Platinum Asset Management Ltd (PTM) AI Stock Analysis

• Market Cap: €358.84M
• Dividend Yield: 9.63%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.19
• Revenue Growth: -20.84%
• EPS Growth: -67.39%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 88
• Industry: Asset Management
• EPS (TTM): 0.03
• Shares Outstanding: 582,167,100
• 10 Day Avg. Volume: 1,841,948
• 30 Day Avg. Volume: 1,644,928
• PEG Ratio: -0.15
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.18
• 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: €0.53
• Price Target Upside: -17.77% Downside
• Rating Consensus: Strong Sell
• Number of Analyst Covering: 5

Platinum Asset Management Ltd achieves a score of 70, reflecting a solid financial foundation with robust profitability margins and a strong balance sheet. However, challenges in revenue growth and operational efficiency pose risks. The stock's valuation is appealing, with a moderate P/E ratio and high dividend yield, while technical indicators show mixed signals. Overall, the company is stable but requires strategic initiatives to boost growth.

Platinum Asset Management Ltd Business Overview & Revenue Model

Company Description

Platinum Asset Management is a publicly owned hedge fund sponsor. The firm primarily provides its services to pooled investment vehicles. The firm launches and manages equity mutual funds for its clients. It also launches and manages hedge funds for its clients. The firm invests in public equity markets across the globe. It employs value strategy with bottom-up stock picking approach to create its portfolio. The firm employs a combination of in-house and external research to make its investments. The firm typically invests in companies in consumer, health care and technology sectors. Platinum Asset Management was founded in February 1994 and is based in Sydney, Australia. Platinum Investment Management Limited operates as subsidiary of Platinum Asset Pty Limited.

How the Company Makes Money

Platinum Asset Management Ltd generates revenue primarily through management fees and performance fees from its investment products. Management fees are charged as a percentage of the assets under management (AUM) and provide a steady income stream based on the size of the funds managed. Performance fees, on the other hand, are contingent on achieving returns above a predefined benchmark, offering upside potential linked to the investment performance. In addition, the firm benefits from economies of scale as it grows its AUM, allowing it to leverage its operational infrastructure efficiently. Partnerships with financial advisors and distributors also play a significant role in expanding its client base and increasing its assets under management, thereby contributing to its earnings.

Platinum Asset Management Ltd Financial Statement Overview

Summary

Platinum Asset Management Ltd demonstrates a mixed financial performance. While the company maintains strong profitability margins and a robust balance sheet with low leverage, it faces challenges in revenue growth and operational efficiency. The cash flow position remains healthy, although there has been a decline in free cash flow. Overall, the company is financially stable but needs to address revenue growth and operational efficiency to enhance performance.

Income Statement

Platinum Asset Management Ltd has experienced a decline in total revenue over the past few years, with the most recent annual revenue dropping from $211.09 million to $185.13 million, marking a negative revenue growth rate. Despite this, the company maintains a reasonable gross profit margin of 57.54% and a net profit margin of 24.31%, reflecting efficient cost management. However, the decreasing EBIT and EBITDA margins indicate challenges in maintaining operational efficiency.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio of 0.04, showcasing minimal leverage and financial stability. The equity ratio stands at 90.73%, indicating a high proportion of equity financing relative to total assets. The return on equity (ROE) is 14.33%, which is moderate and reflects a decent return for shareholders.

