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AF Legal Group Limited (AU:AFL)
ASX:AFL

AF Legal Group Limited (AFL) AI Stock Analysis

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AU:AFL

AF Legal Group Limited

(Sydney:AFL)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
AU$0.17
▼(-7.22% Downside)
Action:ReiteratedDate: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
Revenue Growth
AF Legal's reported 15.7% revenue growth signals durable demand expansion and effective market penetration for its services. Sustained top-line growth provides a base for operational leverage, funds reinvestment into capabilities, and supports scalable long-term business progress.
Negative Factors
Low Profitability
A net margin of 0.37% means most revenue does not convert to earnings, constraining internally generated funds for reinvestment. Persistently low profitability increases sensitivity to cost inflation and implies structural pricing or operational efficiency issues that must be addressed for durable returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
AF Legal's reported 15.7% revenue growth signals durable demand expansion and effective market penetration for its services. Sustained top-line growth provides a base for operational leverage, funds reinvestment into capabilities, and supports scalable long-term business progress.
Read all positive factors

AF Legal Group Limited (AFL) vs. iShares MSCI Australia ETF (EWA)

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 a...
How the Company Makes Money
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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
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue32.72M27.60M21.66M18.83M16.91M11.01M
Gross Profit20.50M27.57M21.65M18.91M3.81M3.66M
EBITDA4.63M3.27M3.34M-5.35M2.08M771.09K
Net Income313.00K102.00K962.00K-8.10M-407.00K-482.00K
Balance Sheet
Total Assets28.31M27.86M23.71M18.05M23.44M20.69M
Cash, Cash Equivalents and Short-Term Investments2.80M2.21M2.32M2.05M3.75M4.66M
Total Debt9.85M9.67M6.91M3.70M1.63M1.06M
Total Liabilities17.75M18.06M13.73M11.00M8.54M7.39M
Stockholders Equity9.88M9.27M9.12M6.38M14.40M13.29M
Cash Flow
Free Cash Flow1.93M2.37M161.00K300.00K595.00K694.21K
Operating Cash Flow2.23M2.86M545.00K1.06M1.04M1.15M
Investing Cash Flow-387.00K-3.60M-4.12M-1.20M-955.00K-2.54M
Financing Cash Flow-2.36M637.00K3.84M-1.56M-994.00K4.49M

AF Legal Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.18
Price Trends
50DMA
0.16
Positive
100DMA
0.17
Negative
200DMA
0.15
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
49.01
Neutral
STOCH
33.33
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 0.16, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.01 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
AU$127.04M4.040.21%7.14%4.44%-90.57%
59
Neutral
AU$15.30M8.463.27%27.43%-90.52%
56
Neutral
AU$10.83M-3.13-3.15%29.55%
55
Neutral
$13.29B17.4210.03%0.93%7.13%-12.93%
54
Neutral
AU$10.87M18.321.01%3.50%-50.00%-52.07%
53
Neutral
AU$9.72M-1.3191.73%
50
Neutral
AU$8.81M2.4348.08%2.61%8.15%-21.14%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AFL
AF Legal Group Limited
0.17
0.05
43.48%
AU:IPC
Imperial Pacific Limited
2.00
0.39
24.22%
AU:SHJ
Shine Justice Ltd.
0.75
0.09
14.16%
AU:BPH
BPH Energy Limited
0.01
0.00
0.00%
AU:N1H
N1 Holdings Ltd.
0.10
-0.02
-14.53%
AU:KBC
Keybridge Capital Limited
0.05
0.00
0.00%

AF Legal Group Limited Corporate Events

AF Legal Director Increases Indirect Shareholding via Westferry Fund
Mar 11, 2026
AF Legal Group has disclosed a change in director Peter Johns’ indirect interests in the company, following on‑market share purchases executed via Westferry Operations Pty Ltd as trustee for The Westferry Fund. Across two trades on 6 a...
AF Legal Group CFO Departs After Steering Period of Rapid Growth
Feb 27, 2026
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 i...
AF Legal Group Delivers Strong H1 FY26 Turnaround on Back of People-First Strategy
Feb 26, 2026
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...
AF Legal Group Delivers Record Half-Year Profit on Strong Legal Services Growth
Feb 26, 2026
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 attributab...
AF Legal Group posts record half-year revenue and profit on continued growth
Feb 26, 2026
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 ...
AF Legal Group Sets Dates for H1 FY26 Results and Investor Call
Feb 24, 2026
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 t...
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.Date of analysis: Feb 27, 2026