ASX:PPT

Stock Analysis Report

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Executive Summary

Perpetual Limited is a publicly owned investment manager. More Details


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PPT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.3%

PPT

-4.7%

AU Capital Markets

-3.9%

AU Market


1 Year Return

-25.4%

PPT

-4.9%

AU Capital Markets

-9.6%

AU Market

Return vs Industry: PPT underperformed the Australian Capital Markets industry which returned -4.9% over the past year.

Return vs Market: PPT underperformed the Australian Market which returned -9.6% over the past year.


Shareholder returns

PPTIndustryMarket
7 Day-7.3%-4.7%-3.9%
30 Day-4.2%3.3%1.8%
90 Day-10.3%0.8%1.7%
1 Year-22.1%-25.4%-1.4%-4.9%-6.4%-9.6%
3 Year-34.5%-44.7%26.7%10.9%12.3%-1.9%
5 Year-20.5%-39.7%59.8%26.7%40.0%11.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPT (A$27.2) is trading below our estimate of fair value (A$39.23)

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


Price To Earnings Ratio

PE vs Industry: PPT is good value based on its PE Ratio (15.4x) compared to the AU Capital Markets industry average (23x).

PE vs Market: PPT is good value based on its PE Ratio (15.4x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: PPT is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: PPT is overvalued based on its PB Ratio (1.9x) compared to the AU Capital Markets industry average (1.2x).


Next Steps

Future Growth

How is Perpetual forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPT's forecast earnings growth (13.7% per year) is above the savings rate (2.3%).

Earnings vs Market: PPT's earnings (13.7% per year) are forecast to grow slower than the Australian market (17.6% per year).

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

Revenue vs Market: PPT's revenue (10.6% per year) is forecast to grow faster than the Australian market (4.8% per year).

High Growth Revenue: PPT's revenue (10.6% 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 (15.1%).


Next Steps

Past Performance

How has Perpetual performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPT has high quality earnings.

Growing Profit Margin: PPT's current net profit margins (16.7%) are lower than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: PPT's earnings have declined by 4.6% 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 (-29.2%) over the past year, making it difficult to compare to the Capital Markets industry average (-7.9%).


Return on Equity

High ROE: PPT's Return on Equity (12.5%) is considered low.


Next Steps

Financial Health

How is Perpetual's financial position?


Financial Position Analysis

Short Term Liabilities: PPT's short term assets (A$505.7M) exceed its short term liabilities (A$390.9M).

Long Term Liabilities: PPT's short term assets (A$505.7M) exceed its long term liabilities (A$124.0M).


Debt to Equity History and Analysis

Debt Level: PPT is debt free.

Reducing Debt: PPT has no debt compared to 5 years ago when its debt to equity ratio was 14.9%.

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

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


Balance Sheet


Next Steps

Dividend

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

3.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPT's dividend (3.68%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: PPT's dividend (3.68%) is low compared to the top 25% of dividend payers in the Australian market (5.53%).


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: At its current payout ratio (87.9%), PPT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PPT's dividends in 3 years are forecast to be covered by earnings (75.9% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

2.0yrs

Average management tenure


CEO

Rob Adams (54 yo)

2yrs

Tenure

AU$1,826,981

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 ($USD1.29M) is above average for companies of similar size in the Australian market ($USD940.11K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Adams
MD, CEO & Director2yrsAU$1.83m0.058%
A$ 884.3k
Christopher Green
Chief Financial Officer2yrsAU$966.28k0.033%
A$ 497.4k
Amanda Gazal
Chief Operating Officer0.42yrAU$196.39kno data
Mark Smith
Group Executive of Perpetual Private7.83yrsAU$945.70k0.030%
A$ 451.5k
Richard McCarthy
Group Executive of Perpetual Corporate Trust2yrsAU$596.59k0%
A$ 0
David Lane
Group Executive of International Asset Management3.42yrsAU$767.39k0.0084%
A$ 127.4k
Sam Mosse
Chief Risk Officer1.58yrsAU$673.31kno data
Emma Rumble
General Manager of Corporate Affairs & Investor Relationsno datano datano data
Kristen Allen
General Manager of Corporate Communicationsno datano datano data
Michael Korber
Managing Director of Credit & Fixed Income0.75yrno datano data
Michael O'Dea
Head of Multi Asset6.25yrsno datano data
Paul Skamvougeras
Head of Equities & Portfolio Manager of Concentrated Equity5.58yrsno datano data

2.0yrs

Average Tenure

Experienced Management: PPT's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Adams
MD, CEO & Director2yrsAU$1.83m0.058%
A$ 884.3k
P. Ueland
Independent Director8yrsAU$184.50k0.014%
A$ 217.3k
Anthony D'Aloisio
Independent Chairman3.42yrsAU$300.00k0.016%
A$ 246.8k
Nancy Fox
Independent Director5yrsAU$196.68k0.0089%
A$ 135.8k
Fiona Trafford-Walker
Independent Director0.83yrAU$99.44k0.0026%
A$ 38.7k
Ian Hammond
Independent Director5.58yrsAU$195.00k0.017%
A$ 256.2k
Gregory John Cooper
Independent Non-Executive Director1yrAU$151.82k0.0031%
A$ 46.6k

3.4yrs

Average Tenure

62yo

Average Age

Experienced Board: PPT's board of directors are considered experienced (3.4 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 been diluted in the past year, with total shares outstanding growing by 20.6%.


Top Shareholders

Company Information

Perpetual Limited's company bio, 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$1.519b
  • Shares outstanding: 55.84m
  • Website: https://www.perpetual.com.au

Number of Employees


Location

  • Perpetual Limited
  • Angel Place
  • Level 18
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
PVQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
PPTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
PRPL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

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 pla ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 10:42
End of Day Share Price2020/10/30 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.