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AEF

Australian Ethical InvestmentASX:AEF Stock Report

Market Cap

AU$1.4b

7D

19.1%

1Y

173.3%

Updated

20 Oct, 2021

Data

Company Financials
AEF fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends0/6

AEF Overview

Australian Ethical Investment Ltd. is a publicly owned investment manager.

Rewards

Earnings grew by 17.6% over the past year

Risk Analysis

No risks detected for AEF from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Australian Ethical Investment
Historical stock prices
Current Share PriceAU$12.68
52 Week HighAU$4.10
52 Week LowAU$12.58
Beta0.89
1 Month Change21.22%
3 Month Change53.33%
1 Year Change173.28%
3 Year Change712.82%
5 Year Change1,308.89%
Change since IPO10,044.00%

Recent News & Updates

Sep 14
Is Now The Time To Put Australian Ethical Investment (ASX:AEF) On Your Watchlist?

Is Now The Time To Put Australian Ethical Investment (ASX:AEF) On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Feb 25
Here's Why I Think Australian Ethical Investment (ASX:AEF) Might Deserve Your Attention Today

Here's Why I Think Australian Ethical Investment (ASX:AEF) Might Deserve Your Attention Today

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

AEFAU Capital MarketsAU Market
7D19.1%3.4%1.7%
1Y173.3%23.2%20.2%

Return vs Industry: AEF exceeded the Australian Capital Markets industry which returned 23.2% over the past year.

Return vs Market: AEF exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is AEF's price volatile compared to industry and market?
AEF volatility
AEF Beta0.89
Industry Beta0.99
Market Beta1

Stable Share Price: AEF is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AEF's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986n/aJohn McMurdohttps://www.australianethical.com.au

Australian Ethical Investment Ltd. is a publicly owned investment manager. The firm launches and manages equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity and fixed income markets across the globe.

Australian Ethical Investment Fundamentals Summary

How do Australian Ethical Investment's earnings and revenue compare to its market cap?
AEF fundamental statistics
Market CapAU$1.41b
Earnings (TTM)AU$11.12m
Revenue (TTM)AU$58.71m

128.2x

P/E Ratio

24.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEF income statement (TTM)
RevenueAU$58.71m
Cost of RevenueAU$18.77m
Gross ProfitAU$39.94m
ExpensesAU$28.83m
EarningsAU$11.12m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.099
Gross Margin68.03%
Net Profit Margin18.94%
Debt/Equity Ratio0%

How did AEF perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

70%

Payout Ratio

Valuation

Is Australian Ethical Investment undervalued compared to its fair value and its price relative to the market?

128.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AEF (A$12.68) is trading above our estimate of fair value (A$1.69)

Significantly Below Fair Value: AEF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AEF is poor value based on its PE Ratio (128.2x) compared to the Australian Capital Markets industry average (17x).

PE vs Market: AEF is poor value based on its PE Ratio (128.2x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AEF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AEF is overvalued based on its PB Ratio (58.9x) compared to the AU Capital Markets industry average (1.4x).


Future Growth

How is Australian Ethical Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.1%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Australian Ethical Investment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Australian Ethical Investment performed over the past 5 years?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEF has high quality earnings.

Growing Profit Margin: AEF's current net profit margins (18.9%) are lower than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: AEF's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: AEF's earnings growth over the past year (17.6%) is below its 5-year average (29.4% per year).

Earnings vs Industry: AEF earnings growth over the past year (17.6%) exceeded the Capital Markets industry 12.8%.


Return on Equity

High ROE: AEF's Return on Equity (46%) is considered outstanding.


Financial Health

How is Australian Ethical Investment's financial position?


Financial Position Analysis

Short Term Liabilities: AEF's short term assets (A$34.0M) exceed its short term liabilities (A$13.9M).

Long Term Liabilities: AEF's short term assets (A$34.0M) exceed its long term liabilities (A$1.3M).


Debt to Equity History and Analysis

Debt Level: AEF is debt free.

Reducing Debt: AEF has not had any debt for past 5 years.

Debt Coverage: AEF has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AEF has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Australian Ethical Investment current dividend yield, its reliability and sustainability?

0.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AEF's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: AEF's dividend (0.71%) is low compared to the top 25% of dividend payers in the Australian market (5.33%).


Stability and Growth of Payments

Stable Dividend: AEF is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: AEF is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AEF is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AEF's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

John McMurdo

1.67yrs

Tenure

AU$748,640

Compensation

Mr. John Paul McMurdo, MBA, GAICD, has been Managing Director & Chief Executive Officer at Australian Ethical Investment Ltd. since February 10, 2020. Mr. McMurdo serves as Director of Australian Ethical I...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD559.73K) is below average for companies of similar size in the Australian market ($USD989.90K).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AEF's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: AEF's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Australian Ethical Investment Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Australian Ethical Investment Ltd.
  • Ticker: AEF
  • Exchange: ASX
  • Founded: 1986
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: AU$1.406b
  • Shares outstanding: 112.39m
  • Website: https://www.australianethical.com.au

Number of Employees


Location

  • Australian Ethical Investment Ltd.
  • 130 Pitt Street
  • Level 8
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 07:01
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.