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Magellan Financial Group Ltd
(Sydney:MFG)
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Rating:71Outperform
Price Target:
AU$11.50
▲(20.04% Upside)
Action:Reiterated
Date:10/25/25
Magellan Financial Group Ltd scores well due to its strong financial performance and attractive valuation. Despite declining revenue, the company maintains high profitability and a solid balance sheet. Technical indicators are mixed, suggesting a neutral market sentiment. The lack of earnings call and corporate events data limits further insights.
Positive Factors
Recurring fee-based business model
Magellan’s core revenue from management fees tied to AUM creates a recurring, predictable income stream that supports operating leverage. Over the medium term this durable fee model underpins cash generation and allows scalable margins as fixed costs are spread across a larger fee base.
Negative Factors
Declining revenue trend
An almost 19% revenue drop signals weakening fee base or client flows and can erode long-run profitability even if margins remain high. Sustained revenue contraction reduces scalability benefits, constrains reinvestment capacity, and makes maintaining distributions harder without offsetting cost or AUM improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring fee-based business model
Magellan’s core revenue from management fees tied to AUM creates a recurring, predictable income stream that supports operating leverage. Over the medium term this durable fee model underpins cash generation and allows scalable margins as fixed costs are spread across a larger fee base.
Read all positive factors
Magellan Financial Group Ltd (MFG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.07B
Dividend Yield5.99%
Average Volume (3M)545.81K
Price to Earnings (P/E)12.3
Beta (1Y)0.88
Revenue Growth-12.42%
EPS Growth-36.36%
CountryAU
Employees100
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.80
Shares Outstanding292,607,900
10 Day Avg. Volume462,138
30 Day Avg. Volume545,807
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)1.52
Price to Sales (P/S)4.86
P/FCF Ratio9.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$9.52Price Target Upside-0.60% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering4
EPS Forecast (FY)0.66
Revenue Forecast (FY)AU$185.02M
Magellan Financial Group Ltd Business Overview & Revenue Model
Company Description
Magellan Financial Group Limited operates as a publicly traded investment management firm. Its core strategy involves deploying capital into global equity markets and listed infrastructure assets across the world. The company was established in 20...
How the Company Makes Money
MFG primarily makes money by charging fees for managing client assets (assets under management, AUM). The core revenue streams are: (1) Management fees: recurring fees calculated as a percentage of AUM across its funds and mandates; these are typi...
Magellan Financial Group Ltd Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
75
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 283.70M | 313.54M | 348.67M | 381.15M | 669.43M | 699.07M |
| Gross Profit | 299.30M | 313.27M | 275.90M | 332.18M | 639.05M | 449.26M |
| EBITDA | 174.20M | 236.18M | 270.83M | 273.99M | 443.75M | 385.49M |
| Net Income | 139.96M | 165.02M | 238.76M | 182.66M | 383.01M | 265.16M |
Balance Sheet | ||||||
| Total Assets | 1.02B | 1.09B | 1.09B | 1.20B | 1.24B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 119.25M | 170.15M | 322.57M | 375.11M | 421.57M | 213.23M |
| Total Debt | 4.06M | 5.11M | 7.61M | 10.17M | 12.55M | 171.69M |
| Total Liabilities | 64.70M | 90.50M | 69.72M | 236.47M | 214.64M | 226.73M |
| Stockholders Equity | 953.23M | 1.00B | 1.02B | 962.50M | 1.03B | 989.43M |
Cash Flow | ||||||
| Free Cash Flow | 144.44M | 153.07M | 46.93M | 186.47M | 434.37M | 401.06M |
| Operating Cash Flow | 144.82M | 153.40M | 47.38M | 186.58M | 434.63M | 401.33M |
| Investing Cash Flow | 3.36M | -122.13M | 81.23M | 16.47M | 134.75M | -221.58M |
| Financing Cash Flow | -219.99M | -185.48M | -179.54M | -250.61M | -364.94M | -400.52M |
Magellan Financial Group Ltd Technical Analysis
Neutral
9.58
Price Trends
9.33
Positive
9.49
Positive
9.29
Positive
Market Momentum
0.34
Negative
51.29
Neutral
49.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MFG, the sentiment is Neutral. The current price of 9.58 is below the 20-day moving average (MA) of 10.03, above the 50-day MA of 9.33, and above the 200-day MA of 9.29, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 49.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:MFG.
Magellan Financial Group Ltd Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$3.07B | 12.26 | 14.31% | 5.99% | -12.42% | -36.36% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | AU$4.04B | 30.61 | 13.61% | 3.45% | 11.69% | -15.05% | |
58 Neutral | AU$3.11B | 153.13 | 58.96% | 23.72% | 215.38% | -82.04% | |
50 Neutral | AU$2.22B | -127.93 | -1.00% | 6.01% | 2.23% | 96.71% | |
44 Neutral | AU$4.05B | 31.10 | 3.56% | 1.65% | -14.25% | -25.71% |
* Financial Sector Average
AU:MFG
Magellan Financial Group Ltd
9.93
1.04
11.64%
AU:AMP
AMP
1.66
0.24
16.82%
AU:PPT
Perpetual Limited
19.28
-0.38
-1.91%
AU:L1G
Platinum Asset Management Ltd
1.23
0.66
115.79%
AU:PNI
Pinnacle Investment Management Group Limited
17.62
-2.82
-13.80%
Magellan Financial Group Ltd Corporate Events
Magellan Discloses Final Director Interest as Rahmani Exits Board
Jul 1, 2026
Magellan Financial Group Ltd has notified the ASX that director Sophia Rahmani ceased to be a director effective 1 July 2026, with the final notice outlining her remaining interests in the company’s securities. The filing details RahmaniR...
