Fund Manager Summary on Count Ltd (ASX:CUP)
Count Ltd (ASX:CUP) has demonstrated strong performance following its acquisition of Diverger, with significant increases in NPATA, EBITA margins, and revenue growth. Fund manager commentary highlights clear operational strengths, noting that CUP has become one of Australia’s largest advice firms with approximately $40 billion in funds under advice. Despite a recent share price of around $1.04, CUP continues to trade at a valuation multiple below peers, suggesting substantial growth potential as the company capitalizes on margin improvement, cross-selling, and organic growth in a fragmented market. However, some managers caution against valuation discrepancies in the smaller companies sector, presenting risks if market dynamics shift. Overall, the consensus indicates that Count Ltd remains a compelling investment opportunity owing to its operational advantages and attractive valuation.
Commentary From The Managers
There are 8 insights from 3 fund managers regarding their investment in Count Ltd (ASX:CUP) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
DMX Asset Management
28 Feb 2026
$1.15
Summary
- DMX Asset Management believes Count is a high-quality, diversified financial services platform trading at an undemanding valuation and continues to hold as one of its largest positions, impressed by accelerating earnings growth and clear operating leverage.
- Count reported EBITA growth of 19% for the half (up from 13% at Q1), with underlying NPATA surging 33% to $9.2m — putting the company on track for ~$20m NPATA for the full year.
- At this level of earnings, Count continues to trade at less than 10x P/E, representing attractive value for a business delivering double-digit organic growth.
- A key earnings driver was wealth division growth, with FUM increasing 49% to $5.3 billion, driven by the transition of ~$900m in portfolios in October 2025 and 21 new firms adopting the CARE investment platform.
- The business has a strong and diversified earnings base across wealth management, accounting, and services, with a management team well-positioned to continue growing both organically and through acquisitions.
- Operating leverage is now clearly evident, with revenue growth translating strongly into earnings growth, supporting the investment thesis for continued compounding from here.
Ryder Capital
30 Sept 2025
$1.04
Summary
- Count Ltd holds a 6.2% portfolio weight in Ryder Capital's investments.
- Count's stock rose 12% following a strong performance report in August, exceeding expectations.
- The focus for FY25 is on the successful integration of the Diverger acquisition, with synergies realized above initial forecasts.
- The acquisition has provided additional scale and new revenue streams for Count.
- Ryder Capital anticipates further margin improvement, cross-sell opportunities, and organic growth in FY26.
- Count is recognized as a high-quality business with significant growth potential in a fragmented and disrupted industry.
- Despite its strengths, Count trades at a low multiple relative to peers, indicating meaningful upside and potential for future performance.
Monash Investors
31 Aug 2025
$1.00
Summary
- Count Ltd, an accounting and wealth services company, rose 12% following the successful integration of Diverger.
- Monash Investors continues to hold Count due to its strong re-rate and growth potential.
- Investment in Count was initiated through a holding in Diverger, with additional purchases made for the Monash portfolio.
- Count exemplifies valuation discrepancies in the smaller companies spectrum, trading at less than 10 times forward earnings at the time of purchase.
- Current trading in the $1-zone reflects a slight multiple expansion to around 12 times earnings, with ongoing earnings growth.
- In contrast, larger companies like Generation Development Group trade at 40-50 times earnings, highlighting valuation differences.
- Monash Investors believes the premium multiples of larger companies pose risks to future returns.
- The fund manager takes comfort in a diversified portfolio of often neglected companies, which are priced to deliver strong returns from low valuations.
DMX Asset Management
31 Aug 2025
$1.00
Summary
- Count Ltd (ASX:CUP) is a top three portfolio position for DMX Asset Management.
- Successfully merged with Diverger, becoming one of Australia’s largest advice firms with approximately $40bn FUA.
- Ranked as a top 20 accounting firm.
- Offers high margin education, compliance, and IT services to accountants and advisers.
- Achieved significant growth in FY25: 28% revenue growth, 67% EBITA growth, and 84% NPATA growth.
- Projected FY26 revenue likely to exceed $150m, with NPATA margins expected to be over 10%, translating to more than $16m NPATA.
- Represents a modest ~10x PE multiple on CUP’s market cap of about $170m.
- DMX Asset Management believes CUP continues to represent very good value due to its ability to grow its adviser and accounting footprint.
DMX Asset Management
31 Mar 2025
$0.74
Summary
- DMX Asset Management notes a remarkable underlying NPATA increase of 209% to $6.9m for CUP.
