# Asx (ASX.AU)

Canonical: https://gigainvestors.com/s/ASX.AU

Analysis as of: 2026-10-16T07:36:15.490Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 62.02 per share; close as of 2026-10-15.

Estimated value: low AUD 76.45 per share, central AUD 79.48 per share, high AUD 83.53 per share. Buy at or below the central value AUD 79.48 per share. Valuation as of 2026-10-16T07:36:15.490Z; scenarios are not confidence intervals.

Expected annual return: 27.3% at the stated quote. About 27.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.05×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.76×

- FY2018: 0.66×

- FY2019: 0.65×

- FY2020: 0.73×

- FY2021: 0.69×

- FY2022: 0.69×

- FY2023: 0.72×

- FY2024: 0.73×

- FY2025: 0.72×

- FY2026: 0.65×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 51.2%

- ROIC, second-lowest year: 13.6%

- Typical minus recent gross margin: -1.0 pp

- Typical gross margin (annual median): 91.2%

- Recent gross margin (lower of latest and 3-year median): 92.2%

- Years with nonpositive capital: 5

- Capital spending / revenue: 8.2%

- ROIC including acquisitions, ten-year median: 14.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 84.2%

- FY2018: 82.6%

- FY2019: >100%

- FY2020: 14.7%

- FY2021: 13.0%

- FY2022: 13.6%

- FY2023: 19.4%

- FY2024: 19.8%

- FY2025: >100%

- FY2026: >100%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.79×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 1.8B

- Net income, five-year total: AUD 2.3B

- Return on incremental invested capital: 50.9%

- Working capital / revenue, annual change: 13.4 pp

- Working capital / revenue, change between three-year averages: -26.1 pp

- Working capital / revenue, final three-year average: 37.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.88×

- FY2023: 0.86×

- FY2024: 0.80×

- FY2025: 0.76×

- FY2026: 0.67×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 84.2% vs 116.0%

- Per-share earnings: 2.24 to 2.49 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: AUD 22M

- Cumulative retained earnings: AUD 146M

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 1.3%

- Per-share value change: AUD 0.24

- Per-share value, starting three-year median: AUD 2.24

- Per-share value, ending three-year median: AUD 2.49

- Average buyback yield: 0.1%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 2.8B

- Cumulative net income, 10 years: AUD 4.6B

- ROIC, first three-year median: 84.2%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 2.24

- FY2018: AUD 2.30

- FY2019: AUD 2.54

- FY2020: AUD 2.58

- FY2021: AUD 2.48

- FY2022: AUD 2.63

- FY2023: AUD 1.64

- FY2024: AUD 2.45

- FY2025: AUD 2.59

- FY2026: AUD 2.49

### accounting: fail

- Sloan accruals exceed 10%

- earnings not backed by cash

- Sloan accruals: 21.7%

- Receivables to sales index (DSRI): 0.81×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -5.50×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.71×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -0.4%

- FY2018: -3.8%

- FY2019: -15.3%

- FY2020: -4.8%

- FY2021: -27.8%

- FY2022: 1.7%

- FY2023: 22.1%

- FY2024: -1.2%

- FY2025: -3.0%

- FY2026: 21.7%

## Holders

## Price story

Down 33% since Dec 2021 · sales +2.7%

Story as of 2026-10-16T10:00:07.130Z; price observation 2026-10-15.

Price needs cash profits to shrink 14.4% a year for ten years

### Sales · FY2025–2026

sales +2.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 932M 

- FY2018: AUD 1.0B 

- FY2019: AUD 1.1B 

- FY2020: AUD 1.1B 

- FY2021: AUD 1.0B 

- FY2022: AUD 1.1B 

- FY2023: AUD 1.4B 

- FY2024: AUD 1.6B 

- FY2025: AUD 1.7B 

- FY2026: AUD 1.8B 

### Gross margin · FY2026

gross margin 92.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 90.9% 

- FY2018: 91.2% 

- FY2019: 91.3% 

- FY2020: 90.5% 

- FY2021: 89.1% 

- FY2022: 90.4% 

- FY2023: 94.5% 

- FY2024: 95.0% 

- FY2025: 94.2% 

- FY2026: 92.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in financial data & stock exchanges; annual sales are AUD 1.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2026: revenue 1758900000; grossProfit 1622500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ASX.AU: ASX Limited operates as a multi-asset class and integrated exchange company in Australia and internationally. It operates markets for securities and derivatives which offers full service across listings, trading, clearing, settlement, registry, and information and technical services through regulated and non-regulated legal entities. The company provides regulated framework for entities to raise capital and source liquidity; education programs, research and insights, investor access, and peer group networking; and distribution facility for quoted exchange traded funds (ETFs) and debt securities. It is also involved in the trading of futures and options on interest rate, equity index, agricultural, environmental and energy products, and options over individual securities and selected ETFs; trading of equities, warrants, ETFs, and debt securities; and clearing of exchange-traded cash equities and derivatives, and over-the-counter interest rate and equity derivatives. In addition, it offers information services, including pricing and reference data, listed company announcements, and benchmark data; technical services, such as market access, connectivity, hosting, and co-location services; central counterparty clearing and settlement services for equities; settlement, depository, and registry services for debt securities; facilitates the use of debt securities held in Austraclear as collateral to meet obligations; and payment platform for high value payments, electricity providers, and property transactions. The company was incorporated in 1987 and is based in Sydney, Australia.

