Australian Finance Group Ltd. (AU:AFG)
ASX:AFG
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Australian Finance Group Ltd.
(Sydney:AFG)
Select Model
Select Model
Rating:52Neutral
Price Target:
AU$2.00
▼(-6.54% Downside)
Action:ReiteratedDate:10/29/25
The overall score reflects significant financial challenges, including declining revenue and high leverage, which weigh heavily on the stock's outlook. Technical indicators suggest a lack of bullish momentum, while valuation metrics provide some support with a moderate P/E ratio and a decent dividend yield.
Positive Factors
Aggregator network
AFG's core aggregator model creates durable distribution scale and broker stickiness by providing tech, compliance and services. That entrenched network drives repeat origination flow, making revenue generation less dependent on single lenders and supporting long-term market position.
Negative Factors
High leverage
A debt-to-equity ratio of 25.29 signals significant leverage that increases interest and refinancing risk. High financial leverage reduces strategic flexibility, magnifies earnings volatility in downturns, and can constrain investment or dividend capacity over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Aggregator network
AFG's core aggregator model creates durable distribution scale and broker stickiness by providing tech, compliance and services. That entrenched network drives repeat origination flow, making revenue generation less dependent on single lenders and supporting long-term market position.
Read all positive factors
Australian Finance Group Ltd. (AFG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$497.32M
Dividend Yield4.21%
Average Volume (3M)750.83K
Price to Earnings (P/E)6.6
Beta (1Y)0.81
Revenue Growth14.37%
EPS Growth20.75%
CountryAU
Employees317
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.09
Shares Outstanding271,760,070
10 Day Avg. Volume626,907
30 Day Avg. Volume750,829
Financial Highlights & Ratios
PEG Ratio0.97
Price to Book (P/B)2.79
Price to Sales (P/S)1.54
P/FCF Ratio20.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.71Price Target Upside26.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.18
Revenue Forecast (FY)AU$1.47B
Australian Finance Group Ltd. Business Overview & Revenue Model
Company Description
Australian Finance Group Limited, together with its subsidiaries, engages in the mortgage broking business in Australia. It operates in two segments, Aggregation and AFG Home Loans. The company is involved in the mortgage origination and managemen...
How the Company Makes Money
AFG primarily makes money by facilitating the origination of loans through its broker network and platforms and earning fees linked to those loans. Key revenue streams typically include: (1) Aggregation/commission revenue: When a broker writes a l...
Australian Finance Group Ltd. Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
40
Negative
Cash Flow
50
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 403.90M | 1.10B | 1.02B | 949.34M | 761.47M |
| Gross Profit | 818.40M | 116.40M | 363.15M | 338.54M | 204.19M | 161.29M |
| EBITDA | 78.00M | 59.20M | 291.82M | 262.17M | 141.19M | 113.86M |
| Net Income | 42.10M | 35.00M | 28.98M | 37.31M | 38.78M | 51.30M |
Balance Sheet | ||||||
| Total Assets | 7.92B | 7.07B | 5.98B | 6.32B | 6.68B | 4.74B |
| Cash, Cash Equivalents and Short-Term Investments | 236.60M | 223.80M | 67.40M | 222.24M | 268.58M | 241.05M |
| Total Debt | 6.41B | 5.62B | 4.57B | 4.60B | 4.98B | 3.46B |
| Total Liabilities | 7.69B | 6.85B | 5.77B | 6.12B | 6.47B | 4.54B |
| Stockholders Equity | 231.40M | 222.10M | 194.42M | 179.06M | 184.32M | 202.98M |
Cash Flow | ||||||
| Free Cash Flow | 44.10M | 30.10M | 20.94M | 51.23M | 40.01M | 52.38M |
| Operating Cash Flow | 45.90M | 35.90M | 38.78M | 58.26M | 52.68M | 59.35M |
| Investing Cash Flow | -1.21B | -1.05B | 13.19M | 303.47M | -1.46B | -506.70M |
| Financing Cash Flow | 1.22B | 1.02B | -52.59M | -408.07M | 1.45B | 511.86M |
Australian Finance Group Ltd. Technical Analysis
Negative
2.14
Price Trends
1.93
Negative
2.07
Negative
2.19
Negative
Market Momentum
-0.02
Negative
45.77
Neutral
61.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AFG, the sentiment is Negative. The current price of 2.14 is above the 20-day moving average (MA) of 1.84, above the 50-day MA of 1.93, and below the 200-day MA of 2.19, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.77 is Neutral, neither overbought nor oversold. The STOCH value of 61.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AFG.
