Australian Ethical Investment Ltd (AU:AEF)
ASX:AEF
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Australian Ethical Investment Ltd
(Sydney:AEF)
Select Model
Select Model
Rating:64Neutral
Price Target:
AU$4.50
▲(9.76% Upside)
Action:Reiterated
Date:12/02/25
Australian Ethical Investment Ltd's strong financial performance is the most significant factor, supported by robust revenue growth and profitability. However, bearish technical indicators and a relatively high P/E ratio suggest caution. The lack of earnings call and corporate event data limits further insights.
Positive Factors
Low leverage & strong capital structure
Very low leverage and a high equity ratio reduce financial distress risk and support strategic flexibility. Coupled with a 49.93% ROE, this indicates the firm effectively converts equity into returns, enabling durable capacity to invest in products, weather downturns and fund growth initiatives.
Negative Factors
Declining free cash flow growth
A 61.6% drop in FCF growth materially weakens reinvestment capacity and reduces optionality for product development, platform upgrades or capital returns. Even with solid cash conversion ratios, this negative trend constrains long-term financial flexibility unless free cash flow growth is restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage & strong capital structure
Very low leverage and a high equity ratio reduce financial distress risk and support strategic flexibility. Coupled with a 49.93% ROE, this indicates the firm effectively converts equity into returns, enabling durable capacity to invest in products, weather downturns and fund growth initiatives.
Read all positive factors
Australian Ethical Investment Ltd (AEF) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$490.61M
Dividend Yield2.7%
Average Volume (3M)152.18K
Price to Earnings (P/E)20.3
Beta (1Y)1.01
Revenue Growth14.08%
EPS Growth61.35%
CountryAU
Employees140
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.21
Shares Outstanding113,830,080
10 Day Avg. Volume113,253
30 Day Avg. Volume152,183
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)17.98
Price to Sales (P/S)6.09
P/FCF Ratio27.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.23
Revenue Forecast (FY)AU$126.66M
Australian Ethical Investment Ltd Business Overview & Revenue Model
Company Description
Australian Ethical Investment Ltd. operates as a publicly listed asset management firm. It develops and manages various mutual funds for its clientele, spanning equity, fixed income, and balanced investment strategies. The company deploys capital ...
How the Company Makes Money
AEF primarily makes money by charging fees for managing and administering investors’ assets across its ethical managed funds and superannuation products. The core revenue stream is recurring management fees calculated as a percentage of funds unde...
Australian Ethical Investment Ltd Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 126.41M | 119.38M | 100.49M | 81.10M | 70.78M | 58.71M |
| Gross Profit | 93.98M | 80.12M | 81.75M | 65.79M | 59.38M | 47.70M |
| EBITDA | 40.72M | 38.05M | 25.27M | 15.67M | 15.22M | 16.32M |
| Net Income | 24.04M | 20.20M | 11.53M | 6.58M | 9.51M | 11.12M |
Balance Sheet | ||||||
| Total Assets | 69.90M | 69.73M | 51.23M | 47.30M | 41.94M | 39.47M |
| Cash, Cash Equivalents and Short-Term Investments | 39.92M | 38.84M | 36.39M | 32.73M | 27.39M | 27.81M |
| Total Debt | 3.00M | 2.18M | 2.77M | 2.20M | 834.00K | 1.57M |
| Total Liabilities | 23.66M | 29.28M | 21.09M | 20.55M | 17.27M | 15.29M |
| Stockholders Equity | 46.25M | 40.45M | 30.14M | 26.75M | 24.66M | 24.18M |
Cash Flow | ||||||
| Free Cash Flow | 28.67M | 26.61M | 21.27M | 16.00M | 15.40M | 15.41M |
| Operating Cash Flow | 28.82M | 26.89M | 22.29M | 16.20M | 16.16M | 15.50M |
| Investing Cash Flow | -20.45M | -21.85M | -11.17M | -4.07M | -4.12M | -120.00K |
| Financing Cash Flow | -16.02M | -12.59M | -11.86M | -6.79M | -12.46M | -9.00M |
Australian Ethical Investment Ltd Technical Analysis
Neutral
4.10
Price Trends
4.24
Positive
4.41
Negative
5.29
Negative
Market Momentum
0.05
Negative
61.15
Neutral
82.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AEF, the sentiment is Neutral. The current price of 4.1 is below the 20-day moving average (MA) of 4.10, below the 50-day MA of 4.24, and below the 200-day MA of 5.29, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.15 is Neutral, neither overbought nor oversold. The STOCH value of 82.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:AEF.
Australian Ethical Investment Ltd Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | AU$560.14M | 10.57 | 9.43% | 4.41% | 13.02% | 9.62% | |
73 Outperform | AU$40.18M | 11.44 | 9.09% | 1.33% | -27.75% | 5.14% | |
71 Outperform | AU$1.81B | 12.02 | 14.31% | 5.99% | -12.42% | -36.36% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$490.61M | 20.29 | 55.44% | 2.70% | 14.08% | 61.35% | |
64 Neutral | AU$96.07M | 11.39 | 7.48% | 7.66% | -55.60% | ― | |
50 Neutral | AU$1.83B | -109.66 | -1.00% | 6.01% | 2.23% | 96.71% |
* Financial Sector Average
AU:AEF
Australian Ethical Investment Ltd
4.38
-1.51
-25.61%
AU:MFG
Magellan Financial Group Ltd
10.12
2.41
31.22%
AU:PPT
Perpetual Limited
15.75
-0.33
-2.08%
AU:CAM
Clime Capital Limited
0.68
0.03
4.13%
AU:MEC
Morphic Ethical Equities Fund Ltd.
1.32
0.28
26.56%
AU:FGX
Future Generation Australia Limited Stapled Security
1.36
0.21
18.16%
Australian Ethical Investment Ltd Corporate Events
Australian Ethical Announces Departure of Non-Shareholding Director
May 4, 2026
Australian Ethical Investment Ltd has announced that director Richard Joseph Brandweiner has ceased to be a director of the company as of 4 May 2026. Regulatory disclosures show that Brandweiner held no relevant interests in the company’s se...
Australian Ethical Director Departs Board to Lead Investment Strategy at Future Fund
Apr 23, 2026
Australian Ethical Investment Ltd, a leading Australian ethical investment manager with $13.5 billion in funds under management, provides values-aligned managed funds and superannuation products guided by its Australian Ethical Charter to deliver ...
Australian Ethical grows middle‑market and private markets despite FUM dip
Apr 15, 2026
Australian Ethical Investment reported funds under management of $13.57 billion at 31 March 2026, as positive superannuation net inflows of $0.10 billion helped offset volatile markets that drove a 3.7% decline in total FUM over the quarter. New m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.