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Insignia Financial Ltd (AU:IFL)
ASX:IFL

Insignia Financial Ltd (IFL) AI Stock Analysis

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AU

Insignia Financial Ltd

(Sydney:IFL)

Rating:54Neutral
Price Target:
AU$3.50
▲(3.24%Upside)
Insignia Financial Ltd's overall stock score reflects significant financial and technical challenges. The primary concerns include declining revenues, negative profitability, and bearish technical indicators. The company's balance sheet remains a relative strength, with manageable debt levels, but the valuation metrics are concerning due to negative earnings. Overall, the stock faces substantial headwinds, and improvement in financial performance and market sentiment is essential for a more favorable outlook.

Insignia Financial Ltd (IFL) vs. iShares MSCI Australia ETF (EWA)

Insignia Financial Ltd Business Overview & Revenue Model

Company DescriptionInsignia Financial Ltd. provides financial advice, platforms, and asset management services in Australia. The company offers financial services solutions on superannuation and investments to clients including investors, members, employers, and advisers. It also provides financial advisory, various financial products and services, and investment management services on behalf of institutional, retail, and direct clients. The company was formerly known as IOOF Holdings Ltd. and changed its name to Insignia Financial Ltd. in December 2021. Insignia Financial Ltd. was founded in 1846 and is based in Docklands, Australia.
How the Company Makes MoneyInsignia Financial Ltd makes money primarily through management fees, administration fees, and advisory fees. The company earns revenue by managing superannuation funds and investment portfolios for its clients, charging fees based on the assets under management (AUM). Additionally, Insignia Financial provides financial advisory services, earning advisory fees for personalized financial planning and advice. The company may also generate income through partnerships with investment platforms and financial institutions, enhancing its product offerings and expanding its client base. As a significant player in the financial services industry, Insignia Financial's earnings are influenced by market conditions, regulatory changes, and client demand for wealth management services.

Insignia Financial Ltd Financial Statement Overview

Summary
Insignia Financial Ltd faces a challenging financial environment with declining revenues and profitability pressures. While the balance sheet remains relatively strong with manageable debt levels, the income statement and cash flow indicate operational and liquidity challenges. The company needs to focus on improving revenue growth and operational efficiency to enhance its financial position.
Income Statement
62
Positive
The income statement reflects a challenging year for Insignia Financial Ltd. Gross profit margin in 2024 was approximately 34.1%, a decline from prior years, signaling pressure on profitability. The net profit margin was negative (-9.9%) due to a substantial net loss, indicating potential operational challenges. Revenue has been declining over the past two years, with a significant drop of 4.1% from 2023 to 2024. EBIT margin improved slightly to 11.1%, showing some control over operating expenses. However, the EBITDA margin declined to 6.3%, highlighting reduced operational efficiency.
Balance Sheet
71
Positive
The balance sheet shows a relatively stable financial position with stockholders' equity of $2.04 billion in 2024. The debt-to-equity ratio is moderate at 0.45, indicating manageable leverage levels. However, a decline in total assets and stockholders' equity from previous years suggests shrinking asset base and potential challenges in maintaining financial stability. The equity ratio of 57.0% is healthy, reflecting a strong equity base relative to total assets.
Cash Flow
58
Neutral
Cash flow analysis reveals significant challenges with negative operating cash flow of $53.3 million in 2024. Free cash flow also turned negative, indicating cash constraints. The free cash flow to net income ratio is not meaningful due to negative net income, and there is a lack of consistent cash generation over time. Despite these issues, cash reserves provide some buffer against short-term liquidity pressures.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.74B1.86B1.94B2.14B1.23B1.08B
Gross Profit
703.20M1.35B1.21B1.33B638.60M521.20M
EBIT
416.60M-290.80M160.10M164.70M85.90M126.70M
EBITDA
192.60M117.90M284.20M172.50M174.10M195.60M
Net Income Common Stockholders
-152.20M-185.30M8.20M36.80M-142.60M56.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
629.20M486.50M505.60M1.58B1.79B1.30B
Total Assets
3.79B3.59B5.00B5.51B5.76B4.51B
Total Debt
1.18B917.50M937.40M992.40M762.60M572.30M
Net Debt
763.80M495.80M431.80M474.40M91.90M197.60M
Total Liabilities
1.76B1.54B2.67B3.11B3.26B2.78B
Stockholders Equity
2.03B2.04B2.33B2.40B2.49B1.74B
Cash FlowFree Cash Flow
-94.50M-54.50M4.20M-62.40M117.90M93.40M
Operating Cash Flow
-66.00M-53.30M23.70M-15.20M134.30M114.70M
Investing Cash Flow
101.80M175.60M128.30M-73.70M-742.70M254.50M
Financing Cash Flow
-74.60M-192.10M-149.80M-51.00M902.80M-106.80M

