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Pacific Current Group Ltd (AU:PAC)
ASX:PAC

Pacific Current Group Ltd (PAC) AI Stock Analysis

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AU

Pacific Current Group Ltd

(Sydney:PAC)

Rating:69Neutral
Price Target:
Pacific Current Group Ltd demonstrates strong financial performance with significant revenue and profit growth. However, technical analysis indicates bearish trends, and cash flow challenges remain a concern. The stock appears undervalued, with a low P/E ratio and attractive dividend yield, providing potential for long-term appreciation.

Pacific Current Group Ltd (PAC) vs. iShares MSCI Australia ETF (EWA)

Pacific Current Group Ltd Business Overview & Revenue Model

Company DescriptionPacific Current Group Ltd (PAC) is an Australian-based global multi-boutique asset management company. It operates in the financial services sector, focusing on providing capital and strategic support to asset management firms. PAC partners with boutique investment managers to enhance their growth and development through its expertise and resources, fostering a diverse portfolio of investment strategies across various asset classes.
How the Company Makes MoneyPacific Current Group Ltd generates revenue primarily through its investments in boutique asset managers. The company makes money by acquiring equity stakes in these firms and benefiting from the growth in their assets under management (AUM). As these boutiques perform and attract more investments, PAC earns a share of the management and performance fees generated. Additionally, PAC may receive dividend income from its equity investments. The company's revenue is also influenced by market conditions, the performance of its boutique partners, and strategic partnerships that enable access to new markets and distribution channels.

Pacific Current Group Ltd Earnings Call Summary

Earnings Call Date:Feb 24, 2025
(Q2-2024)
|
% Change Since: -11.35%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance with significant growth in FUM, boutique contributions, and successful fundraising efforts by Pennybacker. However, challenges such as impairments, currency fluctuations affecting NAV, and complexities in asset sales pose potential risks. Despite these challenges, the company maintains a positive outlook for future growth and potential asset sales.
Q2-2024 Updates
Positive Updates
Strong FUM Growth
The company reported an 8% increase in ownership FUM during the period, growing from USD 14.1 billion to USD 15.2 billion.
20% Increase in Boutique Contributions
Boutique contributions grew by 20%, driven by a 30% growth in management fee revenues, particularly from Banner Oak and Pennybacker Capital.
Underlying EBITDA Growth
Underlying EBITDA grew by 26% during the period, reflecting strong operational performance.
Dividend Declaration
PAC declared a $0.15 per share dividend for the period, maintaining a consistent payout despite strong profit growth.
Successful Fundraising by Pennybacker
Pennybacker raised over $1.5 billion for its recent flagship fund, showcasing its ability to navigate a challenging commercial real estate market.
Negative Updates
Impairments in Portfolio
Impairments were recorded at Aether and Banner Oak. Aether's fundraising was slower than expected, and Banner Oak faces client concentration risks impacting future visibility.
Fair Value NAV Decline
The fair value adjusted NAV fell by $0.23 a share, primarily due to currency fluctuations.
Challenges with Asset Sales
PAC faces complexities around selling individual assets, as it relies on the consent of investment managers and strong relationship dynamics.
Uncertainty in Management Fee Growth
Management fees might see a slight reduction in the second half compared to the first half, despite ongoing strong growth in funds under management.
Company Guidance
During the Pacific Current Group's 2024 half-year earnings call, several key financial metrics were highlighted. The firm experienced an 8% growth in funds under management (FUM), increasing from USD 14.1 billion to USD 15.2 billion. Financial performance was robust with a 20% increase in boutique contributions, driven by a 30% rise in management fee revenues, predominantly from Banner Oak and Pennybacker Capital. The underlying EBITDA grew by 26%, while the underlying net profit after tax (NPAT) rose by 15%. A dividend of $0.15 per share was declared for the period. Despite these strong results, the firm's fair value adjusted net asset value (NAV) experienced a decline of $0.23 per share, primarily due to currency fluctuations. The company also noted impairments at Aether and Banner Oak, while highlighting the strategic review process and ongoing efforts to unlock shareholder value through potential asset sales and reducing overheads.

