AF Legal Group Limited (AFL) AI Stock Analysis

• Market Cap: AU$16.23M
• Dividend Yield: N/A
• Average Volume (3M): 116.77K
• Price to Earnings (P/E): 51.5
• Beta (1Y): 0.53
• Revenue Growth: 27.43%
• EPS Growth: -90.52%
• Country: AU
• Employees: 3
• Sector: Services
• Sector Strength: N/A
• Industry: Personal Products & Services
• EPS (TTM): <0.01
• Shares Outstanding: 92,735,565
• 10 Day Avg. Volume: 256,183
• 30 Day Avg. Volume: 116,770
• PEG Ratio: -1.09
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 4.24
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: AU$0.18 ▼(-1.11% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is primarily supported by solid financial momentum—especially strong revenue growth and sharply improving free cash flow—alongside a stable balance sheet. This is tempered by weak profitability/ROE and a very high P/E valuation, while technical signals are mixed with only modest trend strength.

Positive Factors

Strong free cash flow growth

A 183.8% free cash flow surge signals durable cash generation beyond accounting earnings. Strong FCF supports reinvestment, funds working capital, and provides optionality to pay down debt or fund growth without dilutive financing, improving long-term financial flexibility.

Solid revenue momentum

Consistent top-line growth indicates sustained market demand and expanding customer traction. Over 2-6 months this supports operating leverage potential, scale benefits, and the ability to invest in product or service improvements that reinforce competitive position and future growth.

Manageable balance sheet

A stable equity ratio and manageable leverage provide financial resilience. With controlled debt levels, the company retains capacity to fund operations and strategic initiatives, lowering refinancing risk and enabling steadier execution through economic cycles.

Negative Factors

Very low net profitability

A 0.37% net margin implies the business converts very little revenue into retained earnings. This limits retained capital for reinvestment or distributions, increases sensitivity to cost inflation, and makes sustaining growth without margin improvement more challenging long term.

Low return on equity

Persistently low ROE suggests the company struggles to generate attractive returns on shareholders' capital. Over months this can constrain investor confidence, reduce access to growth capital on favorable terms, and signal inefficiencies in asset deployment.

Rising leverage

An increasing debt-to-equity ratio raises fixed obligations and financial risk. Higher leverage can limit strategic flexibility, increase interest exposure if rates rise, and pressure margins during revenue slowdowns, making the capital structure a structural vulnerability.

AF Legal Group Limited Business Overview & Revenue Model

Company Description

AF Legal Group Limited operates as a family and relationship law firm in Australia. It offers family law services, such as separation, divorce, child custody, child support, spousal maintenance, property settlement, asset protect, and prenuptial agreement services. The company was formerly known as Navigator Resources Limited and changed its name to AF Legal Group Limited in May 2019. AF Legal Group Limited was incorporated in 1994 and is headquartered in Melbourne, Australia.

How the Company Makes Money

AF Legal Group Limited generates revenue primarily through billable hours and fixed fees for legal services provided to clients. The firm's revenue model includes charging clients on an hourly basis for consultations and legal representation, as well as offering fixed-fee services for specific legal transactions such as contract drafting or family law matters. Additionally, AFL may earn income from contingency fees in personal injury cases where the firm takes a percentage of the settlement awarded to the client. Strategic partnerships with corporate clients and referral agreements with other legal firms also contribute to its revenue streams, enhancing its client base and service offerings.

AF Legal Group Limited Financial Statement Overview

Summary

Strong revenue growth (15.7%) and very strong free cash flow growth (183.8%) support the score, with healthy cash conversion. Offsetting this, profitability is weak (net margin 0.37%) and ROE is low, indicating limited returns despite growth.

Income Statement

AF Legal Group Limited has shown a strong revenue growth rate of 15.7% in the latest year, indicating positive sales momentum. However, the net profit margin is low at 0.37%, suggesting limited profitability. The gross profit margin is high, but the EBIT and EBITDA margins are moderate, indicating room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has increased, reflecting higher leverage, but it remains at a manageable level. The return on equity is low, indicating limited returns on shareholder investments. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

The free cash flow growth rate is impressive at 183.8%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, showing efficient cash conversion. The free cash flow to net income ratio is also strong, reflecting good cash flow management.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	32.72M	27.60M	21.66M	18.83M	16.91M	11.01M
Gross Profit	20.50M	27.57M	21.65M	18.91M	3.81M	3.66M
EBITDA	4.63M	3.27M	3.34M	-5.35M	2.08M	771.09K
Net Income	313.00K	102.00K	962.00K	-8.10M	-407.00K	-482.00K
Balance Sheet
Total Assets	28.31M	27.86M	23.71M	18.05M	23.44M	20.69M
Cash, Cash Equivalents and Short-Term Investments	2.80M	2.21M	2.32M	2.05M	3.75M	4.66M
Total Debt	9.85M	9.67M	6.91M	3.70M	1.63M	1.06M
Total Liabilities	17.75M	18.06M	13.73M	11.00M	8.54M	7.39M
Stockholders Equity	9.88M	9.27M	9.12M	6.38M	14.40M	13.29M
Cash Flow
Free Cash Flow	1.93M	2.37M	161.00K	300.00K	595.00K	694.21K
Operating Cash Flow	2.23M	2.86M	545.00K	1.06M	1.04M	1.15M
Investing Cash Flow	-387.00K	-3.60M	-4.12M	-1.20M	-955.00K	-2.54M
Financing Cash Flow	-2.36M	637.00K	3.84M	-1.56M	-994.00K	4.49M

AF Legal Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AFL, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.17, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 60.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AFL.

