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Humm Group Limited (AU:HUM)
ASX:HUM
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Humm Group Limited (HUM) AI Stock Analysis

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AU:HUM

Humm Group Limited

(Sydney:HUM)

Rating:66Neutral
Price Target:
AU$0.50
▼(-21.88% Downside)
The overall stock score of 66 reflects strong technical analysis and valuation metrics, with the stock showing bullish momentum and a low P/E ratio suggesting potential undervaluation. However, financial performance is mixed due to high leverage and negative cash flow growth, which poses risks to financial stability.

Humm Group Limited (HUM) vs. iShares MSCI Australia ETF (EWA)

Humm Group Limited Business Overview & Revenue Model

Company DescriptionHumm 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 MoneyHumm 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 demonstrates strong revenue growth and operational efficiency, with high gross profit and EBIT margins. However, the company faces challenges with high leverage and negative free cash flow growth, which could impact financial stability. While profitability metrics are improving, the high debt levels pose a potential risk to long-term sustainability.
Income Statement
75
Positive
Humm Group Limited shows a strong revenue growth rate of 139.77% in the latest year, indicating a significant improvement in sales. The gross profit margin is exceptionally high at 94.80%, suggesting effective cost management. However, the net profit margin is relatively low at 6.06%, indicating potential inefficiencies or high expenses. The EBIT and EBITDA margins are robust at 53.79% and 56.62%, respectively, reflecting strong operational performance.
Balance Sheet
55
Neutral
The company has a high debt-to-equity ratio of 9.30, which indicates significant leverage and potential financial risk. Return on equity is moderate at 7.87%, showing decent profitability relative to shareholders' equity. The equity ratio is low, suggesting a high reliance on debt financing, which could pose risks in volatile market conditions.
Cash Flow
40
Negative
Free cash flow growth is negative at -245.48%, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is low at 0.037, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is relatively healthy at 0.88, indicating that a significant portion of net income is converted into free cash flow.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue653.60M653.60M243.70M248.00M292.90M311.00M
Gross Profit619.60M619.60M243.70M248.00M292.90M311.00M
EBITDA378.60M370.10M315.90M197.70M169.60M181.90M
Net Income39.60M39.60M7.10M2.90M-170.30M60.10M
Balance Sheet
Total Assets5.34B5.34B5.42B4.77B3.77B3.30B
Cash, Cash Equivalents and Short-Term Investments323.30M323.30M281.20M336.10M281.00M218.20M
Total Debt4.68B4.68B4.72B4.08B3.04B2.43B
Total Liabilities4.84B4.84B4.84B4.20B3.14B2.54B
Stockholders Equity503.20M503.20M525.30M572.50M627.70M759.10M
Cash Flow
Free Cash Flow157.70M157.70M-697.50M-900.70M-544.20M-139.70M
Operating Cash Flow179.00M179.00M-682.50M-882.70M-520.90M-110.60M
Investing Cash Flow-21.30M-21.30M-13.50M-18.00M-14.80M-31.30M
Financing Cash Flow-115.20M-115.20M640.90M952.90M600.90M203.40M

Humm Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.64
Price Trends
50DMA
0.59
Positive
100DMA
0.53
Positive
200DMA
0.57
Positive
Market Momentum
MACD
0.02
Negative
RSI
66.12
Neutral
STOCH
75.44
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 0.64 is above the 20-day moving average (MA) of 0.60, above the 50-day MA of 0.59, and above the 200-day MA of 0.57, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.12 is Neutral, neither overbought nor oversold. The STOCH value of 75.44 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
AU$224.28M9.0971.90%22.94%
66
Neutral
€317.62M9.087.83%3.13%7.64%463.49%
65
Neutral
AU$5.80B72.7614.42%23.69%116.67%
64
Neutral
AU$312.43M10.408.73%8.48%-4.26%89.71%
61
Neutral
$18.02B12.77-0.75%3.01%1.30%-13.03%
53
Neutral
AU$108.01M7.17-42.59%-9.56%-392.31%
46
Neutral
AU$48.82M-19.44%-2.35%13.33%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:HUM
Humm Group Limited
0.64
-0.14
-18.37%
AU:SVR
Money3 Corporation Limited
1.62
0.52
47.27%
AU:WZR
Wisr Ltd.
0.04
0.01
33.33%
AU:ZIP
Zip Co Ltd.
4.43
2.26
104.15%
AU:PLT
Plenti Group Ltd.
1.28
0.62
93.94%
AU:MME
MoneyMe Ltd.
0.13
0.01
8.33%

Humm Group Limited Corporate Events

humm Group Limited Considers Acquisition Proposal from The Abercrombie Group
Jul 31, 2025

humm Group Limited has received a non-binding indicative proposal from The Abercrombie Group Pty Ltd to acquire the company for $0.58 cash per share. The Independent Board Committee of hummgroup is engaging with TAG to explore the possibility of a proposal that offers value and certainty to shareholders. While providing limited due diligence to TAG, hummgroup emphasizes that this does not guarantee a binding offer. Measures are in place to manage conflicts of interest, given the involvement of hummgroup’s Board Chair, Andrew Abercrombie, with TAG. Shareholders are advised that no action is required at this stage.

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 Updates on Acquisition Proposal by The Abercrombie Group
Jul 15, 2025

humm Group Limited has announced an update regarding The Abercrombie Group’s non-binding indicative proposal to acquire the company for $0.58 cash per share. The Independent Board Committee has granted TAG limited access to non-public information for due diligence, though this does not ensure a binding offer. hummgroup has engaged financial and legal advisers to navigate the proposal, and shareholders are advised that no action is required at this time.

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 Announces Cessation of Performance Rights
Jul 14, 2025

Humm Group Limited announced the cessation of several performance rights due to unmet conditions, impacting a total of over 4 million securities. This development may affect the company’s capital structure and could have implications for stakeholders, reflecting challenges in meeting performance targets.

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 Receives Acquisition Offer from The Abercrombie Group
Jun 25, 2025

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
Jun 25, 2025

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
Jun 3, 2025

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
May 29, 2025

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
May 12, 2025

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
May 9, 2025

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.

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: Sep 05, 2025