Pinnacle Investment Management Group Limited (PNI) AI Stock Analysis

• Market Cap: AU$4.39B
• Dividend Yield: 2.9%
• Average Volume (3M): 978.34K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 2.12
• Revenue Growth: 36.76%
• EPS Growth: 70.74%
• Country: AU
• Employees: 118
• Sector: Financial
• Sector Strength: 84
• Industry: Asset Management
• EPS (TTM): 0.37
• Shares Outstanding: 226,799,730
• 10 Day Avg. Volume: 985,162
• 30 Day Avg. Volume: 978,343
• PEG Ratio: 0.60
• Price to Book (P/B): 4.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -38.63
• 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$22.90
• Price Target Upside: 11.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Pinnacle Investment Management Group Limited scores moderately due to strong financial stability and positive cash flow, despite recent declines in revenue and EBIT margin. While technical indicators show upward momentum, the stock's high P/E ratio suggests it may be overvalued. Investors should monitor operational efficiency improvements and valuation metrics.

Pinnacle Investment Management Group Limited Business Overview & Revenue Model

Company Description

Pinnacle Investment Management Group Limited (PNI) is an Australia-based investment management company that operates within the financial services sector. It focuses on providing a diverse range of investment strategies across various asset classes, including equities, fixed income, and alternative investments. Pinnacle partners with a network of boutique investment managers, offering them distribution and support services to enhance their reach and operational capabilities.

How the Company Makes Money

Pinnacle Investment Management Group Limited generates revenue primarily through management and performance fees. The company earns management fees based on a percentage of the assets under management (AUM) entrusted to its partner boutique investment managers. Additionally, it may earn performance fees when these managers achieve returns above a predefined benchmark or target. Pinnacle's business model relies on fostering strong relationships with its boutique managers, providing them with distribution, business support, and infrastructure, which in turn allows them to focus on generating superior investment performance. This collaborative approach not only helps in expanding AUM, thereby increasing management fees, but also boosts the potential for earning performance fees. Significant partnerships with these boutique managers are crucial to Pinnacle's revenue model as they directly contribute to the company's earnings.

Pinnacle Investment Management Group Limited Financial Statement Overview

Summary

Pinnacle Investment Management Group Limited demonstrates financial stability with strong cash flow and equity positions. However, the recent decline in revenue and EBIT margin points to potential inefficiencies in operations. The company needs to address these issues to improve profitability and maintain growth trajectory.

Income Statement

The company shows a volatile revenue trend with a decline in the most recent year. Gross profit margin is strong, but there's a significant discrepancy between gross profit and net income. EBIT margin declined due to lower operating efficiency, indicating potential issues in cost management.

Balance Sheet

The balance sheet is strong with a solid equity base and moderate debt levels, resulting in a healthy Debt-to-Equity ratio. Return on Equity is robust, reflecting good profitability relative to shareholder equity.

Cash Flow

Cash flow is stable with positive free cash flow growth. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion from operations. Free cash flow to net income ratio is strong, suggesting strong cash generation relative to net income.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
52.95M	47.56M	54.21M	42.12M	32.42M	21.11M
	Gross Profit
9.90M	6.78M	52.65M	39.80M	30.04M	18.62M
	EBIT
3.34M	2.53M	15.19M	4.91M	1.31M	-4.86M
	EBITDA
-394.00K	8.35M	16.74M	7.23M	3.69M	-2.54M
	Net Income Common Stockholders
135.83M	90.35M	76.47M	76.36M	67.02M	32.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
440.38M	184.82M	27.62M	38.27M	96.14M	16.07M
	Total Assets
1.06B	582.99M	552.64M	536.76M	366.20M	240.59M
	Total Debt
111.32M	109.43M	120.49M	121.66M	102.93M	33.83M
	Net Debt
20.91M	76.86M	92.88M	83.39M	6.79M	17.76M
	Total Liabilities
133.00M	127.10M	130.06M	134.57M	122.31M	52.04M
	Stockholders Equity
928.79M	455.89M	422.57M	402.18M	243.89M	188.55M
Cash Flow		Free Cash Flow
-111.38M	76.67M	58.78M	69.76M	53.36M	29.97M
	Operating Cash Flow
-111.36M	76.70M	58.79M	71.77M	53.41M	32.66M
	Investing Cash Flow
-170.00M	20.16M	-6.71M	-222.42M	-26.24M	-46.57M
	Financing Cash Flow
356.75M	-91.92M	-62.73M	92.78M	52.89M	3.23M

Pinnacle Investment Management Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.47
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PNI, the sentiment is Positive. The current price of 20.47 is above the 20-day moving average (MA) of 18.16, above the 50-day MA of 18.03, and above the 200-day MA of 19.91, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 60.67 is Neutral, neither overbought nor oversold. The STOCH value of 69.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PNI.