Pacific Current Group Ltd Financial Statement Overview

Summary
Pacific Current Group Ltd exhibits a strong financial recovery in the income statement with significant revenue and profit growth, supported by a robust balance sheet. However, challenges in maintaining positive cash flow highlight areas for improvement. Overall, the company's financial health reflects positive trends with a need for careful management of cash resources and liabilities.
Income Statement
85
Very Positive
Pacific Current Group Ltd demonstrated a strong recovery with a significant revenue growth rate of 345.8% from 2023 to 2024 and improvement in profitability with a net profit margin of 55.5% in 2024. The firm successfully turned around from negative EBIT in 2023 to positive EBIT margin of 86.7% in 2024. While the historical volatility in revenues poses some risk, the current financial year shows robust profit margins indicating strong operational performance.
Balance Sheet
78
Positive
The company maintains a solid financial position with a low debt-to-equity ratio of 0.11, reflecting strong equity leverage. The equity ratio of 82.3% in 2024 underscores financial stability. A significant increase in equity and assets over the years strengthens the balance sheet further, although the rapid increase in total liabilities warrants monitoring.
Cash Flow
65
Positive
Cash flow analysis reveals a challenge with negative free cash flow in 2024 despite positive operating cash flow, suggesting higher capital expenditures. The operating cash flow to net income ratio is 0.19, indicating potential cash flow constraints. Despite the recent setback, the company has historically generated positive free cash flow, reflecting its ability to generate cash from operations.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
234.21M198.53M44.51M43.56M44.54M61.54M
Gross Profit
228.76M195.67M40.66M40.29M41.06M57.21M
EBIT
263.93M172.13M-8.76M-52.46M20.55M24.75M
EBITDA
264.82M172.13M0.000.0029.08M97.06M
Net Income Common Stockholders
198.78M110.08M-15.79M-35.27M17.41M-17.51M
Balance SheetCash, Cash Equivalents and Short-Term Investments
382.38M343.32M23.20M34.89M28.30M20.15M
Total Assets
871.57M727.88M612.38M608.97M463.02M444.00M
Total Debt
64.55M64.01M2.83M1.05M680.00K2.55M
Net Debt
-16.83M-256.53M-20.38M-33.83M-27.62M-17.61M
Total Liabilities
149.18M128.82M102.15M82.25M60.21M41.44M
Stockholders Equity
722.39M599.06M509.52M524.81M402.38M402.02M
Cash FlowFree Cash Flow
16.81M-2.37M19.18M23.19M29.06M25.57M
Operating Cash Flow
16.86M20.61M21.82M23.47M29.15M25.62M
Investing Cash Flow
70.34M63.47M-55.12M4.76M-5.87M-65.50M
Financing Cash Flow
-26.40M-10.46M22.10M-23.18M-14.07M-21.32M

Pacific Current Group Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.54
Price Trends
50DMA
11.24
Negative
100DMA
11.45
Negative
200DMA
11.16
Negative
Market Momentum
MACD
-0.08
Positive
RSI
31.02
Neutral
STOCH
41.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PAC, the sentiment is Negative. The current price of 10.54 is below the 20-day moving average (MA) of 11.18, below the 50-day MA of 11.24, and below the 200-day MA of 11.16, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 31.02 is Neutral, neither overbought nor oversold. The STOCH value of 41.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:PAC.

Pacific Current Group Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUMFG
74
Outperform
€1.43B6.5423.27%8.23%-9.29%12.94%
AUPAC
69
Neutral
$317.82M2.7533.29%3.62%317.70%3248.78%
AUPTM
67
Neutral
€324.39M12.539.63%10.88%-20.84%-67.39%
64
Neutral
$12.86B9.797.78%16985.65%12.28%-7.82%
AUPPT
59
Neutral
€2.11B-24.47%6.88%5.36%-846.00%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PAC
Pacific Current Group Ltd
10.54
0.51
5.04%
AU:MFG
Magellan Financial Group Ltd
8.29
0.35
4.47%
AU:PTM
Platinum Asset Management Ltd
0.57
-0.17
-23.55%
AU:PPT
Perpetual Limited
18.47
-2.01
-9.83%

Pacific Current Group Ltd Corporate Events

Pacific Current Group Reports Growth in Funds Under Management
Apr 30, 2025

Pacific Current Group Limited reported an increase in total Funds under Management (FUM) to A$31.0 billion for the quarter ending March 31, 2025, up from A$30.0 billion. This growth was driven by significant inflows, particularly from the USD-denominated fund manager Pennybacker, and market revaluations. The company highlights that the economic benefits derived from these FUM can vary due to factors like fees, ownership interests, and unique economic terms with each boutique, cautioning against simple extrapolation of results based on FUM trends.

