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ASX
(Sydney:ASX)
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Rating:64Neutral
Price Target:
AU$71.00
▲(28.00% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily constrained by weaker financial quality signals—volatile cash flow with FY2026 turning materially negative and a step-up in leverage—despite strong profitability. Technicals are supportive with a clear trend above key moving averages and positive momentum indicators. Valuation is reasonable-to-slightly premium (P/E ~21.7) but helped by a ~3.6% dividend yield, while the earnings call was balanced: solid growth and guidance reaffirmation offset by elevated cost/capex outlook and capital/regulatory pressures.
Positive Factors
Revenue and Margin Strength
Accelerating revenue and structurally high margins indicate strong underlying earnings capacity across the exchange and infrastructure businesses. This profitability provides resources to fund technology investment, support regulatory capital needs, and reinforce ASX’s position over the next several quarters.
Negative Factors
Higher Leverage
The sharp increase in leverage reduces financial flexibility compared with ASX’s prior balance-sheet position. Higher debt can constrain capital allocation, increase sensitivity to refinancing conditions, and make it harder to absorb operational or regulatory costs while continuing major infrastructure investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Strength
Accelerating revenue and structurally high margins indicate strong underlying earnings capacity across the exchange and infrastructure businesses. This profitability provides resources to fund technology investment, support regulatory capital needs, and reinforce ASX’s position over the next several quarters.
Read all positive factors
ASX (ASX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$13.07B
Dividend Yield3.11%
Average Volume (3M)749.69K
Price to Earnings (P/E)26.9
Beta (1Y)0.57
Revenue Growth2.73%
EPS Growth-3.76%
CountryAU
Employees1,453
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)2.50
Shares Outstanding197,349,620
10 Day Avg. Volume737,780
30 Day Avg. Volume749,686
Financial Highlights & Ratios
PEG Ratio-5.55
Price to Book (P/B)2.60
Price to Sales (P/S)5.90
P/FCF Ratio-3.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$59.51Price Target Upside7.29% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)2.71
Revenue Forecast (FY)AU$1.35B
ASX Business Overview & Revenue Model
Company Description
ASX Limited operates as a comprehensive, integrated exchange entity, managing diverse asset classes both within Australia and across global markets. The company facilitates marketplaces for various types of assets, such as shares, bonds, raw mater...
How the Company Makes Money
ASX makes money primarily by charging fees for the use of its markets and post-trade infrastructure, plus revenues from information and technology services. Key revenue streams typically include: (1) Trading services: fees linked to on-exchange tr...
ASX Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong top-line performance, cross-business revenue growth, successful delivery of key technology milestones (notably CHESS Release 1), significant listings momentum and early FY'27 market strength. Offsetting these positives are substantial and continuing expense increases (driven by technology modernisation, Accelerate remediation and licence/consultancy costs), statutory profit impacts from significant items, a credit rating downgrade and capital accumulation requirements tied to regulatory commitments. Management has set clear FY'27 guidance (higher expense and capex ranges), reset governance and outlined multi-year transformation priorities, but near-term margin and capital pressures remain material.Positive Updates
Strong Top-Line Revenue Growth
Operating revenue of $1.25 billion, up 13.3% year-on-year, driven by volume and product activity across the portfolio.
Negative Updates
Expense Growth and Margin Pressure
Total expenses increased 21.1% to $557.4 million; EBITDA margin declined 180 bps to 61%. Excluding ASIC Inquiry costs, expense growth was 14.4% and EBITDA margin would be 63.4% (up 60 bps). FY'27 total expense growth guidance 18–21%.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Top-Line Revenue Growth
Operating revenue of $1.25 billion, up 13.3% year-on-year, driven by volume and product activity across the portfolio.