- The growth is significantly supported by the full year contribution from the Diverger acquisition.
- Post-acquisition, EBITA margins have improved from 13% to 19%.
- CUP’s earnings are now better balanced across its accounting, advice, and services divisions.
- As the 2nd largest wealth licensee in Australia, CUP is well-positioned in the market.
- CUP trades at a valuation of less than 10x PE.
Ryder Capital
31 Mar 2025
$0.74
Summary
- Count was down 7.5% for the quarter despite strong 1H25 results that exceeded expectations.
- Ryder Capital notes a year of consolidation in FY24 with the transformational acquisition of Diverger.
- The focus for Count in FY25 is on margin improvement, cross-sell opportunities, and organic growth.
- Count is recognized as a high-quality business with significant growth opportunities.
- Despite its potential, Count trades at a low multiple relative to peers, indicating meaningful upside.
- Ryder Capital continues to hold because of these favorable conditions and growth prospects.
Ryder Capital
30 Sept 2024
$0.66
Summary
- Count rallied by +17% over the quarter after reporting solid FY24 profits that exceeded market expectations.
- Count completed a record number of acquisitions during the year, including the Diverger acquisition which settled in March 2024.
- Ryder Capital expects to see the full benefit of these acquisitions, including synergies and organic growth opportunities in FY25.
- Despite strong organic growth and a large consolidation opportunity in a fragmented industry, Count continues to trade at a very low multiple compared to peers.
- With legacy remediation now complete, Ryder Capital anticipates a positive valuation re-rate due to ongoing business momentum.
- Count's recent acquisition of Diverger (ASX:DVR) via scheme of arrangement, despite solid earnings growth, shows share price underperformance.
- Ryder Capital believes Count is trading well below its intrinsic value and expects a material step change in earnings and profitability.
- As cost synergies from the Diverger integration are delivered into FY24 and FY25, Ryder Capital foresees improvements in share price performance.
Ryder Capital
30 Sept 2023
$0.62
Summary
- Ryder Capital continues to hold its position in Count Ltd due to the company's recent strong performance.
- Count announced the acquisition of Diverger Ltd (ASX:DVR) valued at $45.3m, utilizing two thirds scrip and one third cash consideration via a Scheme of Arrangement.
- The acquisition presents significant synergy opportunities.
- Count is positioned for a material step change in its earnings growth trajectory.
- The increased size of the merged company is expected to attract a broader investor base.
- This should assist in closing the large valuation gap between Count's current share price and its intrinsic value.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Count Ltd (ASX:CUP)?
Fund managers including DMX Asset Management, Ryder Capital and Monash Investors have invested in Count Ltd (ASX:CUP).
Why do fund managers invest in Count Ltd?
Fund managers invest in Count Ltd due to its strong financial performance and growth potential. The company reported a significant NPATA increase of 209%, aided by its acquisition of Diverger, which also improved EBITA margins from 13% to 19%. Count Ltd, the second-largest wealth licensee in Australia, is well-positioned in a fragmented industry, with diverse revenue streams from accounting, advice, and services. Its low price-to-earnings ratio under 10 and growth prospects make it an attractive risk/reward opportunity for investors.
What happened to Count Ltd (ASX:CUP)?
Fund managers, including Ryder Capital, are investing in Count Ltd. due to its strong performance, marked by a 12% increase in share price following robust reporting in August. The company's strategic acquisition of Diverger is driving synergies above expectations, unlocking new revenue streams and enhancing scale. Looking ahead, there are anticipated improvements in margins, cross-selling opportunities, and organic growth. Count Ltd. operates in a fragmented industry yet remains undervalued compared to peers, presenting significant growth potential.
What is the short interest in Count Ltd (ASX:CUP)?
According to ASIC filings, there is negligible or no short interest in Count Ltd (ASX:CUP).
What does Count Ltd (ASX:CUP) do?
Count Ltd. is a holding company, which engages in providing accounting and financial services. It operates through the following segments: Equity Partnerships, Wealth and Services. The Equity Partnerships segment focuses on investments into firms that provide accounting, audit and assurance, taxation, financial planning services and business and corporate advisory services. The Wealth segment includes financial services and investment products provided by Australian Financial Services License holders. The Services segment refers to services that support the activities of accounting and financial planning firms to the Group’s network. The company was founded Barry Lambert in 1980 and is headquartered in Sydney, Australia.