | |
40 Underperform | AU$1.81M | -0.34 | 236.32% | ― | -18.21% | 12.67% |
* Financial Sector Average
AU:ASX
ASX
52.00
-14.54
-21.85%
AU:CPU
Computershare Limited
36.55
-3.55
-8.84%
AU:MQG
Macquarie Group Limited
251.93
46.00
22.34%
AU:EZL
Euroz Hartleys Group Limited
1.28
0.50
63.89%
AU:ABE
Australian Bond Exchange Holdings Ltd.
0.01
-0.03
-72.50%
AU:CCL
Cuscal Limited
5.04
2.28
82.87%
ASX Corporate Events
ASX Reports Softer May Capital Raisings but Stronger Year-to-Date Growth
Jun 3, 2026
ASX Limited has reported its May 2026 activity figures, showing total new capital quoted of $3.5 billion, down sharply from $6.8 billion a year earlier, as well as a negative net new capital quoted position of $2.0 billion for the month. Despite t...
ASX files final director interest notice as Helen Lofthouse exits board
May 29, 2026
ASX Limited has announced the cessation of Helen Lofthouse as a director effective 29 May 2026, lodging a final director’s interest notice that details her remaining equity interests in the company. The filing confirms her holdings of fully ...
ASX lifts tech spending guidance, trims ROE target and exits Sympli venture
May 26, 2026
ASX has issued guidance for FY27 indicating total expense growth of 18% to 21%, driven mainly by an accelerated technology modernisation program, remediation work following the ASIC inquiry and investment in customer-focused growth initiatives. Ca...
ASX appoints Vic Jokovic to board with no initial shareholding
May 8, 2026
ASX Limited has appointed Vic John Jokovic as a director, with his appointment effective from 4 May 2026, according to an initial director’s interest notice lodged with the exchange. The filing shows Jokovic currently holds no relevant inter...
ASX names Darren Yip interim CEO as board advances global search
Apr 30, 2026
ASX Limited has appointed Group Executive Markets and Listings, Darren Yip, as interim chief executive officer effective 29 May 2026, following the previously announced departure of managing director and CEO Helen Lofthouse. The board says YipR...
ASX launches first phase of modernised CHESS clearing platform
Apr 19, 2026
ASX Limited has confirmed that Release 1 of its upgraded CHESS system is live and ready to provide clearing services, with all approved market operators successfully connected before market open. The new platform is designed to be sustainable, sec...
S&P Downgrades ASX Credit Rating After ASIC Inquiry Findings
Apr 15, 2026
ASX Limited has had its long-term issuer credit rating cut by SP Global Ratings from AA- to A+ with a stable outlook, following an earlier revision of its outlook from stable to negative in December 2025. The downgrade was influenced by findings f...
ASX posts strong uplift in new capital quoted for March 2026
Apr 7, 2026
ASX Limited, operator of Australia’s main securities exchange, facilitates listings and capital raisings for a broad range of entities including equity issuers, debt instruments and investment vehicles, excluding ETFs and mFunds. It plays a ...
ASX Sets Out Governance and Capital Plan After Tough ASIC Inquiry
Apr 1, 2026
ASX Limited has outlined a comprehensive response plan to the Australian Securities and Investments Commission’s final inquiry report, which found shortcomings in governance, risk management and culture across the group. The company’s ...
ASX Discloses Change in Director Heather Smith’s Shareholding
Mar 27, 2026
ASX Limited has disclosed a change in director Heather Smith’s relevant interest in the company’s shares, in line with its continuous disclosure obligations and corporate governance requirements. Smith and co-holder Martin Lee Parkinso...
ASX Discloses Routine Share Purchase by Director Anne Loveridge
Mar 27, 2026
ASX Limited has reported a change in the shareholding of non-executive director Anne Joan Loveridge, in line with its disclosure obligations under listing rule 3.19A.2. Loveridge acquired 92 fully paid ordinary shares on 23 March 2026 for a consid...
ASX Director David Curran Increases Indirect Shareholding
Mar 27, 2026
ASX Limited has disclosed a minor change in the indirect shareholding of director David Curran, whose interest is held via Palicress Pty Ltd as trustee for the DCAC Superannuation Fund. Curran acquired 73 additional fully paid ordinary shares on 2...
ASX bolsters board with appointment of ex-Cboe Australia CEO Vic Jokovic
Mar 25, 2026
ASX Limited has strengthened its board with the appointment of Vic Jokovic as a non-executive director, effective 4 May 2026, drawing on his extensive leadership experience at Cboe Australia and Deutsche Bank across equities, derivatives and excha...
ASX Tightens Insider Trading Controls With Updated Group Dealing Rules Policy
Mar 25, 2026
ASX Limited has updated its Group Dealing Rules Policy, which sets out the principles, requirements and governance arrangements designed to mitigate insider trading risk across the organisation. The revised policy, now in effect and available via ...
ASX to Quote 1.1 Million New Shares Under Distribution Plan
Mar 19, 2026
ASX Limited has applied for quotation of 1,110,424 new fully paid ordinary shares on the Australian Securities Exchange, with the securities to be issued on 23 March 2026. The new shares are being issued under a dividend or distribution plan, mode...
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.