Platinum Asset Management Ltd (L1G) AI Stock Analysis

• Market Cap: €2.69B
• Dividend Yield: 25%
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): 95.5
• Beta (1Y): 1.15
• Revenue Growth: -26.58%
• EPS Growth: -86.02%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 2,540,157,000
• 10 Day Avg. Volume: 3,774,923
• 30 Day Avg. Volume: 3,435,326
• PEG Ratio: -0.49
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 5.27
• 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: €0.84
• Price Target Upside: -17.48% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: AU$1.00 ▼(-1.96% Downside)

The overall stock score of 58 reflects significant challenges in financial performance, particularly declining revenue and profitability. While the balance sheet remains strong, the company's valuation appears stretched with a high P/E ratio, though the high dividend yield provides some compensation. Technical indicators are mixed, with some signs of potential short-term weakness. The absence of earnings call data and notable corporate events limits further insights.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates low financial leverage and risk, providing the company with stability and flexibility to manage operations and invest in growth opportunities.

Cash Generation Ability

Strong cash generation relative to net income suggests efficient operations, allowing the company to reinvest in its business and sustain operations without relying heavily on external financing.

Economies of Scale

Economies of scale enhance profitability as the company grows, reducing per-unit costs and increasing margins, which can lead to sustainable competitive advantages in the asset management industry.

Negative Factors

Declining Revenue

A consistent decline in revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term growth and profitability.

Decreased Profit Margins

Significant declines in profit margins suggest operational inefficiencies and challenges in cost management, which can affect the company's ability to generate sustainable profits.

Weakened Return on Equity

A weakened return on equity indicates reduced effectiveness in generating returns on shareholders' equity, potentially impacting investor confidence and long-term financial health.

Platinum Asset Management Ltd Business Overview & Revenue Model

Company Description

A global investment manager listed in Australia, formed through the merger of L1 Capital and Platinum Asset Management. The firm runs strategies including long/short equities, global & regional equities, real assets, and alternative investments.

How the Company Makes Money

Platinum Asset Management generates revenue primarily through management fees charged on the assets under management (AUM) in its investment funds. These fees are typically a percentage of AUM, calculated annually, and can vary depending on the specific fund's structure and performance. Additionally, the company may receive performance fees when its funds exceed predetermined benchmarks or targets, providing a further incentive to achieve strong investment returns. Significant partnerships with institutional investors and financial advisors also contribute to its earnings, as these relationships can lead to increased AUM through new investments. Market conditions and the overall performance of the managed funds directly impact revenue, making investment performance a critical factor in the company's profitability.

Platinum Asset Management Ltd Financial Statement Overview

Summary

Platinum Asset Management Ltd faces challenges with declining revenue and profitability, as evidenced by the income statement metrics. Despite a strong balance sheet with low leverage, the company's ability to generate returns on equity has weakened. Cash flow remains relatively stable, but inconsistencies in free cash flow growth suggest potential operational challenges.

Income Statement

The income statement shows a declining trend in revenue over the past few years, with a significant drop of 13.09% in the latest year. Gross profit margin has decreased from 95.98% in 2023 to 38.57% in 2025, indicating reduced efficiency in generating profit from revenue. Net profit margin has also declined significantly, from 59.91% in 2021 to 4.45% in 2025, reflecting challenges in maintaining profitability. EBIT and EBITDA margins have similarly decreased, highlighting operational inefficiencies.

Balance Sheet

The balance sheet remains relatively strong with a low debt-to-equity ratio of 0.05 in 2025, indicating low financial leverage and risk. However, return on equity has decreased from 47.73% in 2021 to 2.96% in 2025, suggesting reduced effectiveness in generating returns on shareholders' equity. The equity ratio remains stable, indicating a solid capital structure.

