Macquarie Group Limited

This report is an updated version of the report published on 28 March 2025 at 12:59 PM AEDT.  

Section 1: Company Overview, Low Carbon Emission Initiatives and Fundamentals

Section 1.1: Macquarie Group Limited (ASX: MQG) is an Australia-based global financial services company. It specializes in asset management, retail and business banking, and wealth management. The other segments in which the company operate are leasing and asset financing, market access, commodity trading, renewables development, specialist advice, access to capital and principal investment. Kalkine’s Low Carbon Research Report covers the Investment Highlights, Low Carbon Emission Initiatives, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Section 1.2: Why Low Carbon Emission Matters?

The shift toward a low-carbon economy is one of the most significant challenges of current time, spurred by the urgent need to combat climate change and reduce the environmental impact of corporate activities. This report covers the ASX-listed low-carbon emission company, Macquarie Group Ltd (ASX: MQG), that is committed to sustainability and responsible environmental practices.

Carbon and Waste Management - Key Metrics

The chart below highlights Macquarie Group’s progress in reducing CO2 emissions and energy use per million in revenue from 2020 to 2023, aligning with its commitment to environmental sustainability. These reductions are consistent with Macquarie’s Net Zero Banking Alliance commitments, as outlined in its 2023 Net Zero and Climate Risk Report and reflect the company’s role in advancing global decarbonization efforts. Both carbon and energy efficiency have shown improvement over the 4-year period. The rate of decline in CO2 emissions is particularly notable, dropping by approximately 68% from 2020 to 2023. This highlights MQG’s active focus on sustainability and reducing its carbon footprint.

Peer Comparison: Carbon Emission and Waste Management Metrics

The peer comparison table highlights Macquarie Group's (MQG) performance in emissions management and sustainability metrics relative to its peers in the financial sector. MQG has achieved a 100% emission reduction target by FY2024, earlier than most peers, which primarily target FY2025. Additionally, its CO2 equivalent emissions total of 14,979 tCO2-e (metric tons of carbon dioxide equivalent) is among the lowest in the sector, underscoring its efficiency and proactive measures in carbon reduction. MQG’s waste recycling ratio of 51% is above the industry average, reflecting its commitment to sustainable waste management practices. These achievements demonstrate MQG's ability to lead in sustainability efforts while aligning with global decarbonization goals and maintaining a competitive edge among financial institutions.

1.3 The Key Positives, Negatives, Investment Highlights, and Risks

1.4 Top 10 Shareholders:

The top 10 shareholders together form ~29.45% of the total shareholding. Macquarie Group Employee Share Plans and The Vanguard Group Inc. hold maximum stakes in the company at ~5.20% and ~5.11%, respectively.

1.5 Key Metrics: MQG's fee and commission income increased to AUD 3,300mn in H1FY25 vs AUD 3,023mn in H1FY24. Below are captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 H1FY25 Results Highlights

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock price has declined by ~11.94% in the last one month, whereas over the last six months, it has corrected by ~12.86%. The stock has a 52-week low and 52-week high of AUD 180.40 and AUD 242.900, respectively, and is currently trading below the mid-points of its 52-week low and 52-week high. MQG was last covered in a report dated ‘29 July 2024’.

4.2 Fundamental Valuation

Valuation Methodology: P/B Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 28 March 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.