Perpetual Ltd PPT

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A$23.30 −0.53 (2.22%)

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As of Apr 26, 2024 6:10am Delayed Price Closed

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Company Report

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Perpetual: Latest Update a Letdown, but Investment Merits Remain

Shaun Ler Apr 26, 2024

Narrow-moat Perpetual’s latest funds under management, or FUM, update was uninspiring, with net outflows more than expected. This contrasts with the generally improving flows reported by other asset managers and investment platforms in the March quarter of fiscal 2024, driven by prospects of interest-rate cuts.

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Price vs Fair Value

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PPT is trading at a 10% discount.

Price

A$24.69

Apr 23, 2024

Fair Value

A$89.30

Oct 15, 2023

Uncertainty

Medium

1-Star Price: A$99.85
5-Star Price: A$92.11
Economic Moat: Fybdk
Capital Allocation: Stbxwvnnx

Bulls Say, Bears Say

Bulls

Acquisitions of specialist managers like Trillium and Barrow Hanley improve Perpetual’s growth prospects. There is potential for upside from increased reinvestment, which should help revive net inflows.

Bears

Perpetual’s renewed focus on acquisitive growth heightens the risks of overpayment and acquisition indigestion.

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Trading Information

Previous Close Price: A$23.83
Day Range: A$22.73–23.33
52-Week Range: A$18.70–26.80
Bid/Ask: A$24.02 / A$23.33
Market Cap: A$2.65 Bil
Volume/Avg: 409,685 / 317,362

Key Statistics

Price/Earnings (Normalized): 11.76
Price/Sales: 2.12
Dividend Yield (Trailing): 5.58%
Dividend Yield (Forward): 5.58%
Total Yield: 6.20%

Company Profile

Perpetual is one of Australia's oldest financial services firms, founded in 1886. It has three operating segments, with the investments business being the main earnings generator. It is an active manager of listed assets. Perpetual also provides financial planning services to high-net-worth clients via its private segment. In its trust segment, it provides outsourced responsible entity services to funds, as well as custodial and trustee services in the debt capital markets, particularly in securitization issuances.

Sector: Financial Services
Industry: Asset Management
Stock Style Box: Mid Value
Total Number of Employees: 1,370
Website: https://www.perpetual.com.au

Competitors

Valuation

Metric	PPT	AMP	MFG
Price/Earnings (Normalized)	11.76	54.30	9.67
Price/Book Value	1.20	0.79	1.68
Price/Sales	2.12	2.35	3.15
Price/Cash Flow	12.14	—	17.18

Price/Earnings

PPT

AMP

MFG

Financial Strength

Metric	PPT	AMP	MFG
Quick Ratio	0.90	6.59	—
Current Ratio	1.43	6.98	—
Interest Coverage	2.26	−0.24	—

Quick Ratio

PPT

AMP

MFG

Profitability

Metric	PPT	AMP	MFG
Return on Assets (Normalized)	3.30%	0.57%	14.97%
Return on Equity (Normalized)	5.67%	4.87%	17.86%
Return on Invested Capital (Normalized)	5.59%	0.14%	—

Return on Assets

PPT

AMP

MFG

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