Countplus Limited (CUP) AI Stock Analysis

• Market Cap: AU$140.02M
• Dividend Yield: 4.76%
• Average Volume (3M): 61.17K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.33
• Revenue Growth: 46.62%
• EPS Growth: -49.62%
• Country: AU
• Employees: 600
• Sector: Industrials
• Sector Strength: 94
• Industry: Specialty Business Services
• EPS (TTM): 0.02
• Shares Outstanding: 169,304,440
• 10 Day Avg. Volume: 54,684
• 30 Day Avg. Volume: 61,175
• PEG Ratio: -0.33
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.58
• 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: AU$1.00
• Price Target Upside: 19.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: AU$1.00 ▲(19.05%Upside)

Countplus Limited's strong technical momentum and solid financial performance, especially its cash flow generation, are significant strengths. However, the high P/E ratio suggests potential overvaluation, and declining profit margins raise concerns about profitability. These factors contribute to a balanced stock assessment.

Countplus Limited Business Overview & Revenue Model

Company Description

CountPlus Limited, together with its subsidiaries, provides accounting, business advisory, and financial planning services in Australia. The company operates through Accounting, Financial Planning, Financial Services, and Other segments. It offers tax, assurance, audit, and corporate advisory services; financial planning; loans commission, and leasing commission services; and information technology, legal, conference, and insurance services. The company was founded in 2006 and is based in Sydney, Australia.

How the Company Makes Money

Countplus Limited generates revenue through its network of member firms, which provide a variety of professional services such as accounting, tax, and financial advisory to individual and corporate clients. The company earns money by taking a share of the revenue generated by these member firms. Additionally, Countplus may receive fees for offering centralized support services, resources, and technology to its member firms, enhancing their operational efficiency and service delivery. The company's earnings can also be influenced by strategic acquisitions and partnerships aimed at expanding its service offerings and client base.

Countplus Limited Financial Statement Overview

Summary

Countplus Limited shows solid revenue growth and a stable balance sheet, albeit with some concerns regarding profitability margins and cash flow consistency. The company’s increased leverage and declining profit margins may pose potential risks, yet its ability to generate operating cash flow provides a positive outlook.

Income Statement

Countplus Limited has demonstrated a healthy revenue growth rate from 2023 to 2024, increasing by approximately 22.6%. However, gross profit margin has decreased over the years, indicating potential cost management issues. The net profit margin also decreased significantly from 2023 to 2024, reflecting a decline in net profitability despite increased revenues.

Balance Sheet

The company's debt-to-equity ratio is relatively stable, indicating a balanced capital structure, but there was an increase in total debt from 2023 to 2024. Return on equity is moderate, and the equity ratio suggests that the company maintains a reasonable level of equity financing compared to its total assets.

Cash Flow

Operating cash flow has improved significantly, indicating better cash generation from operations. The free cash flow to net income ratio is strong, reflecting efficient conversion of earnings to cash. However, inconsistent free cash flow growth rates over the years highlight potential variability in cash management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
137.82M	112.99M	92.14M	86.66M	80.80M	84.91M
	Gross Profit
39.68M	30.53M	42.54M	38.03M	35.70M	79.55M
	EBIT
8.96M	2.48M	4.24M	4.34M	5.18M	7.86M
	EBITDA
10.52M	10.46M	10.94M	10.80M	10.69M	13.23M
	Net Income Common Stockholders
4.44M	1.10M	5.10M	5.11M	4.94M	15.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.51M	25.03M	21.67M	21.54M	26.24M	25.84M
	Total Assets
432.04M	435.11M	440.71M	521.97M	507.02M	426.96M
	Total Debt
68.48M	61.77M	28.85M	23.24M	18.76M	20.09M
	Net Debt
44.98M	36.74M	7.18M	1.70M	-7.48M	-5.75M
	Total Liabilities
310.99M	313.32M	351.24M	433.51M	425.20M	348.85M
	Stockholders Equity
108.98M	109.00M	74.70M	75.35M	71.17M	68.72M
Cash Flow		Free Cash Flow
8.78M	7.38M	4.03M	9.70M	9.97M	12.25M
	Operating Cash Flow
13.70M	8.26M	5.03M	10.66M	11.42M	14.03M
	Investing Cash Flow
-17.57M	-17.22M	-1.98M	-12.47M	-3.43M	3.31M
	Financing Cash Flow
10.87M	12.33M	-2.92M	-2.88M	-7.59M	-1.76M

Countplus Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CUP, the sentiment is Positive. The current price of 0.84 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.78, and above the 200-day MA of 0.73, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 69.25 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CUP.

