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PEXA Group Limited (AU:PXA)
ASX:PXA
Australian Market
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PEXA Group Limited (PXA) AI Stock Analysis

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AU:PXA

PEXA Group Limited

(Sydney:PXA)

Rating:66Neutral
Price Target:
AU$16.50
▲(9.34%Upside)
PEXA Group Limited's overall stock score is driven by strong financial performance with significant revenue growth and cash management. However, profitability issues, as indicated by a negative net profit margin and high negative P/E ratio, weigh heavily on the valuation. The technical analysis suggests bullish momentum, though the stock may be overbought. These factors combined result in a moderate overall stock score.

PEXA Group Limited (PXA) vs. iShares MSCI Australia ETF (EWA)

PEXA Group Limited Business Overview & Revenue Model

Company DescriptionPEXA Group Limited operates a digital property settlements platform in Australia. It operates through three segments: PEXA Exchange, PEXA International, and PEXA Insights. The company operates electronic lodgement network, a cloud-based platform that enables the digital lodgement and settlement for property transactions. Its PEXA lodgement and settlement services transactions include financial institutions lending funds for property purchases and refinances, practitioners representing individual buyers and sellers, and property developers. The company was formerly known as Torrens Group Holdings Limited. PEXA Group Limited was founded in 2010 and is headquartered in Melbourne, Australia.
How the Company Makes MoneyPEXA Group Limited generates revenue primarily through transaction fees charged for each property settlement conducted on its platform. These fees are paid by the parties involved in the real estate transaction, typically shared between the buyers, sellers, and their respective representatives. Additionally, PEXA has established partnerships with major financial institutions and government bodies, enhancing its platform's adoption and integration into existing systems. The company also benefits from offering subscription services for access to its platform and additional features, which provide a steady revenue stream alongside the transactional income.

PEXA Group Limited Financial Statement Overview

Summary
PEXA Group Limited shows strong revenue growth and efficient cash management, but struggles with profitability as indicated by a negative net profit margin and return on equity. The balance sheet is stable with a solid equity ratio, though profitability improvements are needed.
Income Statement
72
Positive
PEXA Group Limited demonstrates strong revenue growth, with a noticeable increase from AUD 281.69 million to AUD 340.06 million (20.69% growth) in the last year. The company's gross profit margin improved slightly to 58.62% from the previous year, indicating efficient cost management. However, the net profit margin remains negative at -5.30%, reflecting ongoing challenges in achieving profitability. EBIT and EBITDA margins are at 4.43% and 30.56%, respectively, showing operational efficiency gains but still highlighting profitability concerns.
Balance Sheet
65
Positive
The company's balance sheet presents a solid equity base with an equity ratio of 68.91%, suggesting good financial stability. However, the debt-to-equity ratio stands at 0.31, indicating a manageable but significant debt level. The return on equity is negative, reflecting the negative net income, which poses a risk to investor returns. Overall, the balance sheet strength is balanced by the need to improve overall profitability.
Cash Flow
77
Positive
PEXA Group Limited shows an impressive free cash flow growth rate of 376.84%, driven by strong operating cash flow and reduced capital expenditures. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings. Free cash flow to net income ratio is positive, showing effective cash management despite net losses, which bodes well for future liquidity.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue340.06M281.69M279.84M221.05M155.59M
Gross Profit289.78M170.13M177.00M126.03M70.18M
EBITDA103.94M87.45M107.71M94.23M51.69M
Net Income-18.01M-21.84M21.85M-11.79M-30.00K
Balance Sheet
Total Assets1.78B1.82B1.81B1.61B1.66B
Cash, Cash Equivalents and Short-Term Investments90.46M36.54M75.39M51.52M70.42M
Total Debt375.08M306.37M307.50M502.08M11.43M
Total Liabilities553.37M578.29M542.19M581.32M66.23M
Stockholders Equity1.23B1.24B1.26B1.03B1.60B
Cash Flow
Free Cash Flow41.10M8.62M39.76M86.19M29.24M
Operating Cash Flow109.94M83.23M89.78M109.28M48.36M
Investing Cash Flow-117.46M-119.46M-80.70M-23.35M-19.12M
Financing Cash Flow61.80M-2.95M15.02M-104.83M-1.40M

