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ASX

ASX:ASX
Snowflake Description

Flawless balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ASX
ASX
A$13B
Market Cap
  1. Home
  2. AU
  3. Diversified Financials
Company description

ASX Limited, a multi-asset class and integrated exchange group, provides listings, trading, clearing, settlement, registry, and information and technical services in Australia and internationally. The last earnings update was 37 days ago. More info.


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ASX Share Price and Events
7 Day Returns
-0.4%
ASX:ASX
-0.2%
AU Capital Markets
-0.1%
AU Market
1 Year Returns
23.9%
ASX:ASX
17.6%
AU Capital Markets
2.1%
AU Market
ASX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ASX (ASX) -0.4% 1.7% 19.8% 23.9% 69.6% 94.6%
AU Capital Markets -0.2% 0.6% 18.9% 17.6% 84.9% 112.5%
AU Market -0.1% 0.8% 12.2% 2.1% 20.1% 5.6%
1 Year Return vs Industry and Market
  • ASX outperformed the Capital Markets industry which returned 17.6% over the past year.
  • ASX outperformed the Market in Australia which returned 2.1% over the past year.
Price Volatility
ASX
Industry
5yr Volatility vs Market

Value

 Is ASX undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ASX to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ASX.

ASX:ASX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= A$20.39 * 13%
A$2.64
Book Value of Equity per Share Weighted future Book Value estimates from 8 analysts. A$20.39
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:ASX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.733 (1 + (1- 30%) (0%))
0.821
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.821 * 5.96%)
7.2%

Discounted Cash Flow Calculation for ASX:ASX using Excess Returns Model Model

The calculations below outline how an intrinsic value for ASX is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:ASX Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13% – 7.2%) * A$20.39)
A$1.18
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$1.18 / (7.2% - 2.31%)
A$24.03
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$20.39 + A$24.03
A$44.42
ASX:ASX Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$44.42
Current discount Discount to share price of A$69.89
= -1 x (A$69.89 - A$44.42) / A$44.42
-57.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of ASX is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ASX's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ASX's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:ASX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$2.38
ASX:ASX Share Price ** ASX (2019-03-22) in AUD A$69.89
Australia Capital Markets Industry PE Ratio Median Figure of 19 Publicly-Listed Capital Markets Companies 17.64x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ASX.

ASX:ASX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:ASX Share Price ÷ EPS (both in AUD)

= 69.89 ÷ 2.38

29.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ASX is overvalued based on earnings compared to the AU Capital Markets industry average.
  • ASX is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does ASX's expected growth come at a high price?
Raw Data
ASX:ASX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
2.1%per year
Australia Capital Markets Industry PEG Ratio Median Figure of 9 Publicly-Listed Capital Markets Companies 2.29x
Australia Market PEG Ratio Median Figure of 362 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

ASX:ASX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.36x ÷ 2.1%

14.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ASX is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ASX's assets?
Raw Data
ASX:ASX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$20.04
ASX:ASX Share Price * ASX (2019-03-22) in AUD A$69.89
Australia Capital Markets Industry PB Ratio Median Figure of 32 Publicly-Listed Capital Markets Companies 1.62x
Australia Market PB Ratio Median Figure of 1,668 Publicly-Listed Companies 1.68x
ASX:ASX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:ASX Share Price ÷ Book Value per Share (both in AUD)

= 69.89 ÷ 20.04

3.49x

* Primary Listing of ASX.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ASX is overvalued based on assets compared to the AU Capital Markets industry average.
X
Value checks
We assess ASX's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. ASX has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ASX expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ASX expected to grow at an attractive rate?
  • ASX's earnings growth is positive but not above the low risk savings rate of 2.3%.
Growth vs Market Checks
  • ASX's earnings growth is positive but not above the Australia market average.
  • ASX's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:ASX Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:ASX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 2.1%
ASX:ASX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 3.6%
Australia Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.5%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:ASX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:ASX Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 1,039 542 1
2021-06-30 942 574 519 9
2020-06-30 902 542 497 10
2019-06-30 856 580 507 10
ASX:ASX Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,053 549 461
2018-09-30 1,033 539 453
2018-06-30 1,013 529 445
2018-03-31 991 520 445
2017-12-31 968 511 445
2017-09-30 950 497 440
2017-06-30 932 484 434
2017-03-31 925 469 433
2016-12-31 918 454 433
2016-09-30 913 448 429
2016-06-30 908 442 426
2016-03-31 901 419

