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Latitude Group Holdings Ltd. (AU:LFS)
ASX:LFS
Australian Market

Latitude Group Holdings Ltd. (LFS) AI Stock Analysis

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AU

Latitude Group Holdings Ltd.

(Sydney:LFS)

47Neutral
Latitude Group Holdings Ltd. faces key challenges with declining revenues and high debt, impacting its financial performance. While there are signs of operational improvement, liquidity issues and high valuation remain significant concerns. The stock shows mild upward momentum, but the high P/E ratio suggests potential overvaluation. Overall, the stock score reflects these risks and moderate technical stability.

Latitude Group Holdings Ltd. (LFS) vs. S&P 500 (SPY)

Latitude Group Holdings Ltd. Business Overview & Revenue Model

Company DescriptionLatitude Group Holdings Ltd. (LFS) is a financial services company that operates primarily in the consumer finance sector across Australia and New Zealand. The company offers a wide range of products including personal loans, credit cards, and payment solutions for both retail and commercial clients. Latitude Group Holdings Ltd. is known for its customer-centric approach, leveraging technology to deliver innovative financial products and services that meet the evolving needs of its clientele.
How the Company Makes MoneyLatitude Group Holdings Ltd. generates revenue primarily through interest income and fees associated with its financial products. The company earns interest income from loans and credit card balances, which is a significant component of its revenue model. Additionally, Latitude collects fees from various services such as late payment fees, annual card fees, and merchant service fees for its payment solutions. Key partnerships with retail companies also play a crucial role in its earnings by facilitating point-of-sale financing options to customers, thereby expanding its reach and customer base. These partnerships often involve revenue-sharing arrangements that further enhance Latitude's revenue streams.

Latitude Group Holdings Ltd. Financial Statement Overview

Summary
Latitude Group Holdings Ltd. is navigating through financial challenges characterized by declining revenues and high leverage. While there are signs of operational improvements and profitability in the latest year, cash flow issues and high debt levels pose potential risks. The company needs to focus on enhancing revenue growth and managing debt to strengthen financial health.
Income Statement
―
Latitude Group Holdings Ltd. has experienced a significant decline in revenue since 2019, with a noticeable drop from $1.31 billion in 2019 to $477 million in 2024. Gross profit margin remained high at 100% in 2024, but the net profit margin improved to 4.52% compared to negative margins in previous years. The company also showed an improvement in EBIT and EBITDA margins in 2024, indicating better operational efficiency recently, despite previous losses.
Balance Sheet
50
The company's debt-to-equity ratio remains high, with total debt exceeding stockholders' equity significantly, reflecting high financial leverage. However, the equity ratio improved slightly to 15.53% in 2024 from previous years, indicating a modest increase in stability. Return on equity has fluctuated but was higher in 2024 compared to the negative ROE in 2023, signaling a recovery in profitability.
Cash Flow
―
Latitude Group Holdings Ltd. faced challenges with negative free cash flow in 2024, following a positive free cash flow in 2023. The operating cash flow to net income ratio was negative in 2024, suggesting struggles in translating income into operational cash. The free cash flow to net income ratio was also negative, highlighting potential liquidity issues.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
407.30M927.80M29.70M1.13B1.31B
Gross Profit
239.60M822.50M-66.30M985.90M1.05B
EBIT
15.80M417.80M505.70M365.30M661.14M
EBITDA
298.80M523.10M598.60M458.30M743.89M
Net Income Common Stockholders
-158.50M37.70M160.90M45.20M28.94M
Balance SheetCash, Cash Equivalents and Short-Term Investments
250.70M364.00M689.30M507.60M411.97M
Total Assets
7.35B7.92B8.02B7.74B8.81B
Total Debt
5.75B6.09B5.87B5.93B8.00B
Net Debt
5.49B5.72B5.26B5.42B7.59B
Total Liabilities
6.11B6.45B6.45B6.51B8.41B
Stockholders Equity
1.23B1.47B1.56B1.23B420.53M
Cash FlowFree Cash Flow
290.20M-314.80M347.50M1.23B-43.19M
Operating Cash Flow
307.20M-289.90M431.70M1.30B12.29M
Investing Cash Flow
10.90M39.40M-238.70M-43.20M-55.49M
Financing Cash Flow
-409.40M400.00K-55.80M-1.12B-64.12M

