AF Legal Group Limited (AFL) AI Stock Analysis

• Market Cap: €12.34M
• Dividend Yield: N/A
• Average Volume (3M): 116.77K
• Price to Earnings (P/E): 122.7
• Beta (1Y): 0.42
• 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: -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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: AU$0.19 ▲(4.44% Upside)

AF Legal Group Limited's stock score is primarily driven by strong technical momentum and solid financial performance, particularly in revenue growth and cash flow generation. However, the high P/E ratio suggests overvaluation, which significantly impacts the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding client base and service adoption, enhancing long-term business stability and market position.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and resilience against economic downturns.

Stable Balance Sheet

A stable balance sheet with manageable leverage supports long-term financial health and reduces risk of financial distress.

Negative Factors

Low Profitability

Low profitability can limit reinvestment in business growth and affect the company's ability to compete effectively in the long term.

Rising Debt Levels

Increased leverage can strain financial resources and limit strategic flexibility, impacting long-term operational stability.

Low Return on Equity

Low returns on equity suggest inefficiencies in using shareholder funds, potentially deterring future investment and growth.

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: Positive
• Last Price: 0.18
• 50DMA: Positive
• 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 Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.14, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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	65 Neutral	€12.34M	122.73	―	―	27.43%	-90.52%
BPH	58 Neutral	AU$10.98M	1.75	19.93%	―	―	29.55%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SHJ	55 Neutral	AU$115.19M	206.06	0.21%	7.30%	4.44%	-90.57%
IPC	54 Neutral	AU$10.33M	54.76	1.82%	3.68%	-50.00%	-52.07%
N1H	52 Neutral	AU$14.97M	17.53	43.56%	2.86%	8.15%	-21.14%
KBC	43 Neutral	AU$9.72M	1.40	―	―	―	―

AF Legal Group Limited Corporate Events

AF Legal Group Secures Shareholder Approval at 2025 AGM

AF Legal Group Limited announced the successful passage of all resolutions during its 2025 Annual General Meeting, indicating strong shareholder support. This outcome may enhance the company’s operational stability and reinforce its strategic initiatives, potentially impacting its market position positively.

AF Legal Group Reports Robust Q1 FY26 Growth and High Employee Satisfaction

AF Legal Group Limited reported a significant revenue growth of 43% in Q1 FY26, with an average weekly revenue of $692k, marking a new high. The company has shown a strong turnaround with a normalized NPBT of $0.782m, an improvement on the previous year’s profit. The firm has successfully attracted and promoted legal talent, contributing to a 14% increase in staff. The company is recognized as a Great Place to Work, with high team satisfaction aiding in retention and recruitment, driving revenue growth.

AF Legal Group Announces Director’s Securities Acquisition

AF Legal Group Ltd has announced a change in the director’s interest in securities, specifically involving Peter Johns, a director and shareholder of Westferry Operations Pty Ltd. The change includes the acquisition of 374,184 fully paid ordinary shares by Westferry Operations Pty Ltd ATF The Westferry Fund through on-market trade, increasing the total shares held to 5,400,923. This announcement reflects a strategic move in the company’s operations, potentially impacting its market positioning and stakeholder interests.

AF Legal Group Achieves Record Revenue in Q1 FY26

AF Legal Group Limited reported a record revenue of $9.0 million for Q1 FY26, marking a 43% increase compared to the same period last year. This growth is attributed to increased revenue across all practice areas and a significant expansion in their legal team. The company’s normalised NPBT was $0.782 million, representing 57% of the previous fiscal year’s total, indicating a strong start to FY26. Despite seasonal expectations of a slight revenue dip in Q2, the company remains optimistic due to its enhanced capacity to attract and retain high-quality lawyers.

AF Legal Group Issues Performance Rights to Employees

AF Legal Group Limited announced the issuance of 681,818 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize its employees, potentially impacting its operational efficiency and market positioning positively.

AF Legal Group Issues 1.3 Million New Securities on ASX

AF Legal Group Limited has announced the issuance of 1,300,000 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code AFL. This move is part of an employee incentive scheme and is expected to enhance the company’s operational capabilities and market positioning, potentially benefiting stakeholders by aligning employee interests with company performance.

AF Legal Group Announces 2025 Annual General Meeting

AF Legal Group Limited has announced its 2025 Annual General Meeting, scheduled for 27 November 2025, to be held both in person in Brisbane and virtually. Shareholders are encouraged to participate and vote, with proxy appointments due by 25 November 2025. This meeting is an opportunity for stakeholders to engage with the company’s strategic direction and governance.