Liberty Financial Group Ltd (LFG) AI Stock Analysis

• Market Cap: AU$965.45M
• Dividend Yield: 3.14%
• Average Volume (3M): 105.45K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.07
• Revenue Growth: 10.37%
• EPS Growth: -9.02%
• Country: AU
• Employees: 528
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Credit Services
• EPS (TTM): 0.21
• Shares Outstanding: 303,600,000
• 10 Day Avg. Volume: 151,452
• 30 Day Avg. Volume: 105,454
• PEG Ratio: -0.36
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.49
• 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$4.10
• Price Target Upside: 28.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: AU$3.50 ▲(10.06%Upside)

Liberty Financial Group Ltd's overall stock score reflects significant financial challenges, including high leverage and negative cash flows, which weigh heavily on the score. However, its attractive valuation with a low P/E ratio and high dividend yield provides some upside potential. Technical indicators suggest a neutral market sentiment, lacking clear momentum.

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

LFG generates revenue through a variety of streams, primarily from interest earned on loans and credit products, fees from account maintenance and financial advisory services, and premiums from insurance products. The company also earns income from asset management services, including fees for managing investment portfolios and mutual funds. Strategic partnerships with other financial institutions and technology providers enhance their service offerings, allowing LFG to expand its customer base and optimize operational efficiencies, thereby contributing to its overall earnings.

Liberty Financial Group Ltd Financial Statement Overview

Summary

Liberty Financial Group Ltd faces significant financial challenges. High leverage and negative cash flows pose considerable risks, despite operational efficiency. Revenue volatility and declining profitability metrics indicate a need for strategic adjustments.

Income Statement

Revenue has shown volatility with a significant drop in the recent year, impacting stability. Gross profit margin is strong, but net profit margin has declined. EBIT and EBITDA margins remain robust, indicating operational efficiency. However, the revenue growth rate is negative, pointing to challenges in maintaining revenue streams.

Balance Sheet

The company is highly leveraged with a high debt-to-equity ratio, posing financial risk. Equity ratio reflects low equity relative to assets, indicating potential vulnerability. Return on equity has decreased, suggesting challenges in generating returns on shareholders’ equity.

Cash Flow

Operating cash flow is negative, which is concerning for liquidity and sustainability. Free cash flow is also negative, indicating potential issues in covering operations and investments. The ratios of cash flows to net income are unfavorable, highlighting inefficiencies in converting profits into cash.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.04B	1.46B	1.23B	855.58M	833.16M	830.76M
	Gross Profit
908.96M	1.20B	995.25M	624.53M	623.32M	286.22M
	EBIT
784.69M	1.28B	840.24M	713.24M	671.59M	167.22M
	EBITDA
1.10B	1.06B	859.41M	731.14M	689.43M	179.00M
	Net Income Common Stockholders
123.41M	115.81M	181.52M	219.63M	185.92M	46.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
767.24M	1.58B	1.34B	904.29M	923.57M	12.17B
	Total Assets
16.36B	16.31B	15.69B	14.33B	13.57B	13.01B
	Total Debt
10.39B	14.57B	14.03B	12.81B	12.25B	11.74B
	Net Debt
9.62B	13.63B	12.68B	12.16B	11.64B	11.25B
	Total Liabilities
15.16B	15.11B	14.52B	13.21B	12.53B	12.01B
	Stockholders Equity
1.19B	1.20B	1.17B	1.12B	1.04B	1.00B
Cash Flow		Free Cash Flow
-633.13M	-932.57M	-442.74M	-483.76M	128.64M	189.95M
	Operating Cash Flow
-631.52M	-929.69M	-435.63M	-480.30M	132.96M	194.33M
	Investing Cash Flow
49.43M	30.03M	-12.85M	-15.40M	-24.37M	-757.40M
	Financing Cash Flow
496.50M	497.67M	1.14B	-68.38M	-3.19M	255.88M

Liberty Financial Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.18
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 3.18 is above the 20-day moving average (MA) of 3.15, above the 50-day MA of 3.16, and below the 200-day MA of 3.35, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	64 Neutral	$12.86B	9.79	7.84%	78.10%	12.05%	-7.99%
LFG	54 Neutral	AU$965.45M	7.82	10.43%	3.14%	10.37%	-9.02%
BKQNF		$3.40B	17.09	5.20%	2.92%	―	―
BXRBF		$4.70B	14.85	6.89%	4.56%	―	―
SNMYF		$15.10B	16.07	9.52%	2.75%	―	―
ABA		$263.98M	21.08	3.85%	4.30%	―	―
MYS	66 Neutral	AU$710.18M	13.77	7.25%	5.00%	14.46%	-6.87%

Liberty Financial Group Ltd Corporate Events

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.

Liberty Financial Group Issues New Equity Securities

Liberty Financial Group Ltd has announced the issuance and conversion of unquoted equity securities, resulting in the transfer of a significant number of fully paid ordinary units stapled securities. This move is part of the company’s ongoing financial strategies and may impact its market positioning by potentially increasing liquidity and shareholder value.

Liberty Financial Group Issues Unquoted Equity Securities

Liberty Financial Group Ltd announced the issuance of 3,594,081 unquoted equity securities under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize employees and align their interests with the company’s growth objectives, potentially impacting its operational dynamics and market positioning.

Liberty Financial Group Announces Cessation of Over 213,000 Securities

Liberty Financial Group Ltd has announced the cessation of a significant number of securities, totaling over 213,000 options expiring at various dates and prices. This cessation may impact the company’s financial structure and could influence its market positioning, as it reflects a strategic decision to manage its securities portfolio.

Liberty Financial Group Announces Director’s Interest Change

Liberty Financial Group Limited has announced a change in the director’s interest, with James Boyle exercising 69,987 options to acquire an equivalent number of stapled securities. This change reflects a minor adjustment in the director’s holdings, potentially indicating confidence in the company’s future performance and aligning the director’s interests with those of the shareholders.

Liberty Financial Group Announces Director’s Change in Securities Holdings

Liberty Financial Group Limited has announced a change in the director’s interest, specifically regarding Peter Riedel’s holdings. The change involves the exercise of 69,987 options, resulting in an increase in the number of stapled securities held by Riedel. This adjustment reflects ongoing management of equity incentives and aligns with the company’s strategic financial operations.