Praemium Ltd (PPS) AI Stock Analysis

• Market Cap: AU$358.29M
• Dividend Yield: 2.67%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 34.6
• Beta (1Y): 1.42
• Revenue Growth: 23.52%
• EPS Growth: 7.96%
• Country: AU
• Employees: 360
• Sector: Financial
• Sector Strength: 85
• Industry: Financial - Capital Markets
• EPS (TTM): 0.02
• Shares Outstanding: 477,715,180
• 10 Day Avg. Volume: 1,271,715
• 30 Day Avg. Volume: 1,037,790
• PEG Ratio: 1.53
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.96
• 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$0.91
• Price Target Upside: 22.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Praemium Ltd's stock score reflects strong financial performance characterized by growth and a robust balance sheet, countered by challenges in profitability margins and cash flow. Technical analysis indicates a weak momentum, and valuation suggests a potential overvaluation, although the dividend yield offers some investor appeal. Overall, the stock presents a mixed investment case with strengths in financial stability but caution due to technical and valuation concerns.

Praemium Ltd Business Overview & Revenue Model

Company Description

Praemium Limited, together with its subsidiaries, provides managed accounts platform, investment management, portfolio administration, and reporting and financial planning software in Australia and internationally. It offers managed accounts platform that enables advisers and wealth managers to construct the managed account solutions for their clients; and virtual managed accounts (VMA) and VMA administration services. The company also provides advice solutions comprising practice management, report building and plan generation, remuneration, lead generation, and client engagement services, as well as Wealthcraft services. It serves financial advisers, brokers, and accountants. Praemium Limited was incorporated in 2001 and is based in Melbourne, Australia.

How the Company Makes Money

Praemium Ltd generates revenue primarily through fees charged for its investment platform and portfolio administration services. These fees are typically based on a percentage of assets under administration (AUA), which provides a recurring revenue stream as the value of assets managed on its platform grows. Additionally, the company may earn fees from transaction-based services and customized solutions offered to its clients. Strategic partnerships with financial advisers and investment managers are significant contributors to its earnings, helping to expand its client base and increase the volume of assets managed. Praemium's innovative technology and customer-centric approach further drive its financial performance by enhancing client satisfaction and retention.

Praemium Ltd Financial Statement Overview

Summary

Praemium Ltd demonstrates solid revenue growth and operational efficiency, with some pressure on profitability margins. The balance sheet is a strong point with minimal debt and a high equity base, providing stability. However, declining free cash flow growth signals a potential area of concern for cash management. Continued focus on improving net income margins and cash flow generation will be key to sustaining its financial health.

Income Statement

Praemium Ltd shows consistent revenue growth with a Revenue Growth Rate of 11.34% in 2024 and 17.34% in 2023. Gross Profit Margin decreased from 33.25% in 2023 to 27.30% in 2024, indicating some pressure on cost management. The Net Profit Margin dropped significantly from 20.39% in 2023 to 10.58% in 2024, suggesting a decrease in overall profitability. Despite this, the company maintains a solid EBITDA Margin of 21.05% in 2024, reflecting efficient operations.

Balance Sheet

The balance sheet of Praemium Ltd is strong with a low Debt-to-Equity Ratio of 0.02, indicating minimal leverage and financial risk. The Equity Ratio stands at 81.10% in 2024, highlighting a robust equity base. Return on Equity is good at 8.02% in 2024, though it has decreased from 14.02% in 2023, suggesting a slight decline in the efficiency of equity utilization.

Cash Flow

Praemium Ltd's Free Cash Flow Growth Rate turned negative at -42.90% in 2024, reflecting a decline in cash generation. However, the company maintains a healthy Operating Cash Flow to Net Income Ratio of 1.95, indicating strong cash earnings. The Free Cash Flow to Net Income Ratio decreased to 0.99 in 2024, suggesting tighter cash flow relative to net income.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
95.58M	82.73M	74.29M	63.34M	52.88M	50.17M
	Gross Profit
41.82M	22.60M	24.70M	18.14M	16.35M	16.27M
	EBIT
32.17M	13.55M	13.77M	6.93M	7.62M	4.99M
	EBITDA
22.86M	17.41M	20.69M	14.32M	16.20M	9.57M
	Net Income Common Stockholders
10.56M	8.75M	15.15M	43.57M	1.54M	4.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.95M	44.34M	46.25M	80.55M	26.74M	15.91M
	Total Assets
123.56M	134.58M	129.50M	156.91M	112.47M	49.23M
	Total Debt
1.95M	1.96M	2.18M	11.40M	16.37M	4.23M
	Net Debt
-39.00M	-42.38M	-44.07M	-69.15M	-10.16M	-11.30M
	Total Liabilities
17.91M	25.44M	21.38M	54.57M	32.56M	18.64M
	Stockholders Equity
105.65M	109.15M	108.12M	102.34M	79.91M	30.59M
Cash Flow		Free Cash Flow
14.96M	8.69M	15.22M	2.97M	-1.78M	6.80M
	Operating Cash Flow
15.57M	17.04M	23.36M	9.63M	5.46M	12.06M
	Investing Cash Flow
-8.66M	-8.47M	-8.40M	49.74M	-6.48M	-8.40M
	Financing Cash Flow
-10.46M	-10.48M	-48.89M	-5.77M	11.78M	-1.27M

Praemium Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.74
• 50DMA: Positive
• 100DMA: Positive
• 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:PPS, the sentiment is Positive. The current price of 0.74 is above the 20-day moving average (MA) of 0.73, above the 50-day MA of 0.71, and above the 200-day MA of 0.66, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PPS.

