Insignia Financial Ltd (AU:IFL)
ASX:IFL
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Insignia Financial Ltd
(Sydney:IFL)
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Rating:53Neutral
Price Target:
AU$4.50
▼(-6.05% Downside)
Action:ReiteratedDate:02/19/26
The score is held back primarily by weak financial performance signals in the provided statements (declining revenue, low profitability, weak cash generation trends) and a very expensive P/E valuation. These are partially offset by a comparatively positive earnings-call backdrop (profit and cash-flow turnaround, cost-out progress, and broadly steady guidance) and mostly neutral technicals that do not indicate strong momentum either way.
Positive Factors
Scale and FUMA growth
Sizable FUMA/FUA and ongoing net inflows underpin durable fee revenue tied to asset balances. Scale supports cross‑selling, pricing leverage on platform costs, and resiliency to outflows. Over 2–6 months higher assets sustain recurring admin and management fees that drive margin stability.
Negative Factors
Declining revenue and low net margin
Persistent revenue decline and an extremely low net margin signal weak top‑line momentum and limited earnings resilience. Even with operational improvements, low net profitability constrains retained earnings, reduces shock absorbers for cyclical downdrafts, and limits durable returns to shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale and FUMA growth
Sizable FUMA/FUA and ongoing net inflows underpin durable fee revenue tied to asset balances. Scale supports cross‑selling, pricing leverage on platform costs, and resiliency to outflows. Over 2–6 months higher assets sustain recurring admin and management fees that drive margin stability.
Read all positive factors
Insignia Financial Ltd (IFL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.21B
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)9.7
Beta (1Y)0.33
Revenue Growth-6.89%
EPS GrowthN/A
CountryAU
Employees1,300
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.20
Shares Outstanding670,726,140
10 Day Avg. Volume1,265,220
30 Day Avg. Volume1,169,889
Financial Highlights & Ratios
PEG Ratio-1.39
Price to Book (P/B)1.18
Price to Sales (P/S)1.54
P/FCF Ratio29.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.78Price Target Upside-0.14% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.38
Revenue Forecast (FY)AU$1.41B
Insignia Financial Ltd Business Overview & Revenue Model
Company Description
Insignia 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 adv...
How the Company Makes Money
Insignia Financial Ltd generates revenue through multiple streams, primarily from fees charged for financial advice and investment management services. The company earns management fees based on the assets under management (AUM), which are collect...
Insignia Financial Ltd Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful operational and financial improvements: higher UNPAT, EBITDA growth, strong FUMA/FUA growth, substantial reduction in below-the-line cash costs, positive free cash flow turnaround, and clear progress across Advice, Wrap, Master Trust and Asset Management including AI enablement and an effective brand relaunch. Offsetting these positives are margin pressure (group margin down to 42 bps), margin impacts from prior repricing and divestments, delays in platform migrations that push some benefits into FY27, ongoing reinvestment spend, and remaining remediation and funding obligations. On balance the positive performance, cash flow improvement and structural cost reductions materially outweigh the challenges and timing risks noted.Positive Updates
UNPAT and Profitability Improvement
Underlying net profit after tax (UNPAT) increased ~6% to $132.1 million (1H FY26), with EBITDA up 6.5% to $238.2 million and reported NPAT recovering from a loss of $16.8 million to a profit of $78.8 million.
Negative Updates
Revenue Margin Decline
Group net revenue margin declined from 43.8 bps to 42 bps; material margin headwinds included Master Trust (-$21.7 million), Wrap (-$8.5 million) and Asset Management (-$6.3 million) versus prior period.
Read all updates
Q2-2026 Updates
Positive
Negative
UNPAT and Profitability Improvement
Underlying net profit after tax (UNPAT) increased ~6% to $132.1 million (1H FY26), with EBITDA up 6.5% to $238.2 million and reported NPAT recovering from a loss of $16.8 million to a profit of $78.8 million.
