ASX:ASX

Stock Analysis Report

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Executive Summary

ASX Limited operates as a multi-asset class and integrated exchange company in Australia and internationally. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has ASX's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASX is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ASX's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-3.8%

ASX

-0.3%

AU Capital Markets

2.0%

AU Market


1 Year Return

-1.3%

ASX

0.8%

AU Capital Markets

-1.2%

AU Market

Return vs Industry: ASX underperformed the Australian Capital Markets industry which returned 0.8% over the past year.

Return vs Market: ASX matched the Australian Market which returned -1.2% over the past year.


Shareholder returns

ASXIndustryMarket
7 Day-3.8%-0.3%2.0%
30 Day-2.5%2.5%5.5%
90 Day-11.1%4.2%6.8%
1 Year1.7%-1.3%4.2%0.8%2.2%-1.2%
3 Year57.6%41.1%37.3%20.8%22.4%7.1%
5 Year132.3%91.5%70.1%35.3%53.9%23.2%

Long-Term Price Volatility Vs. Market

How volatile is ASX's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ASX undervalued compared to its fair value and its price relative to the market?

30.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASX (A$79.28) is trading above our estimate of fair value (A$41.91)

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


Price To Earnings Ratio

PE vs Industry: ASX is poor value based on its PE Ratio (30.8x) compared to the AU Capital Markets industry average (24.3x).

PE vs Market: ASX is poor value based on its PE Ratio (30.8x) compared to the Australian market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: ASX is poor value based on its PEG Ratio (14x)


Price to Book Ratio

PB vs Industry: ASX is overvalued based on its PB Ratio (4.1x) compared to the AU Capital Markets industry average (1.3x).


Next Steps

Future Growth

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

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASX's forecast earnings growth (2.2% per year) is below the savings rate (2.3%).

Earnings vs Market: ASX's earnings (2.2% per year) are forecast to grow slower than the Australian market (17.9% per year).

High Growth Earnings: ASX's earnings are forecast to grow, but not significantly.

Revenue vs Market: ASX's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: ASX's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASX's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has ASX performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASX has high quality earnings.

Growing Profit Margin: ASX's current net profit margins (45.5%) are higher than last year (45.2%).


Past Earnings Growth Analysis

Earnings Trend: ASX's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: ASX's earnings growth over the past year (1.3%) is below its 5-year average (4.5% per year).

Earnings vs Industry: ASX earnings growth over the past year (1.3%) exceeded the Capital Markets industry -13.4%.


Return on Equity

High ROE: ASX's Return on Equity (13.4%) is considered low.


Next Steps

Financial Health

How is ASX's financial position?


Financial Position Analysis

Short Term Liabilities: ASX's short term assets (A$14.6B) exceed its short term liabilities (A$13.3B).

Long Term Liabilities: ASX's short term assets (A$14.6B) exceed its long term liabilities (A$348.1M).


Debt to Equity History and Analysis

Debt Level: ASX is debt free.

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

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

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


Balance Sheet


Next Steps

Dividend

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

3.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ASX's dividend (3.09%) is higher than the bottom 25% of dividend payers in the Australian market (2.14%).

High Dividend: ASX's dividend (3.09%) is low compared to the top 25% of dividend payers in the Australian market (5.1%).


Stability and Growth of Payments

Stable Dividend: ASX's dividends per share have been stable in the past 10 years.

Growing Dividend: ASX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.8%), ASX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASX's dividends in 3 years are not forecast to be well covered by earnings (90.2% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Dominic Stevens

4.25yrs

Tenure

AU$4,077,366

Compensation

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 Exec...


CEO Compensation Analysis

Compensation vs Market: Dominic's total compensation ($USD2.98M) is about average for companies of similar size in the Australian market ($USD3.58M).

Compensation vs Earnings: Dominic's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dominic Stevens
MD, CEO & Executive Director4.25yrsAU$4.08m0.036%
A$ 5.5m
Gillian Larkins
Chief Financial Officer2.08yrsAU$1.54m0.0056%
A$ 867.1k
Timothy Hogben
Chief Operating Officer3.83yrsAU$1.28m0.0063%
A$ 960.8k
Peter Hiom
Deputy Chief Executive Officer14.33yrsAU$2.11m0.023%
A$ 3.5m
Hamish Treleaven
Chief Risk Officer3.67yrsAU$1.23m0.0033%
A$ 503.4k
Dan Chesterman
Chief Information Officer3.17yrsno datano data
Josie Ashton
Head of Investor Relationsno datano datano data
Daniel Moran
Group General Counsel & Company Secretaryno datano datano data
Matthew Gibbs
General Manager of Media & Communicationsno datano datano data
Daniel Csillag
GM of Company Secretariatno datano datano data
Blair Beaton
Chief Strategy Officer3.67yrsno datano data
Elizabeth Johnstone
Chair of Corporate Governance Councilno datano datano data

3.7yrs

Average Tenure

Experienced Management: ASX's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dominic Stevens
MD, CEO & Executive Director4.25yrsAU$4.08m0.036%
A$ 5.5m
Peter Marriott
Independent Non-Executive Director11.33yrsAU$301.00k0.0027%
A$ 422.1k
Roderic Holliday-Smith
Independent Non-Executive Chairman8.67yrsAU$571.00k0.0062%
A$ 951.6k
Robert Woods
Independent Non Executive Director0.83yrAU$128.00k0.0015%
A$ 237.9k
Yasmin Allen
Independent Non-Executive Director5.75yrsAU$256.00k0.0026%
A$ 396.0k
Kenneth Henry
Independent Non Executive Director7.75yrsAU$256.00k0.0026%
A$ 396.0k
Heather Ridout
Independent Non Executive Director8.25yrsAU$276.00k0.0026%
A$ 396.0k
Peter Nash
Independent Non-Executive Director1.42yrsAU$256.00k0.0010%
A$ 158.1k
Melinda Conrad
Independent Non-Executive Director4.25yrsAU$256.00k0.0026%
A$ 396.0k
Damian Roche
Independent Non-Executive Director6.25yrsAU$291.00k0.0052%
A$ 793.5k

6.6yrs

Average Tenure

62yo

Average Age

Experienced Board: ASX's board of directors are considered experienced (6.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ASX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

ASX Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ASX Limited
  • Ticker: ASX
  • Exchange: ASX
  • Founded: 1987
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: AU$15.348b
  • Shares outstanding: 193.59m
  • Website: https://www.asx.com.au

Number of Employees


Location

  • ASX Limited
  • Exchange Centre
  • 20 Bridge Street
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 1998
ASXF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1998
ASXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 1998
AUXDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1998
ASXF.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 2008

Biography

ASX Limited operates as a multi-asset class and integrated exchange company in Australia and internationally. The company offers securities and derivatives exchange, and ancillary services; central counter...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 10:48
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.