Praemium Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWL	66 Neutral	AU$7.47B	73.29	65.17%	1.03%	24.24%	33.94%
PPS	64 Neutral	AU$358.29M	34.56	9.89%	2.67%	23.52%	7.96%
Sector *	64 Neutral	$12.75B	9.93	7.86%	17015.07%	12.19%	-5.92%

Praemium Ltd Corporate Events

Praemium Ltd Reports Record Growth in Funds Under Administration

Praemium Ltd announced a significant increase in its total funds under administration (FUA) to $62.3 billion, marking a 17% rise from the previous year. The company’s newly launched Spectrum platform saw strong net inflows of $440 million, contributing to its overall platform FUA of $30 billion, a 24% increase. Despite some net outflows in Powerwrap and OneVue, the company remains optimistic about its growth trajectory, with ongoing integration and technology transitions expected to yield synergies by the end of the financial year.

Praemium Ltd Director Increases Shareholding

Praemium Ltd announced a change in the director’s interest, with Director Daniel Lipshut acquiring 30,000 ordinary shares through an on-market trade, increasing his total holdings to 580,000 shares. This transaction reflects a strategic move by the director, potentially indicating confidence in the company’s future prospects, which could have implications for stakeholders and market perception.

Praemium Ltd Director Increases Shareholding

Praemium Ltd has announced a change in the director’s interest, with Stuart Robertson acquiring an additional 15,151 ordinary shares through an on-market trade, bringing his total to 646,568 shares. This change reflects the director’s increased investment in the company, potentially signaling confidence in Praemium’s market position and future prospects, which may have implications for stakeholders and market perceptions.

Praemium Ltd Director Increases Shareholding

Praemium Ltd has announced a change in the interests of its director, Anthony Wamsteker, involving the acquisition of 102,261 ordinary shares through an on-market trade. This change reflects an increase in Mr. Wamsteker’s indirect holdings, now totaling 1,922,263 ordinary shares, which may indicate a strategic move to strengthen his stake in the company, potentially impacting stakeholder confidence and market perception.

Praemium Ltd Director Increases Shareholding

Praemium Ltd has announced a change in the indirect interest of its director, Stuart Robertson, who acquired 14,925 ordinary shares at $0.67 per share through an on-market trade. This acquisition increases his total holding to 631,417 ordinary shares, reflecting a strategic move that may signal confidence in the company’s future performance and potentially impact stakeholder perception positively.

Pinnacle Investment Acquires Significant Stake in Praemium Ltd

Pinnacle Investment Management Group Limited has become a substantial holder in Praemium Ltd, acquiring a 5.05% voting power with 24,115,830 ordinary fully paid shares. This acquisition marks a significant stake in Praemium Ltd, potentially influencing its future strategic decisions and impacting its market position.

Praemium Limited Completes Significant Share Buy-Back

Praemium Limited has announced the finalization of its on-market buy-back program, repurchasing a total of 41,667,480 ordinary fully paid securities for a total consideration of AUD 24,053,587.93. This buy-back is part of the company’s strategy to enhance shareholder value and optimize its capital structure, reflecting positively on its market positioning and potentially benefiting stakeholders by improving earnings per share.

Praemium Ltd Announces Dividend Distribution for March 2025

Praemium Ltd has announced a dividend distribution of AUD 0.01 per share for its ordinary fully paid securities, with key dates including an ex-date of March 6, 2025, a record date of March 7, 2025, and a payment date of March 21, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may influence its market positioning by demonstrating financial stability and shareholder value.

Praemium Ltd Reports Strong Half-Year Financial Performance and Strategic Growth

Praemium Ltd reported a significant financial performance for the half-year ending December 2024, with a 32% increase in revenue and a 43% rise in EBITDA. The company’s strategic initiatives, including the acquisition of OneVue and the launch of the Spectrum IDPS service, have contributed to its growth, despite increased expenses. The company has also announced a fully franked dividend and completed a share buy-back, reflecting its commitment to shareholder returns.

Praemium Limited Releases Half-Year Report Focusing on Strategic Growth

Praemium Limited has released its half-year report, highlighting its continued focus on delivering sophisticated wealth management solutions. The report underscores the company’s strategic initiatives aimed at enhancing its market position and operational efficiency, which are crucial for stakeholders and the broader industry.