Liberty Financial Group Ltd (LFG) AI Stock Analysis

• Market Cap: AU$1.35B
• Dividend Yield: 5.66%
• Average Volume (3M): 51.59K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.26
• Revenue Growth: 2.11%
• EPS Growth: 15.71%
• Country: AU
• Employees: 528
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 0.22
• Shares Outstanding: 303,600,000
• 10 Day Avg. Volume: 75,090
• 30 Day Avg. Volume: 51,589
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$4.48
• Price Target Upside: 12.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: AU$4.50 ▲(13.07% Upside)

Liberty Financial Group Ltd's stock is supported by strong technical momentum and attractive valuation metrics. However, financial performance is mixed with growth potential tempered by high leverage and cash flow concerns. Investors should weigh the strong technical and valuation aspects against the financial risks.

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 shows strong revenue growth and operational efficiency with high gross profit margins. However, the company faces challenges with declining net profit margins, high leverage, and negative cash flows, indicating potential liquidity constraints.

Income Statement

Liberty Financial Group Ltd has demonstrated strong revenue growth with a notable increase of 18.6% from 2023 to 2024. The gross profit margin is high at 82.2%, indicating efficient cost management. However, the net profit margin has decreased to 7.9% from 14.7% in the previous year, suggesting increased expenses or other financial pressures. EBIT and EBITDA margins are robust at 87.5% and 72.7% respectively, reflecting strong operational performance.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 12.15, indicating significant leverage which could pose financial risks. The equity ratio is low at 7.4%, suggesting limited equity financing. Return on equity has decreased to 9.7% from 15.5% in the prior year, reflecting reduced profitability relative to shareholder equity.

Cash Flow

Liberty Financial Group Ltd's cash flow statement reveals challenges with negative operating cash flow of -$929.7 million. The free cash flow has also declined significantly, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting cash generation concerns relative to reported profits.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.23B	855.58M	833.16M	830.76M
Gross Profit	1.20B	995.25M	624.53M	623.32M	286.22M
EBITDA	1.06B	859.41M	731.14M	689.43M	179.00M
Net Income	115.81M	181.52M	219.63M	185.92M	46.53M
Balance Sheet
Total Assets	16.31B	15.69B	14.33B	13.57B	13.01B
Cash, Cash Equivalents and Short-Term Investments	1.58B	1.34B	904.29M	923.57M	12.17B
Total Debt	14.57B	14.03B	12.81B	12.25B	11.74B
Total Liabilities	15.11B	14.52B	13.21B	12.53B	12.01B
Stockholders Equity	1.20B	1.17B	1.12B	1.04B	1.00B
Cash Flow
Free Cash Flow	-932.57M	-442.74M	-483.76M	128.64M	189.95M
Operating Cash Flow	-929.69M	-435.63M	-480.30M	132.96M	194.33M
Investing Cash Flow	30.03M	-12.85M	-15.40M	-24.37M	-757.40M
Financing Cash Flow	497.67M	1.14B	-68.38M	-3.19M	255.88M

Liberty Financial Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.98
• 50DMA: Positive
• 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 Positive. The current price of 3.98 is below the 20-day moving average (MA) of 4.00, above the 50-day MA of 3.70, and above the 200-day MA of 3.24, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 32.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
LFG	74 Outperform	AU$1.35B	10.08	11.19%	5.66%	2.11%	15.71%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
2RC	―	€631.04M	10.63	11.07%	―	―	―
PLT	73 Outperform	AU$227.59M	9.05	71.90%	―	22.94%	―
PPM	65 Neutral	AU$954.35M	9.58	12.11%	5.58%	-6.49%	-5.40%
MME	53 Neutral	AU$104.01M	7.17	-42.59%	―	-9.56%	-392.31%
LFS	51 Neutral	AU$1.17B	19.96	5.01%	2.64%	14.81%	―

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.