Citigroup Ceases Substantial Holding in Pacific Current Group
Apr 7, 2025

Citigroup Global Markets Australia Pty Limited has ceased to be a substantial holder in Pacific Current Group Ltd as of April 3, 2025. This change reflects a decrease in Citigroup’s relevant interest in the company’s shares due to a securities lending agreement, potentially impacting the company’s shareholder structure and market perception.

Bank of America Ceases Substantial Holding in Pacific Current Group
Apr 4, 2025

Pacific Current Group Ltd has announced that Bank of America Corporation and its related bodies corporate have ceased to be substantial shareholders in the company as of April 2, 2025. This change in shareholding may impact the company’s market perception and investor confidence, as substantial shareholders often play a significant role in influencing company decisions and strategies.

Dimensional Entities Ceases to Be Substantial Holder in Pacific Current Group Ltd
Apr 3, 2025

Pacific Current Group Ltd has announced that Dimensional Entities has ceased to be a substantial holder in the company as of April 1, 2025. This change in substantial holding may impact the company’s shareholder structure and could have implications for its governance and strategic decisions moving forward.

Citigroup Reduces Stake in Pacific Current Group
Apr 3, 2025

Pacific Current Group Ltd has announced a change in the interests of its substantial shareholder, Citigroup Global Markets Australia Pty Limited. The voting power of Citigroup has decreased from 7.1265% to 5.5504%, reflecting a reduction in the number of shares held. This change is due to securities lending agreements and transactions conducted in the ordinary course of business on a stock exchange. The adjustment in Citigroup’s holdings may impact Pacific Current Group’s shareholder dynamics and market perception.

Bank of America Becomes Substantial Holder in Pacific Current Group
Apr 2, 2025

Pacific Current Group Ltd has announced that Bank of America Corporation, along with its related bodies corporate, has become a substantial holder in the company as of March 31, 2025, with a voting power of 5.11%. This development indicates a significant investment by a major financial institution, potentially impacting Pacific Current Group’s market positioning and signaling confidence in its business prospects.

Director’s Interest in Pacific Current Group Ltd Increases
Apr 2, 2025

Pacific Current Group Ltd announced a change in the director’s interest, with Joanne Dawson acquiring a total of 9,717 ordinary shares through on-market trades. This acquisition reflects a significant increase in her indirect interest in the company, potentially indicating confidence in the company’s future performance and impacting stakeholder perceptions.

Citigroup Becomes Substantial Shareholder in Pacific Current Group
Apr 1, 2025

Pacific Current Group Ltd has announced that Citigroup Global Markets Australia Pty Limited, along with its related entities, has become a substantial shareholder in the company as of March 25, 2025. Citigroup now holds a 7.1265% voting power in Pacific Current Group Ltd through various securities lending agreements and stock market transactions, indicating a significant investment and potential influence in the company’s future decisions.

Pacific Current Group Completes Aether Restructure
Mar 27, 2025

Pacific Current Group Limited has completed the restructuring of its investment in Aether Investment Partners, LLC. The company has transitioned its equity ownership in Aether to a new arrangement involving a contractual revenue share and liquidation preference, which is expected to impact its financial strategy and stakeholder relationships.

Pacific Current Group Completes Significant Share Buy-Back
Mar 25, 2025

Pacific Current Group Limited has successfully completed an off-market share buy-back, acquiring A$265 million worth of its ordinary shares, which equates to 42.23% of its issued share capital. This move is expected to enhance capital efficiency, provide liquidity to exiting shareholders, and benefit remaining shareholders by reducing the total number of shares outstanding, thus strengthening PAC’s capital position.

River Capital Increases Stake in Pacific Current Group
Mar 25, 2025

Pacific Current Group Ltd has experienced a significant change in the voting power of its substantial holder, River Capital Pty Ltd. As of March 24, 2025, River Capital’s voting power increased from 22.51% to 40.48%, indicating a substantial shift in control dynamics within the company. This change could potentially impact the company’s strategic decisions and influence its market positioning, with implications for stakeholders who may see shifts in governance and corporate strategy.