Insignia Financial Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.39
Price Trends
50DMA
3.78
Negative
100DMA
4.10
Negative
200DMA
3.54
Negative
Market Momentum
MACD
-0.13
Negative
RSI
40.00
Neutral
STOCH
57.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IFL, the sentiment is Negative. The current price of 3.39 is below the 20-day moving average (MA) of 3.54, below the 50-day MA of 3.78, and below the 200-day MA of 3.54, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IFL.

Insignia Financial Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$12.79B9.727.54%16971.00%12.07%-7.53%
AUIFL
54
Neutral
$2.27B-7.21%2.74%-8.26%-259.91%
$2.07B17.344.84%2.45%
DENNA
€803.34M5.8523.27%8.19%
DEPVQ
€1.15B-24.47%7.17%
AUCNI
67
Neutral
AU$1.39B19.004.97%6.11%13.48%-8.15%
AUMAF
44
Neutral
AU$1.25B27.6310.26%2.79%31.89%45.79%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IFL
Insignia Financial Ltd
3.48
1.25
56.05%
AMLTF
AMP
0.81
0.11
15.71%
DE:NNA
Magellan Financial Group Ltd
4.52
-0.35
-7.19%
DE:PVQ
Perpetual Limited
9.70
-2.42
-19.97%
AU:MAF
MA Financial Group Limited
7.21
2.69
59.51%
AU:CNI
Centuria Capital Group
1.68
0.06
3.70%

Insignia Financial Ltd Corporate Events

Insignia Financial Adjusts Stake in Botanix Pharmaceuticals
May 6, 2025

Insignia Financial Ltd has announced a change in its substantial holding in Botanix Pharmaceuticals Ltd, reflecting a decrease in its voting power from 9.32% to 8.29%. This change is due to a series of market transactions involving purchases and sales of shares by its subsidiaries, IOOF Investment Management Ltd, IOOF Investment Services Ltd, and MLC Investments Ltd. The adjustment in Insignia’s stake could impact its influence within Botanix Pharmaceuticals, potentially affecting strategic decisions and stakeholder interests.

Insignia Financial Reports Q3 2025 Update Amid Strategic Progress
Apr 22, 2025

Insignia Financial Ltd reported a decrease in Funds Under Management and Administration (FUMA) by $5.0 billion to $321.8 billion as of March 31, 2025, primarily due to institutional outflows and challenging investment markets. Despite this, the company maintained solid momentum in strategically important channels such as MLC Expand and Advised Wrap, with significant net inflows. The transition of Master Trust functions to SS&C is on track, aligning with Insignia’s strategy to reduce operational expenses by 2030. The company is also focusing on enhancing the MLC brand and improving customer satisfaction, as evidenced by recent awards and positive net inflows in various sectors.

Insignia Financial Extends Exclusivity Period for Acquisition Proposals
Apr 16, 2025

Insignia Financial Ltd has announced an extension of the exclusivity period for proposals from Bain Capital Private Equity and CC Capital Partners to acquire all shares in the company. This extension allows the bidders additional time to finalize debt funding and due diligence. While there is no certainty that the proposals will result in a transaction, Insignia Financial will continue to update the market as per its disclosure obligations.

Insignia Financial Acquires Substantial Stake in IDP Education
Apr 15, 2025

Insignia Financial Ltd has become a substantial shareholder in IDP Education Limited, acquiring a 5.101% voting power as of April 10, 2025. This move signifies Insignia Financial’s strategic interest in expanding its influence and investment in the education sector, potentially impacting its market positioning and stakeholder dynamics.

