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Omni Bridgeway Ltd (AU:OBL)
:OBL

Omni Bridgeway (OBL) AI Stock Analysis

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AU

Omni Bridgeway

(OTC:OBL)

Rating:48Neutral
Price Target:
AU$1.50
▲(0.00%Upside)
Omni Bridgeway faces significant financial challenges with substantial losses and negative cash flows, which heavily impact its stock score. Technical analysis provides a slightly better outlook, though still mixed, and valuation highlights the risks associated with its negative earnings. Investors should proceed with caution.

Omni Bridgeway (OBL) vs. iShares MSCI Australia ETF (EWA)

Omni Bridgeway Business Overview & Revenue Model

Company DescriptionOmni Bridgeway Limited engages in investing in litigation and dispute resolution and enforcement matters in Australia, the United States, Canada, Asia, Europe, the Middle East, and Africa. It offers dispute funding solutions, including bankruptcy, commercial, intellectual property, investor recoveries, class/group actions, appeals, and whistleblower. The company also provides arbitration financing; funding for companies; litigation financing; judgment enforcement; law firm financing; and distressed asset recovery solutions. It serves individual claimants, law firms, corporations, sovereigns, and multilateral institutions. The company was formerly known as IMF Bentham Limited and changed its name to Omni Bridgeway Limited in March 2020. Omni Bridgeway Limited was founded in 1986 and is based in Sydney, Australia.
How the Company Makes MoneyOmni Bridgeway makes money primarily through its litigation finance activities. The company provides funding for legal claims and earns returns by receiving a portion of the proceeds from successful cases. This revenue model involves investing in legal cases where they assess the potential for a favorable outcome and then finance legal fees, expenses, and sometimes operational costs for the claimants. Upon a successful resolution, Omni Bridgeway recoups its investment along with a pre-agreed share of the settlement or award. Key revenue streams include portfolio finance, single-case funding, and enforcement funding. The company's earnings are also influenced by partnerships with law firms and corporates, as well as its expertise in assessing and managing legal risks.

Omni Bridgeway Financial Statement Overview

Summary
Omni Bridgeway's financial performance is concerning due to substantial losses and negative cash flows, despite notable revenue growth. The balance sheet shows increased leverage, raising caution about financial stability.
Income Statement
45
Neutral
Omni Bridgeway's income statement reveals a challenging financial period. While the company experienced a significant increase in revenue from $11.47 million in 2023 to $82.86 million in 2024, its net income is deeply negative at -$87.52 million. The gross profit margin improved to 27.93% in 2024, but both EBIT and EBITDA margins are low due to substantial operating expenses. The revenue growth is promising but is overshadowed by significant losses.
Balance Sheet
50
Neutral
The balance sheet indicates a stable asset base with total assets at approximately $1.24 billion in 2024. However, the debt-to-equity ratio increased to 1.08, suggesting higher leverage. Stockholders' equity decreased significantly, reflecting financial strain. The equity ratio stands at 20.27%, indicating a lower reliance on equity financing. The financial leverage and declining equity are concerning.
Cash Flow
40
Negative
Cash flow analysis highlights negative operating cash flow of -$87.87 million in 2024, indicating operational challenges. Free cash flow also remains negative, although there is a slight improvement from the prior year. The operating cash flow to net income ratio is negative, raising concerns about cash generation capacity relative to reported losses. Cash management remains a critical issue.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
132.66M121.10M11.47M21.87M6.08M23.13M
Gross Profit
79.07M23.14M-59.54M-35.10M-48.70M-25.57M
EBIT
62.45M1.72M-95.42M-67.40M-76.45M-63.67M
EBITDA
32.32M26.07M8.33M9.26M-24.71M53.35M
Net Income Common Stockholders
-72.51M-87.52M-31.66M-45.65M-25.45M-11.54M
Balance SheetCash, Cash Equivalents and Short-Term Investments
207.10M135.88M114.79M157.28M141.34M194.38M
Total Assets
1.42B1.24B1.14B1.08B1.09B1.15B
Total Debt
274.99M271.80M199.58M161.93M151.37M149.47M
Net Debt
67.89M135.91M84.79M4.65M10.03M-44.92M
Total Liabilities
557.74M441.97M354.73M336.29M323.60M383.26M
Stockholders Equity
255.26M250.72M348.85M328.89M331.87M336.00M
Cash FlowFree Cash Flow
43.70M-87.96M-296.67M-188.69M-231.79M-242.31M
Operating Cash Flow
43.77M-87.88M-130.43M-74.55M-97.92M-50.94M
Investing Cash Flow
75.30M62.06M166.41M207.09M127.34M-8.31M
Financing Cash Flow
43.85M47.47M-78.03M-117.91M-76.88M25.28M

