Financial News, Analysis and Data, FNArena

FNArena

Financial News, Analysis and Data

Online financial media company focused on Australian equities, with a global perspective

Equity Bottom-Up

<ul><li>BNPL company Zip Co&rsquo;s update provides brokers with confidence the company is coping well in an uncertain macroeconomic climate.</li><li> Zip Co posted a 'beat' on March quarter earnings US bad debts are low despite tough conditions Consumers spending on non-discretionary items June quarter guidance upgraded</li></ul>

BNPL company Zip Co&rsquo;s update provides brokers with confidence the company is coping well in an uncertain macroeconomic climate. Zip Co posted a 'beat' on March quarter earnings US bad debts are low despite tough conditions Consumers spending on non-discretionary items June quarter guidance upgraded

Smartkarma's AI Co-Pilot, Smartkarma

αSK

Smartkarma's AI Co-Pilot

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
 <li>
<a href="https://smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9">Zip</a> has demonstrated a significant operational turnaround, achieving its first full-year positive cash EBTDA in fiscal 2024-2025, signaling a strategic shift from aggressive growth to a focus on profitability and margin discipline.</li>
 <li>The company is concentrating its resources on the high-margin US and Australian markets after a period of global streamlining, aiming to leverage its established brand presence in ANZ and capture further growth in the larger US market.</li>
 <li>Intense competition from established players like Afterpay (Block), Klarna, and Affirm, along with the entry of giants like Apple and PayPal into the BNPL space, poses a significant threat to market share and margin compression.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Zip has demonstrated a significant operational turnaround, achieving its first full-year positive cash EBTDA in fiscal 2024-2025, signaling a strategic shift from aggressive growth to a focus on profitability and margin discipline.
  The company is concentrating its resources on the high-margin US and Australian markets after a period of global streamlining, aiming to leverage its established brand presence in ANZ and capture further growth in the larger US market.
  Intense competition from established players like Afterpay (Block), Klarna, and Affirm, along with the entry of giants like Apple and PayPal into the BNPL space, poses a significant threat to market share and margin compression.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

<ul><li>A better than expected quarter for BNPL provider Zip Co was driven by a rapidly growing US customer base in a still underpenetrated market.</li><li> Zip Co&rsquo;s September quarter beats on US growth Earnings and margin exceed expectations Bad debts considered manageable US market remains underpenetrated</li></ul>

A better than expected quarter for BNPL provider Zip Co was driven by a rapidly growing US customer base in a still underpenetrated market. Zip Co&rsquo;s September quarter beats on US growth Earnings and margin exceed expectations Bad debts considered manageable US market remains underpenetrated

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Thematic (Sector/Industry)

Australian Financial stocks are a lightly held.  Just 17% of the global funds in our analysis hold a position, with managers running a net underweight for the last decade.  They remain the 5th largest country/sector underweight globally.However the decline has started to reverse.  Buying in stocks such as <a href="https://www.smartkarma.com/entities/australia-and-new-zealand-banking-group-anz" target="_blank" data-smartkarma-citation="entities:443:1" rel="noopener">Australia and New Zealand Banking Group (ANZ) (ANZ AU)</a> and <a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> has placed active fund ownership on an upward trajectory for the first time in 5-years.Compared to Financials positioning in other countries, Australian Financials are lightly held, especially compared to US and India Financials which saw a strong resurgence post COVID.  If we add in to the mix the relatively large underweight and the fact that there is a Value rotation underway, it wouldn't be out of the question to expect Australian Financials to capture further inflows.

Australian Financial stocks are a lightly held.  Just 17% of the global funds in our analysis hold a position, with managers running a net underweight for the last decade.  They remain the 5th largest country/sector underweight globally.However the decline has started to reverse.  Buying in stocks such as Australia and New Zealand Banking Group (ANZ) (ANZ AU) and Zip Co Ltd (Z1P AU) has placed active fund ownership on an upward trajectory for the first time in 5-years.Compared to Financials positioning in other countries, Australian Financials are lightly held, especially compared to US and India Financials which saw a strong resurgence post COVID.  If we add in to the mix the relatively large underweight and the fact that there is a Value rotation underway, it wouldn't be out of the question to expect Australian Financials to capture further inflows.

Australian Financials:  Big Underweight (Finally) Finding Some Love?

Asia Pac ECM and Index Rebal, DZT Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of ASX Stocks as of Feb 20th (reported today). The aggregated short interest was USD35.0bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Zip, JB Hi-Fi, Goodman, CSL, Pro Medicus.</li>
</ul>


We analyzed the changes in short interest of ASX Stocks as of Feb 20th (reported today). The aggregated short interest was USD35.0bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Zip, JB Hi-Fi, Goodman, CSL, Pro Medicus.


ASX Short Interest Weekly (Feb 20th): Zip, JB Hi-Fi, Goodman, CSL, Pro Medicus

Australia

Zip Co Limited provides point-of-sale credit and digital payment services. The Company offers retail finance solutions to small, medium, and enterprise businesses. Zip Co serves retail, education, health, and travel industries in Australia.

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Zip (ZIP AU)

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Australian Financials: Big Underweight (Finally) Finding Some Love?

Australian Financial stocks are the 5th largest country/sector underweight globally. But is their decade long decline starting to reverse?

Steven Holden

ASX Short Interest Weekly (Feb 20th): Zip, JB Hi-Fi, Goodman, CSL, Pro Medicus

We analyzed ASX short interest report for the past week and highlight short interest changes in Zip, JB Hi-Fi, Goodman, CSL, Pro Medicus.

Ke Yan, CFA, FRM

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