AF Legal Group Limited (AFL) AI Stock Analysis

• Market Cap: AU$10.52M
• Dividend Yield: N/A
• Average Volume (3M): 75.38K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.65
• Revenue Growth: 14.19%
• EPS Growth: -23.76%
• Country: AU
• Employees: 3
• Sector: Financial
• Sector Strength: 82
• Industry: Personal Products & Services
• EPS (TTM): <0.01
• Shares Outstanding: 91,435,570
• 10 Day Avg. Volume: 134,801
• 30 Day Avg. Volume: 75,384
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.76
• 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

• Rating: 59 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

The overall score is primarily driven by solid financial performance with strong revenue growth and improved margins, although cash flow issues remain a concern. Technical analysis presents a neutral outlook with potential for upward movement. Valuation suggests the stock is fairly priced, but the lack of a dividend yield may deter income-seeking investors.

AF Legal Group Limited Business Overview & Revenue Model

Company Description

AF Legal Group Limited (AFL) is a specialized legal services provider operating primarily within the family law sector. The company offers a comprehensive suite of legal services focusing on family law matters, including divorce, property settlements, child custody, and other family-related legal issues. AFL is committed to providing expert guidance and support to individuals navigating the complexities of family law, ensuring tailored solutions to meet their clients' unique needs.

How the Company Makes Money

AF Legal Group Limited generates revenue through the provision of legal services related to family law. The company's primary revenue stream is derived from client fees, which are charged for legal consultations, court representations, and other related services. AFL may also offer fixed fee arrangements for certain services, providing clients with cost certainty while securing steady income. Additionally, AFL might engage in partnerships with other legal professionals or firms to enhance service delivery, though specific partnership details are not publicly available. The company's earnings are significantly influenced by its reputation, client referrals, and the overall demand for family law services in their operating regions.

AF Legal Group Limited Financial Statement Overview

Summary

AF Legal Group Limited demonstrates strong revenue growth and improved profitability margins, indicating a positive operational shift. However, cash flow challenges highlight the need for improved cash management and operational efficiency.

Income Statement

AF Legal Group Limited shows a strong revenue growth trajectory with a significant increase in total revenue from $18.83M in 2023 to $21.66M in 2024, marking a 15.06% growth rate. The gross profit margin is high at 99.96%, indicating effective cost management. However, the net profit margin is low at 4.44%, suggesting room for improvement in operational efficiency. The EBIT margin has improved from a negative in 2023 to 26.56% in 2024, highlighting a turnaround in operating profit.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.76, indicating a balanced use of debt and equity financing. The equity ratio stands at 38.45%, suggesting a stable equity position relative to total assets. However, the return on equity is modest at 10.55%, reflecting moderate profitability in utilizing shareholders' equity.

Cash Flow

Operating cash flow has decreased significantly from $1.07M in 2023 to $0.55M in 2024. The free cash flow declined from $0.3M to $0.16M, indicating a 46.67% decrease, which may impact future investment capabilities. The operating cash flow to net income ratio is low at 0.57, indicating that net income is not fully translating into cash flow. Improvements in cash generation are needed for better financial flexibility.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	23.86M	21.66M	18.83M	16.91M	11.01M	6.88M
Gross Profit	23.85M	21.65M	18.91M	3.81M	10.30M	6.41M
EBITDA	3.21M	3.34M	-5.35M	2.08M	771.09K	1.01M
Net Income	680.00K	962.00K	-8.10M	-407.00K	-482.00K	422.38K
Balance Sheet
Total Assets	27.08M	23.71M	18.05M	23.44M	20.69M	11.59M
Cash, Cash Equivalents and Short-Term Investments	3.31M	2.32M	2.05M	3.75M	4.66M	1.55M
Total Debt	9.66M	6.91M	3.70M	1.63M	1.06M	791.85K
Total Liabilities	16.77M	13.73M	11.00M	8.54M	7.39M	3.67M
Stockholders Equity	9.42M	9.12M	6.38M	14.40M	13.29M	7.92M
Cash Flow
Free Cash Flow	834.00K	161.00K	300.00K	595.00K	694.21K	1.23M
Operating Cash Flow	1.37M	545.00K	1.06M	1.04M	1.15M	1.65M
Investing Cash Flow	-6.43M	-4.12M	-1.20M	-955.00K	-2.54M	-518.17K
Financing Cash Flow	6.14M	3.84M	-1.56M	-994.00K	4.49M	-624.69K

AF Legal Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, 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
IPC	72 Outperform	AU$9.25M	18.39	5.45%	4.02%	74.85%	170.29%
SHJ	64 Neutral	AU$120.54M	29.71	1.60%	4.22%	-10.06%	―
N1H	63 Neutral	AU$10.13M	8.71	73.12%	4.43%	35.43%	59.04%
Sector *	62 Neutral	AU$9.88B	7.94	10.79%	5.20%	32.02%	38.31%
AFL	59 Neutral	AU$10.52M	14.94		―	14.19%	-23.76%
BPH	58 Neutral	AU$9.75M	0.91	41.59%	―	―	1000.00%
KBC	43 Neutral	AU$9.72M	1.40	91.73%	―	―	―

AF Legal Group Limited Corporate Events

AF Legal Group Seeks ASX Quotation for New Securities

AF Legal Group Limited has announced the application for the quotation of 136,364 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its market presence and potentially increase its shareholder base, reflecting a proactive approach in leveraging financial instruments to support its growth objectives.

AF Legal Group Ltd Announces Director’s Share Acquisition

AF Legal Group Ltd has announced a change in the director’s interest in securities, specifically involving Peter Johns. Mr. Johns, who holds indirect interests through Westferry Operations Pty Ltd, acquired 125,217 fully paid ordinary shares at $0.096 per share on May 20, 2025. This acquisition was conducted through an on-market trade, increasing his holdings in The Westferry Fund to 5,026,739 shares. The announcement reflects a strategic move in the company’s management and could influence stakeholder perceptions regarding its governance and financial strategies.

AF Legal Group Settles Legal Claim and Faces Regulatory Investigation

AF Legal Group Limited has settled a legal claim related to the hiring of a senior lawyer in 2022, resulting in an estimated expense of $550k-$600k for the second half of FY25. Additionally, the company is dealing with a regulatory investigation involving one lawyer, which is expected to incur further legal expenses of $100k. Despite these challenges, the company reports strong underlying performance and remains confident in achieving higher normalized NPBT for the second half of FY25 compared to the first half.

AF Legal Group Director Increases Stake in Company

AF Legal Group Limited has announced a change in the director’s interest in securities. Peter Johns, a director and shareholder of Westferry Operations Pty Ltd, has increased his indirect interest in the company by acquiring additional fully paid ordinary shares through on-market trades. This change reflects a significant increase in Mr. Johns’ holdings, potentially indicating confidence in the company’s future prospects.

AF Legal Group Announces Director’s Share Acquisition

AF Legal Group Limited announced a change in the director’s interest notice concerning Peter Johns, a director and shareholder of Westferry Operations Pty Ltd. The notice details the acquisition of additional shares in the Westferry Fund, increasing the total number of shares held by Westferry Operations Pty Ltd. This change reflects on-market trades conducted on April 1 and April 4, 2025, potentially impacting the company’s stock value and stakeholder interests.