Magellan Financial Group Ltd
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$56.70 | Mvl | Pbxhbtqh |
Magellan Earnings: Some Recovery Evident, but Structural Issues Remain
No-moat Magellan’s Financial Group fiscal 2024 results slightly exceeded expectations, with underlying net profit after tax up 2% from the prior year to AUD 178 million, surpassing our forecast of a 1% decline to AUD 173 million. Earnings from funds management and principal investments modestly exceeded our expectations. A key surprise was the stronger-than-expected investment returns from principal investments, leading to an increased earnings contribution to 33% of group normalized pretax profits in fiscal 2024, compared with 22% in the prior year. Funds management earnings benefited from higher performance fees, which can be volatile.