Cash Flow

Cash flow from operations is solid at $79.68 million, with a significant free cash flow of $78.08 million. However, the free cash flow has decreased from the previous year, indicating a negative growth rate. The operating cash flow to net income ratio is 1.77, suggesting strong cash generation relative to reported profits, while the free cash flow to net income ratio is 1.73, indicating healthy cash flow management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
162.14M	185.13M	211.09M	256.94M	272.49M	290.00M
	Gross Profit
80.43M	106.50M	202.61M	244.98M	259.72M	274.93M
	EBIT
57.14M	74.16M	114.63M	164.87M	203.44M	213.58M
	EBITDA
59.89M	77.28M	117.36M	167.68M	206.63M	217.38M
	Net Income Common Stockholders
25.25M	45.01M	80.86M	101.49M	163.26M	155.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
152.33M	250.28M	186.06M	177.32M	193.15M	155.21M
	Total Assets
234.70M	346.21M	354.25M	352.61M	384.30M	357.45M
	Total Debt
11.52M	12.35M	3.25M	5.25M	7.11M	8.83M
	Net Debt
-90.93M	-108.06M	-82.93M	-82.19M	-136.17M	-96.50M
	Total Liabilities
35.66M	29.41M	24.72M	29.05M	42.27M	38.49M
	Stockholders Equity
199.04M	314.23M	328.17M	323.55M	342.02M	318.96M
Cash Flow		Free Cash Flow
49.20M	78.08M	90.23M	126.51M	144.47M	144.91M
	Operating Cash Flow
50.85M	79.67M	90.59M	126.73M	144.51M	147.17M
	Investing Cash Flow
75.66M	51.60M	-171.00K	-42.44M	36.78M	3.64M
	Financing Cash Flow
-182.49M	-85.55M	-92.06M	-140.20M	-142.41M	-158.88M

Platinum Asset Management Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PTM, the sentiment is Positive. The current price of 0.64 is above the 20-day moving average (MA) of 0.58, above the 50-day MA of 0.57, and below the 200-day MA of 0.71, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.27 is Neutral, neither overbought nor oversold. The STOCH value of 47.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PTM.

Platinum Asset Management Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAM	73 Outperform		6.39	14.95%	9.90%	46.53%	35.15%
BKI	72 Outperform		22.16	4.44%	4.70%	-4.33%	-13.07%
PTM	70 Outperform	€358.84M	14.86	9.63%	9.63%	-20.84%	-67.39%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%

Platinum Asset Management Ltd Corporate Events

Platinum Asset Management Director Acquires Shares

Platinum Asset Management Limited announced a change in the director’s interest, as Rachel Grimes, a director of the company, acquired 50,000 ordinary shares valued at $31,500. This acquisition could signify confidence in the company’s future performance and may impact stakeholders’ perceptions of the company’s stability and growth potential.

Platinum Asset Management Announces Change in Director’s Interest

Platinum Asset Management Limited has announced a change in the director’s interest for James Simpson, as detailed in the Appendix 3Y notice. This change involves indirect interests held through entities such as Jamplat Pty Ltd and Quinta Investment Management Limited, impacting the number of ordinary shares held by Simpson. The announcement reflects the company’s compliance with ASX listing rules and provides transparency to stakeholders about changes in director interests.

Platinum Asset Management Reports Decrease in Funds Under Management and Announces Cost-Saving Measures

Platinum Asset Management Limited reported a decrease in its funds under management (FUM) from $10,276 million in March 2025 to $9,647 million in April 2025, attributed to lower equity markets and moderated net retail outflows. Additionally, the company announced the termination of an institutional mandate worth approximately $958 million, effective May 9, 2025. This loss in revenue is expected to be counterbalanced by accelerated cost-saving measures planned for the fiscal year 2026.

Mitsubishi UFJ Financial Group Acquires Significant Stake in Platinum Asset Management

Platinum Asset Management Ltd has disclosed a significant holding by Mitsubishi UFJ Financial Group, Inc., which now holds a 5.05% voting power in the company. This announcement highlights Mitsubishi UFJ Financial Group’s substantial interest in Platinum Asset Management, potentially impacting the company’s governance and strategic direction.

MUFG Gains Substantial Interest in First Sentier Investors

Platinum Asset Management Ltd has announced that Mitsubishi UFJ Financial Group (MUFG) holds a substantial interest in First Sentier Investors Holdings Pty Limited, which indirectly impacts the voting power and control over certain shares. This development signifies a consolidation of voting power under MUFG, potentially influencing the strategic direction and investment decisions of First Sentier Investors Holdings Pty Limited.

Platinum Asset Management Announces Potential Merger and Share Sale

Platinum Asset Management Ltd announced a potential merger with First Maven Pty Ltd, trading as Ll Capital. As part of this development, Kerr Neilson has sold a 9.696% shareholding in Platinum to Ll Capital, marking a significant change in substantial holdings. This move could impact Platinum’s market positioning and shareholder interests.

