Fund Manager Summary on PEXA Group Ltd (ASX:PXA)
PEXA Group Ltd (ASX:PXA) is experiencing a complex investment landscape, driven by its dominant position in the Australian market and ongoing expansion efforts in the UK. Recent commentary highlights a cautious optimism after securing NatWest as a partner, which may facilitate growth in the UK, aligning with improved exchanges in Australia as clearance rates and residential prices rise. However, fund managers express significant concerns about the high operational costs and delays in the UK, coupled with the need for further capital investment in new markets like Canada. Although the Australian core business remains strong and cash-generating, several fund managers caution that the stock appears fully valued with international prospects fraught with uncertainty, leading to mixed sentiments regarding long-term gains amid recent rallies and strategic management changes.
Commentary From The Managers
There are 10 insights from 6 fund managers regarding their investment in PEXA Group Ltd (ASX:PXA) 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
First Sentier Investors
30 Sept 2025
$15.67
Summary
- First Sentier Investors has exited their position in PEXA Group (PXA).
- The decision to exit was influenced by the stock's rally following news of progress with the NatWest contract in the UK.
- While remaining constructive on the long-term opportunity, the rally was seen as a chance for rebalancing.
- Funds from PXA are being redirected into other opportunities.
Datt Capital
10 Sept 2025
$16.40
Summary
- Datt Capital has recently increased their position in PEXA Group Ltd.
- The decision is driven by stronger management discipline.
- Prudent capital stewardship is also a key factor in the investment thesis.
- There is imminent UK expansion optionality that is seen as a catalyst for a re-rate.
- Datt Capital believes these factors will contribute to positive performance over the medium-term.
Clime Investment Management
31 July 2025
$15.88
Summary
- PXA was a positive contributor to performance over July.
- NatWest has agreed to implement Pexa's platform for both remortgages and sale/purchase transactions.
- This agreement involves a top five financial institution in the UK, marking a significant milestone for Pexa.
- The development is viewed as a very positive step forward for Pexa to replicate its success in Australia.
- Clime Investment Management continues to hold due to these developments.
Seneca Financial Solutions
31 July 2025
$15.88
Summary
- Pexa (PXA) experienced a 17% rally after securing a partnership with NatWest, a major UK bank.
- The market has penalised Pexa for its loss-making UK expansion, despite its dominant position in the Australian market.
- Pexa enjoys EBITDA margins exceeding 50% in Australia.
- With other UK banks likely to follow suit, there is potential for PXA to continue to re-rate.
- Pexa was the only company among its peers to generate genuine news flow by partnering with NatWest.
- Pexa appears to be an attractive value proposition at approximately 20x EV/EBITDA.
- Seneca Financial Solutions believes Pexa can achieve the 'rule of 40' (25% ARR growth & 20% EBITDA margins) for many years.
Oracle Advisory Group
30 June 2025
$13.60
Summary
- Oracle Advisory Group sold their investment due to PEXA’s strong monopoly in the Australian market generating solid cash flows.
- Expansion into the UK has been slow, costly, and uncertain, with repeated delays and limited traction.
- Concerns arose over potential further expansion into other jurisdictions, such as Canada, which could lead to continued capital outlay.
- The Australian business is considered fully valued, with further gains dependent on uncertain international success.
Clime Investment Management
30 June 2025
$13.60
Summary
- PEXA saw strong returns in June, supported by encouraging signs in the Australian property market.
- Continued steady operational delivery has contributed to positive performance.
- Clearance rates and residential prices have shown improvement, boosting overall exchange volumes.
- In Australia, PEXA experienced a 4% rise in exchanges year-on-year, indicating growth.
- Momentum in digital solutions revenue reflects growing adoption and a dominant market position.
- UK platform development is on track, with progress toward broader market roll-out in the second half of 2025.
- Clime Investment Management continues to hold due to these positive indicators and growth potential.
Ten Cap
30 Apr 2025
$12.07
Summary
- Ten Cap continues to hold Pexa Group (PXA) following a recent UK regulatory approval that sparked a relief rally.
- They anticipate a pricing review in Australia that may introduce downside earnings risk in the company’s core business.
- The success of Pexa's UK arm is being closely monitored, with the realization of its earnings potential expected to take several years.
- A new management team has been established, and Ten Cap is eager to see their achievements moving forward.
Clime Investment Management
31 Jan 2025
$13.20
Summary
- PEXA Group Ltd operates Australia's leading digital property settlement exchange platform.
- Despite being a regulated business, PEXA shares characteristics with other profitable platform companies like CAR and NWL.
- Clime Investment Management believes in sustaining PEXA's strong position in the Australian digital settlement market.
- The company is also focused on investing to establish a similar digital exchange in the UK market.
- Recently, Clime Investment Management added to their position, as they view the current share price as not reflecting any value for the UK business.
Clime Investment Management
31 May 2024
$14.63
Summary
- PXA performed well for the month with new partnerships enhancing its market position.
- NatWest has joined PXA for refinancing transactions, expanding its UK presence.
- PXA plans to handle sale and purchase transactions in the first quarter of calendar year 2025.
- Incremental partnerships are expected to boost PXA's revenue.
- Clime Investment Management continues to hold because of these positive developments.
Clime Investment Management
28 Feb 2024
$12.73
Summary
- Clime Investment Management notes that PEXA Group Ltd's 1H result was slightly ahead of expectations.
- The performance was driven by the PEXA Exchange, benefiting from a rebound in the domestic property market.
- The UK expansion continues to be a drag on performance.
- Both UK targets and FY24 guidance have been reconfirmed.
- Clime Investment Management has decided to lighten the position to reinvest some proceeds elsewhere.
- The firm believes that establishing a presence in the UK could take some time.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in PEXA Group Ltd (ASX:PXA)?
Fund managers including Ten Cap, Oracle Advisory Group, Clime Investment Management, Datt Capital, Seneca Financial Solutions and First Sentier Investors have invested in PEXA Group Ltd (ASX:PXA).
Why do fund managers invest in PEXA Group Ltd?
Fund managers invest in PEXA Group Ltd due to its dominant position in Australia’s digital property settlement market, which generates significant cash flows and high EBITDA margins. While the Australian business is seen as fully valued, investors are closely monitoring its expansion into the UK, despite slow progress and rising costs. The company's strong management and recent partnerships, like with NatWest, provide potential for future growth, making it a subject of debate among fund managers.
What happened to PEXA Group Ltd (ASX:PXA)?
Fund managers view PEXA Group Ltd as a solid investment due to its strong management, careful capital management, and potential for growth through UK market expansion. Recent performance, particularly related to its NatWest contract, indicates promising developments, leading some to increase their positions, while others opted to rebalance. Overall, the consensus highlights a positive long-term outlook for the company.
What is the short interest in PEXA Group Ltd (ASX:PXA)?
The short interest in PEXA Group Ltd (ASX:PXA) is 1.84% which makes it the 142nd most shorted stock on the ASX. Of the 177.6M shares that PEXA Group Ltd has on issue, 3.3M have been sold short.
What does PEXA Group Ltd (ASX:PXA) do?
PEXA Group Ltd. engages in the development and provision of electronic conveyancing system. The company was founded on October 4, 2018 and is headquartered in Docklands, Australia.