AF Legal Group Limited (AFL) AI Stock Analysis

• Market Cap: €11.43M
• Dividend Yield: N/A
• Average Volume (3M): 116.77K
• Price to Earnings (P/E): 113.6
• Beta (1Y): 0.62
• 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: 91,435,570
• 10 Day Avg. Volume: 256,183
• 30 Day Avg. Volume: 116,770
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

AF Legal Group Limited shows strong financial performance with impressive revenue and cash flow growth, but faces challenges in profitability and valuation. The technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits further insights.

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

AF Legal Group Limited demonstrates strong revenue growth and cash flow generation, but profitability remains a challenge. The balance sheet is stable with manageable leverage, but returns on equity are low. Overall, the company is on a positive growth trajectory but needs to focus on improving profitability and returns.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.60M	27.60M	21.66M	18.83M	16.91M	11.01M
Gross Profit	27.57M	27.57M	21.65M	18.91M	3.81M	3.66M
EBITDA	3.29M	3.27M	3.34M	-5.35M	2.08M	771.09K
Net Income	102.00K	102.00K	962.00K	-8.10M	-407.00K	-482.00K
Balance Sheet
Total Assets	27.86M	27.86M	23.71M	18.05M	23.44M	20.69M
Cash, Cash Equivalents and Short-Term Investments	2.21M	2.21M	2.32M	2.05M	3.75M	4.66M
Total Debt	9.67M	9.67M	6.91M	3.70M	1.63M	1.06M
Total Liabilities	18.06M	18.06M	13.73M	11.00M	8.54M	7.39M
Stockholders Equity	9.27M	9.27M	9.12M	6.38M	14.40M	13.29M
Cash Flow
Free Cash Flow	2.45M	2.37M	161.00K	300.00K	595.00K	694.21K
Operating Cash Flow	2.86M	2.86M	545.00K	1.06M	1.04M	1.15M
Investing Cash Flow	-3.60M	-3.60M	-4.12M	-1.20M	-955.00K	-2.54M
Financing Cash Flow	637.00K	637.00K	3.84M	-1.56M	-994.00K	4.49M

AF Legal Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.12, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
BPH	58 Neutral	AU$10.98M	1.75	19.93%	―	―	29.55%
AFL	57 Neutral	€11.43M	113.64	―	―	27.43%	-90.52%
SHJ	57 Neutral	AU$119.42M	213.64	0.21%	7.46%	4.44%	-90.57%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
IPC	54 Neutral	AU$9.31M	50.43	1.82%	4.00%	-50.00%	-52.07%
N1H	48 Neutral	AU$9.25M	10.82	43.56%	2.87%	8.15%	-21.14%
KBC	43 Neutral	AU$9.72M	1.40	―	―	―	―

AF Legal Group Limited Corporate Events

AF Legal Group Adjusts CEO Employment Terms and Issues Incentives

AF Legal Group Limited has announced a variation in the employment agreement of its CEO, Chris McFadden, to clarify the terms of short and long-term incentives. The company also issued shares and performance rights under its Long Term Incentive Plan to both McFadden and CFO/COO Stace Boardman, highlighting their importance to the company’s success. This move is seen as a strategic effort to align leadership incentives with company performance, potentially impacting shareholder value and company control dynamics.

AF Legal Group Releases 2025 Corporate Governance Statement

AF Legal Group Limited has released its 2025 Corporate Governance Statement, detailing its adherence to the ASX Corporate Governance Council’s Principles and Recommendations. The company has largely complied with these guidelines, with exceptions noted and alternative practices adopted where necessary. The statement highlights the company’s commitment to transparency, diversity, and accountability, including a diversity policy aiming for gender balance in its workforce and senior management.

AF Legal Group Achieves Record Profit and Revenue Growth in FY25

AF Legal Group Limited reported a record high normalised NPBT of $1.4 million for FY25, marking a 77% increase from the previous corresponding period. The company achieved a 27% revenue growth, reaching $27.6 million, driven by contributions from recent acquisitions and strong performance in Q4. Despite facing one-off expenses related to acquisitions and legal defense, the company anticipates further revenue growth and operational efficiencies in FY26, with a focus on scaling and leveraging its operations.

AF Legal Group Reports Revenue Growth Amid Profit Decline

AF Legal Group Limited reported a 26% increase in revenue from ordinary activities for the financial year ending June 30, 2025, reaching $27.6 million. However, the company experienced a significant decline in profit after tax from ordinary activities, which fell by 55% to $725,000. The earnings per share also saw a dramatic decrease, with basic earnings dropping by 106%. Dividends were distributed to shareholders, with AF Legal Pty Ltd receiving a substantial portion. The company did not incorporate new entities but changed the names of two existing ones. The annual general meeting is scheduled for November 27, 2025.