ASX Ltd (ASX) Earnings: FY Ebit Meets Estimates with A$604.8 Million

ASX Ltd on Smartkarma

On Smartkarma, independent analyst Daniel Tabbush has published a bearish analysis on ASX Ltd titled “ASX – Listed Companies in Decline, Costs Soaring, Weaker Profit Can Be Dramatic.” Tabbush notes that ASX is experiencing a decline in listed companies, with higher average turnover and increased secondary capital raising not translating fully to the bottom line. Costs for ASX are remaining high, with a significant rise in capital expenditure. Despite some positives such as average daily turnover and secondary listings, the impact of higher costs has prevented these positives from fully reflecting in the financial results. Tabbush highlights that costs as a percentage of revenue have risen to 40% in the first half of 2024, up from 29% in prior interim periods. With planned capex and inflationary pressures on staff costs, ASX’s net profit for the current and upcoming years could be under notable pressure.

A look at ASX Ltd Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

ASX Ltd, the operator of Australia’s primary stock exchange, shows a promising long-term outlook based on its Smartkarma Smart Scores. With a solid Resilience score of 4 and Momentum score of 4, the company appears well-positioned to weather market fluctuations and maintain its growth trajectory. Additionally, ASX Ltd scores a respectable 3 on both the Dividend and Growth factors, indicating a balanced approach to rewarding investors and pursuing expansion opportunities. While the Value score of 2 suggests some room for improvement in terms of undervaluation, the overall scores paint a positive picture for ASX Ltd‘s future prospects.

ASX Ltd, a demutualized company running Australia’s primary stock exchange, is assessed using Smartkarma Smart Scores to evaluate its future outlook. Operating key markets for equities, derivatives, and fixed-interest securities, ASX Ltd leverages advanced technology for efficient trading and settlement processes. The company’s strong Resilience and Momentum scores, along with solid scores in Dividend and Growth factors, indicate a robust foundation for sustained performance. By focusing on enhancing its value proposition, ASX Ltd stands poised to capitalize on growth opportunities and deliver value to its stakeholders in the long run.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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