Australian Finance Group Ltd. (AU:AFG)
ASX:AFG
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Australian Finance Group Ltd.
(Sydney:AFG)
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Rating:53Neutral
Price Target:
AU$2.00
▼(-6.54% Downside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by deteriorating financial performance and very high leverage, with technicals also weak due to a clear downtrend. Valuation is the main support, with a low P/E and high dividend yield improving the overall profile.
Positive Factors
Recurring revenue mix
AFG's business captures both upfront origination fees and recurring trailing commissions tied to outstanding loan balances, creating a durable revenue base. Trailing income provides recurring cashflows that reduce volatility versus one-off fees and supports predictable earnings if retention and portfolio scale are maintained.
Negative Factors
Very high leverage
Extremely high debt-to-equity materially increases financial risk and reduces balance sheet flexibility. It raises interest and refinancing exposure, limits strategic investment capacity, and amplifies downside if mortgage volumes or credit quality deteriorate, making the business more vulnerable to funding shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue mix
AFG's business captures both upfront origination fees and recurring trailing commissions tied to outstanding loan balances, creating a durable revenue base. Trailing income provides recurring cashflows that reduce volatility versus one-off fees and supports predictable earnings if retention and portfolio scale are maintained.
Read all positive factors
Australian Finance Group Ltd. (AFG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$457.92M
Dividend Yield4.21%
Average Volume (3M)750.83K
Price to Earnings (P/E)10.8
Beta (1Y)0.85
Revenue Growth15.77%
EPS Growth41.14%
CountryAU
Employees317
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.16
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$2.38Price Target Upside11.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.18
Revenue Forecast (FY)AU$1.45B
Australian Finance Group Ltd. Business Overview & Revenue Model
Company Description
Operating within Australia, Australian Finance Group Limited (AFG) and its affiliated entities are primarily engaged in the mortgage brokering sector. The company's operations are divided into two distinct segments: Aggregation and AFG Home Loans....
How the Company Makes Money
AFG primarily makes money by facilitating loans between borrowers and lenders and earning commissions tied to loan origination and ongoing loan balances. A key revenue stream is upfront commission (or similar origination-based fees) paid by lender...
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
Neutral
2.14
Price Trends
1.78
Negative
1.83
Negative
2.07
Negative
Market Momentum
0.01
Negative
58.62
Neutral
87.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AFG, the sentiment is Neutral. The current price of 2.14 is above the 20-day moving average (MA) of 1.65, above the 50-day MA of 1.78, and above the 200-day MA of 2.07, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.62 is Neutral, neither overbought nor oversold. The STOCH value of 87.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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% | |
67 Neutral | AU$297.52M | 14.06 | 13.31% | 2.86% | -38.87% | 60.62% | |
57 Neutral | AU$709.82M | 6.54 | 12.70% | 11.71% | -8.26% | 5.26% | |
53 Neutral | AU$457.92M | 10.75 | 18.57% | 4.21% | 15.77% | 41.14% | |
53 Neutral | AU$780.52M | 15.69 | 6.34% | 4.63% | 44.60% | -7.74% | |
52 Neutral | AU$948.76M | 10.09 | 7.72% | 6.60% | 8.89% | 334.62% |
* Financial Sector Average
AU:AFG
Australian Finance Group Ltd.
1.69
-0.41
-19.49%
AU:PPM
Pepper Money Ltd
1.58
-0.08
-4.76%
AU:LFS
Latitude Group Holdings Ltd.
0.91
-0.11
-10.41%
AU:COG
COG Financial Services Limited
1.40
-0.12
-7.68%
AU:MYS
Mystate Limited
4.58
0.51
12.56%
Australian Finance Group Ltd. Corporate Events
Australian Finance Group Updates Daily On-Market Share Buy-Back
Jun 24, 2026
Australian Finance Group Ltd. has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares under the code AFG. The update confirms the company is continuing its capital management pro...
Australian Finance Group Steps Up On-Market Share Buy-Back
Jun 23, 2026
Australian Finance Group Ltd. has continued its on-market share buy-back program, repurchasing a cumulative total of 1,264,499 ordinary fully paid shares prior to the latest trading day, with an additional 100,867 shares bought back on the previou...
Australian Finance Group Updates Daily On‑Market Share Buy‑Back Totals
Jun 21, 2026
Australian Finance Group Ltd. has provided an updated notification to the ASX confirming continued execution of its on‑market share buy‑back for ordinary fully paid shares under code AFG. The update, dated 22 June 2026, records cumulat...
Australian Finance Group Continues On‑Market Share Buy‑Back Program
Jun 16, 2026
Australian Finance Group Ltd. has provided an updated notification to the ASX confirming the ongoing execution of its on‑market share buy‑back program for its ordinary fully paid shares under code AFG. The latest daily disclosure shows...
Australian Finance Group Announces On‑Market Share Buy‑Back
Jun 2, 2026
Australian Finance Group Ltd. has announced a new on‑market share buy‑back of its ordinary fully paid shares, notifying investors through an Appendix 3C filing dated 2 June 2026. The initiative signals an active approach to capital man...
AFG launches $15m on‑market buyback to bolster capital strategy
Jun 2, 2026
Australian Finance Group has launched an on‑market share buyback of up to $15 million, representing about 3.5% of its issued capital, as part of its broader capital management strategy. The program, to run from 16 June to 15 December 2026 un...
AFG Releases Q3 FY2026 Mortgage Index Update
Apr 19, 2026
Australian Finance Group has released its Mortgage Index for the third quarter of the 2026 financial year, providing an update on mortgage activity across its national network. The disclosure signals the company’s ongoing commitment to marke...
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.