Australian Foundation Investment Co. Ltd. (AU:AFI)
ASX:AFI
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Australian Foundation Investment Co. Ltd.
(Sydney:AFI)
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Rating:70Outperform
Price Target:
AU$8.00
â–²(11.42% Upside)
Action:DowngradedDate:01/26/26
The score is led by strong financial quality—especially the exceptionally conservative balance sheet and solid cash conversion—supporting resilience. This is tempered by weakening recent growth/returns and a cautious earnings-call backdrop with profit decline and benchmark underperformance. Technicals are neutral and valuation is mixed, with a strong yield offset by a high P/E.
Positive Factors
Conservative Balance Sheet
Extremely low leverage gives AFIC durable financial resilience and optionality. With negligible debt, the company can sustain dividends, fund buybacks or opportunistic purchases during market stress without refinancing risk, preserving capital and supporting shareholder returns long term.
Negative Factors
Softening Revenue and Earnings Momentum
A declining top line and easing profits reduce the company's capacity to grow dividends and reserves over time. Persistent revenue weakness can compress reinvestment and buyback potential, lower ROE and limit the firm’s ability to scale distributions or expand its international sleeve sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage gives AFIC durable financial resilience and optionality. With negligible debt, the company can sustain dividends, fund buybacks or opportunistic purchases during market stress without refinancing risk, preserving capital and supporting shareholder returns long term.
Read all positive factors
Australian Foundation Investment Co. Ltd. (AFI) vs. iShares MSCI Australia ETF (EWA)
Market Cap
N/A
Dividend Yield4.39%
Average Volume (3M)468.89K
Price to Earnings (P/E)15.4
Beta (1Y)0.44
Revenue Growth-2.60%
EPS Growth-4.34%
CountryAU
Employees18
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.12
Shares Outstanding1,253,018,000
10 Day Avg. Volume476,238
30 Day Avg. Volume468,888
Financial Highlights & Ratios
PEG Ratio-7.77
Price to Book (P/B)1.05
Price to Sales (P/S)27.90
P/FCF Ratio33.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Australian Foundation Investment Co. Ltd. Business Overview & Revenue Model
Company Description
Australian Foundation Investment Company Limited is a publicly owned investment manager. The firm invests in the public equity markets of Australia and New Zealand. It invests in value stocks of companies. It benchmarks the performance of its port...
How the Company Makes Money
AFI makes money by investing in a diversified portfolio of Australian equities and generating returns through dividends, interest income, and capital gains on its investments. The company collects dividends from the shares it holds in various comp...
Australian Foundation Investment Co. Ltd. Earnings Call Summary
Earnings Call Date:Jan 20, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral: The call highlights AFIC’s strong long-term record, low operating costs, maintained ordinary dividend and special dividends funded by franking/profit reserves, opportunistic portfolio additions, and steps to address the NTA discount (buybacks, marketing). However, these positives are offset by clear short-term underperformance versus the benchmark (6‑month NTA -2%, 1‑year +1.2%), profit down 4.6%, notable deratings in major holdings (CSL -37%, James Hardie -38%), a costly miss on the gold rally and a persistent ~9% discount to NTA. Management has acknowledged execution/timing shortcomings and is implementing tactical and structural responses, leaving the net tone cautious and constructive but realistically tempered.Positive Updates
Dividend Stability and Special Dividends
Interim ordinary dividend maintained at $0.12 per share and a $0.025 special dividend declared for H1 FY2026, with an additional $0.025 special dividend expected at the final result (total H1 distribution $0.145). The company reiterates a long track record of delivering stable to growing fully franked dividends.
Negative Updates
Short-Term Underperformance vs Market
NTA total return for 6 months to Dec 2025 was -2% and 1-year was +1.2%, both materially below the ASX 200 Accumulation Index; short-term underperformance has dragged the 3-, 5- and 10-year returns lower than desired.
Read all updates
Q2-2026 Updates
Positive
Negative
Dividend Stability and Special Dividends
Interim ordinary dividend maintained at $0.12 per share and a $0.025 special dividend declared for H1 FY2026, with an additional $0.025 special dividend expected at the final result (total H1 distribution $0.145). The company reiterates a long track record of delivering stable to growing fully franked dividends.
