ASX (AUX) AI Stock Analysis

ASX

(Frankfurt:AUX)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Revenue growth and marginsStrong revenue growth combined with structurally high gross and operating margins indicates that ASX is converting expanding market activity and services demand into substantial operating earnings. This supports ongoing investment in infrastructure while preserving a durable earnings base over the next several quarters.

Negative Factors

Volatile cash generationThe latest deterioration in operating and free cash flow weakens confidence that reported earnings will consistently convert into distributable or reinvestable cash. Large historical swings also make funding technology programs and sustaining dividends more dependent on balance-sheet capacity and timing.

ASX (AUX) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 8.66B
Dividend Yield: 2.97%
Average Volume (3M): 289
Price to Earnings (P/E): 26.6
Beta (1Y): 0.41
Revenue Growth: 1.27%
EPS Growth: -6.19%
Country: Germany
Employees: 1,453
Sector: Financial
Sector Strength: 68
Industry: Financial - Data & Stock Exchanges

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 material...

ASX Earnings Call Summary

Earnings Call Date:Aug 11, 2026(Q4-2026)|% Change Since:25.53%|Next Earnings Date:Feb 17, 2027

Earnings Call SentimentNeutral

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%.

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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:AUX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AU:CPU	75Outperform	AUD 25.01B	27.77	27.34%	2.81%	0.11%	-2.37%
AU:CCL	72Outperform	AUD 1.20B	26.55	9.78%	1.98%	19.06%	47.53%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AU:EZL	64Neutral	AUD 201.08M	12.37	16.81%	5.64%	41.52%	62.58%
AU:MQG	62Neutral	AUD 92.90B	19.93	13.72%	2.79%	4.80%	30.56%
AU:ABE	39Underperform	AUD 5.76M	-2.71	77.55%	―	31.21%	67.68%

* Financial Sector Average

Performance Comparison

DE:AUX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:AUX	ASX Limited	41.40	10.77	35.18%
AU:CPU	Computershare Limited	42.72	7.56	21.52%
AU:MQG	Macquarie Group Limited	251.33	40.86	19.41%
AU:EZL	Euroz Hartleys Group Limited	1.33	0.37	38.54%
AU:ABE	Australian Bond Exchange Holdings Ltd.	0.03	-0.00	-3.33%
AU:CCL	Cuscal Limited	5.82	1.80	44.92%

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.

ASX AI Stock Analysis