Read all positive updates
Company Guidance
Management updated FY26 guidance by lifting Master Trust net revenue margin guidance to 51.5–52.5 bps (from 51–52 bps) and trimming Wrap margin guidance to 27–28 bps (from 27.5–28.5 bps), while corporate revenue guidance was increased due to delayed Wrap white‑label migrations; overall cost guidance for FY26 is unchanged. Key financial context: 1H26 net revenue was $718.2m (+1.8%), UNPAT $132.1m (+6.3%), average FUMA $339bn (+$19bn, +6% y/y) and group net revenue margin was 42 bps (down from 43.8 bps). Operating metrics include base OpEx down 6.4% to $449.2m, total OpEx $480m, reinvestment OpEx $30.8m in H1 (management expects average reinvestment OpEx of $60–80m p.a. over the five‑year plan and acceleration in H2), below‑the‑line cash items cut from $153m to $15.9m, free cash flow positive $52m (vs –$239m prior) and senior leverage ~0.9x net debt/EBITDA at the half with closing FY26 leverage expected around 1x; remediation funding of ~$54m and repayment of $254m subordinated notes are forecast, and no dividend will be paid under the scheme (a special dividend may be possible after 22 Jul 2026 at 50% of monthly UNPAT subject to net debt < $500m).Insignia Financial Ltd Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.64B | 1.58B | 1.86B | 1.94B | 2.14B | 1.23B |
| Gross Profit | 920.80M | 693.60M | 1.35B | 1.21B | 1.33B | 638.60M |
| EBITDA | 389.70M | 393.30M | 117.90M | 284.20M | 266.20M | 174.10M |
| Net Income | 111.70M | 16.10M | -185.30M | 51.20M | 36.80M | -142.60M |
Balance Sheet | ||||||
| Total Assets | 3.59B | 3.77B | 3.59B | 5.00B | 5.51B | 5.76B |
| Cash, Cash Equivalents and Short-Term Investments | 416.40M | 476.30M | 486.50M | 592.90M | 1.58B | 1.79B |
| Total Debt | 1.26B | 1.10B | 917.50M | 937.40M | 999.50M | 773.50M |
| Total Liabilities | 1.45B | 1.70B | 1.54B | 2.67B | 3.11B | 3.26B |
| Stockholders Equity | 2.13B | 2.07B | 2.04B | 2.33B | 2.40B | 2.49B |
Cash Flow | ||||||
| Free Cash Flow | 283.10M | 82.40M | -54.50M | 4.20M | -62.40M | 117.90M |
| Operating Cash Flow | 273.00M | 90.40M | -53.30M | 23.70M | -15.20M | 134.30M |
| Investing Cash Flow | 27.90M | 23.00M | 178.80M | 150.60M | -73.70M | -742.70M |
| Financing Cash Flow | -275.30M | -25.50M | -195.30M | -149.80M | -51.00M | 902.80M |
Insignia Financial Ltd Technical Analysis
Positive
4.79
Price Trends
4.69
Positive
4.64
Positive
4.54
Positive
Market Momentum
0.03
Negative
68.54
Neutral
93.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IFL, the sentiment is Positive. The current price of 4.79 is above the 20-day moving average (MA) of 4.76, above the 50-day MA of 4.69, and above the 200-day MA of 4.54, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 68.54 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:IFL.
Insignia Financial Ltd Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$1.81B | 6.19 | 14.31% | 5.99% | -12.42% | -36.36% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | AU$3.63B | 14.10 | 13.61% | 3.45% | 11.69% | -15.05% | |
58 Neutral | AU$2.85B | 1.91 | 58.96% | 23.72% | 215.38% | -82.04% | |
53 Neutral | AU$3.21B | 9.67 | 5.32% | ― | -6.89% | ― | |
50 Neutral | AU$1.88B | 9.75 | -1.00% | 6.01% | 2.23% | 96.71% | |
44 Neutral | AU$3.64B | 34.62 | 3.56% | 1.65% | -14.25% | -25.71% |
* Financial Sector Average
AU:IFL
Insignia Financial Ltd
4.79
0.98
25.72%
AU:AMP
AMP
1.44
0.19
15.11%
AU:MFG
Magellan Financial Group Ltd
9.79
2.75
39.00%
AU:PPT
Perpetual Limited
16.19
0.86
5.60%
AU:L1G
Platinum Asset Management Ltd
1.16
0.57
97.44%
AU:PNI
Pinnacle Investment Management Group Limited
15.70
-1.77
-10.11%
Insignia Financial Ltd Corporate Events
Insignia Financial Exits Substantial Holder Status in Qoria
Feb 11, 2026
Insignia Financial Ltd and its subsidiaries have ceased to be a substantial holder in Qoria Ltd, following changes in their relevant interests in the company’s voting securities. The move reflects a significant adjustment in Insignia’s...
Insignia Financial Details Performance Rights Compliance and Strengthens ASX Disclosure Processes
Jan 23, 2026
Insignia Financial has responded to an ASX compliance letter, confirming it will not provide additional disclosure on movements in performance rights between December 2020 and 30 June 2025, beyond what has already been reported in its annual repor...
UBS Group AG Ceases to Be Substantial Shareholder in Insignia Financial
Jan 22, 2026
UBS Group AG and its related entities have notified Insignia Financial Ltd that they have ceased to be a substantial shareholder in the company as of 20 January 2026, following changes in their relevant interests in Insignia’s voting securit...
Insignia Financial Lifts FUMA to $342bn as Wrap Growth Offsets Master Trust Outflows
Jan 21, 2026
Insignia Financial reported a 0.4% rise in Funds Under Management and Administration to $342.0 billion as at 31 December 2025, with performance driven by strong net inflows into its Wrap platform and retail multi-asset and managed account offering...
Insignia Financial Updates Market on Performance Rights and Strengthens ASX Disclosure Processes
Dec 24, 2025
Insignia Financial Ltd has updated the market on movements in its performance rights, confirming that since 1 July 2025 it has issued 1,000,966 new rights, seen 1,579,120 exercised via transfer of existing shares, and 637,704 lapse, leaving 12,625...
Insignia Financial Ltd Reports Change in Voting Share Control
Dec 10, 2025
Insignia Financial Ltd has issued a notice under the Corporations Act 2001 regarding the exemption related to the aggregated percentage of voting shares controlled by its associated entities. The notice indicates a decrease in the percentage of vo...
Insignia Financial Announces AGM Results and New Auditor Appointment
Nov 20, 2025
Insignia Financial Ltd announced the results of its 2025 Annual General Meeting, where all resolutions were decided by a poll. Notably, EY was appointed as the new external auditor, effective immediately. These developments reflect Insignia’...
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.