Read all positive updates
Company Guidance
AFIC’s guidance reinforced a long‑term, low‑turnover approach while prioritising stable-to-growing dividends and capital discipline: management declared a H1 ordinary dividend of $0.12 plus a $0.025 special (total $0.145) and expects a further $0.025 special at year‑end; H1 profit was $147m (down 4.6%) or $0.117/share; portfolio value was $9.9bn (from $10.4bn), NTA $7.90/share, 59 holdings, ~150,000 shareholders; international sleeve was $170m (1.7% of portfolio, 27 stocks); MER was 0.11%; short‑term NTA returns were -2% (6m) and 1.2% (1y) while the 30‑year track record showed $10,000 → $155,000 vs ASX $136,000; the share price traded at ~9% discount to NTA at Dec‑25; the Board flagged continued buybacks where appropriate and tighter execution on trading (selective buys such as Woolworths, Telstra, Sigma and additions totalling ~0.3% in small caps, plus trims in Wesfarmers, Netwealth and banks) while retaining flexibility to raise international exposure if compelling value emerges.Australian Foundation Investment Co. Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 326.75M | 330.42M | 339.25M | 348.74M | 393.21M | 265.29M |
| Gross Profit | 326.15M | 330.42M | 337.85M | 350.01M | 394.05M | 265.29M |
| EBITDA | 469.82M | 307.45M | 0.00 | -1.26M | -845.00K | -1.83M |
| Net Income | 277.64M | 284.91M | 296.17M | 309.76M | 360.54M | 234.65M |
Balance Sheet | ||||||
| Total Assets | 9.94B | 10.58B | 9.92B | 8.96B | 8.27B | 9.12B |
| Cash, Cash Equivalents and Short-Term Investments | 131.56M | 280.77M | 171.89M | 169.22M | 149.60M | 101.87M |
| Total Debt | 0.00 | 10.00M | 10.00M | 10.00M | 10.00M | 0.00 |
| Total Liabilities | 1.59B | 1.84B | 1.66B | 1.41B | 1.28B | 1.56B |
| Stockholders Equity | 8.34B | 8.74B | 8.26B | 7.56B | 6.99B | 7.56B |
Cash Flow | ||||||
| Free Cash Flow | 279.20M | 279.08M | 289.35M | 317.68M | 277.76M | 178.77M |
| Operating Cash Flow | 279.49M | 279.26M | 289.35M | 317.68M | 277.76M | 178.77M |
| Investing Cash Flow | -35.66M | 149.99M | -51.99M | -66.33M | -19.19M | 28.98M |
| Financing Cash Flow | -406.38M | -314.97M | -236.25M | -230.58M | -211.07M | -221.95M |
Australian Foundation Investment Co. Ltd. Technical Analysis
Positive
7.18
Price Trends
6.81
Positive
6.90
Negative
7.02
Negative
Market Momentum
-0.05
Negative
58.18
Neutral
77.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AFI, the sentiment is Positive. The current price of 7.18 is above the 20-day moving average (MA) of 6.67, above the 50-day MA of 6.81, and above the 200-day MA of 7.02, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 77.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AFI.
Australian Foundation Investment Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$60.75M | 2.97 | 35.99% | 6.39% | 22.67% | 19.47% | |
70 Outperform | ― | 15.37 | 3.25% | 4.39% | -2.60% | -4.34% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | AU$58.20M | 4.79 | 8.15% | 7.22% | 21.16% | 47.24% | |
53 Neutral | AU$26.79M | 46.88 | 4.11% | 2.03% | 18.17% | ― | |
41 Neutral | AU$232.11M | -8.76 | -2.68% | ― | 36.51% | ― |
* Financial Sector Average
AU:AFI
Australian Foundation Investment Co. Ltd.
6.84
0.14
2.09%
AU:CIW
Clime Investment Management Ltd
0.33
>-0.01
-2.40%
AU:MAM
Microequities Asset Management Group Ltd.
