OFX Group Ltd. (OFX) AI Stock Analysis

• Market Cap: AU$135.55M
• Dividend Yield: N/A
• Average Volume (3M): 815.94K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.78
• Revenue Growth: -5.73%
• EPS Growth: -36.36%
• Country: AU
• Employees: 690
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.01
• Shares Outstanding: 231,709,690
• 10 Day Avg. Volume: 331,586
• 30 Day Avg. Volume: 815,939
• PEG Ratio: -0.47
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 32.16
• P/FCF Ratio: 5.12
• 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$0.86
• Price Target Upside: 72.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): AU$214.15M

• Rating: 66 Neutral
• Price Target: AU$0.69 ▲(37.20% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by solid financial stability and profitability (low leverage and robust ROE) and a favorable valuation (low P/E). These positives are tempered by a cautious earnings-call outlook due to weaker near-term results and rising expenses, plus technically stretched momentum that increases pullback risk.

Positive Factors

Strong balance sheet / net cash

Net cash and a low debt profile give OFX durable financial flexibility to fund the OFX 2.0 investment, absorb macro shocks, and support strategic initiatives without immediate refinancing risk. That stability underpins execution of multi-year growth targets and margin recovery efforts.

Enterprise segment expansion

Rapid enterprise growth signals durable demand from higher‑value, stickier clients and a shift toward B2B flows. A stronger enterprise base supports higher average transaction sizes, recurring revenue potential and greater revenue predictability over multiple quarters.

TAM expansion and non-FX diversification

Broadening the target market and growing non‑FX revenue reduces reliance on FX spreads and volatility. Diversification into SME services and non‑FX products creates structural upside for sustained NOI growth and lowers single-product concentration risk over the medium term.

Negative Factors

Revenue and EPS decline

Negative top‑line and EPS trends point to structural demand headwinds or competitive pressure. Persistent revenue contraction reduces operating leverage, constrains reinvestment capacity, and makes achieving targeted NOI and margin goals more challenging without clear, sustained revenue recovery.

Rising operating expenses

Material near‑term cost inflation from the platform transition increases fixed spending and squeezes margins until migration and efficiency gains materialize. If adoption or revenue lift lags, elevated structural costs could depress profitability for multiple quarters.

Revenue sensitivity to FX volatility

OFX's core model depends on FX spreads and transaction volumes, which vary with market volatility. Structural sensitivity makes revenue and margins cyclical and less predictable, complicating long‑term planning and making performance vulnerable during extended low‑volatility periods.

OFX Group Ltd. Business Overview & Revenue Model

Company Description

OFX Group Limited provides international payments and foreign exchange services. It offers international payment services, such as bank to bank currency transfer services to businesses and consumers. The company also provides international payment solutions, including OFX IT platform; client service; compliance; banking relationships; and payments services. It operates in the Asia Pacific, Europe, the Middle East, Africa, North America, and internationally. The company was formerly known as OzForex Group Limited and changed its name to OFX Group Limited in September 2016. OFX Group Limited was founded in 1998 and is headquartered in Sydney, Australia.

How the Company Makes Money

OFX generates revenue primarily through transaction fees and foreign exchange spreads. The company charges customers a fee for transferring money internationally, which varies based on the transaction amount and destination. Additionally, OFX earns money from the difference between the wholesale exchange rate it receives from liquidity providers and the rate it offers to customers, known as the spread. This dual revenue model allows OFX to benefit from both volume and margin on transactions. Significant partnerships with banks and financial institutions enhance its capabilities and market reach, contributing to its overall earnings. Furthermore, the company may also explore additional revenue streams through value-added services, such as risk management tools for businesses engaged in international trade.

OFX Group Ltd. Financial Statement Overview

Summary

Solid overall fundamentals: improving revenue/profit trends and healthy EBIT/EBITDA margins, supported by a low debt-to-equity and robust ROE. Offset by a recent dip in net profit margin and some variability in operating cash flow conversion despite improved free cash flow.

Income Statement

OFX Group Ltd. has demonstrated a strong gross profit margin with consistent improvement in revenues and profits over the years. The net profit margin shows a slight decline in the most recent year, which may indicate rising costs or operational challenges. However, the company's EBIT and EBITDA margins indicate healthy profitability levels. The revenue growth rate over the analyzed period shows a positive trajectory, boosting the overall income statement score.

Balance Sheet

The company's balance sheet is solid, characterized by a low debt-to-equity ratio, indicating strong financial stability and low leverage risk. The return on equity (ROE) is robust, demonstrating efficient use of equity to generate profits. The equity ratio also reflects a healthy balance between assets and equity, signifying a well-capitalized company. This strong balance sheet position enhances the company's ability to withstand market fluctuations.

