Recurring vs. non-recurring

Research evidence excerpt

Recurring vs. non-recurring

Macquarie Equity Research AMP

Alpha Model Decomposition Key Quant Findings

The quant model currently holds a marginally positive view The Macquarie Alpha is decomposed into its sector and

on AMP. The strongest style exposure is Growth, indicating market relative factor & styles exposures (a higher/better

this stock has good historic and/or forecast growth. percentile is coded in green, whilst lower in red).

Growth metrics focus on both top and bottom line items.

The weakest style exposure is Valuations, indicating this relativePercentileto

stock is over-priced in the market relative to its peers.

sectors market

Factors / Styles (/811) (/383) Core factors in definition

ALPHA 56% 63% Built from the styles below

Macquarie Alpha Model: Key rankings VALUE 8% 20% Book, CF, Yield, Earnings Multiples

The Macquarie Quant’s flagship Alpha model is a dynamic ANALYST 86% 77% Revisions (Earnings, Recommendations)

multi-factor model based on a staple of quant factors such MOMENTUM 80% 73% Price Momentum

as value, momentum, revisions, quality, and risk.

GROWTH 91% 88% EPS, Sales (Forecast, Historic)

Global Market (Country) Sector

Whole Universe Australia & NZ Financial Services PROFITABILITY 42% 25% ROE, Margin, Asset Turnover

Macquarie Alpha QUALITY 52% 35% Accruals, Earn Stability, Cash Conversion 5907/18000 140/383 355/811 Model

CAPITAL 42% 45% Investment/Capex, Net share issuance

Fundamental

6410/18000 172/383 288/811 LIQUIDITY 74% 62% Size, Turnover, Analyst Coverage (Consensus) *

LOW RISK 22% 34% Beta, Volatility, Earn.Cert, Leverage

* based on Total Shareholder Return = Consensus Price target / Current Price

TECHNICAL 34% 22% MACD, RSI, Bollinger, Williams R, etc

Current and Historical Alpha Model Rank

Factors driving the Alpha Model vs peers