Read all positive updates
Company Guidance
ASX reconfirmed FY‑27 guidance with total expense growth of 18–21% (operating expense growth excluding depreciation & amortisation 13–16%), noting ~5% of the FY‑27 expense increase will come from higher D&A; capital expenditure is guided to $180–200m in FY‑27 (FY‑28: $170–190m). The Board set a final FY‑26 dividend of $1.047/share (total FY‑26 dividend $2.065/share), operating the DRP with a 2.5% discount and lowering the payout to ~75% of underlying NPAT (target range 75–85%); ASX reiterated a medium‑term underlying ROE target of 12–14% and aims to accumulate $150m above the 31‑Dec‑2025 NTA by 30‑Jun‑2027 (currently $132.9m remaining). Management also highlighted liquidity and capital actions (holding $250m cash above regulatory requirements, a $400m undrawn debt facility and planned refinancing of $275m bonds in H1 FY‑27) and referred to FY‑26 metrics underpinning the guidance: operating revenue $1.25bn (+13.3%), total expenses $557.4m (+21.1%), underlying NPAT +5.2%, EBITDA margin 61% (‑180bps), underlying EPS $2.758 and underlying ROE 13.7% (up 10bps).ASX Financial Statement Overview
Summary
Income Statement
80
Positive
Balance Sheet
52
Neutral
Cash Flow
28
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.76B | 1.71B | 1.59B | 1.42B | 1.10B |
| Gross Profit | 1.62B | 1.61B | 1.51B | 1.34B | 991.70M |
| EBITDA | 1.19B | 1.27B | 1.18B | 819.40M | 796.50M |
| Net Income | 484.90M | 502.60M | 474.20M | 317.30M | 508.50M |
Balance Sheet | |||||
| Total Assets | 14.54B | 17.57B | 16.89B | 16.83B | 18.24B |
| Cash, Cash Equivalents and Short-Term Investments | 10.65B | 13.90B | 13.42B | 13.51B | 14.46B |
| Total Debt | 9.65B | 12.60B | 334.30M | 78.60M | 67.60M |
| Total Liabilities | 10.55B | 13.70B | 13.16B | 13.19B | 14.43B |
| Stockholders Equity | 3.99B | 3.87B | 3.72B | 3.64B | 3.81B |
Cash Flow | |||||
| Free Cash Flow | -2.86B | 302.90M | 544.40M | -3.51B | 97.60M |
| Operating Cash Flow | -2.67B | 1.02B | 682.20M | -405.70M | 1.66B |
| Investing Cash Flow | -189.00M | -132.80M | -93.00M | -121.30M | -126.90M |
| Financing Cash Flow | -377.10M | -408.30M | -149.60M | -447.20M | -450.80M |
ASX Technical Analysis
Positive
55.47
Price Trends
58.59
Positive
56.11
Positive
54.63
Positive
Market Momentum
2.14
Negative
73.61
Negative
78.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ASX, the sentiment is Positive. The current price of 55.47 is below the 20-day moving average (MA) of 62.44, below the 50-day MA of 58.59, and above the 200-day MA of 54.63, indicating a bullish trend. The MACD of 2.14 indicates Negative momentum. The RSI at 73.61 is Negative, neither overbought nor oversold. The STOCH value of 78.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ASX.
ASX Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$200.31M | 12.07 | 16.81% | 5.79% | 41.52% | 62.58% | |
69 Neutral | AU$24.63B | 28.60 | 27.34% | 2.82% | 0.11% | -2.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$13.07B | 26.88 | 12.29% | 3.11% | 2.73% | -3.76% | |
63 Neutral | AU$1.19B | 27.14 | 9.78% | 1.93% | 19.06% | 47.53% | |
62 Neutral | AU$92.88B | 19.97 | 13.72% | 2.77% | 4.80% | 30.56% | |
45 Neutral | AU$4.78M | -2.71 | 77.55% | ― | 31.21% | 67.68% |
* Financial Sector Average
AU:ASX
ASX
66.31
11.92
21.91%
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Computershare Limited
42.59
7.23
20.45%
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Macquarie Group Limited
252.38
40.60
19.17%
AU:EZL
Euroz Hartleys Group Limited
1.30
0.34
35.60%
AU:ABE
Australian Bond Exchange Holdings Ltd.
0.03
>-0.01
-3.33%
AU:CCL
Cuscal Limited
5.96
1.89
46.29%
ASX Corporate Events
ASX Issues New Tranche of Unquoted Performance Rights Under Staff Incentive Plan
Oct 29, 2026
ASX Ltd has issued 53,647 unquoted performance rights under its employee incentive scheme, with the securities not intended to be quoted on the exchange. The move underscores the company’s ongoing use of equity-based remuneration to align st...
ASX issues new performance rights under employee incentive scheme
Oct 29, 2026
ASX Ltd, operator of Australia’s main securities exchange, runs core market infrastructure including listing, trading, clearing and settlement services for a wide range of financial products. It plays a central role in facilitating capital f...
ASX updates director Anthony Attia’s shareholding disclosure
Oct 29, 2026
ASX Limited has reported a change in director Anthony Davy Attia’s interests in the company’s securities, lodging an Appendix 3Y notice in accordance with listing rule 3.19A.2. The updated disclosure covers both his direct holdings and...
