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Future Generation Australia Limited Stapled Security (AU:FGX)
ASX:FGX
Australian Market

Future Generation Australia Limited Stapled Security (FGX) AI Stock Analysis

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Future Generation Australia Limited Stapled Security

(Sydney:FGX)

Rating:77Outperform
Price Target:―
Future Generation Australia Limited Stapled Security demonstrates strong financial performance with high profitability and a solid balance sheet. While cash flows could be better documented, the overall financial health is commendable. Technical indicators are mixed, showing both resistance and signs of upward momentum. The valuation is attractive, with a reasonable P/E ratio and high dividend yield, making it appealing to income-focused investors.

Future Generation Australia Limited Stapled Security (FGX) vs. iShares MSCI Australia ETF (EWA)

Future Generation Australia Limited Stapled Security Business Overview & Revenue Model

Company DescriptionFuture Generation Australia Limited Stapled Security (FGX) is an investment company listed on the Australian Securities Exchange. It operates in the financial sector, focusing on providing investors with capital growth and income through a diversified portfolio of Australian equities. FGX is structured as a listed investment company with a unique philanthropic model, where fund managers forego management fees to support Australian charities focused on children and youth at risk.
How the Company Makes MoneyFGX generates revenue primarily through the appreciation of its investment portfolio, which consists of a diversified range of Australian equities managed by prominent fund managers. The company benefits from capital gains as the value of its investments increases and also earns dividend income from the equities it holds. Additionally, FGX's model allows it to save on management fees, as fund managers provide their services pro bono, enabling the company to allocate more funds to investments and charitable contributions. The combination of dividend income and capital appreciation forms the core of FGX's revenue streams.

Future Generation Australia Limited Stapled Security Financial Statement Overview

Summary
Future Generation Australia Limited Stapled Security presents a solid financial foundation with significant revenue growth, high profitability, and a strong balance sheet devoid of debt. Cash flows are improving, but the absence of some data, such as EBITDA and previous free cash flows, limits a comprehensive analysis.
Income Statement
85
Very Positive
Future Generation Australia Limited Stapled Security has demonstrated strong revenue growth with a 6.15% increase from 2023 to 2024. The company maintains high gross and net profit margins at 100% and 75.98% respectively, reflecting excellent profitability. However, the absence of EBITDA data could obscure some operational insights. Overall, the income statement shows significant improvement and profitability.
Balance Sheet
88
Very Positive
The balance sheet is robust, with a debt-free structure and a high equity ratio of 94.85%, indicating strong financial stability. Return on Equity (ROE) is impressive at 8.76%, highlighting efficient use of equity to generate profits. These factors contribute to a strong financial position, though the reliance on equity over debt may limit leverage benefits.
Cash Flow
78
Positive
The company has shown a remarkable growth in operating cash flow, from $11.94 million in 2023 to $32.93 million in 2024. The operating cash flow to net income ratio is 0.69, suggesting efficient cash flow management. However, the free cash flow growth rate is not calculated due to the absence of previous free cash flow data. Overall, cash flows are strengthening, yet there is room for improvement in free cash flow reporting.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
63.09M59.42M-62.33M115.98M20.40M
Gross Profit
63.09M53.72M-62.33M115.98M20.40M
EBIT
62.62M59.02M-68.46M109.67M15.27M
EBITDA
0.00-46.00K-55.00K109.67M0.00
Net Income Common Stockholders
47.93M45.83M-43.89M79.88M14.35M
Balance SheetCash, Cash Equivalents and Short-Term Investments
574.04M522.39M513.18M16.48M40.65M
Total Assets
577.32M547.15M516.91M616.95M534.37M
Total Debt
0.000.000.000.000.00
Net Debt
-7.59M-181.00K-12.69M-16.48M-40.65M
Total Liabilities
29.73M21.97M13.11M46.68M24.84M
Stockholders Equity
547.59M525.18M503.80M570.26M509.53M
Cash FlowFree Cash Flow
32.93M11.94M-43.89M-4.92M15.93M
Operating Cash Flow
32.93M11.94M-43.89M-4.92M15.93M
Investing Cash Flow
0.000.000.000.0021.15M
Financing Cash Flow
-25.52M-24.45M-22.58M-19.24M-18.56M

Future Generation Australia Limited Stapled Security Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.20
Price Trends
50DMA
1.19
Positive
100DMA
1.20
Negative
200DMA
1.20
Positive
Market Momentum
MACD
<0.01
Positive
RSI
49.77
Neutral
STOCH
37.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FGX, the sentiment is Neutral. The current price of 1.2 is below the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.19, and above the 200-day MA of 1.20, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 37.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:FGX.

