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Finbar Group Limited (AU:FRI)
ASX:FRI
Australian Market

Finbar Group Limited (FRI) AI Stock Analysis

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AU

Finbar Group Limited

(Sydney:FRI)

Rating:65Neutral
Price Target:
AU$1.00
▲(38.89%Upside)
Finbar Group Limited's strong revenue growth and attractive valuation are significant positives. However, profitability and cash flow challenges, as well as high leverage, pose risks. The technical indicators suggest a neutral market sentiment. Addressing financial management issues and leveraging the attractive valuation could enhance the overall stock performance.

Finbar Group Limited (FRI) vs. iShares MSCI Australia ETF (EWA)

Finbar Group Limited Business Overview & Revenue Model

Company DescriptionFinbar Group Limited, through its subsidiaries, develops and invests in properties in Australia. It engages in the development of medium to high density residential buildings and commercial properties, as well as rents its properties. The company was incorporated in 1984 and is based in East Perth, Australia.
How the Company Makes MoneyFinbar Group Limited generates revenue primarily through the development and sale of residential apartments. The company undertakes large-scale property development projects in urban areas, particularly in Perth, Western Australia, where it identifies and acquires suitable land for development. Once the projects are completed, the residential units are sold to individual buyers or investors, providing a significant source of revenue. Additionally, the company may engage in joint ventures or partnerships with other property developers or investment groups to share resources and risks, potentially enhancing profitability. Finbar Group Limited's focus on strategic land acquisition, efficient project management, and market-responsive design helps drive sales and maintain a competitive edge in the property development sector.

Finbar Group Limited Financial Statement Overview

Summary
Finbar Group Limited demonstrates strong revenue growth, but profitability margins suggest room for improvement in cost management. The balance sheet reflects a high leverage position, while cash flow challenges highlight the need for better cash management strategies. Overall, while the company is growing, addressing leverage and cash flow issues will be crucial for long-term financial health.
Income Statement
65
Positive
The company shows a positive revenue growth trend from 2023 to 2024, with total revenue increasing significantly. The gross profit margin stands at 14.98%, and the net profit margin is 8.54%, reflecting moderate profitability. The EBIT margin is 13.52%, and EBITDA margin is 11.68%, indicating efficient operations. However, the significant revenue increase is a positive sign, but the margins suggest that improvements in cost management could enhance profitability.
Balance Sheet
70
Positive
Finbar Group Limited's balance sheet reveals a debt-to-equity ratio of 1.52, which is relatively high, indicating potential leverage risk. However, the company maintains a strong equity position with an equity ratio of 36.41%. Return on equity (ROE) is 6.47%, which shows moderate efficiency in using equity to generate profits. The balance sheet is stable, but reducing leverage could mitigate risk.
Cash Flow
50
Neutral
The cash flow statement indicates negative operating cash flow of -$15.13 million and negative free cash flow of -$15.29 million, suggesting cash management challenges. The operating cash flow to net income ratio is negative, which is concerning. However, the financing cash flow is positive, indicating reliance on external financing. Continued negative free cash flow is a risk that needs addressing.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue406.14M186.14M31.80M89.97M101.16M152.91M
Gross Profit52.66M20.92M11.50M16.43M17.29M16.30M
EBITDA42.43M22.70M4.36M8.09M8.91M11.76M
Net Income24.49M16.60M3.13M10.91M8.85M6.62M
Balance Sheet
Total Assets376.01M704.53M444.26M348.13M345.50M340.53M
Cash, Cash Equivalents and Short-Term Investments29.57M220.15M18.18M33.79M52.74M31.34M
Total Debt70.31M388.77M177.14M85.20M71.48M63.98M
Total Liabilities131.90M448.04M204.19M105.40M102.86M98.59M
Stockholders Equity244.10M256.50M240.07M242.73M242.64M241.94M
Cash Flow
Free Cash Flow244.59M-15.29M-112.79M-8.70M18.04M26.38M
Operating Cash Flow244.77M-15.13M-112.59M-8.60M18.11M26.47M
Investing Cash Flow-4.45M6.62M11.11M-14.82M5.26M-11.64M
Financing Cash Flow-232.56M211.66M86.45M4.03M-1.36M-29.73M

Finbar Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.72
Price Trends
50DMA
0.73
Negative
100DMA
0.73
Negative
200DMA
0.78
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
52.71
Neutral
STOCH
62.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FRI, the sentiment is Neutral. The current price of 0.72 is above the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.73, and below the 200-day MA of 0.78, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:FRI.

