Praemium Ltd (PPS) AI Stock Analysis

• Market Cap: AU$430.58M
• Dividend Yield: 2.76%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.29
• Revenue Growth: 24.56%
• EPS Growth: 59.32%
• Country: AU
• Employees: 360
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.02
• Shares Outstanding: 478,425,380
• 10 Day Avg. Volume: 1,312,082
• 30 Day Avg. Volume: 1,004,049
• PEG Ratio: 0.38
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 180.50
• P/FCF Ratio: 30.06
• 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$1.12
• Price Target Upside: 36.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: AU$1.00 ▲(21.95% Upside)

Praemium Ltd's overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and a relatively high valuation. The company's strong balance sheet and profit margins are offset by revenue volatility and declining free cash flow growth. Technical analysis suggests potential oversold conditions, but the high P/E ratio indicates possible overvaluation.

Positive Factors

Business Model Strength

The subscription-based model provides a stable and predictable revenue stream, enhancing financial stability and long-term growth potential.

Market Position

As a leader in investment and wealth management solutions, Praemium benefits from a strong market position, supporting sustained competitive advantage.

Profit Margins

Strong profit margins indicate operational efficiency and pricing power, contributing to long-term profitability and financial health.

Negative Factors

Revenue Volatility

Revenue volatility and declining growth can signal market challenges and impact long-term financial performance and investor confidence.

Declining Free Cash Flow

Declining free cash flow growth may constrain future investments and limit the company's ability to capitalize on growth opportunities.

Revenue Growth Decline

A sharp decline in revenue growth rate suggests potential instability and challenges in maintaining market share and competitive position.

Praemium Ltd Business Overview & Revenue Model

Company Description

Praemium Ltd (PPS) is a leading technology company specializing in investment and wealth management solutions. Headquartered in Australia, the company operates primarily in the financial services sector, providing a cloud-based platform that facilitates portfolio administration, investment management, and reporting for financial advisers, institutions, and their clients. Praemium offers a suite of products that includes managed accounts, investment platforms, and tools for financial planning and analysis, catering to a diverse clientele across multiple regions, including Australia, the UK, and Asia.

How the Company Makes Money

Praemium generates revenue primarily through a subscription-based model, where clients pay fees for access to its investment platform and related services. Key revenue streams include platform fees, which are charged as a percentage of assets under administration (AUA), and transaction fees for trading activity executed on the platform. Additionally, the company earns income from managed accounts, where it charges investment management fees. Significant partnerships with financial institutions and advisers enhance its market reach and contribute to its client base, further driving revenue growth. The company may also benefit from performance fees tied to investment outcomes, depending on the specific agreements with clients.

Praemium Ltd Financial Statement Overview

Summary

Praemium Ltd shows a mixed financial picture. The income statement highlights significant revenue challenges with a dramatic decline in revenue growth rate, indicating potential instability. However, the balance sheet reflects strong financial stability with a low debt-to-equity ratio, and cash flow generation is adequate despite declining free cash flow growth.

Income Statement

Praemium Ltd's income statement reveals significant volatility, with a dramatic decline in revenue growth rate of -98.22% in the latest year, indicating potential instability. Despite this, the company maintains a strong gross profit margin and a positive net profit margin, suggesting some level of operational efficiency. However, the sharp revenue drop is a major concern.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability and low leverage risk. The return on equity is positive, reflecting effective use of equity to generate profits. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, which could impact future liquidity. However, the operating cash flow remains robust compared to net income, suggesting good cash generation from operations. The free cash flow to net income ratio is positive, but the declining trend is concerning.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	103.04M	1.70M	82.73M	74.29M	63.34M	52.88M
Gross Profit	39.10M	1.60M	34.14M	24.70M	18.14M	16.35M
EBITDA	25.01M	23.93M	17.41M	20.69M	14.32M	16.20M
Net Income	13.56M	13.56M	8.75M	15.15M	43.57M	1.54M
Balance Sheet
Total Assets	135.63M	135.63M	134.58M	129.50M	156.91M	112.47M
Cash, Cash Equivalents and Short-Term Investments	40.97M	40.97M	44.34M	46.25M	80.55M	26.74M
Total Debt	1.46M	1.46M	1.96M	2.18M	11.40M	16.37M
Total Liabilities	23.63M	23.63M	25.44M	21.38M	54.57M	32.56M
Stockholders Equity	112.00M	112.00M	109.15M	108.12M	102.34M	79.91M
Cash Flow
Free Cash Flow	20.16M	10.20M	8.69M	15.22M	2.97M	-1.78M
Operating Cash Flow	20.44M	20.54M	17.04M	23.36M	9.63M	5.46M
Investing Cash Flow	-10.91M	-10.91M	-8.47M	-8.40M	49.74M	-6.48M
Financing Cash Flow	-12.82M	-12.92M	-10.48M	-48.89M	-5.77M	11.78M

Praemium Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.82
• 50DMA: Negative
• 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:PPS, the sentiment is Neutral. The current price of 0.82 is below the 20-day moving average (MA) of 0.82, below the 50-day MA of 0.84, and above the 200-day MA of 0.74, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:PPS.

