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Macquarie Group Limited
Financial Services · Capital Markets
Updated just now
$205.59
MARKET CAP
$78.36B
P/E RATIO
21.1
DIV. YIELD
3.2%
FRANKING
39%
Macquarie Group Limited provides diversified financial services in Australia, New Zealand the Americas, Europe, the Middle East, Africa, and Asia. It operates through four segments: Macquarie Asset Management (MAM); Banking and Financial Services (BFS); Commodities and Global Markets (CGM); and Macquarie Capital.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$227.55
Discounted cash flow estimate
$107.97
For 6% dividend yield
Business quality and balance-sheet durability.
Profit generated per $1 of shareholder investment
14.1% ROE meets the threshold. Some years dipped but overall pattern is acceptable.
Current Snapshot
10Y Avg
14.1%
Threshold
12.0%
Worst Year
10.5%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 14.1%, meaning each $1 of shareholder equity generates $0.14 in annual profit. The threshold is 12%, and the worst single year was 10.5%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
At 14.1% ROE, every $1 retained generates $0.14 in annual profit. This is solid compounding power that can support dividend growth over time.
Sources
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$5.3B
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $5.3B in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
How much the company owes vs. what it owns
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
Percentage of revenue that becomes profit after all expenses
Is the business growing or shrinking over time?
Revenue has been largely flat over 4 years. For a mature financial institution, look at ROE and dividend consistency for a clearer picture.
Current Snapshot
Revenue Change
-1.4%
Debt Change
N/A (financials)
Trend State
Mixed
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by -1.4% across the displayed period.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue has been largely flat over 4 years. For a mature financial institution, look at ROE and dividend consistency for a clearer picture.
Sources
Annual dividends as percentage of stock price
3.15% yield is well below the 6% target. Not suitable for Barsi's income strategy.
Current Snapshot
6Y Avg Yield
3.1%
6% Requirement
6.0%
Gross Yield
3.7%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $6.48 and a share price of $205.59, the Barsi yield is 3.1%. The minimum requirement is 6%. Including franking credits, the gross yield is 3.7%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Low yield means you need significant capital to generate meaningful income. Barsi's strategy focuses on stocks that provide substantial cash flow from day one.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| ~19 May 2026Est | ~16 June 2026 | ~$4.32 | 35% | ~$3.76 | $0.56 |
| ~18 Nov 2026Est | ~17 Dec 2026 | ~$3.13 | 35% | ~$2.72 | $0.41 |
Highest price to lock in 6% yield
Industry category of the business
Financial Services is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Capital Markets
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Capital Markets (Financial Services sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
A 67% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Current Snapshot
Latest Ratio
67.0%
Healthy Range
30%-75%
Zone
Healthy
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$6.70 dividend / $9.76 EPS equals 68.7% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
A 67% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Sources
Macquarie Group Limited provides diversified financial services in Australia, New Zealand the Americas, Europe, the Middle East, Africa, and Asia. It operates through four segments: Macquarie Asset Management (MAM); Banking and Financial Services (BFS); Commodities and Global Markets (CGM); and Macquarie Capital. The MAM segment provides investment solutions to clients across various capabilities, including real assets, real estate, credit, equities and multi-asset and secondaries. The BFS segment offers personal banking products comprising home loans, car loans, transaction and savings accounts, and credit cards; wealth management products, such as wrap platform and cash management, financial advisory, and private banking services, as well as investment and superannuation products.
It also provides deposit, lending, and payment solutions and services to business clients. The CGM segment provides capital and financing, risk management, and physical execution and logistics solutions across power, gas, emissions, agriculture, oil, and resources sectors; market access to corporate and institutional clients; and specialist finance and asset management solutions. The Macquarie Capital segment offers advisory and capital raising services. This segment is also involved in specialist investing across private credit, private equity, real estate, growth equity, venture capital, and infrastructure and energy projects and companies; and brokerage business, including equity research, sales, execution capabilities, and corporate access.
Macquarie Group Limited was founded in 1969 and is headquartered in Sydney, Australia.
Who owns the company's shares and how much leadership has at stake
Management's wealth moves with yours
Professional fund managers have done their homework and chosen to own this
Shares freely traded on the ASX by individual investors like you
A healthy mix — insiders hold 8.7% (they have skin in the game) and professional fund managers hold 37.0% (they’ve done their homework and like the business). This balance is a good sign for long-term investors.
Current Snapshot
Insider %
8.7%
Institutional %
37.0%
Float %
54.2%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 8.7% and institutions own 37.0%, public float is 54.2%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
A healthy mix — insiders hold 8.7% (they have skin in the game) and professional fund managers hold 37.0% (they’ve done their homework and like the business). This balance is a good sign for long-term investors.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 9 Feb 2026 | Stevens (Glenn) Independent Non-Executive Chairman | Purchase at price 150.89 per share. | 10 | $2K |
| 1 Aug 2025 | Wikramanayake (Shemara) Chief Executive Officer | Unknown | 8K | — |
| 28 July 2025 | Wikramanayake (Shemara) Chief Executive Officer | Sale at price 141.09 per share. | 15K | $2.1M |
| 20 May 2025 | Wikramanayake (Shemara) Chief Executive Officer | Unknown | 90K | — |
| 14 May 2025 | Broadbent (Jillian Rosemary) Independent Non-Executive Director | Purchase at price 138.16 per share. | 1K | $161K |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
Debt-to-equity of 9.34 is 4.7x over Buffett's limit. High leverage increases risk during downturns.