Magellan Financial Group Appoints Paul Compton to Board
Jul 1, 2026
Magellan Financial Group Ltd has appointed Paul H. Compton as a director effective 1 July 2026, as disclosed in an initial director’s interest notice lodged with the ASX. The filing indicates that Compton currently holds no relevant interest...
Magellan Adds Former RBA Governor Philip Lowe to Board
Jul 1, 2026
Magellan Financial Group Ltd has appointed former Reserve Bank governor Philip William Lowe as a director effective 1 July 2026, adding a high-profile figure to its board. Lowe holds a beneficial interest in 29,584 fully paid ordinary shares in Ma...
Magellan Names Kelly O’Dwyer to Board, Discloses Indirect Shareholding
Jul 1, 2026
Magellan Financial Group Ltd has appointed Kelly Megan O’Dwyer as a director effective 1 July 2026, formally notifying the ASX in line with disclosure obligations. O’Dwyer holds an indirect interest in 17,751 fully paid ordinary Magell...
Magellan Appoints Fiona Hick as Director, Discloses Indirect Shareholding
Jul 1, 2026
Magellan Financial Group Ltd has appointed Fiona Alison Hick to its board as a director, effective 1 July 2026, marking a further refresh of its governance structure. Hick holds an indirect interest in 17,751 fully paid ordinary Magellan shares th...
Oryxium Loses Substantial Holder Status After Magellan–Barrenjoey Merger
Jul 1, 2026
Magellan Financial Group Limited has disclosed that Oryxium Pty Limited, a trust for the benefit of members of the Lowy family, has ceased to be a substantial holder in the company following the completion of its merger with Barrenjoey. The change...
Magellan admits late disclosure of director’s ETF unit sale
Jun 22, 2026
Magellan Financial Group has reported a change in director Andrew Formica’s interests following the on-market sale of 21,739 units in the Magellan Global Opportunities Fund Active ETF on 20 May 2026. The transaction involved units sold at $1...
Magellan Chair Andrew Formica Increases Stake With On‑Market Share Purchase
May 26, 2026
Magellan Financial Group chairman Andrew Formica has increased his stake in the company through an on-market purchase of additional ordinary shares. The move lifts his direct and indirect holding in Magellan to 70,030 ordinary shares, alongside ex...
Magellan Hands Flagship Global Equities Funds to Vinva and Slashes Fees
May 4, 2026
Magellan Financial Group is overhauling its flagship global equities strategy by shifting the Magellan Global Fund Open Class Active ETF and the Magellan Global Fund Hedged to the Vinva Global Alpha Strategy, while retaining Magellan Asset Managem...
Magellan Director John Eales Adjusts Fund Holdings Without Changing Company Stake
Apr 23, 2026
Magellan Financial Group has disclosed changes in director John Eales’ interests, detailing movements in his holdings across several of the group’s managed funds and related investment vehicles. The filing shows an off-market transfer ...
Magellan Director John Eales Lifts Stake via Share Purchase Plan
Apr 10, 2026
Magellan Financial Group director John Eales has increased his direct and indirect stake in the company through participation in a share purchase plan. He acquired 498 fully paid ordinary shares at $8.45 each, lifting his holding to 81,352 Magella...
Magellan MD Rahmani Lifts Stake via Share Purchase Plan
Apr 10, 2026
Magellan Financial Group Ltd has disclosed a minor increase in managing director Sophia Rahmani’s direct holding of fully paid ordinary shares following participation in the company’s Share Purchase Plan. Rahmani acquired 401 additiona...
Magellan Director Deborah Page Lifts Stake via Share Purchase Plan
Apr 10, 2026
Magellan Financial Group director Deborah Page has increased her direct and indirect holding in the company through participation in a share purchase plan. She acquired 622 additional ordinary fully paid shares in Magellan at $8.45 per share, lift...
Magellan Director Cathy Kovacs Increases Stake via Share Purchase Plan
Apr 10, 2026
Magellan Financial Group director Cathy Kovacs has increased her direct holding in the company through participation in a share purchase plan. She acquired 1,244 ordinary fully paid shares at $8.45 each on 1 April 2026, lifting her stake from 12,4...
Magellan director Andrew Formica lifts stake via share purchase plan
Apr 10, 2026
Magellan Financial Group director Andrew Formica has increased his stake in the company through a purchase of 3,550 ordinary shares under a share purchase plan. The on-market transaction, executed at $8.45 per share on 1 April 2026, lifts his dire...
Magellan Investors Back Share Issuance to Barrenjoey and Barclays Affiliate
Apr 10, 2026
Magellan Financial Group shareholders have approved the issuance of consideration shares to the Barrenjoey parties and an affiliate of Barclays at the company’s 2026 extraordinary general meeting. The resolution passed comfortably on a poll,...
Magellan Details 2026 EGM on Proposed Barrenjoey Merger
Apr 10, 2026
Magellan Financial Group has released the presentation slides and proxy summary for its 2026 Extraordinary General Meeting. The meeting centres on a proposed merger between Magellan and financial services firm Barrenjoey, signalling a potential st...
Magellan Seeks Shareholder Backing for Barrenjoey Merger to Build Diversified Financial Group
Apr 9, 2026
Magellan Financial Group’s chairman told shareholders at an extraordinary general meeting that the company is pursuing a strategy to become a more diversified financial services group, reducing reliance on a single revenue stream while remai...
Magellan Securities Lapse Trims Potential Future Equity Dilution
Apr 7, 2026
Magellan Financial Group has reported the lapse of several classes of conditional equity securities, including matching awards, employee equity grants, long-term incentive plan rights and options expiring in April 2027. In total, more than 330,000...
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.