Humm Group Limited (HUM) AI Stock Analysis

• Market Cap: AU$297.93M
• Dividend Yield: 4.13%
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.89
• Revenue Growth: 16.13%
• EPS Growth: N/A
• Country: AU
• Employees: 570
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Financial - Credit Services
• EPS (TTM): 0.04
• Shares Outstanding: 492,495,330
• 10 Day Avg. Volume: 1,453,038
• 30 Day Avg. Volume: 2,195,764
• PEG Ratio: -0.81
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.26
• 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: AU$0.85
• Price Target Upside: 42.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: AU$0.50 ▼(-16.67%Downside)

Humm Group Limited's stock score reflects mixed financial performance, with stable operational efficiency shadowed by declining revenue and cash flow challenges. The technical analysis indicates caution due to overbought conditions and bearish trends. Despite these challenges, the stock appears undervalued with a strong dividend yield, providing some support for investors.

Humm Group Limited Business Overview & Revenue Model

Company Description

Humm Group Limited provides various financial services in Australia, New Zealand, Ireland, the United Kingdom, and Canada. The company operates through four segments: BNPL, New Zealand Cards, Australia Cards, and Commercial and Leasing. It offers buy now, pay later solution under the bundll brand name; humm, an interest-free payment platform with repayment options; long term interest free finance and everyday spend solutions under the humm90 brand; humm pro, a buy now pay later solution for small to medium businesses; Q Mastercard, an interest free credit card; FlexiCommercial, a business financing solution, which includes leasing and chattel mortgages for small and medium businesses; and leasing solutions and SME financing services. The company was formerly known as FlexiGroup Limited and changed its name to Humm Group Limited in November 2020. Humm Group Limited was founded in 1988 and is headquartered in Sydney, Australia.

How the Company Makes Money

Humm Group Limited generates revenue primarily through its consumer finance products. The company earns money by charging fees and interest on the financial products it offers, such as BNPL and personal loans. For BNPL solutions, Humm typically receives merchant fees each time a consumer uses its service to complete a purchase, as well as potential late payment fees from consumers. For traditional credit products, the revenue arises from interest charged on outstanding balances. Additionally, the company may benefit from partnerships with retailers and other service providers that integrate Humm's payment solutions into their sales processes, enhancing customer reach and transaction volume.

Humm Group Limited Financial Statement Overview

Summary

Humm Group Limited's financials reveal stability in operational efficiency, but declining revenue, high leverage, and cash flow challenges pose risks. Income stability is offset by financial vulnerabilities.

Income Statement

Humm Group Limited has shown a decline in total revenue from 2023 to 2024, though there was a slight recovery in net income. The gross profit and EBIT margins remain consistent, indicating stable operational efficiency, but the negative revenue growth trajectory and fluctuating net profit margins suggest challenges in sustaining growth.

Balance Sheet

The company maintains a high debt-to-equity ratio, indicating significant leverage, which could pose financial risk. The return on equity is improving, reflecting better use of shareholder funds. However, the equity ratio is low, highlighting potential vulnerability in asset financing.

Cash Flow

Humm Group faces challenges with negative operating and free cash flow, indicating cash management issues. The large financing cash inflow suggests reliance on external funding. Despite the negative free cash flow, there is a slight improvement in operating cash flow to net income ratio.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	272.60M	243.70M	248.00M	292.90M	311.00M	244.40M
Gross Profit	272.60M	243.70M	248.00M	292.90M	311.00M	244.40M
EBITDA	202.00M	315.90M	197.70M	169.60M	181.90M	136.90M
Net Income	40.40M	7.10M	2.90M	-170.30M	60.10M	23.10M
Balance Sheet
Total Assets	5.27B	5.42B	4.77B	3.77B	3.30B	3.05B
Cash, Cash Equivalents and Short-Term Investments	113.60M	281.20M	336.10M	281.00M	218.20M	157.50M
Total Debt	4.61B	4.72B	4.08B	3.04B	2.43B	2.31B
Total Liabilities	4.72B	4.84B	4.20B	3.14B	2.54B	2.46B
Stockholders Equity	545.80M	525.30M	572.50M	627.70M	759.10M	586.50M
Cash Flow
Free Cash Flow	-108.40M	-697.50M	-900.70M	-544.20M	-139.70M	106.80M
Operating Cash Flow	-89.60M	-682.50M	-882.70M	-520.90M	-110.60M	138.50M
Investing Cash Flow	-17.30M	-13.50M	-18.00M	-14.80M	-31.30M	-88.60M
Financing Cash Flow	15.20M	640.90M	952.90M	600.90M	203.40M	-91.50M

Humm Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HUM, the sentiment is Positive. The current price of 0.6 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.50, and below the 200-day MA of 0.60, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 76.95 is Negative, neither overbought nor oversold. The STOCH value of 75.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HUM.

