We marginally lift our fair value estimate for narrow-moat Pinnacle to AUD 11.30 per share from AUD 11.00, reflecting stronger-than-expected net inflows. Strong relative performance and ongoing expansion of its product range and distribution footprint helped the firm attract robust client funds over the 10 months to April 2024 amid global investor caution toward risk assets.
Pinnacle is known as a high-quality growth partner for well-performing boutique managers. There is potential for further earnings upside through increased distribution and new boutiques.
Pinnacle’s boutiques are typically smaller (that is, have less FUM) than stand-alone listed managers, meaning there is greater risk for them to be nonviable if there is a major fall in capital markets or large client redemption.
|
Metric
|
PNI
|
PPT
|
PTM
|
|---|---|---|---|
Price/Earnings (Normalized) | 32.53 | 10.96 | 7.65 |
Price/Book Value | 6.06 | 1.12 | 1.89 |
Price/Sales | 50.76 | 1.97 | 2.96 |
Price/Cash Flow | 25.91 | 11.31 | 8.44 |
|
Metric
|
PNI
|
PPT
|
PTM
|
|---|---|---|---|
Quick Ratio | — | 0.90 | — |
Current Ratio | — | 1.43 | — |
Interest Coverage | — | 2.26 | — |
|
Metric
|
PNI
|
PPT
|
PTM
|
|---|---|---|---|
Return on Assets (Normalized) | 14.16% | 3.30% | 22.10% |
Return on Equity (Normalized) | 18.45% | 5.67% | 24.14% |
Return on Invested Capital (Normalized) | — | 5.59% | — |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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