Australian Finance Group Ltd. (AFG) AI Stock Analysis

• Market Cap: AU$649.51M
• Dividend Yield: 3.81%
• Average Volume (3M): 750.83K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.86
• Revenue Growth: 14.37%
• EPS Growth: 20.75%
• Country: AU
• Employees: 317
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.07
• Shares Outstanding: 271,760,070
• 10 Day Avg. Volume: 626,907
• 30 Day Avg. Volume: 750,829
• PEG Ratio: 0.97
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 20.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$2.95
• Price Target Upside: 23.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: AU$3.00 ▲(25.52% Upside)

The overall stock score of 58 reflects the company's financial challenges, including declining revenue and high leverage, which weigh heavily on the score. However, positive technical indicators and a reasonable valuation provide some support, suggesting potential for recovery if financial risks are managed effectively.

Australian Finance Group Ltd. Business Overview & Revenue Model

Company Description

Australian Finance Group Ltd. (AFG) is one of Australia's leading mortgage broking firms, offering a wide range of financial solutions to individuals and businesses. Established in 1994, AFG operates across the residential and commercial mortgage sectors, providing access to a vast network of over 70 lenders. The company's core services include mortgage broking, business finance solutions, and financial planning support, making it a key player in the Australian financial services landscape.

How the Company Makes Money

AFG primarily generates revenue through its mortgage broking services. The company earns commissions from lenders for loans facilitated through its network of brokers, which constitutes a significant portion of its income. AFG also benefits from trail commissions, which are ongoing payments from lenders based on the outstanding balance of loans arranged by its brokers. Additionally, AFG has diversified its revenue streams by offering business finance products and financial planning services, enhancing its earnings potential. Strategic partnerships with financial institutions and continuous expansion of its broker network further contribute to its financial performance.

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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.24B	403.90M	1.10B	1.02B	949.34M	761.47M
Gross Profit	810.70M	116.40M	363.15M	338.54M	204.19M	161.29M
EBITDA	59.20M	59.20M	291.82M	262.17M	141.19M	113.86M
Net Income	35.00M	35.00M	28.98M	37.31M	38.78M	51.30M
Balance Sheet
Total Assets	7.07B	7.07B	5.98B	6.32B	6.68B	4.74B
Cash, Cash Equivalents and Short-Term Investments	223.80M	223.80M	67.40M	222.24M	268.58M	241.05M
Total Debt	5.62B	5.62B	4.57B	4.60B	4.98B	3.46B
Total Liabilities	6.85B	6.85B	5.77B	6.12B	6.47B	4.54B
Stockholders Equity	222.10M	222.10M	194.42M	179.06M	184.32M	202.98M
Cash Flow
Free Cash Flow	38.70M	30.10M	20.94M	51.23M	40.01M	52.38M
Operating Cash Flow	39.80M	35.90M	38.78M	58.26M	52.68M	59.35M
Investing Cash Flow	-1.06B	-1.05B	13.19M	303.47M	-1.46B	-506.70M
Financing Cash Flow	1.02B	1.02B	-52.59M	-408.07M	1.45B	511.86M

Australian Finance Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.39 is below the 20-day moving average (MA) of 2.59, below the 50-day MA of 2.54, and above the 200-day MA of 2.00, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 7.23 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COG	66 Neutral	AU$487.27M	24.44	12.36%	2.61%	-26.30%	40.12%
MYS	66 Neutral	AU$739.84M	16.52	5.92%	4.93%	26.01%	-17.55%
PPM	65 Neutral	AU$955.70M	9.58	12.11%	8.79%	-6.49%	-5.40%
AFG	58 Neutral	AU$649.51M	18.50	16.81%	3.81%	14.37%	20.75%
LFS	51 Neutral	AU$1.19B	20.23	5.01%	6.11%	14.81%	―

Australian Finance Group Ltd. Corporate Events

Australian Finance Group Ltd to Announce FY2025 Financial Results

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.

Australian Finance Group Ltd Issues Performance Rights to Employees

Australian Finance Group Ltd has announced the issuance of 56,140 performance rights as part of an employee incentive scheme. This move is likely aimed at motivating and retaining key employees, which could enhance the company’s operational efficiency and competitive positioning in the financial services market.

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.

AFG Releases Q4 FY2025 Mortgage Index

Australian Finance Group Ltd has released its Mortgage Index for the fourth quarter of the financial year 2025. This announcement provides insights into the company’s performance in the mortgage sector, potentially impacting its market positioning and offering valuable information for stakeholders regarding trends in the mortgage industry.

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.