Pinnacle Investment Management Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFG	76 Outperform	AU$1.48B	6.77	23.27%	7.95%	-9.29%	12.94%
PNI	71 Outperform	AU$4.39B	30.09	20.18%	2.90%	36.76%	70.74%
CGF	70 Outperform	AU$5.00B	34.16	3.85%	4.08%	17.95%	-34.24%
PTM	67 Neutral	€335.88M	12.97	9.63%	10.34%	-20.84%	-67.39%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%
IFL	54 Neutral	$2.30B	―	-7.21%	2.37%	-8.26%	-259.91%
AMP	51 Neutral	$3.36B	18.48	4.84%	2.32%	19.36%	1261.54%

Pinnacle Investment Management Group Limited Corporate Events

Pinnacle Investment Management to Present at Macquarie Conference

Pinnacle Investment Management Group Limited announced its participation in the Macquarie Australia Conference, where it will present to investors and analysts. This engagement highlights Pinnacle’s proactive approach to investor relations and its commitment to transparency, potentially enhancing its market positioning and stakeholder confidence.

Pinnacle Investment Management Sees Shift in Shareholder Structure

Pinnacle Investment Management Group Limited has announced a significant change in its shareholder structure, with a substantial holder acquiring a notable voting power in the company. This development could potentially influence the company’s strategic decisions and impact its market positioning, as the substantial holder now has the power to control the exercise of voting rights and the disposal of securities.

Pinnacle Investment Management Announces Shift in Substantial Holdings

Pinnacle Investment Management Group Limited has announced a significant change in its substantial holdings, with various institutional investors such as State Street Bank and Trust Company, IAM National Pension Fund, and others being involved. This development reflects a strategic shift in the company’s shareholder base, potentially impacting its market positioning and stakeholder interests as these institutional investors may influence the company’s future decisions and strategies.

State Street Ceases Substantial Holding in Pinnacle Investment

Pinnacle Investment Management Group Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of April 15, 2025. This change in substantial holding could impact Pinnacle’s shareholder structure and influence within the market, potentially affecting its strategic decisions and stakeholder relationships.

State Street Acquires Substantial Holding in Pinnacle Investment

Pinnacle Investment Management Group Limited has announced a substantial holding in the company by State Street Bank and Trust Company and its associates. This development signifies a significant level of investment interest and control over voting rights by State Street, which could influence Pinnacle’s strategic decisions and shareholder dynamics.

Pinnacle Investment Updates Dividend Distribution Details

Pinnacle Investment Management Group Limited announced an update regarding its dividend distribution, specifically notifying stakeholders of the currency exchange rate and Dividend Reinvestment Plan (DRP) price. This update pertains to the dividend for the six-month period ending December 31, 2024, and reflects the company’s ongoing commitment to transparent financial reporting and shareholder engagement.

Pinnacle Secures Strategic Investment from NPS and Townsend

Pinnacle Investment Management Group Limited announced a strategic investment by the National Pension Service of Korea and Townsend Group in its affiliate, Metrics Credit Holdings Pty Limited. The investment, amounting to AUD$50 million for a 4.17% interest, will support Metrics’ growth initiatives, including potential acquisitions and the development of new investment strategies. This partnership is expected to enhance Metrics’ capabilities in real estate investment strategies, leveraging Townsend’s expertise and NPS’s significant asset base, thereby strengthening Pinnacle’s position in the market.

Pinnacle Investment Management Announces Cessation of Securities

Pinnacle Investment Management Group Limited announced the cessation of 15,000 ordinary fully paid securities due to a buy-back under an employee share scheme. This move reflects the company’s ongoing efforts to manage its capital structure effectively, which could impact its financial positioning and stakeholder interests.

Pinnacle Investment Completes Employee Share Buy-Back

Pinnacle Investment Management Group Limited has announced the completion of a buy-back of 15,000 ordinary fully paid securities, with a total consideration of AUD 304,500. This buy-back is part of an employee share scheme, indicating the company’s commitment to enhancing shareholder value and potentially improving its market positioning.