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Australian Finance Group Ltd. (AU:AFG)
ASX:AFG
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Australian Finance Group Ltd. (AFG) AI Stock Analysis

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AU:AFG

Australian Finance Group Ltd.

(Sydney:AFG)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
AU$2.50
▲(10.13% Upside)
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.

Australian Finance Group Ltd. (AFG) vs. iShares MSCI Australia ETF (EWA)

Australian Finance Group Ltd. Business Overview & Revenue Model

Company DescriptionAustralian Finance Group Ltd. (AFG) is a leading financial services company in Australia, specializing in mortgage brokerage and related services. With a strong network of brokers and financial advisors, AFG provides a wide range of products, including home loans, commercial loans, and personal loans, catering to both individual and business clients. The company operates primarily in the finance sector, facilitating access to finance solutions and offering additional services such as insurance and investment products.
How the Company Makes MoneyAFG generates revenue primarily through commissions and fees earned from lenders for services provided by its network of mortgage brokers. The company receives upfront commissions when brokers facilitate loans and ongoing trail commissions for the duration of the loan. Additionally, AFG earns income from its financial planning and insurance services, as well as from its proprietary technology platform that supports brokers in their operations. Significant partnerships with various financial institutions also contribute to AFG's earnings, as these relationships enhance the range of products and services available to clients, thereby increasing transaction volumes.

Australian Finance Group Ltd. Financial Statement Overview

Summary
Australian Finance Group Ltd. faces challenges with declining revenue and profitability, coupled with high leverage. While operational efficiency is present, the company must address its financial risks and improve cash conversion to enhance financial stability.
Income Statement
45
Neutral
The income statement shows a significant decline in revenue growth, with a negative growth rate of -65.22% in the latest period. Gross profit margin and net profit margin have also decreased compared to previous years, indicating reduced profitability. However, the company maintains a positive EBIT and EBITDA margin, suggesting some operational efficiency.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio of 25.29, indicating significant leverage and potential financial risk. The equity ratio is low, reflecting limited equity financing. These factors suggest a need for careful management of financial obligations.
Cash Flow
50
Neutral
Cash flow analysis shows a decline in free cash flow growth, but the company maintains a positive free cash flow to net income ratio of 0.84, indicating some ability to generate cash relative to net income. The operating cash flow to net income ratio is low, suggesting challenges in converting income into cash.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.24B403.90M1.10B1.02B949.34M761.47M
Gross Profit810.70M116.40M363.15M338.54M204.19M161.29M
EBITDA59.20M59.20M291.82M262.17M141.19M113.86M
Net Income35.00M35.00M28.98M37.31M38.78M51.30M
Balance Sheet
Total Assets7.07B7.07B5.98B6.32B6.68B4.74B
Cash, Cash Equivalents and Short-Term Investments223.80M223.80M67.40M222.24M268.58M241.05M
Total Debt5.62B5.62B4.57B4.60B4.98B3.46B
Total Liabilities6.85B6.85B5.77B6.12B6.47B4.54B
Stockholders Equity222.10M222.10M194.42M179.06M184.32M202.98M
Cash Flow
Free Cash Flow38.70M30.10M20.94M51.23M40.01M52.38M
Operating Cash Flow39.80M35.90M38.78M58.26M52.68M59.35M
Investing Cash Flow-1.06B-1.05B13.19M303.47M-1.46B-506.70M
Financing Cash Flow1.02B1.02B-52.59M-408.07M1.45B511.86M

