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Praemium Ltd (AU:PPS)
:PPS
Australian Market
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Praemium Ltd (PPS) AI Stock Analysis

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AU:PPS

Praemium Ltd

(Sydney:PPS)

Rating:70Outperform
Price Target:
AU$1.00
▲(42.86%Upside)
The overall stock score of 70 reflects solid financial performance with strong revenue growth and balance sheet stability. However, technical indicators suggest caution due to potential overbought conditions, and the valuation is somewhat high, which could limit future upside potential.

Praemium Ltd (PPS) vs. iShares MSCI Australia ETF (EWA)

Praemium Ltd Business Overview & Revenue Model

Company DescriptionPraemium 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 MoneyPraemium 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 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.
Income Statement
78
Positive
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
85
Very Positive
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
72
Positive
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue82.73M74.29M63.34M52.88M50.17M
Gross Profit22.60M24.70M18.14M16.35M16.27M
EBITDA17.41M20.69M14.32M16.20M9.57M
Net Income8.75M15.15M43.57M1.54M4.86M
Balance Sheet
Total Assets134.58M129.50M156.91M112.47M49.23M
Cash, Cash Equivalents and Short-Term Investments44.34M46.25M80.55M26.74M15.91M
Total Debt1.96M2.18M11.40M16.37M4.23M
Total Liabilities25.44M21.38M54.57M32.56M18.64M
Stockholders Equity109.15M108.12M102.34M79.91M30.59M
Cash Flow
Free Cash Flow8.69M15.22M2.97M-1.78M6.80M
Operating Cash Flow17.04M23.36M9.63M5.46M12.06M
Investing Cash Flow-8.47M-8.40M49.74M-6.48M-8.40M
Financing Cash Flow-10.48M-48.89M-5.77M11.78M-1.27M

Praemium Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.70
Price Trends
50DMA
0.69
Positive
100DMA
0.70
Positive
200DMA
0.71
Negative
Market Momentum
MACD
0.01
Positive
RSI
48.59
Neutral
STOCH
24.60
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 0.7 is below the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.69, and below the 200-day MA of 0.71, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.59 is Neutral, neither overbought nor oversold. The STOCH value of 24.60 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
AU$332.01M32.039.89%1.44%23.52%7.96%
67
Neutral
$17.06B11.249.31%3.84%11.08%-3.39%
€42.22M-0.11%
68
Neutral
AU$361.29M29.017.94%4.28%16.16%32.97%
66
Neutral
AU$9.10B89.2465.17%0.85%24.24%33.94%
66
Neutral
AU$196.56M7.8314.15%-4.69%-18.65%
62
Neutral
AU$17.13M196.43-0.72%1.82%17.07%-107.76%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PPS
Praemium Ltd
0.70
0.23
48.94%
DE:5HK
Raiz Invest Ltd.
0.38
0.18
90.00%
AU:OFX
OFX Group Ltd.
0.82
-1.39
-62.90%
AU:COG
COG Financial Services Limited
1.78
0.67
60.36%
AU:NWL
Netwealth Group Ltd.
37.10
13.64
58.14%
AU:FNX
Finexia Financial Group Ltd
0.28
>-0.01
-3.45%

Praemium Ltd Corporate Events

Praemium Ltd Achieves Record Growth in Funds Under Administration
Jul 21, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 11, 2025