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PPT

PerpetualASX:PPT Stock Report

Market Cap

AU$2.3b

7D

10.5%

1Y

39.6%

Updated

24 Oct, 2021

Data

Company Financials +
PPT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends2/6

PPT Overview

Perpetual Limited is a publicly owned investment manager.

Perpetual Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Perpetual
Historical stock prices
Current Share PriceAU$40.95
52 Week HighAU$27.00
52 Week LowAU$42.45
Beta1.47
1 Month Change7.12%
3 Month Change8.68%
1 Year Change39.62%
3 Year Change23.08%
5 Year Change-9.98%
Change since IPO715.74%

Recent News & Updates

Oct 14
Increases to CEO Compensation Might Be Put On Hold For Now at Perpetual Limited (ASX:PPT)

Increases to CEO Compensation Might Be Put On Hold For Now at Perpetual Limited (ASX:PPT)

CEO Rob Adams has done a decent job of delivering relatively good performance at Perpetual Limited ( ASX:PPT...

Aug 24
Perpetual's (ASX:PPT) Upcoming Dividend Will Be Larger Than Last Year's

Perpetual's (ASX:PPT) Upcoming Dividend Will Be Larger Than Last Year's

The board of Perpetual Limited ( ASX:PPT ) has announced that it will be increasing its dividend on the 24th of...

Shareholder Returns

PPTAU Capital MarketsAU Market
7D10.5%3.2%0.6%
1Y39.6%26.8%21.3%

Return vs Industry: PPT exceeded the Australian Capital Markets industry which returned 26.8% over the past year.

Return vs Market: PPT exceeded the Australian Market which returned 21.3% over the past year.

Price Volatility

Is PPT's price volatile compared to industry and market?
PPT volatility
PPT Beta1.47
Industry Beta0.99
Market Beta1

Stable Share Price: PPT is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PPT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18861,166Rob Adamshttps://www.perpetual.com.au

Perpetual Limited is a publicly owned investment manager. The firm offers a range of financial products and services in Australia. The company provides funds management, portfolio management, financial planning, trustee, responsible entity and compliance services, executor services, investment administration and custody services, and mortgage processing services.

Perpetual Fundamentals Summary

How do Perpetual's earnings and revenue compare to its market cap?
PPT fundamental statistics
Market CapAU$2.29b
Earnings (TTM)AU$74.87m
Revenue (TTM)AU$652.08m

30.6x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPT income statement (TTM)
RevenueAU$652.08m
Cost of RevenueAU$342.02m
Gross ProfitAU$310.05m
ExpensesAU$235.18m
EarningsAU$74.87m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)1.34
Gross Margin47.55%
Net Profit Margin11.48%
Debt/Equity Ratio18.2%

How did PPT perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

133%

Payout Ratio

Valuation

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

27.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPT (A$40.95) is trading below our estimate of fair value (A$56.82)

Significantly Below Fair Value: PPT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PPT is poor value based on its PE Ratio (30.6x) compared to the Australian Capital Markets industry average (16.7x).

PE vs Market: PPT is poor value based on its PE Ratio (30.6x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: PPT is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: PPT is overvalued based on its PB Ratio (2.5x) compared to the AU Capital Markets industry average (1.4x).


Future Growth

How is Perpetual forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPT's forecast earnings growth (23.4% per year) is above the savings rate (1.9%).

Earnings vs Market: PPT's earnings (23.4% per year) are forecast to grow faster than the Australian market (11.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PPT's revenue (7.7% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: PPT's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PPT's Return on Equity is forecast to be low in 3 years time (17.4%).


Past Performance

How has Perpetual performed over the past 5 years?

-13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPT has high quality earnings.

Growing Profit Margin: PPT's current net profit margins (11.5%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: PPT's earnings have declined by 13.7% per year over the past 5 years.

Accelerating Growth: PPT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PPT had negative earnings growth (-8.7%) over the past year, making it difficult to compare to the Capital Markets industry average (12.8%).


Return on Equity

High ROE: PPT's Return on Equity (8.2%) is considered low.


Financial Health

How is Perpetual's financial position?


Financial Position Analysis

Short Term Liabilities: PPT's short term assets (A$457.4M) exceed its short term liabilities (A$361.1M).

Long Term Liabilities: PPT's short term assets (A$457.4M) exceed its long term liabilities (A$351.0M).


Debt to Equity History and Analysis

Debt Level: PPT's debt to equity ratio (18.2%) is considered satisfactory.

Reducing Debt: PPT's debt to equity ratio has increased from 14.4% to 18.2% over the past 5 years.

Debt Coverage: PPT's debt is well covered by operating cash flow (77.5%).

Interest Coverage: PPT's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


Dividend

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

4.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPT's dividend (4.4%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: PPT's dividend (4.4%) is low compared to the top 25% of dividend payers in the Australian market (5.3%).


Stability and Growth of Payments

Stable Dividend: PPT's dividend payments have been volatile in the past 10 years.

Growing Dividend: PPT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (133.3%), PPT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PPT's dividends in 3 years are forecast to be covered by earnings (79.4% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Rob Adams (54 yo)

3.08yrs

Tenure

AU$2,300,654

Compensation

Mr. Robert William Adams, also known as Rob, has been Managing Director and Chief Executive Officer at Perpetual Ltd. since September 24, 2018 and also Director since September 26, 2018. Mr. Adams serves a...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD1.72M) is about average for companies of similar size in the Australian market ($USD1.40M).

Compensation vs Earnings: Rob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: PPT's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: PPT's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PPT insiders have bought more shares than they have sold 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

Perpetual Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Perpetual Limited
  • Ticker: PPT
  • Exchange: ASX
  • Founded: 1886
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: AU$2.294b
  • Shares outstanding: 56.02m
  • Website: https://www.perpetual.com.au

Number of Employees


Location

  • Perpetual Limited
  • Angel Place
  • Level 18
  • 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 Analysis2021/10/24 07:05
End of Day Share Price2021/10/22 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.