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ASX's earnings are expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).
  • ASX's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:ASX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from ASX Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ASX Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 3.23 3.66 2.80 2.00
2021-06-30 2.69 2.83 2.59 6.00
2020-06-30 2.58 2.73 2.48 8.00
2019-06-30 2.51 2.59 2.45 6.00
ASX:ASX Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 2.38
2018-09-30 2.34
2018-06-30 2.30
2018-03-31 2.30
2017-12-31 2.30
2017-09-30 2.27
2017-06-30 2.24
2017-03-31 2.24
2016-12-31 2.24
2016-09-30 2.22
2016-06-30 2.20
2016-03-31 2.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ASX is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ASX's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ASX has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ASX performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ASX's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ASX's year on year earnings growth rate has been positive over the past 5 years.
  • ASX's 1-year earnings growth is less than its 5-year average (3.5% vs 4.2%)
  • ASX's earnings growth has not exceeded the AU Capital Markets industry average in the past year (3.5% vs 3.5%).
Earnings and Revenue History
ASX's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ASX Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ASX Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,052.70 460.70 179.00
2018-09-30 1,032.85 452.90 175.15
2018-06-30 1,013.00 445.10 171.30
2018-03-31 990.70 445.15 166.85
2017-12-31 968.40 445.20 162.40
2017-09-30 950.25 439.65 158.80
2017-06-30 932.10 434.10 155.20
2017-03-31 925.20 433.30 151.75
2016-12-31 918.30 432.50 148.30
2016-09-30 913.30 429.35 146.55
2016-06-30 908.30 426.20 144.80
2016-03-31 901.45 419.25 146.50
2015-12-31 894.60 412.30 148.20
2015-09-30 881.30 405.05 146.90
2015-06-30 868.00 397.80 145.60
2015-03-31 849.95 395.00 140.95
2014-12-31 831.90 392.20 136.30
2014-09-30 820.20 387.70 134.75
2014-06-30 808.50 383.20 133.20
2014-03-31 805.00 374.95 133.10
2013-12-31 801.50 366.70 133.00
2013-09-30 792.70 357.45 132.55
2013-06-30 783.90 348.20 132.10
2013-03-31 772.40 341.45 131.15
2012-12-31 760.90 334.70 130.20
2012-09-30 772.35 336.95 132.35
2012-06-30 783.80 339.20 134.50
2012-03-31 797.30 347.55 133.45

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ASX has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ASX used its assets less efficiently than the AU Capital Markets industry average last year based on Return on Assets.
  • ASX has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ASX's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ASX has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ASX's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ASX's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ASX is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ASX's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ASX's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • ASX has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ASX Company Filings, last reported 2 months ago.

