ASX Limited (ASX)



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General Information
Company Name: ASX Limited
Stock Code: ASX
Website: www.asx.com.au
GICS Sub-Industry: Specialized Finance
Market Cap ($M): 7,235
Equiv. Shares (M): 194

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 37.710 $ 37.440 $ 37.740 $ 37.350 $ 37.370 676,351 $ 0.340  0.910 %

Current Broker Consensus Recommendation more
Recommendation: Sell (3.5)
Recommendation Date: 29th Aug 2014
Brokers Surveyed: 4

Company Overview

Business Description:
ASX Limited (ASX) operates Australia's primary national securities exchanges. These include the provision of securities exchange services, derivatives exchange services, central counterparty clearing services, and registry, settlement, and delivery-versus-payment clearing financial products and associated ancillary services. It also provides market data services and investor education courses.

Strategy Analysis:
ASX is a strong cashflow generator given its strong operating leverage. With relatively low capital expenditure demands, ASX has been able to sustain a high dividend payout ratio of around 90%. We expect this to continue. ASX lacks an appetite for acquisitions--not a bad thing. The company seeks to drive growth organically through product innovation and cost efficiencies. We do not expect this strategy to change. ASX reported NPAT down 2.5% to $171.1m for the half-year ended 31 December 2012. Earnings were impacted by lower revenues resulting from reduced market activity, particularly in equity markets. Revenues from ordinary activities were $387.6m, down 5.6% from the same period last year. Basic and Diluted EPS was 97.7 cents compared to 100.2 cents last year. Net operating cash flow was $206.2m compared to $184.0m last year. The interim dividend declared was 87.9 cents compared with 92.8 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 430.7 222.5 7.3 17.0 200.0 5.3 100.0
2015  F 401.5 207.4 4.4 18.2 190.0 5.0 100.0
2014  A 383.2 198.5 1.5 18.0 178.1 5.0 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
ASX (ASX) $7,258 M NaN 0.0141 0.0461 18.8838 18.6221 17.8007 4.75 4.82 5.05

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ASX 1.34 18.8 1.97 6.28 10.89
Market 0.99 16.2 1.30 1.83 1.60
Sector 1.34 15.0 1.12 1.92 6.20

Directors
Name Position Start Date
Mr Elmer Funke Kupper Chief Executive Officer,Managing Director 06 October 2011
Mr Roderic (Rick) Holliday-Smith Non-Executive Chairman 25 July 2006
Mr Peter H Warne Non-Executive Director 25 July 2006
Ms Jillian Shirley Segal Non-Executive Director 29 July 2003
Mr Dominic Stevens Non-Executive Director 19 December 2013
Mr Peter Ralph Marriott Non-Executive Director 01 July 2009
Mrs Heather Ridout Non-Executive Director 29 August 2012
Dr Kenneth Henry Non-Executive Director 22 January 2013
Mr Damian Roche Non-Executive Director 01 August 2014

Management
Name Position
Kevin A Lewis Chief Compliance Officer
Ramy Aziz Chief Financial Officer
Tim Thurman Chief Information Officer
Alan J Bardwell Chief Risk Officer
Amanda Harkness Company Secretary,Group General Counsel
Peter Hiom Deputy Chief Executive Officer
Tim J Hogben Executive General Manager Operations
Daniel Csillag Legal Counsel,Joint Company Secretary

Calendar of Events
Date Event
20 August 2015 Report (Annual)
20 August 2015 Report (Prelim)
09 March 2015 Report (Interim)
12 February 2015 Report (Interim)
24 September 2014 Div Pay Date
23 September 2014 AGM
05 September 2014 Books Close
03 September 2014 Div Ex Date
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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