Platinum Asset Management Ltd
PTM: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$9.00 | Kvyt | Hdpvtxnc |
Platinum Asset Management Earnings: Outlook Challenging Given Likely Declining Funds
No-moat Platinum is facing earnings contraction due to prolonged relative underperformance, shrinking revenue, and cost growth. First half fiscal 2024’s underlying net profit after tax fell 5% from the previous corresponding period as revenue declined, reflecting lower funds under management. Profitability in the core funds management division has further deteriorated, with net profit margins now at 34%, down from 36% in the PCP and well below 59% around a decade ago.