### Why customers stay

Margins ranged from 92.2% to 95% during 2024–26; it earns 51.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2024: grossProfit / revenue = 95%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2025: grossProfit / revenue = 94.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2026: grossProfit / revenue = 92.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); 10-year return on capital observations [[2017,0.8423294491497442],[2018,0.8262716043212437],[2019,3.826707676941686],[2020,0.1470986903790971],[2021,0.12989783037529096],[2022,0.1362555078274444],[2023,0.1943412761453307],[2024,0.19789415006135655],[2025,3.4808517883187333],[2026,1.1602909033766504]]; median 0.5120828771913001. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 1.2% of cash earnings on expansion; earns 50.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2017: growth capex 1508694.5820569247; upkeep 59491305.417943075; owner earnings 416908694.58205694. Growth capex / owner earnings = 0.003618764975792511.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2018: growth capex 3600000; upkeep 44700000; owner earnings 445100000. Growth capex / owner earnings = 0.008088070096607504.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2019: growth capex 4539847.572223842; upkeep 80060152.42777616; owner earnings 459739847.57222384. Growth capex / owner earnings = 0.00987481854400416.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2020: growth capex 395847.6651690304; upkeep 81804152.33483097; owner earnings 452675847.665169. Growth capex / owner earnings = 0.0008744616422783556.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2021: growth capex 0; upkeep 101300000; owner earnings 420720000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2022: growth capex 6698282.946197227; upkeep 99101717.05380277; owner earnings 448378282.9461972. Growth capex / owner earnings = 0.014938910292854175.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2023: growth capex 30015321.717007145; upkeep 73084678.28299285; owner earnings 271595321.71700716. Growth capex / owner earnings = 0.11051487016511301.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2024: growth capex 16134502.816464826; upkeep 121665497.18353517; owner earnings 380954502.81646484. Growth capex / owner earnings = 0.04235283399245726.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2025: growth capex 9688917.577486634; upkeep 162211082.42251337; owner earnings 382508917.57748663. Growth capex / owner earnings = 0.025329912930785212.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2026: growth capex 3996808.2708972692; upkeep 185003191.72910273; owner earnings 325056808.27089727. Growth capex / owner earnings = 0.01229572237590665.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); Incremental return on capital 0.5089509241379521, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); Dividend observations: [[2017,388800000],[2018,400600000],[2019,432700000],[2020,696500000],[2021,454800000],[2022,440600000],[2023,457300000],[2024,390600000],[2025,395100000],[2026,358300000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); FY2026: cash repurchases 6000000 AUD.

### Are managers owners

Insiders own 0.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ASX.AU SharesStats.PercentInsiders = 0.774 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 14.4% yearly over ten years; actual decline was 2.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.490Z); Ten-year compound average after fade. Initial solved rate -0.21231385807702702. Price 62.02; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 2.1834172835629224 → FY2026 1.6669725237137825. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 47.13 per share