Latitude Group Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.14
Price Trends
50DMA
1.14
Negative
100DMA
1.13
Positive
200DMA
1.13
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
47.93
Neutral
STOCH
68.33
Neutral
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 1.14 is below the 20-day moving average (MA) of 1.15, below the 50-day MA of 1.14, and above the 200-day MA of 1.13, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUANZ
74
Outperform
$88.53B13.799.23%5.82%20.95%-7.97%
AUSUN
70
Outperform
$22.04B15.449.52%4.39%-11.75%―
AUWBC
69
Neutral
$108.75B16.029.85%4.63%21.25%-1.83%
64
Neutral
$12.54B9.797.92%16985.69%12.58%-6.07%
AUCCP
63
Neutral
€895.08M8.3013.05%4.50%6.70%126.16%
AUPPT
55
Neutral
€1.87B―-24.47%7.68%5.36%-846.00%
AULFS
47
Neutral
AU$1.20B55.292.49%2.61%11.26%―
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LFS
Latitude Group Holdings Ltd.
1.14
0.02
1.79%
AU:WBC
Westpac Banking
30.50
5.09
20.04%
AU:CCP
Credit Corp Group Limited
13.95
-0.48
-3.30%
AU:SUN
Suncorp Group
20.41
5.17
33.93%
AU:PPT
Perpetual Limited
17.14
-3.70
-17.76%
AU:ANZ
ANZ Group Holdings
29.40
1.86
6.76%

Latitude Group Holdings Ltd. Corporate Events

Latitude Group Holdings Ltd. Updates on Securities Buy-Back
May 9, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing on-market buy-back program. The company reported that it bought back 585 securities on the previous day, adding to a total of 20,492 securities repurchased before that day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Updates on Buy-Back Program
May 7, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing on-market buy-back program. As of May 8, 2025, the company reported the purchase of 510 securities on the previous day, adding to a total of 19,982 securities bought back prior to that day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Updates on Securities Buy-Back
May 6, 2025

Latitude Group Holdings Ltd. has announced an update on its ongoing on-market buy-back of securities, specifically targeting the LFSPA class. The company reported buying back a total of 920 securities on the previous day, adding to the 19,062 securities already acquired. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Updates on Daily Buy-Back Program
May 6, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing on-market buy-back program, specifically detailing the daily buy-back of its securities. The company reported the purchase of 460 securities on the previous day, adding to a total of 18,602 securities bought back before the previous day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Updates on Securities Buy-Back Program
May 1, 2025

Latitude Group Holdings Ltd. has announced an update on its ongoing buy-back program, specifically detailing the daily buy-back of securities. As of the latest update, the company has bought back a total of 17,719 securities before the previous day, with an additional 433 securities purchased on the previous day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and enhance shareholder value.

Latitude Group Holdings Updates on Buy-Back Program
Apr 30, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing buy-back program. The company reported buying back a total of 890 securities on the previous day, adding to the 16,829 securities already bought back. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Ltd. Updates on Buy-Back Program
Apr 30, 2025

Latitude Group Holdings Ltd. announced an update on its ongoing buy-back program, with a daily notification revealing the purchase of 355 securities on the previous day, adding to a total of 16,474 securities bought back to date. This buy-back initiative is part of the company’s strategy to optimize its capital structure, potentially enhancing shareholder value and signaling confidence in its financial stability.

Latitude Group Holdings Announces New Dividend Distribution
Apr 29, 2025

Latitude Group Holdings Ltd. announced a new dividend distribution for its security LFSPA, with a distribution amount of AUD 2.1556. The payment is scheduled for July 28, 2025, and is subject to the company’s discretion. This announcement reflects Latitude’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness in the financial market.

Latitude CEO Plans Share Sale While Retaining Significant Stake
Apr 28, 2025

Latitude Group Holdings Limited, a financial services company, announced that its CEO, Robert Belan, plans to sell up to 900,000 shares in the company. Despite this sale, Mr. Belan will maintain a significant shareholding, retaining at least 8 million shares, which underscores his continued commitment to the company.

Latitude Group Holdings Ltd Announces 2025 AGM Results
Apr 23, 2025

Latitude Group Holdings Ltd announced the results of its 2025 Annual General Meeting, where all resolutions were carried with overwhelming support. This outcome reflects strong shareholder confidence in the company’s leadership and strategic direction, potentially reinforcing its position in the financial services industry.

