Platinum Asset Management Ltd (PTM) AI Stock Analysis

• Market Cap: €272.72M
• Dividend Yield: 12.63%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.21
• Revenue Growth: -20.84%
• EPS Growth: -67.39%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 78
• Industry: Asset Management
• EPS (TTM): 0.03
• Shares Outstanding: 582,167,100
• 10 Day Avg. Volume: 2,247,144
• 30 Day Avg. Volume: 1,565,328
• PEG Ratio: -0.56
• Price to Book (P/B): 3.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.06
• 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: €0.52
• Price Target Upside: 8.39% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 65 Neutral
• Price Target: AU$0.50 ▲(4.17%Upside)

Platinum Asset Management Ltd's stock is moderately attractive. The strong financial stability and attractive valuation are offset by bearish technical indicators. The company's revenue growth and operational efficiency challenges impact the overall score.

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

Mixed financial performance with strong profitability margins and a robust balance sheet featuring low leverage. However, challenges include declining revenue and operational efficiency. Healthy cash flow, though free cash flow has decreased.

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
EBITDA	59.89M	77.28M	117.36M	167.68M	206.63M	217.38M
Net Income	25.25M	45.01M	80.86M	101.49M	163.26M	155.61M
Balance Sheet
Total Assets	234.70M	346.21M	354.25M	352.61M	384.30M	357.45M
Cash, Cash Equivalents and Short-Term Investments	152.33M	250.28M	186.06M	177.32M	193.15M	155.21M
Total Debt	11.52M	12.35M	3.25M	5.25M	7.11M	8.83M
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: Negative
• Last Price: 0.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.48 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.56, and below the 200-day MA of 0.68, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.93 is Neutral, neither overbought nor oversold. The STOCH value of 21.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.91%	11.61%	-10.70%
PTM	65 Neutral	€272.72M	10.53	9.63%	12.63%	-20.84%	-67.39%
TSRUF		$218.24M	2.83	33.29%	2.67%	―	―
1OP		€391.74M	41.88	47.73%	1.62%	―	―
FID	73 Outperform	AU$299.89M	17.77	30.97%	4.61%	12.05%	23.63%
REP	54 Neutral	AU$288.17M	―	-4.99%	8.70%	4.56%	35.07%
CVC	45 Neutral	AU$249.60M	―	-2.32%	―	-67.43%	-131.40%

Platinum Asset Management Ltd Corporate Events

Platinum Asset Management Advances Merger Talks with L1 Capital

Platinum Asset Management Limited has made significant progress in its merger discussions with L1 Capital, having completed the due diligence phase. The proposed merger terms have been adjusted, with L1 Capital shareholders expected to own 74% of the combined entity, while Platinum shareholders will hold 26%. The merger aims to enhance value for Platinum shareholders, though it remains subject to board and regulatory approvals. The merger’s completion is not guaranteed, as it depends on final negotiations and approvals.

The most recent analyst rating on (AU:PTM) stock is a Hold with a A$0.90 price target. To see the full list of analyst forecasts on Platinum Asset Management Ltd stock, see the AU:PTM Stock Forecast page.

Platinum Asset Management Faces Significant Fund Outflows in May 2025

Platinum Asset Management Limited reported a significant decrease in its funds under management (FUM) for May 2025, with a net outflow of approximately $1.6 billion. This decline was influenced by the termination of an institutional mandate worth $958 million, an additional institutional redemption of $360 million, and net outflows from the Platinum Trust Funds. This substantial reduction in FUM may impact the company’s financial performance and its standing in the investment management industry.

The most recent analyst rating on (AU:PTM) stock is a Sell with a A$0.51 price target. To see the full list of analyst forecasts on Platinum Asset Management Ltd stock, see the AU:PTM Stock Forecast page.

Platinum Asset Management Issues Unquoted Equity Securities

Platinum Asset Management Limited announced the issuance of 1,127,820 unquoted equity securities under an employee incentive scheme. This move is part of the company’s strategy to incentivize its workforce, potentially impacting its operational dynamics and reinforcing its position in the asset management sector.

The most recent analyst rating on (AU:PTM) stock is a Hold with a A$0.90 price target. To see the full list of analyst forecasts on Platinum Asset Management Ltd stock, see the AU:PTM Stock Forecast page.

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.