Director’s Share Acquisition at Pacific Current Group Ltd
Mar 19, 2025

Pacific Current Group Ltd has announced a change in the interests of its director, Michael Charles Clarke, who has acquired 5,000 ordinary shares in the company through an on-market trade. This transaction, valued at $58,122.64, reflects Clarke’s indirect interest as a joint trustee and member of The Clarke Superannuation Fund. The acquisition of shares by a director may indicate confidence in the company’s future prospects and could impact stakeholders’ perceptions positively.

Pacific Current Group Updates on $300M Share Buy-Back Progress
Mar 14, 2025

Pacific Current Group Limited has announced an update on its off-market equal access share buy-back program, which aims to repurchase up to $300 million of surplus capital. As of March 13, 2025, the company has received applications from eligible shareholders representing approximately 65.86% of the maximum shares proposed for buy-back. The offer period has been extended to March 21, 2025. This buy-back initiative reflects Pacific Current Group’s strategic focus on optimizing capital allocation and enhancing shareholder value.

Pacific Current Group Extends Share Buy-Back Offer
Mar 12, 2025

Pacific Current Group Ltd has announced an extension to its off-market buy-back offer for ordinary shares, providing shareholders with an additional two weeks to consider participation. This extension aims to give shareholders more time to evaluate their options, potentially impacting the company’s shareholding structure and market positioning.

Director’s Share Disposal at Pacific Current Group
Mar 5, 2025

Pacific Current Group Limited announced a change in the director’s interest, as Antony Robinson disposed of 70,795 ordinary shares valued at $846,196.11 through an on-market trade. This transaction leaves Robinson with no remaining shares in the company, which may impact the company’s governance dynamics and investor perceptions.

Pacific Current Group Releases 1H FY25 Results
Feb 24, 2025

Pacific Current Group Limited has released its 1H FY25 Results Presentation, highlighting its continued commitment to providing value through strategic investments in boutique asset managers. This announcement underscores the company’s ongoing efforts to strengthen its market position and deliver returns to stakeholders.

Pacific Current Group Reports Strong Half-Year Results and Strategic Asset Sales
Feb 24, 2025

Pacific Current Group Limited reported a significant increase in statutory net profit after tax to A$100.3 million for the six months ended December 31, 2024, driven by gains from asset sales and fair value uplifts. The company is executing a substantial share buy-back program and has completed several key portfolio transactions, including the sale of interests in Carlisle and Victory Park Capital, which have strengthened its liquidity position. Despite lower boutique contributions due to asset sales, the company has maintained its dividend and improved its cash balance, positioning itself for future growth.

Pacific Current Group Announces New Dividend Distribution
Feb 24, 2025

Pacific Current Group Ltd has announced a new dividend distribution of AUD 0.15 per share for its ordinary fully paid shares. The dividend relates to the six-month period ending December 31, 2024, with an ex-date of March 4, 2025, a record date of March 5, 2025, and a payment date set for April 10, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its market positioning by potentially enhancing investor confidence.

Pacific Current Group Reports Mixed Half-Year Financial Results
Feb 24, 2025

Pacific Current Group released its half-year financial results for the period ending December 31, 2024, showing a significant increase in net profit before tax, which rose by 555.98% compared to the previous year. However, the company experienced a decline in revenue from ordinary activities by 3.40%, and underlying net profit after tax decreased by 8.80%. These results highlight a mixed performance, with substantial gains in net profit but challenges in maintaining revenue growth.

Pacific Current Group Announces 2025 Half-Year Results Conference Call
Feb 21, 2025

Pacific Current Group has announced a conference call to discuss its 2025 half-year results, scheduled for February 25, 2025. The call will feature presentations by Michael Clarke, Executive Director & Acting CEO, and Ashley Killick, CFO, providing stakeholders with insights into the company’s financial performance and strategic direction.

Pacific Current Group Announces Key 2025 Financial Dates
Feb 14, 2025

Pacific Current Group Limited announced its calendar of key events for 2025, detailing significant dates such as the release of half-year and full-year financial results, dividend payment schedules, and the Annual General Meeting. These events are indicative of the company’s structured approach to stakeholder engagement and transparency in financial communications, potentially impacting investor confidence and market positioning.

Pacific Current Group Initiates $300M Share Buy-Back
Feb 10, 2025

Pacific Current Group has launched an off-market share buy-back program, allowing eligible shareholders to participate in a buy-back of up to $300 million of surplus capital. This move, approved by shareholders, is expected to enhance the company’s capital management strategy and potentially improve shareholder value.

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.