Latitude Group Holdings Reports Strong 2024 Growth and Strategic Initiatives
Apr 23, 2025

Latitude Group Holdings Ltd. reported significant progress in 2024, with a 139% increase in Cash NPAT to $65.9 million, driven by strategic initiatives and favorable economic conditions. The company reinstated a dividend and anticipates continued growth in 2025, supported by interest rate cuts and ongoing strategic initiatives. The board remains committed to optimizing operations and enhancing shareholder value, with leadership changes and a focus on sustainability and compliance with new regulations.

Latitude Group Holdings Announces New Securities Issuance
Apr 22, 2025

Latitude Group Holdings Ltd. has announced a new issuance of 21,519 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange. This move is part of a dividend or distribution plan and may impact the company’s market presence by potentially increasing liquidity and shareholder value.

Latitude Group Holdings Updates Dividend Distribution Details
Apr 2, 2025

Latitude Group Holdings Ltd. has updated its previous announcement regarding the dividend distribution for the period ending December 31, 2024. The update includes details on the currency exchange rate and Dividend Reinvestment Plan (DRP) price, with key dates such as the record date on March 24, 2025, and payment date yet to be specified. This update is crucial for stakeholders as it provides clarity on financial returns and investment opportunities.

Latitude Group Holdings Ltd. Updates on Buy-Back Program
Mar 27, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing on-market buy-back program. The company reported the purchase of 237 securities on the previous day, adding to a total of 16,097 securities bought back before that day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and enhance shareholder value.

Latitude Group Holdings Updates on Securities Buy-Back
Mar 26, 2025

Latitude Group Holdings Limited has announced an update regarding its ongoing on-market buy-back of securities. The company has bought back a total of 15,551 securities before the previous day and an additional 546 securities on the previous day. This buy-back is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Announces Update on Securities Buy-Back
Mar 25, 2025

Latitude Group Holdings Ltd. announced an update on its ongoing on-market buy-back of securities, specifically the CAP NOTE 3-BBSW+4.75% PERP NON-CUM RED T-10-26. As of the latest update, the company has bought back a total of 15,551 securities, with 185 purchased on the previous day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Ltd. Updates on Daily Buy-Back Program
Mar 23, 2025

Latitude Group Holdings Ltd. has announced an update on its ongoing on-market buy-back program, specifically detailing the daily buy-back of its securities. The company has repurchased a total of 14,996 securities prior to the previous day and an additional 370 securities on the previous day. This buy-back initiative is part of Latitude’s broader strategy to manage its capital structure and enhance shareholder value.

Latitude Group Holdings Ltd. Updates on Security Buy-Back Program
Mar 19, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing on-market buy-back of securities, specifically the LFSPA: CAP NOTE 3-BBSW+4.75% PERP NON-CUM RED T-10-26. As of the latest update, the company has bought back a total of 14,796 securities, with 31 purchased on the previous day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Appoints New CFO to Strengthen Leadership Team
Mar 16, 2025

Latitude Group Holdings Ltd has announced the appointment of Guillaume Leger as its new Chief Financial Officer, effective 16 June 2025. Leger brings extensive experience from his previous roles at Omni Bridgeway and Citigroup, which is expected to enhance Latitude’s executive team and support its strategic and commercial objectives. The company anticipates that Leger’s leadership will strengthen its market position and contribute to its long-term success.

Latitude Group Holdings Updates on Securities Buy-Back Program
Mar 16, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing on-market buy-back program. As of March 17, 2025, the company has repurchased a total of 14,585 securities, including 108 securities bought back on the previous day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Updates on Buy-Back Progress
Mar 12, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing on-market buy-back program. The company reported the buy-back of 72 securities on the previous day, adding to a total of 14,241 securities bought back prior to that day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Ltd. Updates on Securities Buy-Back Program
Mar 9, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing on-market buy-back of securities, specifically the LFSPA CAP NOTE 3-BBSW+4.75% PERP NON-CUM RED T-10-26. As of the latest update, the company has bought back a total of 13,950 securities, with 236 securities purchased on the previous day. This buy-back initiative reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Ltd. Updates on Buy-Back Program
Mar 4, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing on-market buy-back program. As of March 5, 2025, the company has repurchased a total of 13,943 securities, including 68 securities bought back on the previous day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Updates on Buy-Back Program
Mar 2, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing buy-back program. The company reported the purchase of 45 securities on the previous day, adding to a total of 13,758 securities bought back before that day. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Updates on Securities Buy-Back
Feb 27, 2025