ASX shareholders back board and pay at 2026 AGM
Oct 22, 2026
ASX Limited operates Australia’s primary securities exchange, providing trading, clearing and settlement services across equities, derivatives and other financial instruments for domestic and international investors. The group functions as e...
ASX Flags Tough Year as AGM Addresses Aim to Reassure Investors
Oct 21, 2026
ASX Limited operates Australia’s main securities exchange, offering listing, trading, clearing and settlement services across equities, derivatives and other financial instruments. As a core piece of national market infrastructure, the group...
ASX Limited Reports Lapse of 13,821 Performance Rights
Oct 12, 2026
ASX Limited, operator of Australia’s main securities exchange, provides listing, trading, clearing and settlement services that underpin the country’s capital markets. It is a key infrastructure provider for listed companies, investors...
ASX to Oppose Shareholder Derivative Action Over CHESS Project Governance
Oct 9, 2026
ASX Limited, operator of Australia’s main securities exchange, provides trading, listing, and post-trade services that support the functioning of the country’s capital markets. Its infrastructure, including the CHESS system for clearin...
ASX Discloses Change in Director Wayne Byres’ Shareholding
Sep 24, 2026
ASX Limited has reported a change in director Wayne Byres’ relevant interest in the company’s fully paid ordinary shares, in line with its continuous disclosure obligations. The update shows a small increase in his indirect shareholdin...
ASX Director David Curran Reports Minor Increase in Indirect Shareholding
Sep 24, 2026
ASX Limited has disclosed a minor change in the indirect shareholding of director David Curran, reflecting an additional 73 fully paid ordinary shares acquired via Palicress Pty Ltd as trustee for the DCAC Superannuation Fund. The adjustment margi...
ASX Discloses Director Heather Smith’s Increase in Joint Shareholding
Sep 24, 2026
ASX Limited has reported a change in director Heather Joy Smith’s relevant interests in securities, in line with listing rule 3.19A.2 and disclosure obligations under the Corporations Act. The filing details that Smith and fellow director Dr...
ASX Discloses Change in Director Anne Loveridge’s Shareholding
Sep 24, 2026
ASX Limited has reported a change in the shareholding interests of director Anne Joan Loveridge, in line with its continuous disclosure obligations. The update reflects a modest increase in Loveridge’s directly held fully paid ordinary share...
ASX Releases Voting and Question Forms for 2026 AGM
Sep 20, 2026
ASX Limited has released the voting and proxy form and a shareholder question form ahead of its 2026 Annual General Meeting, giving investors the option to vote directly or appoint a proxy, including the meeting chair. The documentation outlines d...
ASX sets 22 October date for 2026 AGM and outlines shareholder access
Sep 20, 2026
ASX Limited has released the notice for its 2026 Annual General Meeting, which will be held at 10:00am Sydney time on Thursday, 22 October 2026. The notice outlines how shareholders can register, attend, vote, and ask questions, with ASX’s w...
ASX reshapes leadership team with new CFO, COO and clearing chief
Sep 20, 2026
ASX Limited has overhauled its executive leadership team as part of a broader transformation and renewal program under new managing director and CEO Anthony Attia, who took office on 1 September 2026. The exchange has appointed former Dexus execut...
ASX Limited Seeks Quotation for Nearly 1.94 Million New Shares
Sep 17, 2026
ASX Limited has lodged an application for quotation of 1,939,771 ordinary fully paid shares, scheduled for issue on 21 September 2026. The new securities are being issued under a dividend or distribution plan, expanding the pool of tradable ASX sh...
ASX Discloses New Shareholding for Executive Director Anthony Attia
Sep 15, 2026
ASX Limited has disclosed a change in director’s interests relating to executive Anthony Davy Attia, in line with its obligations under ASX Listing Rules and the Corporations Act. The announcement details new holdings of fully paid ordinary ...
ASX Updates Market on Director David Clarke’s Shareholding Change
Sep 11, 2026
ASX Limited has disclosed a change in director David Clarence Clarke’s indirect interest in the company’s fully paid ordinary shares, as required under listing rule 3.19A.2 and the Corporations Act.The notice records that Clarke, throu...
ASX Discloses Director Vic Jokovic’s New Shareholding
Sep 8, 2026
ASX Limited has disclosed a change in director Vic Jokovic’s interests in the company’s securities, in line with its obligations under the ASX listing rules and the Corporations Act. The notice, authorised by the company secretary, hig...