AF Legal Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFL	59 Neutral	AU$16.23M	51.47	―	―	27.43%	-90.52%
SHJ	57 Neutral	AU$121.96M	12.58	0.21%	7.14%	4.44%	-90.57%
BPH	56 Neutral	AU$10.83M	-10.00	19.93%	―	―	29.55%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
IPC	54 Neutral	AU$10.87M	93.46	1.82%	3.50%	-50.00%	-52.07%
N1H	48 Neutral	AU$9.25M	7.29	43.56%	2.61%	8.15%	-21.14%
KBC	43 Neutral	AU$9.72M	-1.31	―	―	―	―

AF Legal Group Limited Corporate Events

AF Legal Group CFO Departs After Steering Period of Rapid Growth

AF Legal Group has announced the departure of Chief Financial Officer and former CEO Stace Boardman, effective 31 March, as she leaves to pursue new professional opportunities. Boardman, the company’s longest-serving employee since joining in 2019, played a central role in its expansion, transitioning from CEO to CFO/COO in 2023 to provide continuity during a period of rapid growth.

Under her leadership, AF Legal Group’s revenue increased from $5 million in FY2019 to more than $27 million in its latest full financial year, supported by tighter financial discipline, stronger governance and new systems designed for sustainable scale. The board says the firm is now in a strong and stable position with clear strategic direction, and has begun an executive search for an interim CFO, signalling an orderly transition in its finance leadership rather than a shift in broader strategy.

The most recent analyst rating on (AU:AFL) stock is a Hold with a A$0.17 price target. To see the full list of analyst forecasts on AF Legal Group Limited stock, see the AU:AFL Stock Forecast page.

AF Legal Group Delivers Strong H1 FY26 Turnaround on Back of People-First Strategy

AF Legal Group reported strong momentum in the first half of FY26, with revenue up 40% year-on-year and 20% on the prior half, while maintaining solid weekly revenue in the December quarter despite seasonal court and office closures. Profitability also improved markedly, with normalised profit before tax more than doubling on the prior period and EBITDA rising 60% year-on-year, underscoring a significant turnaround in the business.

Management highlighted that a deliberate shift to a people-first, practice-led culture is underpinning performance, supported by an 85% Great Place to Work survey result that sustains a major uplift in staff sentiment over the past two years. This cultural transformation is emerging as a competitive advantage, strengthening both talent attraction and retention, and suggesting a more sustainable operational foundation for future growth.

The most recent analyst rating on (AU:AFL) stock is a Hold with a A$0.17 price target. To see the full list of analyst forecasts on AF Legal Group Limited stock, see the AU:AFL Stock Forecast page.

AF Legal Group Delivers Record Half-Year Profit on Strong Legal Services Growth

AF Legal Group reported a record half-year performance for the first half of FY26, with revenue rising 40% on the prior corresponding period to $17.8 million and average weekly revenue reaching $686,000. Normalised net profit before tax attributable to shareholders jumped 125% to $1.263 million, while EBITDA climbed 60%, underscoring strong operating leverage from a largely fixed cost base.

Growth was broad-based, with family law, contested wills and estates, and criminal law all contributing to higher revenue, and operating cash inflow of $2.385 million highlighting solid cash conversion. Management said the expansion of its accredited specialist ranks and investment in support infrastructure should underpin further productivity gains, positioning the firm for a significantly stronger underlying FY26 profit than in FY25.

The most recent analyst rating on (AU:AFL) stock is a Hold with a A$0.17 price target. To see the full list of analyst forecasts on AF Legal Group Limited stock, see the AU:AFL Stock Forecast page.

AF Legal Group posts record half-year revenue and profit on continued growth

AF Legal Group reported a strong first-half performance for the six months to 31 December 2025, with revenue rising 40% year-on-year to $17.8 million and after-tax profit attributable to owners up 75% to $0.5 million. Normalised net profit before tax attributable to owners reached a record $1.26 million after adjusting for $0.49 million in largely one-off Project Titan costs, reflecting sustained margin improvement.

The figures highlight the contribution from the second Armstrong Legal acquisition, which is now fully comparable, and show continued profitable growth following restructuring in FY23. Management indicated that Project Titan remains on budget for delivery in FY26 and that the group expects its profitability momentum to continue into the second half of FY26, reinforcing its improving financial trajectory for stakeholders.

The most recent analyst rating on (AU:AFL) stock is a Hold with a A$0.17 price target. To see the full list of analyst forecasts on AF Legal Group Limited stock, see the AU:AFL Stock Forecast page.

AF Legal Group Sets Dates for H1 FY26 Results and Investor Call

AF Legal Group has scheduled the release of its half-year FY26 financial results for Friday, 27 February 2026. The company will follow this with an investor call on Tuesday, 3 March 2026 at 10:30am Sydney time, allowing shareholders and analysts to hear management discuss the results and outlook.

The planned briefing underlines AF Legal’s efforts to maintain regular engagement and transparency with the market. It also signals an upcoming information update that could influence investor sentiment and provide insight into the firm’s operational performance and strategic positioning in the legal services industry.

The most recent analyst rating on (AU:AFL) stock is a Hold with a A$0.17 price target. To see the full list of analyst forecasts on AF Legal Group Limited stock, see the AU:AFL Stock Forecast page.