- 2016-11: AUD 48.66 per share

- 2016-12: AUD 49.74 per share

- 2017-01: AUD 49.89 per share

- 2017-02: AUD 51.23 per share

- 2017-03: AUD 50.48 per share

- 2017-04: AUD 50.72 per share

- 2017-05: AUD 51.12 per share

- 2017-06: AUD 53.61 per share

- 2017-07: AUD 52.30 per share

- 2017-08: AUD 54.68 per share

- 2017-09: AUD 52.43 per share

- 2017-10: AUD 53.98 per share

- 2017-11: AUD 57.14 per share

- 2017-12: AUD 54.86 per share

- 2018-01: AUD 54.74 per share

- 2018-02: AUD 58.39 per share

- 2018-03: AUD 56.06 per share

- 2018-04: AUD 58.63 per share

- 2018-05: AUD 60.63 per share

- 2018-06: AUD 64.39 per share

- 2018-07: AUD 65.69 per share

- 2018-08: AUD 67.64 per share

- 2018-09: AUD 63.66 per share

- 2018-10: AUD 59.17 per share

- 2018-11: AUD 60.29 per share

- 2018-12: AUD 59.94 per share

- 2019-01: AUD 63.71 per share

- 2019-02: AUD 69.77 per share

- 2019-03: AUD 69.84 per share

- 2019-04: AUD 74.50 per share

- 2019-05: AUD 75.75 per share

- 2019-06: AUD 82.37 per share

- 2019-07: AUD 88.85 per share

- 2019-08: AUD 86.31 per share

- 2019-09: AUD 81.07 per share

- 2019-10: AUD 82.32 per share

- 2019-11: AUD 81.71 per share

- 2019-12: AUD 78.41 per share

- 2020-01: AUD 85.67 per share

- 2020-02: AUD 74.14 per share

- 2020-03: AUD 77.09 per share

- 2020-04: AUD 81.55 per share

- 2020-05: AUD 88.18 per share

- 2020-06: AUD 85.38 per share

- 2020-07: AUD 82.65 per share

- 2020-08: AUD 87.34 per share

- 2020-09: AUD 81.02 per share

- 2020-10: AUD 79.63 per share

- 2020-11: AUD 77.11 per share

- 2020-12: AUD 72.00 per share

- 2021-01: AUD 71.79 per share

- 2021-02: AUD 67.60 per share

- 2021-03: AUD 71.05 per share

- 2021-04: AUD 72.98 per share

- 2021-05: AUD 76.26 per share

- 2021-06: AUD 77.71 per share

- 2021-07: AUD 76.89 per share

- 2021-08: AUD 87.77 per share

- 2021-09: AUD 81.00 per share

- 2021-10: AUD 83.02 per share

- 2021-11: AUD 90.43 per share

- 2021-12: AUD 92.90 per share

- 2022-01: AUD 83.19 per share

- 2022-02: AUD 82.33 per share

- 2022-03: AUD 81.80 per share

- 2022-04: AUD 86.67 per share

- 2022-05: AUD 80.80 per share

- 2022-06: AUD 81.71 per share

- 2022-07: AUD 88.26 per share

- 2022-08: AUD 78.45 per share

- 2022-09: AUD 71.76 per share

- 2022-10: AUD 67.70 per share

- 2022-11: AUD 70.47 per share

- 2022-12: AUD 68.02 per share

- 2023-01: AUD 68.97 per share

- 2023-02: AUD 68.04 per share

- 2023-03: AUD 65.02 per share

- 2023-04: AUD 68.47 per share

- 2023-05: AUD 67.43 per share

- 2023-06: AUD 63.00 per share

- 2023-07: AUD 62.11 per share

- 2023-08: AUD 57.59 per share

- 2023-09: AUD 57.12 per share

- 2023-10: AUD 56.13 per share

- 2023-11: AUD 58.08 per share

- 2023-12: AUD 63.06 per share

- 2024-01: AUD 65.66 per share

- 2024-02: AUD 65.77 per share

- 2024-03: AUD 66.42 per share

- 2024-04: AUD 63.61 per share

- 2024-05: AUD 62.35 per share

- 2024-06: AUD 60.00 per share

- 2024-07: AUD 64.97 per share

- 2024-08: AUD 61.22 per share

- 2024-09: AUD 63.93 per share

- 2024-10: AUD 65.02 per share

- 2024-11: AUD 66.06 per share

- 2024-12: AUD 65.08 per share

- 2025-01: AUD 63.48 per share

- 2025-02: AUD 66.98 per share

- 2025-03: AUD 65.14 per share

- 2025-04: AUD 70.73 per share

- 2025-05: AUD 71.30 per share

- 2025-06: AUD 69.76 per share

- 2025-07: AUD 70.05 per share

- 2025-08: AUD 62.54 per share

- 2025-09: AUD 58.59 per share

- 2025-10: AUD 56.45 per share

- 2025-11: AUD 58.20 per share

- 2025-12: AUD 51.44 per share

- 2026-01: AUD 57.28 per share

- 2026-02: AUD 52.96 per share

- 2026-03: AUD 52.30 per share

- 2026-04: AUD 60.80 per share

- 2026-05: AUD 46.23 per share

- 2026-06: AUD 53.32 per share

- 2026-07: AUD 54.88 per share

- 2026-08: AUD 56.14 per share

- 2026-09: AUD 58.59 per share

- 2026-10: AUD 61.67 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 70.98 per share, central AUD 74.31 per share, high AUD 78.74 per share

- FY2018: low AUD 75.54 per share, central AUD 79.16 per share, high AUD 83.97 per share

- FY2019: low AUD 90.91 per share, central AUD 94.72 per share, high AUD 99.80 per share

- FY2020: low AUD 98.75 per share, central AUD 102.51 per share, high AUD 107.52 per share

- FY2021: low AUD 94.16 per share, central AUD 98.71 per share, high AUD 103.57 per share

- FY2022: low AUD 101.42 per share, central AUD 106.85 per share, high AUD 112.17 per share

- FY2023: low AUD 102.62 per share, central AUD 107.17 per share, high AUD 113.22 per share

- FY2024: low AUD 105.82 per share, central AUD 111.04 per share, high AUD 117.82 per share

- FY2025: low AUD 94.45 per share, central AUD 97.63 per share, high AUD 101.86 per share

- FY2026: low AUD 76.45 per share, central AUD 79.48 per share, high AUD 83.53 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.