Future Generation Australia Limited Stapled Security Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUFGX
77
Outperform
10.308.94%5.66%6.12%4.26%
AUWAM
73
Outperform
6.3914.95%9.84%46.53%35.15%
AUWHF
70
Outperform
30.053.53%3.69%9.87%5.04%
AUARG
68
Neutral
27.073.96%4.04%-3.41%-4.97%
AUAFI
68
Neutral
29.903.68%3.70%1.81%0.50%
57
Neutral
$4.81B19.87-17.81%5.21%13.60%-27.95%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:FGX
Future Generation Australia Limited Stapled Security
1.20
0.11
10.09%
AU:WHF
Whitefield Ltd
5.69
0.68
13.57%
AU:AFI
Australian Foundation Investment Co. Ltd.
7.19
0.22
3.20%
AU:ARG
Argo Investments Limited
8.92
0.62
7.50%
AU:WAM
WAM Capital Ltd.
1.56
0.22
16.42%

Future Generation Australia Limited Stapled Security Corporate Events

Future Generation Australia Limited Announces 2025 AGM Details
Apr 17, 2025

Future Generation Australia Limited has announced its 2025 Annual General Meeting, scheduled for May 21, 2025, at the Museum of Sydney. The meeting will cover the consideration of financial statements, the adoption of the Remuneration Report, and the re-election of directors Geoff Wilson AO and David Leeton. The Remuneration Report vote is advisory and does not bind the company, while the re-election of directors is in accordance with the company’s constitution and listing rules. These resolutions are crucial for maintaining governance and leadership continuity within the company.

Future Generation Australia Reports March Portfolio Performance Amid Market Volatility
Apr 14, 2025

Future Generation Australia Limited reported a decrease in its investment portfolio performance for March, with the Future Generation Global portfolio declining by 3.5% and the Future Generation Australia portfolio by 3.9%. Despite this, the company outperformed relevant market indices, showcasing the effectiveness of its active management strategy. Fund managers highlighted the current market as opportunity-rich, focusing on selective high-quality stock purchases. The company continues to emphasize its commitment to long-term shareholder value and philanthropy, with significant savings on management and performance fees since inception.

Future Generation Australia Releases FY2024 Results Presentation
Mar 18, 2025

Future Generation Australia Limited has released a presentation for its FY2024 results, emphasizing the importance of consulting financial advisors before making investment decisions. The announcement highlights the company’s commitment to transparency and cautions investors about the selective nature of the information, which should not be solely relied upon for investment decisions.

Future Generation Australia Outperforms Market with Strategic Fund Manager Additions
Mar 14, 2025

Future Generation Australia Limited reported a decrease in its investment portfolio by 3.5% in February, yet it outperformed the S&P/ASX All Ordinaries Accumulation Index over the past year with a 10.2% performance and a total shareholder return of 19.5%. The company also announced the addition of three new fund managers to its global portfolio, aiming to enhance returns amid market volatility. This strategic move is expected to provide a favorable backdrop for the company’s active fund managers, potentially benefiting stakeholders through increased opportunities for returns.

Future Generation Australia Hosts FY2024 Results Q&A Webinar
Mar 11, 2025

Future Generation Australia Limited Stapled Security is hosting a FY2024 Results Q&A webinar featuring key figures such as Dr. Philip Lowe and Caroline Gurney. The event aims to engage shareholders by providing insights into the company’s performance and addressing their queries, potentially impacting stakeholder relations and company transparency.

Future Generation Australia Boosts Dividend Amid Strong 2024 Performance
Feb 28, 2025

Future Generation Australia announced a significant outperformance of its investment portfolio in 2024, surpassing major indices and resulting in a 13.0% increase. This performance enabled the company to raise its fully franked full-year dividend to 7.0 cents per share, offering a 5.5% dividend yield. The total shareholder return, including franking credits, reached 23.5%, driven by the narrowing discount to net tangible assets and a rise in share price. The company reported an operating profit after tax of $47.9 million and highlighted its commitment to social impact by donating over $5 million to non-profit partners. With a robust profits reserve, Future Generation Australia is well-positioned to sustain future dividends and continue delivering value to shareholders.

Future Generation Australia Limited Reports Strong Financial Performance for 2024
Feb 28, 2025

Future Generation Australia Limited reported a 6.1% increase in revenue from ordinary activities, reaching $69.21 million for the year ended December 31, 2024. The company’s net profit after tax rose by 4.6% to $47.93 million, and it declared a fully franked final dividend of 3.5 cents per share, maintaining the same interim dividend. The Dividend Reinvestment Plan is in operation, allowing shareholders to reinvest dividends into additional shares. The company also reported an increase in net tangible asset backing per share, indicating a solid financial performance over the year.

Future Generation Australia Limited Announces Dividend Distribution
Feb 28, 2025

Future Generation Australia Limited has announced a dividend distribution of AUD 0.035 per fully paid ordinary share, relating to the six-month period ending December 31, 2024. The ex-dividend date is set for May 8, 2025, with a record date of May 9, 2025, and payment scheduled for May 21, 2025. This announcement is significant for stakeholders as it reflects the company’s financial health and commitment to returning value to its investors.

Future Generation Australia Limited Releases 2024 Corporate Governance Statement
Feb 28, 2025

Future Generation Australia Limited has released its Corporate Governance Statement for the year ending December 2024, highlighting adherence to ASX Corporate Governance Council’s principles. The Board of Directors is committed to strategic oversight, risk management, and ethical standards, with a focus on capital and investment management. The statement outlines the roles of the Board, CEO, and committees, emphasizing the company’s strategic direction and operational management.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.