ASX:ASX Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,878.80 0.00 1,140.00
2018-09-30 3,878.80 0.00 1,140.00
2018-06-30 3,945.50 0.00 998.00
2018-03-31 3,945.50 0.00 998.00
2017-12-31 3,925.20 0.00 1,384.50
2017-09-30 3,925.20 0.00 1,384.50
2017-06-30 3,908.10 0.00 929.40
2017-03-31 3,908.10 0.00 929.40
2016-12-31 3,874.10 0.00 1,014.50
2016-09-30 3,874.10 0.00 1,014.50
2016-06-30 3,824.10 0.00 913.10
2016-03-31 3,824.10 0.00 913.10
2015-12-31 3,787.20 0.00 976.30
2015-09-30 3,787.20 0.00 976.30
2015-06-30 3,759.70 0.00 921.30
2015-03-31 3,759.70 0.00 921.30
2014-12-31 3,751.90 0.00 958.40
2014-09-30 3,751.90 0.00 958.40
2014-06-30 3,670.90 0.00 958.00
2014-03-31 3,670.90 0.00 958.00
2013-12-31 3,676.20 0.00 966.80
2013-09-30 3,676.20 0.00 966.80
2013-06-30 3,321.80 0.00 671.60
2013-03-31 3,321.80 0.00 671.60
2012-12-31 3,047.70 250.00 726.20
2012-09-30 3,047.70 250.00 726.20
2012-06-30 2,995.00 250.00 685.00
2012-03-31 2,995.00 250.00 685.00
  • ASX has no debt.
  • ASX had no debt 5 years ago.
  • ASX has no debt, it does not need to be covered by operating cash flow.
  • ASX has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess ASX's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ASX has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is ASX's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.27%
Current annual income from ASX dividends. Estimated to be 3.55% next year.
If you bought A$2,000 of ASX shares you are expected to receive A$65 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ASX's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.64%).
  • ASX's dividend is below the markets top 25% of dividend payers in Australia (5.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:ASX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Australia Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 3.9%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:ASX Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 2.61 2.00
2021-06-30 2.42 10.00
2020-06-30 2.32 12.00
2019-06-30 2.68 12.00
ASX:ASX Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-13 2.288 3.294
2018-08-15 2.111 3.393
2018-02-14 2.070 3.410
2017-08-16 2.018 3.705
2017-02-16 2.010 3.901
2016-08-17 1.981 4.059
2016-02-10 1.982 4.470
2015-08-19 1.902 4.760
2015-02-11 1.846 4.395
2014-08-20 1.781 4.890
2014-02-12 1.705 4.739
2013-08-21 1.702 4.755
2013-02-20 1.730 4.820
2012-08-15 1.779 5.726
2011-08-18 1.832 6.025
2011-08-17 1.832 6.221
2011-02-17 1.742 5.426
2010-08-19 1.731 4.923
2010-08-18 1.731 5.780
2009-08-20 1.490 4.519
2009-03-23 1.843 5.433

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of ASX's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess ASX's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ASX afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ASX has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ASX's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dominic Stevens
COMPENSATION A$3,447,632
TENURE AS CEO 2.6 years
CEO Bio

Mr. Dominic John Stevens, BCom (Hons) has been the Chief Executive Officer and Managing Director of ASX Limited and Australian Securities Exchange Limited since August 1, 2016. Mr. Stevens has been an Executive Director at ASX Limited since August 1, 2016. Mr. Stevens has over 30 years’ experience in financial markets. He served as the Chief Executive Officer and Managing Director at Challenge Limited from September 2008 to February 2012. He served as the Deputy Managing Director and General Manager of Capital Management at Challenge Limited from February 2006 to September 2008. He was Deputy CEO and head of capital, risk and strategy at Challenger Limited. He served as Managing Director and Chief Executive Officer at Challenger Limited from September 2008 to February 2012. He served as Deputy Managing Director at Challenger Limited February 2006 to September 2008 and served as its General Manager - Capital Management. He joined Challenger Limited in September 2003, with responsibility for overseeing Challenger's capital, risk management and strategy. Mr. Stevens served as the Chief Executive Officer at Challenger International S.A. until February 2012 and Challenger Life Company Limited until February 17, 2012. He served as the Deputy Managing Director at Challenger Financial Service Group from February 2006 to September 1, 2008. Prior to Challenger, Mr. Stevens served as a Senior Managing Director at Zurich Capital Markets Asia Ltd, where he specialized in the areas of structured finance, derivative solutions and risk management products to investors in alternative assets. From 1987 to 1999, he held a number of senior roles, including as Global Partner, at Bankers Trust Company, where he had responsibility for the Australian derivatives and global metals and agricultural commodity derivatives businesses. He has been a Director of Challenger Financial Service Group Limited since September 1, 2008. He serves as an Independent and Non-Executive Director at Australian Securities Exchange Limited. He has been Director of ASX Clear Pty Limited since August 11, 2016. He has been a Director of ASX Clear (Futures) Pty Limited since March 18, 2014. He is a director of the ASX Group clearing and settlement licensees and their intermediate holding companies. He served as Independent Non-Executive Director of ASX Limited since December 19, 2013 until August 1, 2016. He served as Director at Challenger Life Company Limited until February 2012. He served as Director at Challenger Limited from September 2008 to February 2012. He served as a Non-Executive Director of Homeloans Limited from May 3, 2007 to October 28, 2008. He is a Chartered Accountant and a Member of the Australian Institute of Company Directors. Mr. Stevens received a Bachelor of Commerce (Hons) and Finance from University of New South Wales, Sydney Australia.