Latitude Group Holdings Ltd. has announced an update regarding its ongoing buy-back of securities, specifically the LFSPA class. The company reported the buy-back of 315 securities on the previous day, adding to a total of 13,400 securities bought back prior. This buy-back initiative is part of Latitude’s strategy to manage its capital structure and potentially enhance shareholder value.

Latitude Group Holdings Ltd. Announces Cessation of Performance Rights
Feb 24, 2025

Latitude Group Holdings Ltd. announced the cessation of 2,950,016 performance rights, which lapsed due to unfulfilled or incapable conditions. This cessation impacts the company’s capital structure and reflects a potential shift in its financial strategies, possibly affecting stakeholders’ expectations and the company’s future operational focus.

Latitude Group Holdings Ltd. Announces On-Market Buy-Back
Feb 20, 2025

Latitude Group Holdings Ltd. announced an on-market buy-back of its securities, specifically the CAP NOTE 3-BBSW+4.75% PERP NON-CUM RED T-10-26. This strategic move is likely aimed at optimizing the company’s capital structure, potentially enhancing shareholder value and signaling confidence in the company’s financial health.

Latitude Group Holdings Limited Releases 2024 Financial Analysis
Feb 20, 2025

Latitude Group Holdings Limited has released its Management Discussion & Analysis for the full year ending December 31, 2024. The document provides detailed insights into the company’s financial performance, including metrics like volume, receivables, net interest income, and operating expenses. This analysis is crucial for stakeholders as it outlines Latitude’s financial standing and strategic approach in a competitive market, impacting investor confidence and future growth prospects.

Latitude Group Holdings Releases FY24 Financial Results
Feb 20, 2025

Latitude Group Holdings Limited presented its financial results for the fiscal year ending December 31, 2024. The document contains summary information about the company’s activities and financial performance, emphasizing the importance of understanding the basis for the financial data provided. It also includes disclaimers about potential forward-looking statements, highlighting the uncertainties and assumptions affecting future projections. The presentation is intended for informational purposes and should be considered in the context of broader disclosures available through the Australian Securities Exchange.

Latitude Group Holdings Achieves Significant Financial Turnaround in 2024
Feb 20, 2025

Latitude Group Holdings Ltd reported a significant financial turnaround for the full year ending 31 December 2024, achieving a statutory NPAT of $30.6 million, a substantial improvement from a loss of $102.7 million in the previous year. The company experienced growth in new customer accounts, total purchase volume, and new loan originations, setting new records in several areas. Strategic partnerships and margin management contributed to the positive results, with net interest margins improving and operating expenses being effectively managed. The announcement highlights Latitude’s strong balance sheet, the declaration of an unfranked dividend, and plans for a capital notes buy-back program, indicating a confident outlook for continued profit growth and operational resilience.

Latitude Group Holdings Ltd. Announces New Dividend Distribution
Feb 20, 2025

Latitude Group Holdings Ltd. has announced a new dividend distribution, offering a dividend of AUD 0.030 per share. The ex-dividend date is set for March 21, 2025, with the record date on March 24, 2025, and payment scheduled for April 23, 2025. This announcement is significant for shareholders as it indicates a return on investment and reflects the company’s financial health. The decision could positively influence investor sentiment and reinforce the trust of stakeholders in the company’s operational stability.

Latitude Group Holdings Reports Major Financial Turnaround in 2024
Feb 20, 2025

Latitude Group Holdings Limited has reported a significant turnaround in its financial performance for the year ending December 2024. The company posted a net profit of $21.6 million, up from a loss of $159.1 million in the previous year. Revenue increased by 11.4% to $1,115.2 million, and profit from ordinary activities after tax attributable to members rose by 129.8% to $30.6 million. The improvement is attributed to a 139% rise in Cash Net Profit After Tax (Cash NPAT) from continuing operations. Additionally, the company has announced a final dividend of 3 cents per share and the reactivation of its Dividend Reinvestment Plan, reflecting a positive outlook for stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.