ASX Ltd

ASX Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.08 and a current ratio of 1.12, indicating adequate short-term liquidity despite a medium liquidity risk flag. The balance sheet shows total assets of 17.57 billion AUD against total liabilities of 13.70 billion AUD, resulting in total equity of 3.87 billion AUD. Long-term debt stands at 310.9 million AUD, which is low relative to equity, but the company reports negative net cash after subtracting total debt. Free cash flow is negative at -15.1 million AUD, driven by capital expenditures of 171.9 million AUD exceeding operating cash flow of 302.9 million AUD.

Profitability metrics show a return on equity of 12.98% and a return on assets of 2.86%, reflecting efficient use of equity but lower asset turnover typical of capital-intensive infrastructure businesses. The price-to-earnings ratio is 20.74, and the price-to-book ratio is 2.69, suggesting the market values the company's stable earnings power above its book value. The EV/EBITDA multiple of 16.68 and EV/Revenue of 9.52 indicate a premium valuation relative to earnings and sales, consistent with high-quality, regulated monopolies in financial infrastructure.

Revenue concentration is not detailed in segment or geographic breakdowns, but the company's activity is centered on integrated circuits and semiconductor-related services according to its classification, though sector classification codes suggest capital markets activities. The lack of segment data prevents a detailed analysis of revenue mix, but the high operating income of 643.4 million AUD on revenue of 1.13 billion AUD suggests a high-margin business model with significant operating leverage.

Growth trajectory cannot be fully assessed due to the absence of historical period data, but the current revenue of 1.13 billion AUD and net income of 502.6 million AUD provide a baseline for future projections. The negative free cash flow may indicate a period of heavy investment in technology or infrastructure, which could support future growth if it leads to increased efficiency or market share.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting negative net cash. The company's reliance on capital expenditures to maintain or grow its infrastructure poses a risk to free cash flow generation. The absence of detailed risk assessment beyond liquidity and dilution limits the depth of risk analysis, but the conservative debt levels mitigate financial distress risk.

Recent events include analyst estimates with a mean price target of 54.36 AUD and a median of 54.85 AUD, suggesting modest upside from the current market price of 53.39 AUD. The mean recommendation of 2.67 indicates a neutral to slightly positive sentiment among analysts, with one strong buy, three buys, and seven holds. Competitor context includes NVIDIA, Intel, and Broadcom, though their relevance to ASX Ltd's business is unclear given the classification discrepancies.

Analysts project 15% upside to a mean price target of AUD 58.05 from current levels.

The company achieved a 15.4% return on invested capital, exceeding the 12.98% return on equity.

Revenue grew 7.3% year-over-year to AUD 1.13 billion in fiscal year 2025.

Net income increased 6.0% year-over-year to AUD 502.6 million in fiscal year 2025.

Free cash flow declined 6.3% year-over-year to a negative AUD 15.1 million in fiscal 2025.

Long-term debt surged to AUD 310.9 million in fiscal 2025, up from AUD 78.6 million in 2023.

Net income compound annual growth rate was only 1.1% over the four-year period ending 2025.

The company faces a medium level of liquidity risk according to internal risk assessments.

Revenue A$1.13B, +7,3% YoY; Operating income +4,7% YoY.

• ▍Revenue A$1.13B, +7,3% YoY
• ▍Operating income +4,7% YoY
• ▍Net income +6,0% YoY
• ▍Free cash flow −6,3% YoY
• ▍Net margin 44.6%

Revenue A$1.05B, +1,9% YoY; Operating income +56,9% YoY.

• ▍Revenue A$1.05B, +1,9% YoY
• ▍Operating income +56,9% YoY
• ▍Net income +49,5% YoY
• ▍Free cash flow +93,0% YoY
• ▍Net margin 45.1%

Revenue A$1.03B, −1,1% YoY; Operating income −44,3% YoY.

• ▍Revenue A$1.03B, −1,1% YoY
• ▍Operating income −44,3% YoY
• ▍Net income −37,6% YoY
• ▍Free cash flow −1 506,9% YoY
• ▍Net margin 30.8%

Revenue A$1.04B, +8,3% YoY; Operating income +8,7% YoY.

• ▍Revenue A$1.04B, +8,3% YoY
• ▍Operating income +8,7% YoY
• ▍Net income +5,7% YoY
• ▍Free cash flow +173,6% YoY
• ▍Net margin 48.8%

Revenue A$962.3M; Operating income A$647.1M.

• ▍Revenue A$962.3M
• ▍Operating income A$647.1M
• ▍Net margin 50.0%