0.47
-0.01
-2.52%
AU:CVC
CVC Limited
1.99
-0.06
-3.02%
AU:PFG
Prime Financial Group Limited
0.23
0.03
14.80%
Australian Foundation Investment Co. Ltd. Corporate Events
AFIC to Present FY25/26 Half-Year Results via Shareholder Webcast
Jan 21, 2026
Australian Foundation Investment Company has announced that it will present its half-year financial year 2025/26 results via a shareholder webcast on 21 January 2026 at 3:30 p.m. AEDT. The company is making the webcast and accompanying presentatio...
Australian Foundation Investment Company Launches On‑Market Share Buy-Back
Jan 21, 2026
Australian Foundation Investment Company Limited has announced it will conduct an on‑market buy-back of its ordinary fully paid shares listed on the ASX under the code AFI. The buy-back signals an active approach to capital management, poten...
AFIC Declares Interim Dividend of 14.5 Cents per Share
Jan 20, 2026
Australian Foundation Investment Company has declared a fully franked interim dividend of AUD 0.145 per ordinary share for the six months to 31 December 2025, with an ex-dividend date of 2 February 2026, a record date of 3 February 2026 and paymen...
AFIC Profit Slips as Portfolio Lags Market but Dividends Hold Firm
Jan 20, 2026
Australian Foundation Investment Company reported a 4.6% decline in half-year profit after tax to $147.0 million for the six months to 31 December 2025, as revenue from operating activities fell 2.8% to $168.7 million and investment income softene...
AFIC Reports Estimated Pre-Tax NTA of $8.05 per Share Against $7.18 Market Price
Jan 19, 2026
Australian Foundation Investment Company has reported an estimated pre-tax net tangible asset (NTA) backing of $8.05 per share as at 16 January 2026, compared with its ASX closing share price of $7.18 on the same date. The unaudited, indicative NT...
AFIC Posts Estimated Pre-Tax NTA of $7.89 per Share as at 9 January 2026
Jan 12, 2026
Australian Foundation Investment Company has reported an estimated pre-tax net tangible asset backing of $7.89 per share as at 9 January 2026, compared with its ASX closing share price of $7.15 on the same date. The unaudited, indicative figure hi...
Australian Foundation Investment Company Sets Webcast for Half-Year Results
Jan 7, 2026
Australian Foundation Investment Company Limited has scheduled the release of its half-year financial results for Wednesday, 21 January 2026, and will brief shareholders via a live webcast that afternoon at 3.30 p.m. AEDT. Supporting shareholder p...
AFIC Holds NTA Steady as Resources and Banks Drive 2025 Market Gains
Jan 7, 2026
Australian Foundation Investment Company reported a largely steady net tangible asset (NTA) backing as at 31 December 2025, with before-tax NTA per share at $7.90 and after-tax NTA at $6.66, essentially unchanged from November, underscoring the st...
AFIC Shares Trade Below Estimated Pre-Tax NTA of $7.92
Jan 4, 2026
Australian Foundation Investment Company Limited has reported an estimated unaudited pre-tax net tangible asset (NTA) backing of $7.92 per share as at 2 January 2026, compared with its ASX closing share price of $7.16 on the same date. The NTA fig...
AFIC Reports Estimated Pre-Tax NTA Backing of $7.93 per Share
Dec 28, 2025
Australian Foundation Investment Company Limited (AFIC) has reported an estimated pre-tax net tangible asset (NTA) backing of $7.93 per share as at 24 December 2025, compared with its ASX closing share price of $7.15 on the same date. The company ...
Australian Foundation Investment Company Reports Estimated Pre-Tax NTA of $7.84 per Share
Dec 22, 2025
Australian Foundation Investment Company Limited has released an estimated pre-tax net tangible asset (NTA) backing of $7.84 per share as at 19 December 2025, compared with its ASX closing share price of $7.06 on the same date. The indicative, una...
AFIC Announces Estimated NTA Backing Per Share
Dec 15, 2025
Australian Foundation Investment Company Limited has announced its estimated net tangible asset (NTA) backing per share as of December 12, 2025, at $7.91, compared to its share price of $7.12 on the same date. This announcement highlights the comp...
