Praemium Ltd (PPS) AI Stock Analysis

• Market Cap: AU$384.56M
• Dividend Yield: 2.87%
• Average Volume (3M): 914.76K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 1.40
• Revenue Growth: 24.56%
• EPS Growth: 59.32%
• Country: AU
• Employees: 360
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): 0.02
• Shares Outstanding: 477,715,180
• 10 Day Avg. Volume: 1,428,646
• 30 Day Avg. Volume: 914,762
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$0.99
• Price Target Upside: 26.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: AU$1.00 ▲(28.21% Upside)

Praemium Ltd's overall stock score of 64 reflects a balance of strong technical indicators and a solid balance sheet against the backdrop of revenue volatility and a high P/E ratio. The stock's bullish momentum is a significant positive factor, but the financial performance and valuation concerns temper the overall score.

Positive Factors

Strong Gross and Net Profit Margins

Strong profit margins indicate operational efficiency and the ability to maintain profitability despite revenue volatility, supporting long-term financial health.

Low Leverage

Low leverage reduces financial risk and provides flexibility to invest in growth opportunities, enhancing long-term stability and resilience.

Scalable Revenue Model

A scalable revenue model allows for growth alongside client assets, supporting sustainable long-term revenue expansion and market position.

Negative Factors

Revenue Volatility

Revenue volatility can indicate instability and unpredictability in earnings, potentially affecting long-term strategic planning and investor confidence.

Declining Free Cash Flow Growth

Declining free cash flow growth could limit the company's ability to reinvest in business operations and pursue new opportunities, impacting future growth.

Dramatic Revenue Decline

A dramatic decline in revenue growth suggests potential market or operational challenges that could hinder long-term performance and competitiveness.

Praemium Ltd Business Overview & Revenue Model

Company Description

Praemium Ltd (PPS) is a leading provider of portfolio administration, investment platforms, and financial planning technology to the wealth management industry. Headquartered in Australia, the company offers innovative solutions that empower financial advisers, institutions, and investment managers to streamline their operations and enhance client engagement. Praemium's core products include its proprietary investment platform, which is known for its efficiency and comprehensive reporting capabilities, and its suite of financial planning software tools.

How the Company Makes Money

Praemium Ltd generates revenue primarily through fees associated with its investment platform and financial services technology. The company charges advisory firms, financial planners, and institutions for access to its platform, which facilitates portfolio administration and investment management. These fees often depend on the assets under administration (AUA) managed through the platform, creating a scalable revenue model that grows with increased client assets. Additionally, Praemium earns income from software licensing, subscription fees for its financial planning tools, and ancillary services such as data analytics and reporting solutions. Strategic partnerships with financial institutions and continuous innovation in their service offerings also play a significant role in driving the company's earnings.

Praemium Ltd Financial Statement Overview

Summary

Praemium Ltd's financial performance is mixed. The income statement shows significant revenue volatility with a sharp decline, but the company maintains strong gross and net profit margins. The balance sheet is strong with low leverage, 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: Positive
• Last Price: 0.78
• 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 0.78 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 0.71, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.24 is Neutral, neither overbought nor oversold. The STOCH value of 54.64 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
OFX	70 Neutral	AU$207.09M	8.45	14.15%	―	-4.69%	-18.65%
COG	68 Neutral	AU$403.68M	21.25	12.36%	3.11%	-26.30%	40.12%
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%
PPS	64 Neutral	AU$384.56M	28.45	12.27%	2.87%	24.56%	59.32%
5HK	―	€43.20M	―	-0.15%	―	―	―
FNX	62 Neutral	AU$9.03M	196.43	-19.59%	1.82%	49.34%	-3842.86%
NWL	59 Neutral	AU$7.82B	66.95	67.81%	1.21%	28.29%	39.39%

Praemium Ltd Corporate Events

Praemium Ltd Achieves Record Growth in Funds Under Administration

Praemium Ltd reported a record increase in its total funds under administration (FUA) to $64.3 billion, marking a 12% rise from the previous year. The company’s Spectrum platform saw significant net inflows, contributing to a robust quarter despite outflows in other areas. The transition of assets from OneVue to Praemium’s platforms is progressing well, with nearly half of the FUA already moved. The company remains optimistic about its growth prospects, although it acknowledges the impact of high outflows from transitioning advisers and OneVue on its net flows.

The most recent analyst rating on (AU:PPS) stock is a Buy with a A$0.75 price target. To see the full list of analyst forecasts on Praemium Ltd stock, see the AU:PPS Stock Forecast page.