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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:61Neutral
Price Target:
AU$0.50
▼(-13.79% Downside)
The stock's overall score is driven by undervaluation and a solid dividend yield, which are offset by significant financial challenges, including declining revenue and high leverage. Although technical indicators are neutral, the financial instability presents considerable risk.

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's financial position reflects mixed performance. The income statement shows stable gross profit and EBIT margins, but declining revenue and fluctuating net income margins indicate challenges in growth sustainability. The balance sheet highlights a high debt-to-equity ratio, posing financial risk despite improving return on equity. Cash flow issues are significant, with negative operating and free cash flow, and reliance on external funding.
Income Statement
55
Neutral
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
45
Neutral
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
40
Negative
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue243.70M248.00M292.90M311.00M244.40M
Gross Profit243.70M248.00M292.90M311.00M244.40M
EBITDA315.90M197.70M169.60M181.90M136.90M
Net Income7.10M2.90M-170.30M60.10M23.10M
Balance Sheet
Total Assets5.42B4.77B3.77B3.30B3.05B
Cash, Cash Equivalents and Short-Term Investments281.20M336.10M281.00M218.20M157.50M
Total Debt4.72B4.08B3.04B2.43B2.31B
Total Liabilities4.84B4.20B3.14B2.54B2.46B
Stockholders Equity525.30M572.50M627.70M759.10M586.50M
Cash Flow
Free Cash Flow-697.50M-900.70M-544.20M-139.70M106.80M
Operating Cash Flow-682.50M-882.70M-520.90M-110.60M138.50M
Investing Cash Flow-13.50M-18.00M-14.80M-31.30M-88.60M
Financing Cash Flow640.90M952.90M600.90M203.40M-91.50M

Humm Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.58
Price Trends
50DMA
0.54
Positive
100DMA
0.52
Positive
200DMA
0.58
Negative
Market Momentum
MACD
<0.01
Positive
RSI
48.36
Neutral
STOCH
19.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HUM, the sentiment is Neutral. The current price of 0.58 is below the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.54, and below the 200-day MA of 0.58, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 19.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:HUM.

Humm Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
AU$202.50M7.8071.90%22.94%
71
Outperform
AU$4.56B84.38-7.85%23.06%58.45%
64
Neutral
AU$314.37M16.125.60%6.92%-0.55%-40.11%
61
Neutral
€278.23M8.277.81%4.39%16.13%
56
Neutral
HK$24.69B3.84-3.23%5.89%0.25%-59.97%
53
Neutral
AU$112.01M7.17-13.74%-14.61%-325.81%
46
Neutral
AU$39.06M-20.13%-5.95%-9.84%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:HUM
Humm Group Limited
0.58
0.11
23.39%
AU:SVR
Money3 Corporation Limited
1.56
0.53
51.46%
AU:WZR
Wisr Ltd.
0.03
0.00
0.00%
AU:ZIP
Zip Co Ltd.
3.43
1.67
94.89%
AU:PLT
Plenti Group Ltd.
1.14
0.44
62.86%
AU:MME
MoneyMe Ltd.
0.14
0.05
55.56%

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: Aug 01, 2025