AFIC Announces Estimated NTA Backing Per Share for December 2025
Dec 8, 2025
Australian Foundation Investment Company Limited announced its estimated net tangible asset (NTA) backing per share as of December 5, 2025, at $7.91, compared to the ASX closing share price of $7.11 on the same date. The pre-tax NTA is indicative ...
AFIC Reports Decline in NTA Amidst Challenging Market Conditions
Dec 7, 2025
AFIC reported a decrease in its net tangible asset (NTA) backing per share as of November 30, 2025, with before-tax NTA at $7.91 and after-tax NTA at $6.66, reflecting a decline from the previous month. The company’s portfolio, valued at $10...
Australian Foundation Investment Company Announces Key Dates for 2026
Dec 2, 2025
Australian Foundation Investment Company Limited has announced key dates for the first half of 2026, including the interim results announcement and shareholder webinar scheduled for January 21, 2026. The company also outlined the timeline for its ...
AFIC Reports Estimated NTA Backing Per Share
Dec 1, 2025
Australian Foundation Investment Company Limited announced its estimated net tangible asset (NTA) backing per share as of November 28, 2025, which stands at $7.91. The company’s share price on the ASX closing on the same date was $7.11. This...
Australian Foundation Investment Co. Announces Cessation of Securities
Nov 27, 2025
Australian Foundation Investment Company Limited announced the cessation of 835,555 ordinary fully paid securities due to an on-market buy-back, effective November 27, 2025. This move is part of the company’s capital management strategy, pot...
AFIC Announces Special Dividend Amid Strong Franking Credit Position
Nov 24, 2025
Australian Foundation Investment Company Limited has announced its intention to distribute a special dividend of 2.5 cents per share, fully franked, alongside its interim and final dividends for 2026. This decision reflects the company’s sub...
AFIC Reports Estimated NTA Backing Per Share
Nov 24, 2025
Australian Foundation Investment Company Limited (AFIC) has announced its estimated net tangible asset (NTA) backing per share as of November 21, 2025, at $7.75, while the share price closed at $7.01 on the ASX. This announcement provides stakehol...
AFIC Announces Estimated NTA Backing Per Share
Nov 17, 2025
Australian Foundation Investment Company Limited announced an estimated pre-tax net tangible asset (NTA) backing per share of $7.90 as of November 14, 2025, compared to its share price of $7.20 on the ASX. This announcement highlights the company&...
AFIC Announces Shareholder Meeting in Auckland
Nov 11, 2025
Australian Foundation Investment Company Limited has announced an upcoming information meeting for its shareholders in Auckland. The meeting, scheduled for December 1, 2025, will cover the company’s financial performance and investments, off...
Australian Foundation Investment Company Updates Share Buy-Back Progress
Nov 10, 2025
Australian Foundation Investment Company Limited has announced an update regarding its ongoing share buy-back program. As of November 11, 2025, the company has repurchased a total of 18,230,678 ordinary fully paid securities, including 223,944 sec...
Australian Foundation Investment Company Announces Cessation of Securities
Nov 10, 2025
Australian Foundation Investment Company Limited announced the cessation of 4,714,314 ordinary fully paid securities as part of an on-market buy-back. This move reflects the company’s strategy to optimize its capital structure, potentially e...
AFIC Reports Estimated NTA Backing Per Share
Nov 10, 2025
Australian Foundation Investment Company Limited (AFIC) announced its estimated net tangible asset (NTA) backing per share as of November 7, 2025, at $8.04, compared to its ASX closing share price of $7.39 on the same date. This announcement provi...
Australian Foundation Investment Company Updates on Buy-Back Program
Nov 9, 2025
Australian Foundation Investment Company Limited has announced an update regarding its ongoing on-market buy-back program. As of the latest notification, the company has repurchased a total of 17,786,734 ordinary fully paid securities, with an add...
AFIC Reports Slight NTA Decrease Amid Sector Variability
Nov 7, 2025
AFIC reported a slight decrease in its net tangible asset (NTA) backing per share for October 2025, with before-tax NTA at $8.13 and after-tax NTA at $6.81. The company’s diversified portfolio, primarily consisting of ASX-listed equities, sa...
