ASX Limited (ASX.AX) stock analysis

In our weekly check, ASX Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 0, red flags: 10.

About ASX Limited

ASX Limited is a Financial Services company (Financial - Data & Stock Exchanges) based in Australia, listed on ASX as ASX.AX.

What our checks show for ASX.AX

Red flags

• Net debt is 7.5x a year of EBITDA (debt/equity 2.42). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.9 times: a weak year could make the payments hard.
• The net margin fell by 18.8 points over 5 years, to 27.6%: the company keeps less of each sale as profit.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 5.5% a year.
• Free cash flow is negative (-162% of revenue): the business spends more cash than it brings in.
• The dividend takes 105% of profit: little cushion if profit falls.
• The stock has fallen as much as 61% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 9.1 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Strengths

• The gross margin is 92.2% and has risen by 1.8 points: pricing power is holding.
• Analysts expect the net margin to improve by 9.9 points from today's 27.6%.
• Earnings per share grew 14.9% a year over the last 3 years.
• Net profit grew 15.2% a year over the last 3 years.
• The company keeps 27.6% of its revenue as net profit.
• Beta 0.32: the stock usually moves less than the market.

Similar companies

FDS · TRU · X.TO · ENX.PA · MORN · S68.SI

Questions

What grade does ASX Limited (ASX.AX) have?

In our weekly check, ASX Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 0, red flags: 10. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ASX.AX stock?

This week's biggest flags for ASX Limited: High debt, Weak interest cover, Margins falling. In total 10 of 25 checks show a warning or a red flag.

What does ASX Limited do?

ASX Limited is a Financial Services company (Financial - Data & Stock Exchanges) based in Australia, listed on ASX as ASX.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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