CEO Compensation
  • Dominic's compensation has increased by more than 20% in the past year.
  • Dominic's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the ASX management team in years:

2.2
Average Tenure
  • The tenure for the ASX management team is about average.
Management Team

Dominic Stevens

TITLE
MD, CEO & Executive Director
COMPENSATION
A$3M
TENURE
2.6 yrs

Tim Hogben

TITLE
Chief Operating Officer
COMPENSATION
A$1M
TENURE
2.2 yrs

Peter Hiom

TITLE
Deputy Chief Executive Officer
COMPENSATION
A$2M
TENURE
12.7 yrs

Hamish Treleaven

TITLE
Chief Risk Officer
COMPENSATION
A$953K
TENURE
2 yrs

Gillian Larkins

TITLE
Chief Financial Officer
AGE
47
TENURE
0.4 yrs

Dan Chesterman

TITLE
Chief Information Officer
TENURE
1.5 yrs

Josie Ashton

TITLE
Head of Investor Relations

Daniel Csillag

TITLE
Senior Legal Counsel & Company Secretary

Matthew Gibbs

TITLE
General Manager of Media & Communications

Malcolm Starr

TITLE
Chairman of Corporate Governance Council
TENURE
8.7 yrs
Board of Directors Tenure

Average tenure and age of the ASX board of directors in years:

6.1
Average Tenure
61
Average Age
  • The tenure for the ASX board of directors is about average.
Board of Directors

Rick Holliday-Smith

TITLE
Independent Chairman
COMPENSATION
A$576K
AGE
68
TENURE
7 yrs

Dominic Stevens

TITLE
MD, CEO & Executive Director
COMPENSATION
A$3M
TENURE
5.3 yrs

Peter Marriott

TITLE
Independent Non-Executive Director
COMPENSATION
A$305K
AGE
61
TENURE
9.7 yrs

Heather Ridout

TITLE
Independent Non Executive Director
COMPENSATION
A$270K
AGE
64
TENURE
6.6 yrs

Peter Warne

TITLE
Independent Non-Executive Director
COMPENSATION
A$278K
AGE
62
TENURE
12.7 yrs

Ken Henry

TITLE
Independent Non Executive Director
COMPENSATION
A$255K
AGE
60
TENURE
6.1 yrs

Damian Roche

TITLE
Independent Non-Executive Director
COMPENSATION
A$290K
TENURE
4.6 yrs

Yasmin Allen

TITLE
Independent Non-Executive Director
COMPENSATION
A$255K
AGE
54
TENURE
4.1 yrs

Melinda Conrad

TITLE
Independent Non-Executive Director
COMPENSATION
A$232K
AGE
49
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
13. Jun 18 Buy UniSuper Limited Company 12. Feb 18 04. Jun 18 2,608,348 A$56.40 A$147,113,984
01. Oct 18 Sell The Vanguard Group, Inc. Company 29. May 18 21. Sep 18 -127,135 A$68.18 A$-8,657,718
01. Oct 18 Buy The Vanguard Group, Inc. Company 25. May 18 27. Sep 18 449,229 A$68.45 A$30,739,388
21. Jun 18 Sell Schroder Investment Management (Singapore) Ltd Company 14. Feb 18 18. Jun 18 -115,246 A$56.77 A$-6,543,032
21. Jun 18 Buy Schroder Investment Management (Singapore) Ltd Company 14. Feb 18 18. Jun 18 165,255 A$50.54 A$8,352,556
21. Jun 18 Sell Schroder Investment Management (Hong Kong) Limited Company 14. Feb 18 18. Jun 18 -47,949 A$56.49 A$-2,708,450
21. Jun 18 Sell Schroder Investment Management Limited Company 14. Feb 18 18. Jun 18 -113,437 A$60.99 A$-6,873,934
21. Jun 18 Buy Schroder Investment Management Limited Company 14. Feb 18 18. Jun 18 18,969 A$58.54 A$1,098,405
21. Jun 18 Sell Schroder Investment Management North America Inc. Company 14. Feb 18 18. Jun 18 -28,743 A$58.33 A$-1,676,702
X
Management checks
We assess ASX's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ASX has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Was ASX Limited's (ASX:ASX) Earnings Growth Better Than The Industry's?