Australian Finance Group Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | AU$786.13M | 9.15 | 12.70% | 11.71% | -6.49% | -5.40% | |
54 Neutral | AU$288.98M | 10.89 | 12.36% | 2.86% | -26.30% | 40.12% | |
53 Neutral | AU$753.25M | 7.11 | 6.34% | 4.63% | 26.01% | -17.55% | |
52 Neutral | AU$497.32M | 6.60 | 18.57% | 4.21% | 14.37% | 20.75% | |
52 Neutral | AU$961.75M | 11.50 | 7.72% | 6.60% | 14.81% | ― |
* Financial Sector Average
AU:AFG
Australian Finance Group Ltd.
1.83
0.31
20.08%
AU:PPM
Pepper Money Ltd
1.75
0.52
41.93%
AU:LFS
Latitude Group Holdings Ltd.
0.93
-0.13
-12.32%
AU:COG
COG Financial Services Limited
1.36
0.28
25.93%
AU:MYS
Mystate Limited
4.42
0.73
19.82%
Australian Finance Group Ltd. Corporate Events
AFG Director Greg Medcraft Increases Shareholding
Mar 3, 2026
Australian Finance Group Ltd has disclosed a change in the shareholding of director Greg Medcraft, in accordance with ASX listing requirements. Medcraft acquired 40,000 ordinary fully paid shares across two transactions on 27 February and 2 March ...
AFG Director Annette King Increases Indirect Shareholding
Feb 27, 2026
Australian Finance Group Ltd has reported a change in the relevant interests of non-executive director Annette King, as required under ASX listing rules. King’s indirect holding, via Red Dragon Pty Ltd as trustee for the Yin Yang Family Trus...
CBA Exits Substantial Holder Position in Australian Finance Group
Feb 25, 2026
Commonwealth Bank of Australia and its related entities have filed a notice that they have ceased to be substantial holders in Australian Finance Group Ltd as of 24 February 2026. The change reflects a reduction in their relevant voting interest b...
Australian Finance Group Announces Departure of Director Malcolm Watkins
Feb 24, 2026
Australian Finance Group Ltd has announced the cessation of Malcolm Stephen Watkins as a director, effective 24 February 2026, and lodged a Final Director’s Interest Notice with the ASX. The filing confirms that Watkins holds no relevant int...
AFG Co‑Founder Malcolm Watkins Retires After 32 Years of Service
Feb 24, 2026
Australian Finance Group Ltd. has announced the retirement of co-founder Malcolm Watkins as a Non-Executive Director, closing nearly 32 years of service in which he helped transform the Perth start-up into a major ASX-listed mortgage broking and f...
Australian Finance Group Sets Date for HY2026 Results and Investor Call
Feb 3, 2026
Australian Finance Group Ltd has announced it will release its half-year 2026 financial results on Wednesday, 18 February 2026. The company’s CEO David Bailey and CFO Luca Pietropiccolo will host a conference call and presentation for analys...
AFG Releases Q2 FY2026 Mortgage Index Update
Jan 22, 2026
Australian Finance Group Ltd has released its AFG Mortgage Index for the second quarter of the 2026 financial year, providing an update on mortgage activity and trends within its network. The publication of this index offers stakeholders insight i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.