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OFX Group Ltd.
(Sydney:OFX)
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Rating:70Neutral
Price Target:
AU$0.88
▲(76.60% Upside)
Action:Reiterated
Date:07/24/26
OFX’s overall score reflects **solid underlying financial strength and strong recent price momentum, offset by weak profitability and a stretched valuation**. The most important driver is the financial profile: a conservatively financed balance sheet and strong cash generation provide a meaningful cushion against recent revenue declines and margin compression, but the shift to a small net loss and compressed EBITDA materially lowers earnings quality. Technicals are the next major positive, with the share price trading well above key moving averages and supported by positive MACD and high RSI, indicating sustained bullish momentum. Valuation weighs negatively, as the deeply negative P/E and lack of dividend suggest investors are paying a rich price relative to current earnings power. The earnings call adds a moderately supportive element, with clear strategic progress and credible medium‑term targets, yet ongoing macro‑driven volume pressure, higher costs and uncertain timing for achieving targets keep the risk profile elevated. Together, these factors yield a **mid‑to‑upper‑range score**, appropriate for a financially sound but earnings‑challenged stock with strong momentum and a recovery story that still needs to be proven.
Positive Factors
Strong cash generation & net cash
Consistent positive operating cash conversion and a net cash position provide durable financial flexibility. This strengthens the company’s ability to fund product development, absorb volatility in FX flows, support go-to-market investment and avoid near-term refinancing risk over the next 2–6 months.
Negative Factors
Declining fee & trading income
Sustained declines in core FX fee and trading income point to weaker transaction volumes and adverse mix. Because trading spreads and volumes drive much of revenue, this structural pressure can compress margins and delay recovery to targeted NOI growth absent a pronounced pickup in client activity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & net cash
Consistent positive operating cash conversion and a net cash position provide durable financial flexibility. This strengthens the company’s ability to fund product development, absorb volatility in FX flows, support go-to-market investment and avoid near-term refinancing risk over the next 2–6 months.
Read all positive factors
OFX Group Ltd. (OFX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$190.86M
Dividend YieldN/A
Average Volume (3M)815.94K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth-7.93%
EPS Growth-101.72%
CountryAU
Employees702
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding232,753,110
10 Day Avg. Volume331,586
30 Day Avg. Volume815,939
Financial Highlights & Ratios
PEG Ratio3.09
Price to Book (P/B)0.71
Price to Sales (P/S)0.58
P/FCF Ratio0.89
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)<0.01
Revenue Forecast (FY)AU$216.04M
OFX Group Ltd. Business Overview & Revenue Model
Company Description
OFX Group Limited operates as a global provider specializing in international payment solutions and foreign currency exchange. The company enables direct bank-to-bank currency transfers for both businesses and individual consumers. Their comprehen...
How the Company Makes Money
OFX primarily makes money from fees and FX-related revenue earned when customers execute international transfers and currency conversions. A key revenue driver is the spread (or margin) between the exchange rate OFX offers a customer and the rate ...
OFX Group Ltd. Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong operational and strategic progress with the OFX 2.0 platform migration, clear signs of product traction (multiproduct adoption, rising NTCs), improved technology delivery, growing non-FX revenue and a solid cash position. These positives are offset by a notable decline in top-line trading revenues, a severe reduction in underlying EBITDA versus the prior year, weaker consumer and corporate transaction activity driven by macro uncertainty and a meaningful increase in certain operating costs and bad debts. Management outlines a path to recovery but timing is dependent on market conditions.Positive Updates
Major OFX 2.0 Migration Largely Complete, On Time and On Budget
Completed migration of over 90% of corporate clients and major markets to the new client platform (NCP); launched in Canada, EMEA, Australia upgrades, U.S. launch with partner bank and New Zealand launch; management states migrations executed within budget and time frames.
Negative Updates
Revenue and NOI Decline
Fee and trading income down 8.1% to $203.9m; Net Operating Income (NOI) $196.6m, down 8.5% year-over-year; management cited macro uncertainty, lower volumes and mix shift to lower-margin same-currency transactions and spots.
Read all updates
Q4-2026 Updates
Positive
Negative
Major OFX 2.0 Migration Largely Complete, On Time and On Budget
Completed migration of over 90% of corporate clients and major markets to the new client platform (NCP); launched in Canada, EMEA, Australia upgrades, U.S. launch with partner bank and New Zealand launch; management states migrations executed within budget and time frames.