Today I will assess ASX's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements. … Did ASX beat its long-term earnings growth trend and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 4.2%, indicating the rate at which ASX is growing has slowed down

Simply Wall St -

Does ASX Limited's (ASX:ASX) CEO Pay Compare Well With Peers?

In 2016 Dominic Stevens was appointed CEO of ASX Limited (ASX:ASX). … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Dominic Stevens's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Can We See Significant Institutional Ownership On The ASX Limited (ASX:ASX) Share Register?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned. … We can zoom in on the different ownership groups, to learn more about ASX

Simply Wall St -

What Are Analysts Saying About ASX Limited's (ASX:ASX) Future?

In June 2018, ASX Limited (ASX:ASX) announced its earnings update. … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of 4.7%

Simply Wall St -

What Should You Know About ASX Limited's (ASX:ASX) Long Term Outlook?

The most recent earnings update ASX Limited's (ASX:ASX) released in June 2018a … indicated … business

Simply Wall St -

Who Owns ASX Limited (ASX:ASX)?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Taking a look at the our data on the ownership groups (below), it's seems that. … institutions own shares in the company.

Simply Wall St -

Does ASX Limited's (ASX:ASX) PE Ratio Signal A Selling Opportunity?

ASX Limited (ASX:ASX) is currently trading at a trailing P/E of 25.5, which is higher than the industry average of 14.9. … Although some investors may see this as unappealing, it is important to understand the assumptions behind the P/E ratio before making judgments. … I will break down what the P/E ratio is, how to interpret it and what other factors to keep in mind

Simply Wall St -

Does ASX Limited's (ASX:ASX) Recent Track Record Look Strong?

When ASX Limited (ASX:ASX) released its most recent earnings update (30 June 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were ASX's average earnings over the past couple of years, and its industry performance. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 4.7%, indicating the rate at which ASX is growing has slowed down

Simply Wall St -

Should You Worry About ASX Limited's (ASX:ASX) CEO Salary Level?

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … CEOs leading companies of similar size and profitability

Simply Wall St -

ASX Limited (ASX:ASX): What Does The Future Look Like?

Based on ASX Limited's (ASX:ASX) earnings update in June 2018,. … with earnings expected to grow by 8.46% in the upcoming year … the past 5-year average growth rate of 4.64%

Simply Wall St -

Company Info

Description

ASX Limited, a multi-asset class and integrated exchange group, provides listings, trading, clearing, settlement, registry, and information and technical services in Australia and internationally. Its products comprise shares, indices, bonds, securities, exchange-traded products (ETFs) and other ETPs, managed funds, warrants, options, index derivatives, interest rate derivatives, grains derivatives, energy derivatives, and market making arrangements. The company also operates two trading platforms, such as ASX Trade is for equity and related equity derivative products and NTP is for interest rate, equity index, and commodity futures products; helps product manufacturers to issue ETPs, warrants, and managed funds; and provides mFund settlement and trading services, as well as a range of solutions to access liquidity to financial market customers. In addition, it offers pricing and company information services through its various products and services comprising MarketSource, ComNews, and ReferencePoint; clearing risk management services; over-the-counter clearing; securities settlement facilities; and centralized securities depository tri-party collateral management services. Further, the company provides listing and issuer services; and serves retail and institutional investors. ASX Limited is based in Sydney, Australia.

Details
Name: ASX Limited
ASX
Exchange: ASX
Founded:
A$13,488,940,227
193,584,102
Website: http://www.asx.com.au
Address: ASX Limited
Exchange Centre,
20 Bridge Street,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX ASX Ordinary Shares Australian Securities Exchange AU AUD 14. Oct 1998
OTCPK ASXF.F Ordinary Shares Pink Sheets LLC US USD 14. Oct 1998
DB AUX Ordinary Shares Deutsche Boerse AG DE EUR 14. Oct 1998
CHIA ASX Ordinary Shares Chi-X Australia AU AUD 14. Oct 1998
OTCPK ASXF.Y ADR Pink Sheets LLC US USD 11. Nov 2008
Number of employees
Current staff
Staff numbers
632
ASX employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/22 10:31
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/15
Last earnings filing: 2019/02/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.