Finbar Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUFRI
65
Neutral
AU$194.57M7.9410.09%11.19%1754.87%386.49%
63
Neutral
kr15.31B23.082.22%8.28%-0.55%322.72%
$7.57B12.937.73%4.94%
$6.41B-1.94%4.79%
$5.75B-6.29%4.21%
$12.88B18.595.94%4.38%
$8.65B29.094.54%2.76%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:FRI
Finbar Group Limited
0.72
-0.05
-6.49%
CNRAF
Vicinity Centres
1.52
0.30
24.59%
GPTGF
GPT Group
3.28
0.57
21.03%
MRVGF
Mirvac Group
1.28
0.09
7.56%
STGPF
Scentre Group
2.46
0.44
21.78%
STKAF
Stockland
3.60
0.87
31.87%

Finbar Group Limited Corporate Events

Finbar Group Expands with Strategic Palmyra Site Acquisition
Jul 9, 2025

Finbar Group Limited has acquired a 13,540 sqm development site in Palmyra, Western Australia, for $5.5 million plus GST. The site, which has an existing Development Approval for 130 residential apartments, is expected to contribute positively to Finbar’s earnings by FY2028, with an estimated end project value of $88 million. The acquisition, subject to FIRB approval, strengthens Finbar’s development pipeline and supports its strategy to meet Perth’s medium-density housing demand.

Finbar Group Acquires West Leederville Site for $200M Apartment Project
Jul 7, 2025

Finbar Group Limited has acquired a 4,997sqm site at 236 Railway Parade, West Leederville, for $15.7 million plus GST, with plans to develop approximately 240 residential apartments across two 18-storey towers. The project, subject to DA approval, is expected to have an end value of $200 million and contribute to Finbar’s earnings in FY2029/FY2030, enhancing its development pipeline and market positioning in metropolitan Perth.

Finbar Group Boosts Capital with Rivervale Land Sale
Jul 3, 2025

Finbar Group Limited has announced the sale of a 3,809sqm site at 6 Homelea Court, Rivervale for $13.68 million plus GST to Together Housing (WA) 2 Ltd, a charity and community housing provider. The site, which has development approval for 171 build-to-rent apartments, will enhance Finbar’s capital position, allowing the company to accelerate existing projects and pursue new development opportunities, thereby strengthening its strategic growth and diversification in the apartment development sector.

Finbar Group Announces Director Departure
Jul 1, 2025

Finbar Group Limited announced that Mr. Darren Pateman has ceased to be a director as of June 30, 2025. Mr. Pateman held 1,162,493 ordinary shares as a registered holder at the time of his departure. This change in directorship could impact the company’s governance and strategic direction, potentially affecting stakeholders and market perception.

Finbar Group Director Increases Shareholding
Jun 26, 2025

Finbar Group Limited has announced a change in the indirect interest of its director, Ms. Melissa Siew Ching Chan. On June 26, 2025, Ms. Chan acquired an additional 342,364 ordinary fully paid shares through an off-market purchase, increasing her indirect holdings to 24,060,691 shares. This acquisition, valued at $239,654.80, reflects a strategic move in the company’s governance and may influence its market perception.

Finbar Group Director Increases Stake
Jun 26, 2025

Finbar Group Limited has announced a change in the director’s interest notice, specifically regarding Mr. Ronald Chan. Mr. Chan, who holds an indirect interest in the company, acquired an additional 342,364 ordinary fully paid securities through an off-market purchase, raising his total indirect holdings to 24,060,691 securities. This change reflects a strategic move by the director to increase his stake in the company, potentially signaling confidence in the company’s future prospects.

Finbar Group Accelerates CEO Appointment to Ronald Chan
Jun 10, 2025

Finbar Group Limited has announced the accelerated appointment of Ronald Chan as Chief Executive Officer, effective immediately. Chan, who has been with the company since 2004 and served as Chief Operating Officer since 2013, is expected to lead Finbar into its next phase of growth by enhancing its development pipeline and maintaining its reputation for quality projects. The board expresses confidence in Chan’s leadership and strategic vision for the company’s future.

Finbar Group Director Increases Shareholding
Apr 11, 2025

Finbar Group Limited announced a change in the director’s interest, with Ms. Melissa Siew Ching Chan acquiring an additional 100,000 ordinary fully paid shares through an on-market purchase valued at $70,000. This acquisition increases her indirect holdings to 23,718,327 shares, reflecting a strategic move that may influence the company’s market perception and stakeholder confidence.

Finbar Group Director Increases Stake with Share Acquisition
Apr 11, 2025

Finbar Group Limited has announced a change in the interests of its director, Mr. Ronald Chan, who acquired an additional 100,000 ordinary fully paid shares indirectly, valued at $70,000, through an on-market purchase. This acquisition increases Mr. Chan’s indirect holdings, potentially signaling confidence in the company’s future prospects and stability, which may have implications for stakeholders and market perception.

Finbar Group Limited Announces Director’s Increased Shareholding
Apr 11, 2025

Finbar Group Limited has announced a change in the director’s interest, with Mr. John Chan acquiring an additional 100,000 ordinary fully paid shares through an on-market purchase valued at $70,000. This change reflects an increase in indirect holdings, with the total indirect securities now amounting to 31,705,198 shares. The acquisition signifies a potential strengthening of Mr. Chan’s commitment to the company, which may positively influence stakeholder confidence and market perception.

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: May 17, 2025