Humm Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLT	77 Outperform	AU$168.76M	6.77	71.90%	―	22.94%	―
ZIP	71 Outperform	AU$3.69B	84.38	-7.85%	―	23.06%	58.45%
SVR	66 Neutral	AU$317.29M	16.27	5.60%	7.34%	-0.55%	-40.11%
Sector *	63 Neutral	$16.85B	11.25	-7.01%	2.93%	1.72%	-24.85%
MME	58 Neutral	AU$124.01M	7.17	-13.74%	―	-14.61%	-325.81%
HUM	57 Neutral	AU$297.93M	8.86	7.81%	4.13%	16.13%	―
WZR	46 Neutral	AU$36.27M	―	-20.13%	―	-5.95%	-9.84%

Humm Group Limited Corporate Events

humm Group Receives Acquisition Offer from The Abercrombie Group

humm Group Limited has received a non-binding indicative offer from The Abercrombie Group Pty Ltd, led by Board Chair Andrew Abercrombie, to acquire all ordinary shares not already owned by TAG and its associates at a cash price of $0.58 per share. This offer, which is subject to several conditions including due diligence and shareholder approval, represents a significant premium over the closing price of $0.43 on June 23, 2025. An independent board committee has been formed to evaluate the offer, and TAG has been granted a four-week period for due diligence. The outcome of this potential acquisition could impact hummgroup’s market positioning and shareholder value, though there is no certainty that a binding agreement will be reached.

The most recent analyst rating on (AU:HUM) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Humm Group Limited stock, see the AU:HUM Stock Forecast page.

Humm Group Initiates Trading Halt Amid Potential Acquisition Talks

Humm Group Limited has requested a trading halt for its ordinary shares on the ASX pending an announcement regarding a non-binding indicative offer to acquire the company’s shares. This move indicates potential significant changes in ownership or strategic direction, impacting stakeholders and possibly altering the company’s market positioning.

The most recent analyst rating on (AU:HUM) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Humm Group Limited stock, see the AU:HUM Stock Forecast page.

Humm Group Limited Appoints New Company Secretary

Humm Group Limited announced a change in its Company Secretary position, with Kimberly Sue resigning and Carlie Bangs being appointed effective June 2, 2025. Carlie Bangs, a seasoned corporate lawyer with extensive experience in governance and compliance, will now be responsible for communications with the ASX, potentially strengthening the company’s governance framework.

The most recent analyst rating on (AU:HUM) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Humm Group Limited stock, see the AU:HUM Stock Forecast page.

Tanarra Capital Ceases Substantial Holding in Humm Group

Humm Group Limited has announced that Tanarra Capital Australia Pty Ltd and its associated entities have ceased to be substantial holders in the company as of May 28, 2025. This change follows a series of divestments by Tanarra Entities on the ASX, reflecting a significant reduction in their voting securities in Humm Group. The implications of this change in substantial holding could affect the company’s market dynamics and investor relations.

The most recent analyst rating on (AU:HUM) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Humm Group Limited stock, see the AU:HUM Stock Forecast page.

Humm Group Limited Reports Strong Q3 2025 Growth Amid Challenging Conditions

Humm Group Limited reported significant growth in its third-quarter update for 2025, with assets under management rising by 10% to $5.3 billion. Despite challenging economic conditions, the company maintained a stable net interest margin and improved its cost-to-income ratio. The consumer finance segment showed robust performance, driven by a 3% increase in volumes and a 10% rise in receivables. Strategic investments in IT modernization and a new hybrid loan platform are set to enhance product reliability and market competitiveness. The company is also optimizing operations in Canada and expanding its presence in the UK, with a focus on reducing losses and increasing market share.

Humm Group Limited Announces CEO Transition Amidst Strategic Growth

Humm Group Limited has announced the resignation of its CEO, Stuart Grimshaw, due to personal reasons, with Angelo Demasi stepping in as the new CEO. This leadership change comes as the company continues to navigate increased competition and expand its operations across five countries, with Demasi’s experience in strategy and transformation positioning him well to lead the company’s next phase of growth.

humm Group CEO Adjusts Role Amid Leadership Restructuring

humm Group Limited announced that CEO Stuart Grimshaw will reduce his working time for personal reasons, a decision made after careful consideration to align the needs of the company with those of the individual. Despite this change, the company expects no shift in focus or outcomes due to the strong leadership team in place. Rob Wright, previously Group Executive Consumer, will assume the role of Chief of Staff, reporting directly to Grimshaw, ensuring continued operational efficiency and leadership.