Australian Finance Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.27
Price Trends
50DMA
2.55
Negative
100DMA
2.38
Negative
200DMA
2.07
Positive
Market Momentum
MACD
-0.06
Positive
RSI
35.88
Neutral
STOCH
19.66
Positive
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 2.27 is below the 20-day moving average (MA) of 2.46, below the 50-day MA of 2.55, and above the 200-day MA of 2.07, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 19.66 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
AU$489.39M24.5512.36%2.51%-26.30%40.12%
66
Neutral
AU$750.02M16.745.92%4.78%26.01%-17.55%
65
Neutral
AU$1.10B11.0112.11%7.68%-6.49%-5.40%
52
Neutral
AU$638.64M18.1916.81%4.01%14.37%20.75%
46
Neutral
AU$1.18B20.055.01%6.17%14.81%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AFG
Australian Finance Group Ltd.
2.27
0.69
43.67%
AU:PPM
Pepper Money Ltd
2.46
1.26
105.00%
AU:LFS
Latitude Group Holdings Ltd.
1.14
0.06
5.56%
AU:COG
COG Financial Services Limited
2.39
1.47
159.78%
AU:MYS
Mystate Limited
4.50
0.94
26.40%

Australian Finance Group Ltd. Corporate Events

Australian Finance Group Ltd 2025 AGM Resolutions Passed
Oct 17, 2025

Australian Finance Group Ltd held its 2025 Annual General Meeting, where all resolutions were successfully passed by shareholder vote. The re-election of directors Jane Muirsmith and Annette King was confirmed, reflecting strong shareholder support and stability in the company’s governance structure.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

Australian Finance Group Ltd Reports Strong Financial Growth and Strategic Advancements in FY25
Oct 16, 2025

Australian Finance Group Ltd’s 2025 Annual General Meeting highlighted a successful financial year with a 21% increase in Net Profit After Tax to $35 million and a 13% rise in Underlying Net Profit After Tax before Amortisation to $40.8 million. The company’s strategic focus on technology enhancements and the completion of the Fintelligence acquisition have bolstered broker productivity and engagement, contributing to significant growth in both Distribution and Manufacturing segments. The launch of the Broker Investments program further underscores AFG’s commitment to mutual growth and expanding its earnings base.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

AFG Releases Q1 FY2026 Mortgage Index
Oct 16, 2025

Australian Finance Group Ltd. has released its Mortgage Index for the first quarter of the financial year 2026. This announcement provides insights into the mortgage market trends and AFG’s positioning within the industry, potentially impacting stakeholders by highlighting shifts in market dynamics and consumer behavior.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

AFG Adjusts CEO Remuneration to Reflect Market Standards
Oct 7, 2025

Australian Finance Group Ltd has announced an increase in the fixed annual remuneration of its CEO, David Bailey, to $800,000, reflecting the company’s growth under his leadership since 2017. The adjustment aligns the CEO’s pay with market standards for ASX300 companies and includes provisions for short-term and long-term incentives, as well as an extended notice period and non-compete clause, indicating a strategic move to retain and motivate executive talent.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

AFG Prices A$1 Billion RMBS Transaction Amid Strong Investor Demand
Sep 25, 2025

AFG has successfully priced a A$1 billion Residential Mortgage-Backed Securities (RMBS) transaction, which was upsized from A$500 million due to strong demand from 32 investors, including four new ones. This transaction, marking AFG’s 19th issue in the public RMBS market, highlights the company’s robust positioning as a trusted issuer and its commitment to providing competitive home loan products and sound investment opportunities.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$2.90 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

Australian Finance Group Announces Director’s Share Disposal
Sep 18, 2025

Australian Finance Group Ltd announced a change in the director’s interest, specifically involving Brett McKeon, who disposed of 832,632 ordinary shares valued at approximately $2.1 million. This change in director’s interest may have implications for the company’s stockholders and market perception, as it reflects significant personal financial decisions by a key company figure.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$2.90 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

Australian Finance Group Ltd Announces Director’s Interest Changes
Sep 16, 2025

Australian Finance Group Ltd has announced changes in the interests of its directors, specifically Brett McKeon and Malcolm Watkins. Brett McKeon has disposed of 500,000 ordinary shares held indirectly through MBM Investments Pty Ltd as trustee for the Brett McKeon Family Trust, at a total value of $1,279,310.50. This change in director’s interest is part of the company’s routine disclosures to the Australian Securities Exchange, ensuring transparency and compliance with corporate governance standards.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$2.90 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