Read all positive updates
Company Guidance
Guidance from the call was that OFX expects to return to positive operating leverage in FY27 with a medium‑term target of ~15% NOI growth and underlying EBITDA margins of around 30%; near‑term expectations include growth in corporate active clients (after >90% of corporate clients migrated to the NCP and 23,000+ active corporate clients on the platform, up ~70% vs H1), steady cross‑currency ATVs (down just over 4% in FY26), stabilization of consumer revenue, and continued mid‑teens growth in enterprise, while controlling costs (operating expenses to be broadly flat in FY27 with absolute cost growth limited to inflation and a slight increase for rebased incentives). Key FY26 baselines cited were fee & trading income $203.9m, NOI $196.6m, underlying EBITDA $25.2m (operating cash flow $26.7m; operating cash conversion >100%), operating expenses $171.5m (up 9.1%), net cash held $71.6m (net available cash $49.6m, debt $18m), non‑FX revenue $1.8m (non‑FX almost tripled over four quarters, Q4 interest from balances ≈$1m), wallet balances ≈$233m, new trading clients +8% FY26 (April +20% YoY), multiproduct adoption 8.4% in Q4 (from 4.5% in Q3), forward book down ~15%, turnover down 6.4% and total revenue down just under 10% (consumer revenue down 13.8%).OFX Group Ltd. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 213.01M | 8.34M | 242.74M | 228.86M | 158.42M |
| Gross Profit | 149.48M | 3.64M | 227.51M | 200.92M | 137.06M |
| EBITDA | 23.54M | 55.48M | 64.56M | 62.43M | 44.50M |
| Net Income | -391.00K | 24.86M | 31.30M | 31.41M | 24.46M |
Balance Sheet | |||||
| Total Assets | 689.89M | 566.91M | 569.50M | 680.85M | 408.70M |
| Cash, Cash Equivalents and Short-Term Investments | 109.28M | 360.59M | 88.01M | 93.80M | 327.01M |
| Total Debt | 35.01M | 32.93M | 56.38M | 79.14M | 8.35M |
| Total Liabilities | 514.38M | 385.08M | 399.86M | 536.74M | 304.80M |
| Stockholders Equity | 175.51M | 181.82M | 169.64M | 144.11M | 103.89M |
Cash Flow | |||||
| Free Cash Flow | 140.25M | 52.41M | -43.23M | 152.05M | 37.08M |
| Operating Cash Flow | 141.13M | 72.53M | -18.64M | 172.92M | 48.55M |
| Investing Cash Flow | -18.11M | -45.10M | -16.76M | -94.96M | -15.66M |
| Financing Cash Flow | -11.28M | -43.66M | -43.26M | 58.03M | -6.17M |
OFX Group Ltd. Technical Analysis
Positive
0.50
Price Trends
0.64
Positive
0.59
Positive
0.58
Positive
Market Momentum
0.06
Positive
73.38
Negative
73.81
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 0.76, below the 50-day MA of 0.64, and below the 200-day MA of 0.58, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 73.38 is Negative, neither overbought nor oversold. The STOCH value of 73.81 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$117.17B | 19.64 | 8.30% | 4.55% | -5.34% | -13.04% | |
70 Neutral | AU$190.86M | -455.56 | -0.22% | ― | -7.93% | -101.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | AU$279.47B | 25.72 | 13.94% | 2.81% | 0.78% | 7.41% | |
62 Neutral | AU$96.38B | 20.49 | 13.72% | 2.74% | 4.80% | 30.56% | |
62 Neutral | AU$128.61B | 20.69 | 9.88% | 4.21% | -8.10% | -10.70% | |
54 Neutral | AU$120.82B | 17.25 | 9.77% | 4.15% | -3.87% | 1.20% |
* Financial Sector Average
AU:OFX
OFX Group Ltd.
0.82
<0.01
1.23%
AU:ANZ
ANZ Group Holdings
38.89
7.73
24.83%
AU:MQG
Macquarie Group Limited
261.90
51.41
24.43%
AU:NAB
National Australia Bank Limited
41.37
2.77
7.17%
AU:WBC
Westpac Banking
35.37
-0.28
-0.78%
AU:CBA
Commonwealth Bank of Australia
167.17
1.78
1.08%
OFX Group Ltd. Corporate Events
OFX publishes 2026 AGM notice and investor materials
Jul 5, 2026
OFX Group Limited, the Sydney-headquartered money transfer and financial operations provider, has built a global footprint over more than 25 years, offering real-time financial control, 24/7 human support and ISO-certified services to clients in m...
OFX Director Updates Equity Holdings Under Employee Incentive Plan
Jun 17, 2026
OFX Group Limited has reported a change in the indirect equity interests of director John Alexander Malcolm under its employee share plan, administered via nominee Solium Nominees (Australia) Pty Ltd. The disclosure outlines movements in his holdi...
OFX Group Adds 1 Million New Shares to ASX Quotation
Jun 17, 2026
OFX Group has applied to the ASX for quotation of 1,008,451 new fully paid ordinary shares, following the exercise or conversion of existing options or other convertible securities. The additional shares, issued on 15 June 2026, will modestly incr...
OFX Group Reports Lapse of 2.9 Million Performance Rights
Jun 17, 2026
OFX Group Ltd. has reported the lapse of 2,867,694 performance rights, which have ceased because the conditions attached to these rights were not met or became incapable of being satisfied as of 2 June 2026. The cessation of these securities reduc...
OFX sets 2026 AGM date and opens director nomination window
Jun 9, 2026
OFX Group Ltd., the ASX-listed money transfer and financial operations provider, offers an innovative platform with 24/7 human support for global business accounts, international money transfers, payments, corporate cards, and currency risk manage...
OFX Seeks ASX Quotation for New Ordinary Shares After Option Conversions
May 5, 2026
OFX Group Ltd. has applied for quotation on the ASX of 34,982 new ordinary fully paid shares, with an issue date of May 5, 2026. The additional securities arise from the exercise or conversion of existing options or other convertible instruments, ...
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.