Mitsubishi UFJ Financial Group Reduces Stake in Insignia Financial Ltd
Apr 14, 2025

Mitsubishi UFJ Financial Group, Inc. has announced a change in its substantial holding in Insignia Financial Ltd, with a decrease in its voting power from 6.76% to 5.72%. This adjustment reflects a shift in the number of fully paid ordinary shares held by Mitsubishi UFJ Financial Group, Inc., impacting its influence within Insignia Financial Ltd. The change in shareholding could have implications for the company’s strategic decisions and stakeholder relations, as it alters the dynamics of voting power within the organization.

Insignia Financial Ltd Announces Change in Substantial Holding
Apr 11, 2025

Insignia Financial Ltd has reported a change in the substantial holding of its voting shares, with First Sentier Investors Holdings Pty Limited and its related entities now holding a significant interest. This change reflects a shift in the voting power dynamics within the company, potentially impacting its governance and strategic decision-making processes.

Tanarra Capital Increases Stake in Insignia Financial Ltd
Apr 7, 2025

Tanarra Capital Australia Pty Ltd, along with its associated entities, has increased its substantial holding in Insignia Financial Ltd, raising its voting power from 14.45% to 15.76%. This change reflects a series of acquisitions on the Australian Securities Exchange, indicating Tanarra’s strategic interest in strengthening its influence within Insignia Financial Ltd, potentially impacting the company’s governance and strategic direction.

Insignia Financial Addresses Cyber Security Incident on Expand Platform
Apr 4, 2025

Insignia Financial Ltd has identified a cyber security incident involving credential stuffing attacks targeting its Expand Platform. Although approximately 100 customer accounts were affected, there has been no financial impact reported. The company is implementing additional security measures and advising customers on best practices to enhance account security. Insignia Financial is committed to keeping the market informed as investigations continue.

Mitsubishi UFJ Financial Group Expands Stake in Insignia Financial
Apr 1, 2025

Mitsubishi UFJ Financial Group, Inc. has increased its voting power in Insignia Financial Ltd, reflecting a significant change in its substantial holding. This adjustment in shareholding indicates Mitsubishi UFJ’s strategic positioning and influence within the company, potentially impacting Insignia Financial’s future operations and stakeholder dynamics.

Insignia Financial Announces Change in Substantial Holder Interests
Mar 31, 2025

Insignia Financial Ltd has announced a change in the interests of a substantial holder, First Sentier Investors RQI Pty Ltd, in its voting securities. The change reflects an adjustment in the voting power and relevant interests of the holder, which could impact the company’s governance and decision-making processes.

Insignia Financial Ltd Announces Change in Substantial Holder Interests
Mar 16, 2025

Insignia Financial Ltd has announced a change in the interests of a substantial holder, State Street Corporation and its subsidiaries, which now hold a significant voting power in the company. This change reflects the shifting dynamics in the ownership structure, potentially impacting the company’s governance and decision-making processes.

Insignia Financial Reports Slight Decrease in Voting Share Control
Mar 12, 2025

Insignia Financial Ltd has issued a notice under the Corporations Act 2001, subsection 259C(2), regarding the aggregated percentage of voting shares controlled by its associated entities. The notice reveals a slight decrease in the percentage of voting shares controlled by Insignia’s entities from 0.989% to 0.933%, with no change in net economic exposure, indicating a stable but slightly reduced influence over its voting shares.

Insignia Financial Ltd Ceases Substantial Holding in Mayne Pharma
Mar 11, 2025

Insignia Financial Ltd has announced that it ceased to be a substantial holder in Mayne Pharma Group Limited as of March 4, 2025. This change in holding reflects a series of transactions involving the purchase and sale of shares by its subsidiaries, which may impact Insignia’s investment strategy and market positioning within the financial services sector.

Insignia Financial Declines Early Redemption Request from NAB
Mar 3, 2025

Insignia Financial Ltd has declined an early redemption request from National Australia Bank for $200 million of subordinated loan notes, which were issued to finance the acquisition of MLC Wealth Limited. As a result, the coupon on these notes will increase from 1% to 4%, and the Additional Return Amount will be frozen based on the current share price. This decision impacts Insignia Financial’s financial liabilities and will affect its profit and loss statement in the second half of 2025.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.