Cash Flow

Cash flow analysis shows a slight growth in free cash flow by 2.01% in 2025, but overall cash flow metrics have been inconsistent. The operating cash flow to net income ratio is strong at 2.01, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, reflecting potential challenges in converting income into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	140.92M	140.92M	185.13M	211.09M	232.77M	272.49M
Gross Profit	54.35M	54.35M	106.50M	202.61M	244.98M	259.72M
EBITDA	34.20M	34.20M	77.28M	117.36M	167.68M	206.63M
Net Income	6.27M	6.27M	45.01M	80.86M	101.49M	163.26M
Balance Sheet
Total Assets	249.39M	249.39M	346.21M	354.25M	352.61M	384.30M
Cash, Cash Equivalents and Short-Term Investments	122.25M	122.25M	250.28M	186.06M	177.32M	193.15M
Total Debt	10.64M	10.64M	12.35M	3.25M	5.25M	7.11M
Total Liabilities	37.54M	37.54M	29.41M	24.72M	29.05M	42.27M
Stockholders Equity	211.78M	211.78M	314.23M	328.17M	323.55M	342.02M
Cash Flow
Free Cash Flow	50.19M	50.19M	78.08M	90.23M	126.51M	144.47M
Operating Cash Flow	51.49M	51.49M	68.56M	90.59M	126.73M	144.51M
Investing Cash Flow	40.22M	53.71M	51.60M	-171.00K	-42.44M	36.78M
Financing Cash Flow	-150.72M	-153.21M	-85.55M	-92.06M	-140.20M	-142.41M

Platinum Asset Management Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:L1G, the sentiment is Positive. The current price of 1.02 is below the 20-day moving average (MA) of 1.03, above the 50-day MA of 1.00, and above the 200-day MA of 0.71, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 47.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:L1G.

Platinum Asset Management Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Platinum Asset Management Ltd Corporate Events

L1 Group Director Increases Shareholding

L1 Group Limited has announced a change in the director’s interest for Rachel Grimes, as detailed in the Appendix 3Y form submitted to the Australian Securities Exchange (ASX). Rachel Grimes has acquired 31,578 ordinary shares valued at $30,000, increasing her direct interest in the company. This change in director’s interest reflects an increase in personal investment by a key executive, which may signal confidence in the company’s future prospects and could influence stakeholder perceptions.

L1 Group Limited Announces Director’s Share Acquisition

L1 Group Limited has announced a change in the director’s interest for Neil Chatfield. The company has disclosed that Neil Chatfield has acquired 31,578 ordinary shares, increasing his total holdings to 181,578 shares. This change reflects a direct interest and was valued at $30,000. The announcement is part of the company’s compliance with ASX listing rules and provides transparency to stakeholders about changes in director shareholdings.

L1 Group Limited Announces Quotation of New Securities on ASX

L1 Group Limited has announced the application for the quotation of 26,315,791 ordinary fully paid securities on the Australian Securities Exchange (ASX), under the code L1G. This move is part of previously announced transactions and marks a significant step in the company’s financial activities, potentially impacting its market presence and stakeholder interests.

L1 Group Completes Successful $25 Million Share Purchase Plan

L1 Group Limited has successfully completed its Share Purchase Plan, raising the maximum target of $25 million through the issuance of approximately 26.3 million new shares at $0.95 each. The plan received strong support from over 1,436 shareholders, with demand exceeding $31.9 million, leading to a scaled-back allocation process to ensure equitable distribution among investors. The new shares are set to commence trading on December 1, 2025, and will rank equally with existing shares, reflecting robust investor confidence and potentially strengthening the company’s market position.

L1 Group Limited Announces AGM Results

L1 Group Limited announced the results of its 2025 Annual General Meeting, where all resolutions were decided by a poll. The election of Guy Strapp as a Director and the adoption of the Remuneration Report were both carried, indicating strong shareholder support for the company’s leadership and compensation strategies.

L1 Group Highlights Transformative Year and Strategic Cost Savings at 2025 AGM

L1 Group Limited held its 2025 Annual General Meeting, highlighting a transformative year marked by its merger with L1 Capital. The company reported a significant decrease in funds under management and total fee revenue for the year ending June 30, 2025. Despite these declines, L1 Group achieved substantial cost savings through aggressive cost reduction and product rationalization strategies, maintaining a healthy adjusted EBIT margin. This positions the company well for potential future growth opportunities.

L1 Group Launches Share Purchase Plan to Raise $25 Million

L1 Group Limited, listed on the Australian Securities Exchange, has initiated a share purchase plan (SPP) allowing eligible shareholders in Australia and New Zealand to purchase up to $30,000 worth of shares at $0.95 per share, the same price as a recent institutional placement. This SPP aims to raise up to $25 million, supplementing the $286 million already raised, and offers shareholders the opportunity to invest without incurring additional transaction costs. The plan is not underwritten, and the company reserves the right to adjust the target amount based on demand, potentially impacting shareholder value and market perception.