Omni Bridgeway Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.50
Price Trends
50DMA
1.52
Negative
100DMA
1.43
Positive
200DMA
1.25
Positive
Market Momentum
MACD
-0.01
Positive
RSI
43.65
Neutral
STOCH
34.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OBL, the sentiment is Negative. The current price of 1.5 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.52, and above the 200-day MA of 1.25, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 34.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:OBL.

Omni Bridgeway Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
AUOBL
48
Neutral
AU$434.09M-26.72%456.81%-97.24%
DE2RC
€521.43M7.9813.05%4.39%
AUPPM
65
Neutral
AU$770.03M7.7411.75%8.18%3.70%-10.93%
AUMME
54
Neutral
AU$108.01M7.17-13.74%-14.61%-325.81%
AUPNC
48
Neutral
AU$78.70M-16.83%-2.45%-639.57%
AUPLT
45
Neutral
AU$156.32M6.2771.90%35.12%8.03%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:OBL
Omni Bridgeway
1.50
0.58
63.04%
DE:2RC
Credit Corp Group Limited
7.70
-0.58
-7.00%
AU:PNC
Pioneer Credit Ltd
0.50
0.00
0.00%
AU:PLT
Plenti Group Ltd.
0.88
0.13
17.33%
AU:PPM
Pepper Money Ltd
1.70
0.47
38.21%
AU:MME
MoneyMe Ltd.
0.13
0.07
116.67%

Omni Bridgeway Corporate Events

Omni Bridgeway Director Increases Shareholding
May 12, 2025

Omni Bridgeway Limited announced a change in the director’s interest, with Michael Green acquiring additional ordinary fully paid shares through on-market transactions. This acquisition increases his total holdings, reflecting a significant personal investment and potential confidence in the company’s future performance.

Omni Bridgeway Achieves Record Financial Performance and Strategic Growth
Apr 30, 2025

Omni Bridgeway Limited reported strong financial performance for the quarter ending March 31, 2025, with record proceeds and significant cash generation. The company completed a major transaction with Ares Management, resulting in substantial proceeds and the repayment of corporate debt. The firm’s investment portfolio developments are positive, with a strong pipeline and new commitments anticipated to enhance future revenue. The global financial market volatility underscores the attractiveness of Omni Bridgeway’s unique asset profile, positioning it well for future investment opportunities.

Omni Bridgeway Completes Fund 9 Transaction with Ares Management
Apr 15, 2025

Omni Bridgeway Limited has completed the Fund 9 transaction with Ares Management Corporation, receiving a total of A$320 million. This transaction supports Omni Bridgeway’s strategic objectives by validating its fair value framework, realizing embedded value, and affirming its position as a leading fund manager for legal assets. The proceeds have been used to deleverage the balance sheet, enhance liquidity, and transition to a capital-light funds-management model, which simplifies statutory reporting and aligns with fund management standards.

Omni Bridgeway Announces Cessation of Performance Rights
Apr 7, 2025

Omni Bridgeway Limited announced the cessation of 617,536 performance rights due to unmet conditions, effective March 31, 2025. This development may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic focus.

