Will Perpetual's (ASX:PPT) Impairment and Narrowed Loss Mark a Turning Point in Its Strategy?

• Perpetual Limited recently announced full year earnings for the period ended June 30, 2025, reporting sales of A$1,390.5 million and a net loss of A$58.2 million, alongside a substantial non-cash impairment charge of A$153.7 million predominantly linked to the J O Hambro Asset Management business.
• While the reported net loss has narrowed significantly from the previous year, the ongoing outflows and large impairment in asset management highlight persistent challenges within key segments.
• We’ll consider how the fresh impairment and reduced net loss reported by Perpetual may influence its investment outlook and future strategy.

The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 22 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

Perpetual Investment Narrative Recap

Shareholders in Perpetual Limited are ultimately betting on the company's ability to stabilize its Asset Management division and complete the sale of its Wealth Management business to regain profitability and reduce debt. The latest results and non-cash impairment linked to J O Hambro may reinforce the near-term focus on stabilizing net flows as the most important catalyst, while persistent outflows and further underperformance in key strategies remain the biggest risk, these have not been materially changed by the recent news, but continue to warrant attention.

The substantial A$153.7 million impairment charge, primarily tied to J O Hambro, is the most relevant recent announcement as it underscores the ongoing pressure in Asset Management despite improvements in the company’s headline loss. This impairment serves as a reminder of the underlying challenges facing Perpetual’s distribution and performance efforts, especially as investors keep a close eye on the impact of sustained outflows within this segment.

On the other hand, investors should be aware that persistent outflows from key asset management strategies could...

Read the full narrative on Perpetual (it's free!)

Perpetual's narrative projects A$1.4 billion revenue and A$141.8 million earnings by 2028. This requires 1.3% yearly revenue growth and an earnings increase of A$636.5 million from A$-494.7 million.

Uncover how Perpetual's forecasts yield a A$20.76 fair value, a 3% downside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community estimate Perpetual’s fair value between A$20.76 and A$42.23 per share. With ongoing pressure from net outflows in key segments, your own assumptions about future flows and profitability matter more than ever.

Explore 8 other fair value estimates on Perpetual - why the stock might be worth just A$20.76!

Build Your Own Perpetual Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Perpetual research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Perpetual research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Perpetual's overall financial health at a glance.

Want Some Alternatives?

Our top stock finds are flying under the radar-for now. Get in early:

• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• This technology could replace computers: discover 23 stocks that are working to make quantum computing a reality.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com