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$10.45 magellan financial group limited

Thanks Lost, great summary.

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Mostly_Dreaming

8 Posts.

02/04/22

11:18

Post #: 60598204
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Originally posted by lost: ↑

Hi @Mostly_Dreaming

Do your own research before considering buying based on the below.

Magellan as a business is a value trap with declining earnings over the next few years. Magellan is a fund manager and relies on Funds Under Management (FUM) to generate earnings. They have lost almost $40 Billion in FUM over the last 5 months by now (waiting for the latest FUM release) and continue to lose more as each month goes by - due to fund performance and investors taking out Funds due to high cost. $40 Billion in FUM loss will cost Magellan $200M in annualised revenue (assuming the average fee charged is 0.5%).

Magellan will grow earnings when FUM starts to stabilise on a quarterly basis and it is clear what Magellan will be earning, they could easily lose another $20B in FUM over the next 6 months, costing another $100M in revenue. The bottom of FUM losses may still be another 12 months away (similar to Platinum (PTM) business).

While Magellan pay out 90% of EPS, the trend for EPS is down, see below table of different scenarios over five years based on FUM loss:

Best of Luck
Lost

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Thanks Lost, great summary.

MFG Price at posting: $15.35 Sentiment: None Disclosure: Not Held
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0 Great analysis

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(20min delay)
Last $10.45		Change -0.340(3.15%)		Mkt cap ! $1.950B

Open	High	Low	Value	Volume
$10.50	$10.55	$10.44	$232.0K	22.10K

Buyers (Bids)

No.	Vol.	Price($)
2	97	$10.45

Sellers (Offers)

Price($)	Vol.	No.
$10.48	2854	12

View Market Depth

No.	Vol.	Price($)
4	421	10.450
4	712	10.440
8	1014	10.430
7	2358	10.420
8	1169	10.410

Price($)	Vol.	No.
10.470	6	1
10.480	1727	11
10.490	908	7
10.500	3633	9
10.510	704	3

Last trade - 10.06am 20/08/2024 (20 minute delay)

MFG (ASX) Chart