ASX Discloses Director David Clarke’s Increased Shareholding
Sep 8, 2026
ASX Limited has disclosed a change in director David Clarke’s relevant interests in the company’s securities, in line with its continuous disclosure obligations. The notice details Clarke’s indirect holding structure via Netwealt...
ASX Updates NZD Dividend and DRP Details for June 2026 Payout
Sep 8, 2026
ASX Limited has issued an updated notification concerning its interim dividend on ordinary fully paid shares for the six-month period ended 30 June 2026, refining key payment details for shareholders. The update follows an earlier announcement in ...
ASX Reports Softer August Capital Raisings Amid Higher De-listing Activity
Sep 3, 2026
ASX Limited has reported its August 2026 monthly activity, showing softer capital-raising conditions despite ongoing listing activity. New listings added $497 million in quoted market capitalisation for the month and $3.64 billion on a financial y...
ASX Appoints Anthony Attia to Board with No Initial Shareholding
Sep 3, 2026
ASX Limited has announced the appointment of Anthony Davy Attia as a director effective 1 September 2026, with an initial disclosure confirming he currently holds no relevant interests in ASX securities. The filing, made under the exchange’s...
ASX Director Luke Randell Increases Shareholding in Exchange Operator
Aug 28, 2026
ASX Limited has reported a change in the relevant interests of director Luke Anthony Randell, reflecting an update to his personal and family trust-held shareholdings in the company. The notice details that Randell acquired an additional 1,000 ful...
ASX Director David Clarke Increases Indirect Shareholding via Family Trust
Aug 28, 2026
ASX Limited has reported a change in the indirect shareholding of director David Clarence Clarke, reflecting an update to his relevant interests in fully paid ordinary shares held via a family trust structure. The notice, lodged under market discl...
JPMorgan Group Drops Below Substantial Holder Threshold in ASX Ltd
Aug 27, 2026
JPMorgan Chase Co. and its affiliates have disclosed that they have ceased to be a substantial holder in ASX Ltd, following a series of transactions involving securities lending, principal trading and prime brokerage activities. The change reflec...
UBS Drops Below Substantial Holding Threshold in ASX Limited
Aug 27, 2026
UBS Group AG and its related entities have notified ASX Limited that they have ceased to be a substantial shareholder in the exchange operator as of 25 August 2026. The change follows earlier disclosures lodged in late August, indicating that UBS ...
ASX lifts DRP participation, confirms Barrenjoey underwriting for FY26 dividend
Aug 27, 2026
ASX Limited, operator of Australia’s main securities exchange, provides trading, clearing, settlement and market data services to listed companies and investors, making its dividend and capital‑management decisions significant for mark...
ASX Publishes 2026 Corporate Governance Statement
Aug 13, 2026
ASX Limited has released its Corporate Governance Statement for 2026, outlining the board-approved framework under which the exchange is governed. The publication reaffirms the company’s focus on transparency and regulatory compliance, and i...
ASX Lodges 2026 Appendix 4G Corporate Governance Disclosure
Aug 13, 2026
ASX Limited has lodged its 2026 Appendix 4G, outlining how the group complies with the ASX Corporate Governance Council’s principles and recommendations for the year ended 30 June 2026. The filing confirms that ASX’s corporate governan...
ASX Publishes Full-Year 2026 Financial Results Presentation
Aug 13, 2026
ASX Limited has released its full-year 2026 financial results presentation, outlining the exchange operator’s performance and key metrics for the period. The board-authorised release signals the official disclosure of ASX’s latest annu...
ASX lifts revenue and underlying profit despite higher costs and ASIC-related charges
Aug 13, 2026
ASX Limited reported a 13.3% rise in operating revenue to $1.25 billion for the year to 30 June 2026, with all four business units contributing and listings activity rebounding to 100 new entities and $32.6 billion in added market capitalisation. ...
ASX Shareholder Moves to Sue Former Directors Over CHESS Project
Aug 11, 2026
ASX Limited has disclosed that shareholder Rosherville Pty Ltd intends to seek Federal Court approval to launch a Statutory Derivative Action on ASX’s behalf against certain former officers and directors. The proposed claim alleges breaches ...
ASX July Data Shows Strong Growth in New Capital Raised
Aug 5, 2026
ASX Limited has reported its monthly activity figures for July 2026, highlighting its role as a key platform for company listings, secondary raisings and broader capital formation in the Australian market. The exchange continues to support a wide ...
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.