Praemium Ltd (PPS) AI Stock Analysis

• Market Cap: AU$341.57M
• Dividend Yield: 1.4%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 32.9
• Beta (1Y): 1.34
• Revenue Growth: 23.52%
• EPS Growth: 7.96%
• Country: AU
• Employees: 360
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Capital Markets
• EPS (TTM): 0.01
• Shares Outstanding: 477,715,180
• 10 Day Avg. Volume: 1,542,532
• 30 Day Avg. Volume: 1,378,603
• PEG Ratio: 1.50
• Price to Book (P/B): 3.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.91
• Price Target Upside: 26.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: AU$1.00 ▲(38.89%Upside)

The overall stock score of 70 reflects solid financial performance with strong revenue growth and balance sheet stability. However, technical indicators suggest caution due to potential overbought conditions, and the valuation is somewhat high, which could limit future upside potential.

Praemium Ltd Business Overview & Revenue Model

Company Description

Praemium Ltd (PPS) is a leading provider of portfolio administration, investment platforms, and financial planning technology to the wealth management industry. Headquartered in Australia, the company offers innovative solutions that empower financial advisers, institutions, and investment managers to streamline their operations and enhance client engagement. Praemium's core products include its proprietary investment platform, which is known for its efficiency and comprehensive reporting capabilities, and its suite of financial planning software tools.

How the Company Makes Money

Praemium Ltd generates revenue primarily through fees associated with its investment platform and financial services technology. The company charges advisory firms, financial planners, and institutions for access to its platform, which facilitates portfolio administration and investment management. These fees often depend on the assets under administration (AUA) managed through the platform, creating a scalable revenue model that grows with increased client assets. Additionally, Praemium earns income from software licensing, subscription fees for its financial planning tools, and ancillary services such as data analytics and reporting solutions. Strategic partnerships with financial institutions and continuous innovation in their service offerings also play a significant role in driving the company's earnings.

Praemium Ltd Financial Statement Overview

Summary

Praemium Ltd demonstrates solid revenue growth and operational efficiency, with some pressure on profitability margins. The balance sheet is a strong point with minimal debt and a high equity base, providing stability. However, declining free cash flow growth signals a potential area of concern for cash management.

Income Statement

Praemium Ltd shows consistent revenue growth with a Revenue Growth Rate of 11.34% in 2024 and 17.34% in 2023. Gross Profit Margin decreased from 33.25% in 2023 to 27.30% in 2024, indicating some pressure on cost management. The Net Profit Margin dropped significantly from 20.39% in 2023 to 10.58% in 2024, suggesting a decrease in overall profitability. Despite this, the company maintains a solid EBITDA Margin of 21.05% in 2024, reflecting efficient operations.

Balance Sheet

The balance sheet of Praemium Ltd is strong with a low Debt-to-Equity Ratio of 0.02, indicating minimal leverage and financial risk. The Equity Ratio stands at 81.10% in 2024, highlighting a robust equity base. Return on Equity is good at 8.02% in 2024, though it has decreased from 14.02% in 2023, suggesting a slight decline in the efficiency of equity utilization.

Cash Flow

Praemium Ltd's Free Cash Flow Growth Rate turned negative at -42.90% in 2024, reflecting a decline in cash generation. However, the company maintains a healthy Operating Cash Flow to Net Income Ratio of 1.95, indicating strong cash earnings. The Free Cash Flow to Net Income Ratio decreased to 0.99 in 2024, suggesting tighter cash flow relative to net income.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	95.58M	82.73M	74.29M	63.34M	52.88M	50.17M
Gross Profit	41.82M	22.60M	24.70M	18.14M	16.35M	16.27M
EBITDA	22.86M	17.41M	20.69M	14.32M	16.20M	9.57M
Net Income	10.56M	8.75M	15.15M	43.57M	1.54M	4.86M
Balance Sheet
Total Assets	130.25M	134.58M	129.50M	156.91M	112.47M	49.23M
Cash, Cash Equivalents and Short-Term Investments	37.32M	44.34M	46.25M	80.55M	26.74M	15.91M
Total Debt	1.68M	1.96M	2.18M	11.40M	16.37M	4.23M
Total Liabilities	22.24M	25.44M	21.38M	54.57M	32.56M	18.64M
Stockholders Equity	108.01M	109.15M	108.12M	102.34M	79.91M	30.59M
Cash Flow
Free Cash Flow	14.96M	8.69M	15.22M	2.97M	-1.78M	6.80M
Operating Cash Flow	15.57M	17.04M	23.36M	9.63M	5.46M	12.06M
Investing Cash Flow	-8.66M	-8.47M	-8.40M	49.74M	-6.48M	-8.40M
Financing Cash Flow	-10.46M	-10.48M	-48.89M	-5.77M	11.78M	-1.27M

Praemium Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PPS, the sentiment is Positive. The current price of 0.72 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.69, and above the 200-day MA of 0.70, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 92.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PPS.

Praemium Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPS	70 Outperform	AU$341.57M	32.95	9.89%	1.40%	23.52%	7.96%
COG	68 Neutral	AU$333.03M	26.74	7.94%	3.64%	16.16%	32.97%
Sector *	68 Neutral	¥724.27B	10.75	7.55%	3.29%	7.97%	15.90%
NWL	66 Neutral	AU$8.44B	82.70	65.17%	1.02%	24.24%	33.94%
OFX	64 Neutral	AU$176.67M	7.21	14.15%	―	-4.69%	-18.65%
RZI	63 Neutral	€64.24M	―	-0.11%	―	12.91%	73.27%
FNX	62 Neutral	AU$17.13M	196.43	-0.72%	1.82%	17.07%	-107.76%

Praemium Ltd Corporate Events

Praemium Ltd Reports Record Growth in Funds Under Administration

Praemium Ltd announced a significant increase in its total funds under administration (FUA) to $62.3 billion, marking a 17% rise from the previous year. The company’s newly launched Spectrum platform saw strong net inflows of $440 million, contributing to its overall platform FUA of $30 billion, a 24% increase. Despite some net outflows in Powerwrap and OneVue, the company remains optimistic about its growth trajectory, with ongoing integration and technology transitions expected to yield synergies by the end of the financial year.

Praemium Ltd Director Increases Shareholding

Praemium Ltd announced a change in the director’s interest, with Director Daniel Lipshut acquiring 30,000 ordinary shares through an on-market trade, increasing his total holdings to 580,000 shares. This transaction reflects a strategic move by the director, potentially indicating confidence in the company’s future prospects, which could have implications for stakeholders and market perception.