Cash Flow

OFX Group Ltd. has shown a significant improvement in its free cash flow, reflecting strong cash generation capabilities. However, the operating cash flow to net income ratio suggests some variability, potentially indicating fluctuations in operational efficiency. Despite this, the free cash flow to net income ratio is favorable, underscoring the company's ability to convert its earnings into cash effectively.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	225.56M	8.34M	242.74M	228.86M	158.42M	134.69M
Gross Profit	183.73M	3.64M	227.51M	200.92M	137.06M	106.82M
EBITDA	18.99M	55.48M	64.56M	62.43M	44.50M	29.07M
Net Income	16.52M	24.86M	31.30M	31.41M	24.46M	12.78M
Balance Sheet
Total Assets	527.92M	566.91M	569.50M	680.85M	408.70M	378.04M
Cash, Cash Equivalents and Short-Term Investments	96.89M	360.59M	88.01M	93.80M	327.01M	60.57M
Total Debt	42.12M	32.93M	56.38M	79.14M	8.35M	17.30M
Total Liabilities	346.76M	385.08M	399.86M	536.74M	304.80M	297.75M
Stockholders Equity	181.16M	181.82M	169.64M	144.11M	103.89M	80.29M
Cash Flow
Free Cash Flow	34.43M	52.41M	-43.23M	152.05M	37.08M	52.23M
Operating Cash Flow	35.72M	72.53M	-18.64M	172.92M	48.55M	61.35M
Investing Cash Flow	-30.95M	-45.10M	-16.76M	-94.96M	-15.66M	-3.96M
Financing Cash Flow	-31.94M	-43.66M	-43.26M	58.03M	-6.17M	-12.77M

OFX Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 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:OFX, the sentiment is Positive. The current price of 0.5 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.53, and below the 200-day MA of 0.70, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 45.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:OFX.

OFX Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OFX	66 Neutral	AU$135.55M	8.36	9.31%	―	-5.73%	-36.36%
COG	54 Neutral	AU$336.85M	16.90	12.36%	2.86%	-26.30%	40.12%
PPS	52 Neutral	AU$348.54M	19.43	12.27%	2.81%	24.56%	59.32%
RZI	48 Neutral	AU$62.18M	-97.58	-0.15%	―	5.03%	52.31%

OFX Group Ltd. Corporate Events

OFX Group Cancels 48,751 Performance Rights After Conditions Not Met

OFX Group Limited has disclosed the lapse of 48,751 performance rights, which ceased on 19 December 2025 after the conditions attached to those rights were not met or became incapable of being satisfied. The cancellation of these conditional securities slightly reduces the company’s potential future share issuance under its incentive arrangements, tightening the capital structure and potentially signaling that certain performance hurdles or strategic milestones were not achieved within the specified period.

The most recent analyst rating on (AU:OFX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on OFX Group Ltd. stock, see the AU:OFX Stock Forecast page.

OFX to Issue 7.5 Million Unquoted Performance Rights Under Employee Incentive Plan

OFX Group Limited has notified the market of the planned issue of 7,471,447 unquoted performance rights under its employee incentive scheme, with an issue date of 15 December 2025. The new performance rights, which will not be quoted on the ASX, reflect the company’s ongoing use of equity-based remuneration to incentivise and retain staff, aligning employee interests with shareholder value and potentially leading to future dilution if the rights vest and are converted into ordinary shares.

The most recent analyst rating on (AU:OFX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on OFX Group Ltd. stock, see the AU:OFX Stock Forecast page.

OFX Group Director Increases Shareholding, Signaling Confidence

OFX Group Ltd. has announced a change in the interest of its director, Patricia Cross, who has increased her indirect holdings in the company by acquiring 12,923 ordinary fully paid shares through an on-market trade. This change reflects a growing confidence in the company’s performance and prospects, potentially signaling positive implications for stakeholders and enhancing OFX’s market position.

The most recent analyst rating on (AU:OFX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on OFX Group Ltd. stock, see the AU:OFX Stock Forecast page.

OFX Group Director Increases Shareholding

OFX Group Limited has announced a change in the director’s interest, specifically regarding Robert Bazzani, who has increased his indirect interest in the company through an on-market trade. The transaction involved the acquisition of 52,500 ordinary fully paid securities, raising his total holdings to 84,285 shares. This change reflects a strategic decision by the director, potentially indicating confidence in the company’s future performance and impacting stakeholder perceptions.

The most recent analyst rating on (AU:OFX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on OFX Group Ltd. stock, see the AU:OFX Stock Forecast page.