Countplus Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUP	70 Outperform	AU$140.02M	32.21	4.83%	4.76%	46.62%	-49.62%
Sector *	66 Neutral	$4.48B	12.24	5.32%	248.54%	4.09%	-12.10%
AMLTF		$2.10B	17.68	4.84%	2.39%	―	―
CFIGF		$3.53B	32.26	3.85%	4.08%	―	―
NNA		€812.57M	5.90	23.27%	8.30%	―	―
PVQ		€1.14B	―	-24.47%	7.32%	―	―
FSB		€3.87B	106.69	11.42%	0.56%	―	―

Countplus Limited Corporate Events

Count Limited Director Increases Shareholding

Count Limited has announced a change in the interests of its director, Raymond Kellerman, who has increased his indirect shareholding in the company. The transaction involved the acquisition of 47,296 fully paid ordinary shares through an on-market trade, raising his total shareholding to 3,647,296 shares. This change reflects a strategic decision by the director to enhance his investment in the company, which may indicate confidence in the company’s future performance and stability.

The most recent analyst rating on (AU:CUP) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Countplus Limited stock, see the AU:CUP Stock Forecast page.

Count Limited Director Increases Shareholding

Count Limited has announced a change in the director’s interest in securities. Director Hugh Humphrey has acquired 20,000 ordinary shares through an on-market trade, increasing his total holdings to 277,912 ordinary shares. This transaction, valued at $16,000, reflects a strategic move by the director, potentially indicating confidence in the company’s future performance.

The most recent analyst rating on (AU:CUP) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Countplus Limited stock, see the AU:CUP Stock Forecast page.

Count Financial Wins Class Action Dismissal

Count Limited, through its subsidiary Count Financial Limited, operates in the financial services industry. The company focuses on providing financial advice and related services. Recently, Count Financial successfully defended itself in a class action lawsuit, with the Federal Court of Australia dismissing the claims against it. This outcome reinforces Count Financial’s position in the market, potentially strengthening stakeholder confidence in its operations.

The most recent analyst rating on (AU:CUP) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Countplus Limited stock, see the AU:CUP Stock Forecast page.

Count Limited Director’s Share Acquisition

Count Limited announced a change in the director’s interest, as Director Hugh Humphrey acquired 1,990 ordinary shares through an on-market trade, bringing his total to 257,912 ordinary shares. This transaction reflects a minor adjustment in the director’s holdings and does not indicate any significant strategic shift or impact on the company’s operations or market positioning.

The most recent analyst rating on (AU:CUP) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Countplus Limited stock, see the AU:CUP Stock Forecast page.

Count Limited Expands Queensland Presence with Strategic Acquisitions

Count Limited has announced that its equity partner, Count GC Holdings Pty Ltd, will acquire accounting clients from MJG Partnership and Harrison & Harrison, adding $2.8 million in recurring revenues. This move strengthens Count Gold Coast’s position as a leading provider in the region, aligning with Count’s strategy to build a portfolio of scale equity partnerships, and is expected to complete by July 2025.

Count Limited Expands in South Australia with Johnston Grocke Merger

Count Limited has announced a merger with Johnston Grocke, a prominent accounting and financial planning firm in Adelaide, to expand its presence in South Australia. This merger is expected to significantly boost Count Adelaide’s revenues and enhance its service offerings, aligning with Count’s strategy to grow its national footprint. The company’s stake in Count Adelaide will increase to approximately 65% following the merger’s completion, marking a substantial development in its financial planning business.