Platinum Asset Management and L1 Capital Discuss Potential Merger

Platinum Asset Management Limited and L1 Capital Pty Ltd are in preliminary discussions about a potential merger. The independent directors of L1 Long Short Fund Limited have confirmed that this merger will not affect the fund’s strategy or management, ensuring continuity in the investment services provided by L1 Capital.

Platinum Asset Management Explores Merger with L1 Capital

Platinum Asset Management Limited is in preliminary discussions with L1 Capital regarding a potential merger that could create a combined investment business managing approximately A$18 billion in assets. This merger aims to enhance scale, diversify investment strategies, and achieve cost efficiencies, potentially benefiting shareholders with increased earnings and value. L1 Capital has also acquired a 9.6% shareholding in Platinum, with an option to increase its stake to 19.9% under certain conditions, indicating a significant interest in the partnership.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in Platinum Asset Management

Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in Platinum Asset Management Ltd as of April 15, 2025. The change in holdings involved several transactions, including purchases and sales of fully paid ordinary shares by an entity controlled by Morgan Stanley. This shift in shareholding may impact Platinum Asset Management’s market dynamics and stakeholder interests, as it reflects a significant change in the ownership structure.

Mitsubishi UFJ Financial Group Gains Substantial Holding in Platinum Asset Management

Platinum Asset Management Ltd has announced a substantial holding in its voting shares by Mitsubishi UFJ Financial Group, Inc., a major financial institution with significant voting power in various associated entities. This development highlights the strategic positioning of Mitsubishi UFJ Financial Group, Inc. in the financial sector, potentially impacting the governance and decision-making processes within Platinum Asset Management Ltd.

Platinum Asset Management Ltd Increases Substantial Holdings

Platinum Asset Management Ltd has announced a significant change in its substantial holdings. The company has acquired a substantial interest in voting shares, enhancing its influence within the investment landscape. This development is expected to impact its operations and market positioning, potentially affecting stakeholders and associates involved.

Platinum Asset Management Reports Significant Fund Outflows in March 2025

In March 2025, Platinum Asset Management Limited reported a net outflow of approximately $302 million in funds under management, with $252 million of this outflow attributed to the Platinum Trust Funds. This decline in funds under management may impact the company’s financial performance and could influence investor sentiment and market positioning.

Platinum Asset Management Releases Half-Year Financial Results

Platinum Asset Management Limited announced the release of its presentation deck for the 2024/2025 half-year financial results, which will be discussed in an analyst briefing. The briefing aims to provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Platinum Asset Management Unveils Leadership Changes Amid Turnaround Efforts

Platinum Asset Management Limited has announced significant changes in its investment leadership as part of its ongoing turnaround program. Ted Alexander will join as Portfolio Manager, bringing a systematic approach to investment, while Jim Simpson will take an executive role to guide the investment team. The company is also focusing on cost control, capital management, and product diversification, with plans to launch new investment offerings. These strategic moves aim to improve investment performance and align remuneration with financial outcomes, demonstrating a commitment to revitalizing the company’s operations and enhancing shareholder value.

Platinum Asset Management Announces New Dividend Distribution

Platinum Asset Management Limited has announced a new dividend distribution for its ordinary fully paid securities, with a distribution amount of AUD 0.015 per share. The dividend relates to the six-month period ending December 31, 2024, and will be paid on March 21, 2025. This announcement reflects the company’s commitment to delivering value to its shareholders and may impact its market positioning by reinforcing investor confidence.

Platinum Asset Management Reports Decline in Half-Year Financial Performance

Platinum Asset Management Limited reported a significant decline in its financial performance for the half-year ended 31 December 2024, with total revenue and other income dropping by 23% and profit from ordinary activities after income tax falling by 55% compared to the previous year. The decrease in profitability was largely due to a reduction in management fees, driven by a 15% decrease in funds under management (FUM) to $11.1 billion, attributed to net outflows and lower average FUM. Despite positive investment returns, the company’s operating profit was impacted, highlighting challenges in maintaining fee revenue amidst fluctuating market conditions.

Platinum Asset Management Projects Turnaround Costs for H1 2024

Platinum Asset Management Limited announced that it expects its turnaround program implementation costs for the December 2024 half year to range between $9.5 million and $10 million before tax. This announcement reflects the company’s ongoing efforts to manage its operations and improve business performance, with further details to be disclosed in the upcoming half-year results.