Sequoia Financial (SEQ.AX)

What Moves the Stock

1. 01Net FUM/AUM flows and organic growth rates - client acquisition vs attrition drives recurring revenue base
2. 02Australian equity market performance (ASX 200 levels) - market appreciation directly increases asset-based fee revenue without incremental costs
3. 03Regulatory changes affecting adviser compensation models and fee disclosure requirements
4. 04Adviser retention and recruitment - loss of key advisers can trigger client departures and revenue erosion
5. 05Operating margin trajectory - ability to control fixed costs while stabilizing revenue decline
6. 06Financial advisory fees from retail and HNW clients (estimated 50-60% of revenue)
7. 07Funds management and platform administration fees based on FUM/AUM (estimated 30-40%)
8. 08Insurance commissions and other financial product distribution (estimated 5-10%)

SEQ.AX Chart

My Notes

• value - The 0.3x P/S, 0.7x P/B, and 2.3x EV/EBITDA multiples combined with 12.7% FCF yield suggest deep value characteristics.
• Rising interest rates create mixed effects: (1) negative impact on bond portfolio valuations within managed funds…
• Watch on earnings: ASX 200 Index level - primary driver of FUM valuation and client portfolio performance, Australian consumer confidence and household savings rate - leading indicators for advisory demand and net flows, 10-year Australian government bond yield (proxy: GS10 for directional trends) - affects portfolio valuations and competitive positioning vs fixed income.