Latitude Group Holdings Ltd. (AU:LFS)
ASX:LFS
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Latitude Group Holdings Ltd.
(Sydney:LFS)
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Rating:52Neutral
Price Target:
AU$0.95
▼(-10.47% Downside)
Action:Reiterated
Date:02/28/26
The score is held back primarily by elevated balance-sheet leverage and weak/negative cash generation despite an earnings recovery. Technicals are also below key longer-term moving averages with negative MACD. Valuation is a positive offset due to a low P/E and a very high reported dividend yield, though cash-flow weakness tempers confidence in yield sustainability.
Positive Factors
Profitability Recovery
2025’s sharp revenue and earnings recovery reflects meaningful improvement in core lending operations and underwriting outcomes. Sustained higher earnings would generate internal capital to fund growth, support merchant programs and steadily rebuild buffers versus relying on external financing.
Negative Factors
Very High Leverage
Extremely elevated leverage materially constrains strategic flexibility and increases refinancing and liquidity risk. In a credit-sensitive business, high debt amplifies earnings volatility from loan losses and leaves limited buffer for executing growth or withstanding adverse macro shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
2025’s sharp revenue and earnings recovery reflects meaningful improvement in core lending operations and underwriting outcomes. Sustained higher earnings would generate internal capital to fund growth, support merchant programs and steadily rebuild buffers versus relying on external financing.
Read all positive factors
Latitude Group Holdings Ltd. (LFS) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$935.76M
Dividend Yield6.6%
Average Volume (3M)100.36K
Price to Earnings (P/E)10.0
Beta (1Y)0.03
Revenue Growth8.89%
EPS Growth334.62%
CountryAU
Employees742
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding1,039,732,900
10 Day Avg. Volume21,108
30 Day Avg. Volume100,356
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.89
Price to Sales (P/S)0.89
P/FCF Ratio-3.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.12
Revenue Forecast (FY)AU$889.22M
Latitude Group Holdings Ltd. Business Overview & Revenue Model
Company Description
Latitude Group Holdings Limited operates in instalments and lending business in Australia and New Zealand. It provides various installment products to support customers, the merchants, and other commercial partners. The company also offers lending...
How the Company Makes Money
Latitude Group Holdings generates revenue primarily through the interest and fees associated with its lending products. The company earns income from the interest charged on personal loans and credit products, which is a significant part of its re...
Latitude Group Holdings Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
34
Negative
Cash Flow
29
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.21B | 477.20M | 407.30M | 927.80M | 957.40M |
| Gross Profit | 1.07B | 477.20M | 239.60M | 822.50M | 861.40M |
| EBITDA | 540.90M | 519.10M | 309.10M | 406.00M | 464.00M |
| Net Income | 94.00M | 21.60M | -158.50M | 37.70M | 160.90M |
Balance Sheet | |||||
| Total Assets | 8.14B | 7.88B | 7.35B | 7.92B | 8.02B |
| Cash, Cash Equivalents and Short-Term Investments | 300.70M | 410.20M | 250.70M | 364.00M | 689.30M |
| Total Debt | 6.63B | 6.32B | 5.75B | 6.09B | 5.87B |
| Total Liabilities | 6.92B | 6.66B | 6.11B | 6.45B | 6.45B |
| Stockholders Equity | 1.22B | 1.22B | 1.23B | 1.47B | 1.56B |
Cash Flow | |||||
| Free Cash Flow | -325.10M | -399.20M | 290.20M | -314.80M | 347.50M |
| Operating Cash Flow | -318.10M | -379.30M | 307.20M | -289.90M | 431.70M |
| Investing Cash Flow | -7.00M | -19.90M | 10.90M | 39.40M | -238.70M |
| Financing Cash Flow | 227.50M | 563.10M | -409.40M | 400.00K | -55.80M |
Latitude Group Holdings Ltd. Technical Analysis
Negative
1.06
Price Trends
0.92
Negative
0.92
Negative
0.99
Negative
Market Momentum
>-0.01
Positive
40.68
Neutral
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LFS, the sentiment is Negative. The current price of 1.06 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.92, and above the 200-day MA of 0.99, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.68 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LFS.
Latitude Group Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | AU$767.79M | 8.16 | 10.55% | 4.81% | 3.49% | -12.05% | |
57 Neutral | AU$750.19M | 7.09 | 12.70% | 11.71% | -8.26% | 5.26% | |
56 Neutral | AU$297.87M | 11.18 | 5.04% | 2.84% | ― | -18.89% | |
56 Neutral | AU$143.95M | 10.00 | 20.23% | ― | 20.39% | -42.91% | |
52 Neutral | AU$935.76M | 9.95 | 7.72% | 6.60% | 8.89% | 334.62% | |
50 Neutral | AU$953.30M | 6.58 | 12.13% | 11.83% | -4.02% | 17.32% |
* Financial Sector Average
AU:LFS
Latitude Group Holdings Ltd.
0.90
-0.12
-11.94%
AU:CCP
Credit Corp Group Limited
11.28
-1.77
-13.58%
AU:HUM
Humm Group Limited
0.59
0.15
35.63%
AU:PLT
Plenti Group Ltd.
0.79
-0.09
-10.23%
AU:PPM
Pepper Money Ltd
1.67
0.22
15.41%
AU:LFG
Liberty Financial Group Ltd
3.14
0.45
16.86%
Latitude Group Holdings Ltd. Corporate Events
Latitude Faces Class Action Over Historical Interest-Free Ads
Feb 23, 2026
Latitude Group Holdings has acknowledged that a class action has been filed in the Queensland Supreme Court against its subsidiary Latitude Finance Australia and retail partner Harvey Norman Holdings. The action concerns historical advertisements ...
Latitude Group Declares Semi-Annual Dividend of AUD 0.05 Per Share
Feb 19, 2026
Latitude Group Holdings has declared a fully paid ordinary share dividend of AUD 0.05 for the six-month period ended 31 December 2025, with an ex-dividend date of 20 March 2026 and a record date of 23 March 2026. The payment is scheduled for 21 Ap...
Latitude details 2025 performance, balance sheet and funding profile
Feb 19, 2026
Latitude Group Holdings has released its Management Discussion Analysis for the full year ended 31 December 2025, providing additional detail on its financial performance, balance sheet and capital position beyond the statutory financial report. ...
Latitude posts strong FY25 profit on record volumes and wider margins
Feb 19, 2026
Latitude Group Holdings reported a strong FY25, with cash NPAT rising 59% to $105.1 million and statutory NPAT from continuing operations up 208%, driven by record $9.1 billion in credit card spend and loan originations, higher receivables of $7.2...
Latitude Group Sets April 2026 Distribution on Capital Notes
Jan 29, 2026
Latitude Group Holdings Limited has announced a new quarterly distribution for its Latitude Capital Notes (ASX: LFSPA), a perpetual, non-cumulative note paying a margin of 4.75% over 3-month BBSW, with a distribution amount of AUD 1.4778 per note....
Latitude Schedules FY25 Full-Year Results Briefing for 20 February
Jan 19, 2026
Latitude Group Holdings Ltd has announced it will release its full-year financial results for the year ended 31 December 2025 on 20 February 2026, with Managing Director and CEO Bob Belan and CFO Guillaume Leger to host an investor and analyst bri...
Latitude Group Holdings Ltd. Announces Cessation of Securities
Dec 8, 2025
Latitude Group Holdings Ltd. announced the cessation of 110,618 securities, specifically CAP NOTE 3-BBSW+4.75% PERP NON-CUM RED T-10-26, due to an on-market buy-back effective December 5, 2025. This move is part of the company’s capital mana...
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.