Australian Finance Group Ltd Announces 2025 AGM and Office Relocation
Sep 15, 2025

Australian Finance Group Ltd (AFG) has announced its 2025 Annual General Meeting (AGM) to be held on October 17, 2025, as a hybrid meeting, allowing shareholders to participate either in person or online. The AGM will cover key agenda items including financial reports, the adoption of the Remuneration Report, and the re-election of two Non-executive Directors. The company is also relocating its head office to Perth CBD effective October 1, 2025. This move and the hybrid AGM format reflect AFG’s commitment to accessibility and operational efficiency, potentially enhancing shareholder engagement and aligning with modern business practices.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$2.90 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

Australian Finance Group Ltd Quotes New Securities on ASX
Aug 29, 2025

Australian Finance Group Ltd announced the quotation of 991,018 ordinary fully paid securities on the ASX, issued under an employee incentive scheme. This move may enhance the company’s market presence and provide liquidity for stakeholders, reflecting its strategic efforts to incentivize employees and align their interests with the company’s growth objectives.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$2.90 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

AFG Reinforces Commitment to High Corporate Governance Standards in 2025
Aug 27, 2025

Australian Finance Group Ltd has released its 2025 Corporate Governance Statement, emphasizing its commitment to high standards of corporate governance. The company adheres to a values-driven approach, ensuring transparency, fairness, and stakeholder protection, and aligns with the ASX Corporate Governance Council’s 4th Edition Principles & Recommendations. This governance framework supports AFG’s mission of promoting a fairer financial future and enhances its operational integrity and industry positioning.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

AFG Achieves Record FY25 Results with Strong Growth Across Divisions
Aug 27, 2025

Australian Finance Group Ltd (AFG) reported a record financial performance for the fiscal year 2025, with a 21% increase in net profit after tax to $35 million. The company’s growth was driven by strong performance across its broker network, manufacturing division, and AFG Securities, which achieved a record loan book size of $5.5 billion. AFG’s strategic investments in broker groups and technology enhancements have positioned it for continued growth, with expectations of positive trading conditions amid a conducive economic environment for property price growth.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

Australian Finance Group Ltd. Announces FY25 Financial Results
Aug 26, 2025

Australian Finance Group Ltd. has released its full-year financial results for the year ending June 30, 2025. The company reported significant updates on market operations and financial performance, indicating a strategic focus on strengthening its industry position. The results highlight the company’s efforts to adapt to market changes and enhance stakeholder value.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

Australian Finance Group Ltd Declares Dividend for H1 2025
Aug 26, 2025

Australian Finance Group Ltd announced a dividend distribution of AUD 0.053 per share for its ordinary fully paid securities, relating to the six-month period ending June 30, 2025. The ex-date for this dividend is set for September 8, 2025, with a record date of September 9, 2025, and payment scheduled for October 8, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

Australian Finance Group Ltd Releases FY25 Results and AGM Date
Aug 26, 2025

Australian Finance Group Ltd has announced its financial results for the fiscal year ending 30 June 2025, alongside the date for its upcoming Annual General Meeting. The meeting is scheduled for 17 October 2025 and will be held as a hybrid event, allowing both in-person and online participation. The announcement reflects AFG’s commitment to transparency and shareholder engagement, with implications for its operational strategies and stakeholder relations.

The most recent analyst rating on (AU:AFG) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

Australian Finance Group Ltd to Announce FY2025 Financial Results
Jul 30, 2025

Australian Finance Group Ltd (ASX: AFG) announced that it will release its full year 2025 financial results on August 27, 2025. The company’s CEO, David Bailey, and CFO, Luca Pietropiccolo, will present the results to analysts and investors via a conference call on the same day. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (AU:AFG) stock is a Buy with a A$1.68 price target. To see the full list of analyst forecasts on Australian Finance Group Ltd. stock, see the AU:AFG Stock Forecast page.

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.Date of analysis: Oct 29, 2025