Australian Foundation Investment Company Updates Share Buy-Back Progress
Nov 7, 2025
Australian Foundation Investment Company Limited has announced an update regarding its ongoing share buy-back program. As of November 7, 2025, the company has repurchased a total of 17,786,734 ordinary fully paid securities, including 192,400 shar...
Australian Foundation Investment Company Updates on Share Buy-Back Progress
Nov 6, 2025
Australian Foundation Investment Company Limited has announced an update regarding its ongoing share buy-back program. As of November 6, 2025, the company has repurchased a total of 17,395,123 securities, with an additional 199,211 securities boug...
Australian Foundation Investment Company Updates on Buy-Back Program
Nov 4, 2025
Australian Foundation Investment Company Limited has announced an update on its ongoing on-market buy-back program, reporting the buy-back of 159,192 ordinary fully paid securities on the previous day, bringing the total to 17,235,931 securities b...
Australian Foundation Investment Company Updates on Share Buy-Back Program
Nov 3, 2025
Australian Foundation Investment Company Limited has announced an update regarding its ongoing share buy-back program. As of November 4, 2025, the company has repurchased a total of 16,930,936 ordinary fully paid securities, with an additional 304...
AFIC Reports Estimated NTA Backing Per Share for October 2025
Nov 2, 2025
Australian Foundation Investment Company Limited announced its estimated net tangible asset (NTA) backing per share as of October 31, 2025, at $8.12, compared to the ASX closing share price of $7.45 on the same date. This unaudited and indicative ...
Australian Foundation Investment Company Updates on Buy-Back Program
Nov 2, 2025
Australian Foundation Investment Company Limited has announced an update on its ongoing on-market buy-back program. As of November 3, 2025, the company has repurchased a total of 16,930,936 ordinary fully paid securities, including 297,000 bought ...
Australian Foundation Investment Company Updates on Share Buy-Back Program
Oct 30, 2025
Australian Foundation Investment Company Limited has announced an update on its ongoing share buy-back program. As of October 30, 2025, the company has bought back a total of 15,978,936 securities, with an additional 364,500 securities repurchased...
Correction Issued for Director’s Interest Notice at Australian Foundation Investment Co.
Oct 29, 2025
Australian Foundation Investment Company Limited announced a correction to a previously submitted Change of Director’s Interest Notice for Mr. Richard Murray, adjusting the date of change to ’23-28 October 2025′. This correction ...
Director’s Interest Change at Australian Foundation Investment Company
Oct 29, 2025
Australian Foundation Investment Company Limited has announced a change in the director’s interest, specifically involving Rebecca Dee-Bradbury. On October 24, 2025, Ms. Dee-Bradbury acquired 6,080 ordinary shares at a price of $7.35 per sha...
Australian Foundation Investment Company Updates on Share Buy-Back Program
Oct 28, 2025
Australian Foundation Investment Company Limited has announced an update regarding its ongoing share buy-back program. As of October 29, 2025, the company has repurchased a total of 15,978,936 ordinary fully paid securities, with 290,988 bought ba...
Australian Foundation Investment Company Updates on Share Buy-back Program
Oct 28, 2025
Australian Foundation Investment Company Limited has announced an update regarding its ongoing on-market buy-back program. As of the latest update, the company has repurchased a total of 15,330,453 ordinary fully paid securities, with an additiona...
AFIC Reports Estimated NTA Backing Per Share
Oct 27, 2025
Australian Foundation Investment Company Limited (AFIC) has announced its estimated net tangible asset (NTA) backing per share as of October 24, 2025, at $8.29, compared to its share price of $7.38 on the same date. This announcement provides inve...
Australian Foundation Investment Company Updates on Share Buy-Back Program
Oct 26, 2025
Australian Foundation Investment Company Limited has announced an update regarding its ongoing share buy-back program. As of the latest notification on October 27, 2025, the company has repurchased a total of 15,106,993 shares, with an additional ...
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.