Praemium 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%
NWL	64 Neutral	AU$7.56B	64.73	67.81%	1.43%	28.29%	39.39%
OFX	60 Neutral	AU$136.71M	5.64	9.31%	―	-5.73%	-36.36%
COG	55 Neutral	AU$489.39M	24.55	12.36%	3.02%	-26.30%	40.12%
RZI	53 Neutral	€87.47M	-133.87	-0.15%	―	5.03%	52.31%
PPS	50 Neutral	AU$430.58M	31.80	12.27%	2.76%	24.56%	59.32%
FNX	46 Neutral	AU$11.21M	―	-34.88%	―	43.00%	-6078.57%

Praemium Ltd Corporate Events

Praemium Ltd Announces Director’s Interest Change

Praemium Ltd has announced a change in the director’s interest, with Anthony Wamsteker acquiring 237,097 performance rights under the company’s Director & Employee Benefits Plan. This change reflects the company’s ongoing commitment to aligning the interests of its directors and employees with its operational goals, potentially impacting stakeholder confidence positively.

Praemium Ltd Issues Unquoted Performance Rights to Employees

Praemium Ltd announced the issuance of 237,097 unquoted performance rights under an employee incentive scheme. This move is part of the company’s strategy to align employee interests with corporate goals and enhance operational efficiency, potentially strengthening its market position and stakeholder value.

Praemium’s OneVue Acquisition: No Additional Earn Out Payments Due

Praemium Limited announced that no additional payments are due to Iress Limited for the second earn out period following the acquisition of the OneVue Platform Business. The retained funds under administration did not meet the $3 billion threshold due to client outflows and contract terminations. Despite this, Praemium’s CEO remains optimistic about achieving $3 million in annual EBITDA from synergies related to the acquisition, with no expected material impact on earnings.

Praemium Limited’s 2025 AGM Resolutions Passed with Strong Shareholder Support

Praemium Limited announced the results of its 2025 Annual General Meeting, where all resolutions, including the adoption of the remuneration report, re-election of director Barry Lewin, and the issuance of performance rights to CEO Anthony Wamsteker, were carried. The outcomes reflect strong shareholder support, indicating confidence in the company’s leadership and strategic direction.

Praemium Ltd Issues New Performance Rights to Employees

Praemium Ltd announced the issuance of 887,399 unquoted performance rights under an employee incentive scheme, which are not intended to be listed on the ASX. This move is part of the company’s strategy to incentivize employees, potentially enhancing productivity and aligning employee interests with company goals.

Praemium Limited Announces Hybrid 2025 AGM

Praemium Limited has announced its 2025 Annual General Meeting (AGM) will be held as a hybrid event on November 26, 2025, at 10:30 am AEDT. The meeting will take place at the RACV Club in Melbourne and will also be accessible online, reflecting the company’s commitment to accommodating both in-person and virtual attendance. This approach may enhance shareholder engagement and accessibility, potentially impacting the company’s stakeholder relations positively.

Praemium Limited Releases September Quarter Update for FY2026

Praemium Limited has released its September Quarter Update for the 2026 Financial Year, presented by CEO Anthony Wamsteker and CFO Emma Stepcic. The update, accessible through an online presentation, highlights the company’s ongoing efforts to maintain transparency with investors and analysts, potentially impacting its market positioning and stakeholder relations positively.

Praemium Ltd Reports Strong Q1 FY2026 Growth in Funds Under Administration

Praemium Ltd reported a 13% increase in Total Funds Under Administration (FUA) to $67.0 billion for the quarter ending September 2025, driven by strong organic growth in its Spectrum platform. The company saw significant net inflows across its product suite, with Spectrum achieving $299 million in net inflows and growing its FUA to $3.3 billion. The strategic focus on the high-net-worth segment and the effectiveness of Praemium’s product offerings have positioned the company for continued growth. The transition of OneVue assets is progressing, supporting platform consolidation and enhanced client outcomes. Praemium’s strategic initiatives, including the development of an in-house superannuation administration capability and increased access to global funds, are expected to bolster its market position and drive future growth.

Praemium Ltd Announces Quotation of New Securities on ASX

Praemium Ltd has announced the application for the quotation of 710,220 ordinary fully paid securities on the Australian Securities Exchange (ASX), effective from October 6, 2025. This move is part of the company’s ongoing efforts to enhance its market presence and operational capabilities, potentially impacting its industry positioning and offering new opportunities for stakeholders.

Praemium Limited Announces Hybrid 2025 AGM

Praemium Limited has announced its 2025 Annual General Meeting (AGM) will be held on November 26, 2025, in a hybrid format, allowing shareholders to participate both in-person and virtually. This approach aims to enhance shareholder engagement and accessibility. The company has set October 8, 2025, as the deadline for director nominations, with further AGM details to be released in October. This move reflects Praemium’s commitment to leveraging technology to improve shareholder interaction and maintain transparency in its governance practices.

Praemium Appoints New Chief Financial Officer

Praemium Limited has appointed Ms. Emmalene Stepcic as its new Chief Financial Officer, effective 1 October 2025. With a strong background in financial leadership roles at ASX-listed companies, Emma is expected to enhance Praemium’s executive leadership team and contribute significantly to its strategic and operational capabilities. This appointment follows the departure of interim CFO Simon Moore, who made several improvements to the finance function during his tenure.