Omni Bridgeway Issues New Performance Rights to Boost Employee Incentives
Apr 7, 2025

Omni Bridgeway Limited announced the issuance of 85,350 performance rights expiring on March 31, 2040, as part of an employee incentive scheme. This move is expected to enhance employee engagement and align their interests with the company’s long-term goals, potentially impacting its operational efficiency and market positioning positively.

Omni Bridgeway Announces Director’s Share Acquisition
Apr 2, 2025

Omni Bridgeway Limited has announced a change in the director’s interest, with Raymond van Hulst acquiring 1,270,764 ordinary fully paid shares. This acquisition, involving shares with a deemed issue price of $3.41 and $1.406 per share, reflects a significant adjustment in the director’s holdings, potentially impacting the company’s governance and shareholder dynamics.

Omni Bridgeway Completes Final Tranche of European Acquisition
Apr 2, 2025

Omni Bridgeway Limited has issued 5,213,450 ordinary fully paid shares as part of the final tranche of deferred consideration for its acquisition of the Omni Bridgeway Europe business in 2019. This issuance, conducted without disclosure to investors, falls under the exemption provided by section 708A(5) of the Corporations Act, allowing the on-sale of these securities. The announcement signifies the completion of a significant acquisition-related financial obligation, potentially strengthening Omni Bridgeway’s position in the European market.

Omni Bridgeway Completes Share Issuance for Acquisition
Apr 2, 2025

Omni Bridgeway Limited announced the issuance of shares related to the final tranche of Variable Deferred Consideration and Market Value Compensation Amount under a share purchase agreement for the acquisition of Omni Bridgeway Holding B.V. This move marks the completion of a significant acquisition process, potentially impacting the company’s market positioning and shareholder value.

Omni Bridgeway Completes Final Payment for European Acquisition
Apr 2, 2025

Omni Bridgeway Limited has completed the final payment for its acquisition of Omni Bridgeway Europe, issuing over 5 million shares as the last tranche of deferred consideration. This acquisition has been successfully integrated into the company’s global operations, achieving all five-year KPIs and retaining its expert management team, thereby strengthening its position as a leading legal asset management platform.

Brightlight Capital Increases Stake in Omni Bridgeway
Mar 27, 2025

Brightlight Capital Partners LP has increased its stake in Omni Bridgeway Ltd, raising its voting power from 8.89% to 9.92% through a series of on-market purchases. This change in substantial holding reflects Brightlight Capital’s growing interest and influence in Omni Bridgeway, potentially impacting the company’s strategic decisions and shareholder dynamics.

Omni Bridgeway Issues New Unlisted Options to Bolster Financial Strategy
Mar 25, 2025

Omni Bridgeway Limited has announced the issuance of 37,333,333 unlisted options with an exercise price of $0.9375, set to expire on February 25, 2030. These securities are part of a previously announced transaction and are not intended to be quoted on the ASX, indicating a strategic move to enhance its financial structure and potentially strengthen its market position.

Omni Bridgeway Announces Director’s Interest Change
Mar 17, 2025

Omni Bridgeway Limited announced a change in the director’s interest as Raymond van Hulst, the director, reported a vesting of 14,806 FY22 performance rights and a lapse of 59,222 FY22 performance rights. This change reflects the company’s ongoing management of executive compensation and performance incentives, which could impact the company’s strategic alignment and stakeholder interests.

Omni Bridgeway Appoints New CFO and Establishes Capital Formation Team
Mar 17, 2025

Omni Bridgeway Limited has appointed David Breeney as the new Global Chief Financial Officer, effective March 1, 2025. Breeney, who joined the company in 2023, brings extensive experience from his previous roles at Challenger Limited and will be based in Sydney to streamline financial operations. The company is also establishing a capital formation team led by former GCFO Guillaume Leger to enhance its fund capital raising activities, reflecting its strategic shift towards a fund and asset management model. This move is expected to attract new investors and strengthen Omni Bridgeway’s market position.

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.