OFX Group Ltd. (AU:OFX)
ASX:OFX
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OFX Group Ltd.
(Sydney:OFX)
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Rating:63Neutral
Price Target:
AU$0.61
▲(22.40% Upside)
Action:ReiteratedDate:03/04/26
The score is primarily supported by solid financial strength (low leverage, healthy profitability) and a relatively low P/E valuation. Offsetting this are mixed technical signals and a cautious earnings-call backdrop due to recent operating underperformance, expense pressure, and macro challenges despite some strategic and segment-growth positives.
Positive Factors
Balance Sheet Strength
A low debt-to-equity profile and strong equity ratio give OFX durable financial flexibility. This capital strength supports continued investment in platform migration, underwriting of FX liquidity, and resilience through macro cycles, reducing refinancing risk and preserving strategic optionality.
Negative Factors
Recent NOI & EBITDA Weakness
Declining NOI and underwhelming EBITDA reflect margin pressure and operational headwinds. If sustained, weaker operating profitability can delay target margin improvements, constrain reinvestment capacity for OFX 2.0, and raise execution risk on the company’s multi-year growth targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A low debt-to-equity profile and strong equity ratio give OFX durable financial flexibility. This capital strength supports continued investment in platform migration, underwriting of FX liquidity, and resilience through macro cycles, reducing refinancing risk and preserving strategic optionality.
Read all positive factors
OFX Group Ltd. (OFX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$127.44M
Dividend YieldN/A
Average Volume (3M)815.94K
Price to Earnings (P/E)21.2
Beta (1Y)0.96
Revenue Growth-5.73%
EPS Growth-36.36%
CountryAU
Employees690
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.01
Shares Outstanding231,709,690
10 Day Avg. Volume331,586
30 Day Avg. Volume815,939
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)1.48
Price to Sales (P/S)32.16
P/FCF Ratio5.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.86Price Target Upside72.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.01
Revenue Forecast (FY)AU$222.75M
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...
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 earn...
OFX Group Ltd. Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a challenging period for OFX Group Limited, characterized by declining financial performance, increased expenses, and a difficult macroeconomic environment affecting client confidence. Despite these challenges, there are positive developments such as strong growth in the enterprise segment, increased client engagement, and progress in non-FX revenue and client migration. However, the balance of highlights and lowlights suggests a need for caution and strategic reassessment.Positive Updates
Enterprise Segment Growth
Enterprise revenue grew strongly, up 47.7% versus the prior corresponding period (PCP) and 27.5% versus the second half of '25.
Negative Updates
Disappointing Financial Performance
Net operating income (NOI) was $105 million, down 5.6% versus PCP, and underlying EBITDA was $14.5 million, a disappointing outcome below expectations.
Read all updates
Q2-2026 Updates
Positive
Negative
Enterprise Segment Growth
Enterprise revenue grew strongly, up 47.7% versus the prior corresponding period (PCP) and 27.5% versus the second half of '25.
Read all positive updates
Company Guidance
In the recent earnings call for OFX Group Limited, CEO Skander Malcolm outlined the company's strategic focus and financial targets. The company aims for a 15% net operating income (NOI) growth by fiscal year 2028, with underlying EBITDA margins of approximately 30%. OFX has expanded its total addressable market (TAM) from USD 34 billion to USD 66 billion by broadening its service offerings beyond cross-border payments, particularly targeting small and medium-sized enterprises (SMEs) traditionally served by banks. The first half of fiscal year 2026 saw an NOI of $105 million and an underlying EBITDA of $14.5 million, reflecting a challenging macroeconomic environment. Despite a decline in corporate revenue, there was significant growth in the enterprise segment, up 47.7% from the prior corresponding period. The company is investing in its transition to OFX 2.0, targeting non-FX revenue to contribute at least 10% to NOI by fiscal year 2028. Although the company reported a disappointing performance in the first half, it remains committed to its growth strategy, supported by a strong balance sheet with net cash of $75.4 million.OFX Group Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| 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
Negative
0.50
Price Trends
0.57
Negative
0.56
Negative
0.67
Negative
Market Momentum
>-0.01
Positive
44.09
Neutral
38.53
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 0.5 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.57, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.09 is Neutral, neither overbought nor oversold. The STOCH value of 38.53 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | AU$127.44M | 21.16 | 9.10% | ― | -5.73% | -36.36% | |
57 Neutral | AU$278.32M | 10.89 | 12.36% | 2.86% | -26.30% | 40.12% | |
52 Neutral | AU$338.79M | 9.65 | 15.42% | 2.81% | 24.56% | 59.32% | |
48 Neutral | AU$59.02M | 5.73 | 10.48% | ― | 5.03% | 52.31% |
* Financial Sector Average
AU:OFX
OFX Group Ltd.
0.55
-0.49
-47.12%
AU:RZI
Raiz Invest Ltd.
0.56
0.07
14.29%
AU:PPS
Praemium Ltd
0.70
0.04
5.62%
AU:COG
COG Financial Services Limited
1.31
0.19
16.62%
OFX Group Ltd. Corporate Events
OFX names seasoned finance leader James Georgeson as new CFO amid strategic review
Feb 22, 2026
OFX Group Ltd has appointed experienced finance executive James Georgeson as its new Chief Financial Officer, with his tenure beginning on 23 February 2026 under an initial contract through 31 March 2027. Outgoing CFO Selena Verth will stay with t...
OFX Group Cancels 48,751 Performance Rights After Conditions Not Met
Jan 7, 2026
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 secur...
OFX to Issue 7.5 Million Unquoted Performance Rights Under Employee Incentive Plan
Jan 7, 2026
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, r...
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.