Pinnacle Investment Management Group Limited Fundamental Analysis (ASX: PNI.AX)
Pinnacle Investment Management Group Limited Fundamental Analysis (ASX: PNI.AX)
Pinnacle Investment Management Group Limited (ASX: PNI.AX) shows moderate financial fundamentals with a PE ratio of 17.16, profit margin of 1.86%, and ROE of 16.92%. The company generates $0.1B in annual revenue with strong year-over-year growth of 59.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PNI.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPNI.AX demonstrates superior asset utilization.
Valuation Score
ExcellentPNI.AX trades at attractive valuation levels.
Growth Score
ExcellentPNI.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentPNI.AX maintains a strong and stable balance sheet.
Profitability Score
ModeratePNI.AX maintains healthy but balanced margins.
Key Financial Metrics
Is PNI.AX Expensive or Cheap?
P/E Ratio
PNI.AX trades at 17.16 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PNI.AX's PEG of 0.73 indicates potential undervaluation.
Price to Book
The market values Pinnacle Investment Management Group Limited at 2.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 24.00 times EBITDA. This signals the market has high growth expectations.
How Well Does PNI.AX Make Money?
Net Profit Margin
For every $100 in sales, Pinnacle Investment Management Group Limited keeps $1.86 as profit after all expenses.
Operating Margin
Core operations generate 10.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.92 in profit for every $100 of shareholder equity.
ROA
Pinnacle Investment Management Group Limited generates $11.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pinnacle Investment Management Group Limited generates strong operating cash flow of $112.56M, reflecting robust business health.
Free Cash Flow
Pinnacle Investment Management Group Limited generates strong free cash flow of $111.85M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.47 in free cash annually.
FCF Yield
PNI.AX converts 3.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
33.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
42.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How PNI.AX Stacks Against Its Sector Peers
| Metric | PNI.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.16 | 20.34 | Better (Cheaper) |
| ROE | 16.92% | 640.00% | Weak |
| Net Margin | 185.57% | -531.00% (disorted) | Strong |
| Debt/Equity | 0.23 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 42.94 | 826.48 | Strong Liquidity |
| ROA | 11.89% | 57.00% | Weak |
PNI.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pinnacle Investment Management Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
188.78%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
235.48%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
205.93%
Industry Style: Value, Dividend, Cyclical
High Growth