Liberty Financial Group Ltd (LFG) AI Stock Analysis

• Market Cap: AU$1.23B
• Dividend Yield: 6.88%
• Average Volume (3M): 106.02K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.29
• Revenue Growth: 2.11%
• EPS Growth: 15.71%
• Country: AU
• Employees: 528
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.22
• Shares Outstanding: 303,600,000
• 10 Day Avg. Volume: 230,968
• 30 Day Avg. Volume: 106,018
• PEG Ratio: 0.48
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 8.74
• 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$4.36
• Price Target Upside: 7.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: AU$4.50 ▲(11.39% Upside)

Liberty Financial Group Ltd's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and high leverage. However, the stock's technical indicators show positive momentum, and its valuation appears attractive with a low P/E ratio and high dividend yield. These factors provide a mixed outlook, with significant financial risks balanced by potential technical and valuation opportunities.

Liberty Financial Group Ltd Business Overview & Revenue Model

Company Description

Liberty Financial Group Limited engages in the financial services business in Australia and New Zealand. It operates in three segments: Residential Finance, Secured Finance, and Financial Services. The company offers residential and commercial mortgages; motor vehicle finance; unsecured and secured personal loans; secured and unsecured loans; SME LOANS; and self-managed superannuation loans. It also offers mortgage broking services; life and general insurance solutions; and specialty lending, finance and insurance broking, receivables, consumer insurance, underwriting, real estate, and fund management services. The company was founded in 1997 and is based in Melbourne, Australia. Liberty Financial Group Limited is a subsidiary of Vesta Funding BV.

How the Company Makes Money

Liberty Financial Group Ltd generates revenue through multiple streams. The primary source of income is interest income derived from personal and commercial loans, mortgages, and other credit products offered to customers. Additionally, LFG earns fees and commissions from its wealth management and investment advisory services. The company also generates premiums from its insurance products, including life and health insurance policies. Strategic partnerships with other financial institutions and technology providers enhance its service offerings and contribute to its earnings. Furthermore, LFG invests in a diversified portfolio of securities and assets, generating additional income from its investment activities.

Liberty Financial Group Ltd Financial Statement Overview

Summary

Liberty Financial Group Ltd faces significant challenges across its financial statements. The income statement shows a sharp decline in revenue, impacting profitability despite strong margins. The balance sheet reflects high leverage, which could pose financial risks. The cash flow statement indicates declining cash generation, raising concerns about liquidity. Overall, the company needs to address its revenue decline and manage its debt levels to improve its financial health.

Income Statement

Liberty Financial Group Ltd has experienced a significant revenue decline of 41.95% in the latest year, indicating potential challenges in maintaining its market position. Despite this, the company maintains a strong gross profit margin of 100%, suggesting effective cost management. However, the net profit margin has decreased compared to previous years, reflecting reduced profitability. The EBIT and EBITDA margins remain robust, indicating operational efficiency, but the overall revenue contraction is a concern.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 12.30, indicating significant leverage and potential financial risk. The return on equity is moderate at 11.20%, reflecting decent profitability relative to shareholder equity. The equity ratio is relatively low, suggesting a heavy reliance on debt financing. Overall, the balance sheet reflects high leverage, which could pose risks if not managed carefully.

Cash Flow

Liberty Financial Group Ltd's cash flow statement reveals a concerning trend with a negative free cash flow growth rate of -118.38%, indicating declining cash generation capabilities. The operating cash flow to net income ratio is low at 0.02, suggesting challenges in converting income into cash. The free cash flow to net income ratio is nearly 1, indicating that most of the net income is being converted into free cash flow, but the overall cash flow situation is weak.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	604.51M	604.51M	1.46B	1.23B	868.94M	852.97M
Gross Profit	604.51M	604.51M	1.46B	995.25M	637.89M	643.12M
EBITDA	1.09B	1.09B	1.06B	859.41M	731.14M	689.43M
Net Income	133.97M	133.97M	115.81M	181.52M	219.63M	185.92M
Balance Sheet
Total Assets	16.24B	16.24B	16.31B	15.69B	14.33B	13.57B
Cash, Cash Equivalents and Short-Term Investments	1.55B	1.55B	1.58B	1.34B	661.33M	12.89B
Total Debt	14.71B	14.71B	14.57B	14.03B	12.81B	12.25B
Total Liabilities	15.05B	15.05B	15.11B	14.52B	13.21B	12.53B
Stockholders Equity	1.20B	1.20B	1.20B	1.17B	1.12B	1.04B
Cash Flow
Free Cash Flow	116.36M	116.36M	-932.57M	-442.74M	-483.76M	128.64M
Operating Cash Flow	118.08M	118.08M	-929.69M	-435.63M	-480.30M	132.96M
Investing Cash Flow	25.89M	25.89M	30.03M	-12.85M	-15.40M	-24.37M
Financing Cash Flow	-196.46M	-196.46M	497.67M	1.14B	-68.38M	-3.19M

Liberty Financial Group Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LFG, the sentiment is Neutral. The current price of 4.04 is below the 20-day moving average (MA) of 4.34, below the 50-day MA of 4.21, and above the 200-day MA of 3.45, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 36.97 is Neutral, neither overbought nor oversold. The STOCH value of 28.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:LFG.

Liberty Financial Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLT	68 Neutral	AU$254.79M	9.30	71.90%	―	22.94%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PPM	65 Neutral	AU$969.04M	9.71	12.11%	8.79%	-6.49%	-5.40%
LFG	60 Neutral	AU$1.23B	9.15	11.19%	6.88%	2.11%	15.71%
CCP	57 Neutral	€989.01M	10.51	11.07%	4.68%	5.01%	85.56%
LFS	51 Neutral	AU$1.19B	20.23	5.01%	6.11%	14.81%	―
MME	38 Underperform	AU$84.01M	7.17	-42.59%	―	-9.56%	-392.31%

Liberty Financial Group Ltd Corporate Events

Liberty Financial Group Announces Cessation of Securities

Liberty Financial Group Ltd has announced the cessation of several securities, including options expiring on various dates and at various prices. The cessation occurred due to the expiry of options or convertible securities without exercise or conversion, and the lapse of conditional rights to securities due to unmet conditions. This development may impact the company’s financial strategies and stakeholder interests, as it reflects changes in the company’s securities management.

The most recent analyst rating on (AU:LFG) stock is a Hold with a A$3.75 price target. To see the full list of analyst forecasts on Liberty Financial Group Ltd stock, see the AU:LFG Stock Forecast page.

Liberty Group Announces Estimated Final Distribution for FY25

Liberty Group has announced an estimated final distribution of 20 cents per security for the period from 1 December 2024 to 30 June 2025. The final distribution amount will be confirmed on 25 August 2025, coinciding with the release of the FY25 annual results, and payments to security holders are scheduled for 29 August 2025.

The most recent analyst rating on (AU:LFG) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Liberty Financial Group Ltd stock, see the AU:LFG Stock Forecast page.

Liberty Financial Group Announces New Dividend Distribution

Liberty Financial Group has announced a new dividend distribution for its fully paid ordinary units stapled securities, with a distribution amount of AUD 0.20. The ex-date is set for June 27, 2025, and the payment date is August 29, 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value and may impact investor sentiment positively.

The most recent analyst rating on (AU:LFG) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Liberty Financial Group Ltd stock, see the AU:LFG Stock Forecast page.

Liberty Financial Group Announces Director’s Interest Stability

Liberty Financial Group Limited announced a change in the director’s interest notice, with no changes in the number of securities held by Director Peter Riedel. The announcement indicates stability in the director’s holdings, suggesting no immediate impact on the company’s operations or market positioning.