PEXA Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.09
Price Trends
50DMA
12.83
Positive
100DMA
12.18
Positive
200DMA
12.61
Positive
Market Momentum
MACD
0.15
Negative
RSI
79.79
Negative
STOCH
66.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PXA, the sentiment is Positive. The current price of 15.09 is above the 20-day moving average (MA) of 13.02, above the 50-day MA of 12.83, and above the 200-day MA of 12.61, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 79.79 is Negative, neither overbought nor oversold. The STOCH value of 66.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PXA.

PEXA Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
AU$2.50B8.6010.93%5.31%19.08%
74
Outperform
AU$2.61B12.516.98%6.80%-1.08%
69
Neutral
AU$1.96B20.233.99%5.29%4.34%
66
Neutral
AU$2.68B-3.78%25.79%-51.40%
55
Neutral
AU$2.89B-5.75%6.14%-15.42%65.86%
54
Neutral
AU$2.15B36.413.77%2.14%22.09%-19.31%
54
Neutral
$1.23B3.750.67%6.15%-2.39%-129.28%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PXA
PEXA Group Limited
15.09
1.26
9.11%
AU:BWP
BWP Trust
3.51
0.15
4.46%
AU:CLW
Charter Hall Long WALE REIT
4.07
0.81
24.85%
AU:HDN
HomeCo Daily Needs REIT
1.25
0.10
8.70%
AU:INA
Ingenia Communities Group
5.24
0.25
5.01%
AU:CIP
Centuria Industrial REIT
3.08
0.09
3.01%

PEXA Group Limited Corporate Events

PEXA Group Announces CFO Transition
Jul 1, 2025

PEXA Group Limited announced that its Chief Financial Officer, Mr. Scott Butterworth, will step down effective 31 July 2025, with Deputy CFO Ms. Liz Warrell stepping in as Acting CFO from 1 August until a permanent replacement is found. This transition marks a significant change in the company’s financial leadership, potentially impacting its strategic direction and stakeholder relations.

The most recent analyst rating on (AU:PXA) stock is a Buy with a A$15.00 price target. To see the full list of analyst forecasts on PEXA Group Limited stock, see the AU:PXA Stock Forecast page.

UniSuper Acquires Substantial Stake in PEXA Group Limited
May 20, 2025

UniSuper Limited, as a trustee for UniSuper and UniSuper Management Pty Limited, has become a substantial holder in PEXA Group Limited, acquiring a 5.01% voting power through ordinary shares. This acquisition marks a significant stake in PEXA Group Limited, potentially influencing the company’s future decisions and strategic direction, impacting stakeholders and the market.

The most recent analyst rating on (AU:PXA) stock is a Buy with a A$15.00 price target. To see the full list of analyst forecasts on PEXA Group Limited stock, see the AU:PXA Stock Forecast page.

PEXA Group Reports Stable Q3 Trading Amid Economic Volatility
May 11, 2025

PEXA Group Limited reported that its trading volumes for the Australian Exchange remained stable in the third quarter of 2025, despite economic challenges. The company reaffirmed its fiscal year 2025 guidance, although potential adjustments may occur due to ongoing business assessments. In Australia, transaction volumes increased by 4% compared to the previous year, with refinancing activities benefiting from a recent interest rate cut. PEXA maintained a 90% market penetration nationally and continued its expansion efforts in Tasmania and the Northern Territory. However, the UK remortgage market showed softness, with a decline in market share, although the UK sale and purchase market showed signs of recovery.

PEXA Gains FCA Approval for UK Expansion
Apr 30, 2025

PEXA Group Limited has received approval from the UK’s Financial Conduct Authority to operate as an Authorised Payment Institution, a critical step for launching its UK Sale & Purchase product in the second half of 2025. This approval enhances PEXA’s ability to engage with UK financial institutions and conveyancers, strengthening its market position and expanding its product offerings in the UK property market.

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 25, 2025