OFX Group Ltd. (OFX) AI Stock Analysis

• Market Cap: AU$136.71M
• Dividend Yield: N/A
• Average Volume (3M): 815.94K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.68
• 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$0.90
• Price Target Upside: 60.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: AU$0.50 ▼(-10.71% Downside)

OFX Group Ltd.'s overall stock score is driven by its strong financial performance and attractive valuation, suggesting potential for future growth. However, bearish technical indicators and challenges highlighted in the earnings call, such as declining financial performance and increased expenses, temper the outlook. Investors should be cautious and consider the company's strategic direction and market conditions.

Positive Factors

Enterprise Segment Growth

The significant growth in the enterprise segment indicates a strong market position and potential for sustained revenue expansion, enhancing long-term business prospects.

Non-FX Revenue Growth

Diversification into non-FX revenue streams supports resilience against market volatility and aligns with strategic goals for revenue composition by fiscal year 2028.

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility to invest in growth opportunities, supporting long-term strategic initiatives.

Negative Factors

Decline in Corporate Revenue

A decline in corporate revenue signals potential challenges in maintaining market share and could impact future revenue growth if not addressed strategically.

Increased Operating Expenses

Rising operating expenses, driven by strategic investments, may pressure profit margins if revenue growth does not offset these costs, impacting long-term profitability.

Macro Environment Challenges

External macroeconomic challenges can hinder client activity and transaction volumes, potentially affecting revenue stability and growth prospects in the medium term.

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

OFX Group Ltd. demonstrates strong financial performance with a solid balance sheet, low debt-to-equity ratio, and robust profitability margins. Despite a slight decline in net profit margin, the company shows positive revenue growth and healthy cash flow generation, positioning it well for future growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	231.37M	8.34M	242.74M	228.86M	158.42M	134.69M
Gross Profit	214.91M	3.64M	227.51M	200.92M	137.06M	106.82M
EBITDA	32.43M	55.48M	64.56M	62.43M	44.50M	29.07M
Net Income	24.86M	24.86M	31.30M	31.41M	24.46M	12.78M
Balance Sheet
Total Assets	566.91M	566.91M	569.50M	680.85M	408.70M	378.04M
Cash, Cash Equivalents and Short-Term Investments	360.59M	360.59M	88.01M	93.80M	327.01M	60.57M
Total Debt	32.93M	32.93M	56.38M	79.14M	8.35M	17.30M
Total Liabilities	385.08M	385.08M	399.86M	536.74M	304.80M	297.75M
Stockholders Equity	181.82M	181.82M	169.64M	144.11M	103.89M	80.29M
Cash Flow
Free Cash Flow	71.32M	52.41M	-43.23M	152.05M	37.08M	52.23M
Operating Cash Flow	72.53M	72.53M	-18.64M	172.92M	48.55M	61.35M
Investing Cash Flow	-45.10M	-45.10M	-16.76M	-94.96M	-15.66M	-3.96M
Financing Cash Flow	-43.66M	-43.66M	-43.26M	58.03M	-6.17M	-12.77M

OFX Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 0.56 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.70, and below the 200-day MA of 0.87, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	60 Neutral	AU$136.71M	5.64	9.31%	―	-5.73%	-36.36%
COG	55 Neutral	AU$489.39M	24.55	12.36%	2.97%	-26.30%	40.12%
RZI	53 Neutral	AU$87.47M	-133.87	-0.15%	―	5.03%	52.31%
PPS	50 Neutral	AU$430.58M	31.80	12.27%	2.71%	24.56%	59.32%

OFX Group Ltd. Corporate Events

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.

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.

OFX Group Ltd Advances OFX 2.0 Strategy Amidst Financial Challenges

OFX Group Ltd reported a decline in its financial performance for the first half of 2026, with Fee and Trading Income down 4.7% due to global economic uncertainties. Despite challenges, the company is making progress with its OFX 2.0 strategy, including a global rollout of a new client platform and a refreshed go-to-market strategy, which has led to increased client acquisition and product adoption. The company continues to generate strong cash flows and is ahead of schedule in migrating clients to its new platform, which is expected to enhance revenue and client engagement.

OFX Group Reports Growth in Corporate Clients Amidst OFX 2.0 Transition

OFX Group Ltd has reported a 15.6% growth in new transacting corporate clients in the second quarter of FY26, driven by its new go-to-market strategy and the successful rollout of its New Client Platform (NCP) across major markets. Despite facing challenges from macroeconomic uncertainties that have impacted net operating income and transaction values, the company is seeing positive engagement from its corporate clients, particularly those migrated to the NCP. The transition to OFX 2.0 is showing promising results, with increased adoption of new products and higher account balances, positioning the company for future growth.

Citigroup Adjusts Stake in OFX Group Ltd.

Citigroup Global Markets Australia Pty Limited has ceased to be a substantial holder in OFX Group Ltd. as of September 23, 2025. This change in shareholding, involving a decrease in relevant interest by Citibank, N.A. Sydney Branch and Citigroup Global Markets Limited, and a minor increase by Citigroup Global Markets Australia Pty Limited, reflects adjustments in securities lending agreements and standard market operations, potentially impacting OFX’s shareholder structure and market perception.

OFX Group Ltd. Announces Cessation of Securities

OFX Group Ltd. announced the cessation of 2,019,444 ordinary fully paid securities due to an on-market buy-back, effective September 11, 2025. This move is part of the company’s capital management strategy, potentially impacting its market positioning by optimizing the capital structure and potentially enhancing shareholder value.

OFX Group Ltd. Updates on Share Buy-Back Program

OFX Group Ltd. has announced an update on its ongoing share buy-back program, with a total of 2,113,611 securities bought back before the previous day and an additional 41,912 securities purchased on the previous day. This buy-back initiative reflects OFX’s strategic efforts to manage its capital structure and potentially enhance shareholder value, indicating a proactive approach in optimizing its financial operations.

Citigroup Reduces Stake in OFX Group Ltd.

Citigroup Global Markets Australia Pty Limited has ceased to be a substantial holder in OFX Group Ltd. as of September 9, 2025. This change in substantial holding, involving a decrease of over 2 million ordinary fully paid shares, results from securities lending agreements and standard stock market transactions, potentially affecting the company’s shareholder composition and market perception.

OFX Group Ltd. Updates on Market Buy-Back Program

OFX Group Ltd. has announced an update regarding its ongoing on-market buy-back program, reporting a total of 2,019,444 securities bought back before the previous day and an additional 94,167 securities bought back on the previous day. This buy-back initiative is part of OFX’s strategy to enhance shareholder value and optimize its capital structure, reflecting confidence in the company’s financial health and future prospects.

OFX Group Ltd. Updates on Share Buy-Back Program

OFX Group Ltd. has announced an update regarding its ongoing on-market buy-back program. As of the latest notification, the company has bought back a total of 1,928,202 ordinary fully paid securities, with an additional 91,242 securities acquired on the previous day. This buy-back initiative is part of OFX’s strategy to optimize its capital structure and potentially enhance shareholder value.