L1 Group Limited Appoints New Director Julian Russell

L1 Group Limited has announced the appointment of Julian Russell as a director, effective from October 29, 2025. As part of this appointment, an Initial Director’s Interest Notice has been filed, indicating that Russell holds 6,600 ordinary shares in the company. This appointment is expected to strengthen the company’s leadership team, potentially impacting its strategic direction and stakeholder relations.

Platinum Asset Management Announces Director Departure

Platinum Asset Management Ltd has announced the cessation of Jeff Peters as a director, effective October 29, 2025. This change is documented in the Appendix 3Z final Director’s Interest Notice submitted to the Australian Securities Exchange. The notice details Peters’ relevant interests in securities, including rights and performance rights, which have undergone reallocation following the ASX’s assignment of new class codes. This development may impact the company’s governance structure and could have implications for stakeholders monitoring leadership changes within the organization.

L1 Group Completes $286 Million Institutional Placement and Announces Share Purchase Plan

L1 Group Limited has successfully completed a $286 million institutional placement and a $19 million sale of existing shares, both priced at $0.95 per share. The proceeds will be used to enhance L1 Group’s growth initiatives, including funding new investment strategies and potential acquisitions. The company also plans to conduct a share purchase plan to raise an additional $25 million, offering eligible shareholders the opportunity to purchase new shares at the same price.

L1 Group Limited Announces Proposed Securities Issue

L1 Group Limited has announced a proposed issue of securities, which includes a total of 26,315,789 ordinary fully paid securities to be issued under a securities purchase plan, and an additional 301,052,631 ordinary fully paid securities to be issued through a placement. The offer is set to close on November 21, 2025, with the issue date for the securities purchase plan on November 28, 2025, and the placement issue date on November 4, 2025. This strategic move is expected to enhance the company’s capital base and potentially improve its market position, offering stakeholders an opportunity to participate in the company’s growth.

L1 Group Limited Announces Merger Completion with Platinum Asset Management

L1 Group Limited has announced an investor briefing following the completion of a merger between First Maven Pty Limited (L1 Capital) and Platinum Asset Management Limited, effective from October 1, 2025. This merger is expected to significantly impact L1 Group’s market positioning, potentially enhancing its operational capabilities and offering new opportunities for stakeholders.

L1 Group Completes Audit for Merger with Platinum Asset Management

L1 Group Limited has completed the audit of the advanced draft of First Maven Pty Ltd’s FY25 Financial Report, a crucial step in its merger with Platinum Asset Management Limited. The company released a summary of the Merged Group Pro Forma Historical Income Statement and Balance Sheet as of June 30, 2025, which aggregates the historical audited financials of both entities with necessary pro forma adjustments. This development is significant for stakeholders as it provides a clearer financial picture of the merged entity, which could influence investor confidence and market positioning.

L1 Group Limited Initiates Trading Halt for Equity Raising

L1 Group Limited has requested a trading halt on its shares pending an announcement related to an equity raising initiative through an institutional placement and a share purchase plan. This move is aimed at facilitating the company’s financial strategy, and the halt will remain until the announcement is made or normal trading resumes on 31 October 2025.

L1 Group Limited Issues Unquoted Securities for Employee Incentive

L1 Group Limited has announced the issuance of 21,920,276 unquoted securities under the ASX code L1GAA, effective from October 15, 2025. This issuance is part of an employee incentive scheme and is not intended to be quoted on the ASX, potentially impacting the company’s equity structure and aligning employee interests with corporate goals.

L1 Group Limited Announces Director’s Interest Change for Jane Stewart

L1 Group Limited has announced a change in the director’s interest for Jane Stewart, as detailed in the Appendix 3Y submitted to the Australian Securities Exchange (ASX). Jane Stewart has acquired 434,782 deferred rights, which will convert to ordinary shares upon meeting certain vesting conditions. This change in director’s interest is part of the company’s ongoing compliance with ASX listing rules, reflecting transparency in its governance practices.

L1 Group Limited Announces 2025 AGM Details

L1 Group Limited has announced its 2025 Annual General Meeting (AGM), scheduled for November 18, 2025, at 10:00 am AEDT. The meeting will be held both in person at Stamford Plaza Melbourne and virtually, allowing shareholders to participate, vote, and ask questions. The agenda includes the re-election of Guy Strapp as a Non-Executive Director and the adoption of the Remuneration Report for the financial year ended June 30, 2025. These resolutions are significant for the company’s governance and shareholder engagement, reflecting its commitment to transparency and accountability.