Current Snapshot
Current D/E
9.34x
Industry Limit
2.00x
Headroom
-7.34x
Why It Matters
Debt-to-equity shows balance-sheet risk. Lower leverage usually means more flexibility when earnings soften.
Formula
Total Debt / Shareholders' EquityMethod
Compare current D/E against the industry threshold used in the scoring framework, then assess remaining headroom.
Worked Example
This company's D/E is 9.34, meaning it carries 934 cents of debt for every $1 of equity. The capital markets & exchanges limit is 2.00, leaving it 7.34 over the limit.
How to Interpret
Lower values generally imply lower refinancing pressure and lower dividend stress in downturns.
High debt means interest payments come before dividends. During recessions, heavily indebted companies often cut dividends first to preserve cash. This adds risk to your income stream.
Sources
4.7% earnings yield is below the 7.5% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
4.7%
Required Yield
7.5%
Spread
-2.8pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $9.76 and a share price of $205.59, earnings yield is 4.7%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
How current price compares with estimated intrinsic value
Stock is trading 29% ABOVE the fair-value threshold (includes 30% margin of safety), but still below the estimated intrinsic value.
Current Snapshot
Current Margin
9.7%
Industry Threshold
30%
Status
29% Above Fair Value
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $227.55 per share, current price is $205.59, and margin of safety is 9.7%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
Price remains below the intrinsic value estimate but above your required threshold. Under this methodology, the valuation buffer is thinner, so estimate error and volatility have a larger impact.
Sources
Exceptional 54.7% net margin signals a strong and durable competitive advantage.
Current Snapshot
Current Margin
54.7%
Threshold
15.0%
Relative Position
+39.7%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 54.7% — it keeps 55 cents of every revenue dollar as profit after all expenses. The capital markets & exchanges threshold is 15%, putting it 39.7% above the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
Outstanding profitability means this company converts a large share of every dollar earned into profit. This buffer protects dividends even if revenue dips — the hallmark of a moat.
Sources
Consistency of profits over time
10/4 positive EPS years. Limited data - full evaluation requires 8+ years. Monitor closely for consistency.
Current Snapshot
Positive Years
10/4
Allowed Losses
0 (limited)
EPS CAGR
5.9%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 10 of the last 4 years. With only 4 years of data, every year must be positive. EPS growth rate (CAGR) is 5.9%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
So far so good, but limited history means we haven't seen how this company handles a full economic cycle. Monitor closely for continued consistency.
Sources
How much earnings are consumed by capital expenditure
CapEx consumes 28% of cumulative earnings — within the 30% threshold but approaching the limit.
Current Snapshot
10Y CapEx Intensity
28%
Threshold
30%
Buffer
+2%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 28% of this company's cumulative earnings were consumed by capital expenditure. The capital markets & exchanges threshold is 30%, leaving a buffer of +2%.
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
Capital needs are within acceptable bounds but on the higher end. If CapEx requirements increase, there may be less room for dividends and growth.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 17 Nov 2025Final | 17 Dec 2025 | $3.22 | 35% | $2.80 | $0.42 |
| 19 May 2025Final | 16 June 2025 | $3.90 | 0% | $3.90 | $0.00 |
| 11 Nov 2024Final | 9 Dec 2024 | $2.60 | 0% | $2.60 | $0.00 |
| 13 May 2024Final | 10 June 2024 | $3.85 | 0% | $3.85 | $0.00 |
| 13 Nov 2023Final | 11 Dec 2023 | $2.55 | 0% | $2.55 | $0.00 |
| 15 May 2023Final | 12 June 2023 | $4.50 | 0% | $4.50 | $0.00 |
| 7 Nov 2022Final | 5 Dec 2022 | $3.00 | 0% | $3.00 | $0.00 |
| 16 May 2022Final | 13 June 2022 | $3.50 | 0% | $3.50 | $0.00 |
| 8 Nov 2021Final | 6 Dec 2021 | $2.72 | 0% | $2.72 | $0.00 |
| 17 May 2021Final | 14 June 2021 | $3.35 | 0% | $3.35 | $0.00 |
10 years of consistent dividends. A dividend cut during a systemic event was excused. Dividends have since grown to 116% of pre-event levels.
Current Snapshot
History
10yr
Predictability
Very stable
Payout Health
Sustainable
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 10 years of dividend history (2016–2025). No suspensions detected — 10 consecutive years of payments. Predictability: Very stable. Payout health: Sustainable. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
The dividend cut occurred during a systemic event, and the company demonstrated resilience by recovering dividends. This suggests management remains committed to shareholder income.
Sources
Current price ($205.59) is 90% above the ceiling. Wait for a drop to lock in 6% yield.
Current Snapshot
Current Price
$205.59
Max Buy Price
$107.97
Delta
-90.4%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $205.59 and a ceiling of $107.97, the entry is 90.4% above the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
At this price, you won't achieve Barsi's target 6% yield. Consider waiting for a pullback — market volatility often creates more favourable valuations for patient investors.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
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