tiprankstipranks
Trending News
More News >
OFX Group Ltd. (AU:OFX)
:OFX
Australian Market

OFX Group Ltd. (OFX) AI Stock Analysis

Compare
31 Followers

Top Page

AU

OFX Group Ltd.

(Sydney:OFX)

Rating:65Neutral
Price Target:
The overall stock score of 65 reflects solid financial performance with strong revenue growth and profitability, supported by a robust balance sheet. However, significant cash flow challenges and bearish technical indicators weigh down the score. The valuation is attractive due to a low P/E ratio, but the lack of a dividend yield is a drawback. The absence of earnings call insights or corporate events means these factors did not impact the score.

OFX Group Ltd. (OFX) vs. iShares MSCI Australia ETF (EWA)

OFX Group Ltd. Business Overview & Revenue Model

Company DescriptionOFX 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 MoneyOFX Group Ltd. generates revenue primarily through the fees and margins applied to foreign exchange transactions. The company earns money by charging a small percentage as a fee on the currency conversion and transfer services it provides. This margin is typically derived from the difference between the wholesale exchange rate at which OFX acquires currency and the retail rate offered to customers. Additionally, OFX may charge fixed fees for certain transaction types or premium services. The company's revenue is also bolstered by its partnerships with financial institutions, businesses, and other entities that leverage OFX's platform for cross-border payment solutions. Factors such as competitive pricing, efficient online services, and an extensive global network contribute to OFX's ability to attract and retain a wide range of clients, further enhancing its earnings.

OFX Group Ltd. Financial Statement Overview

Summary
OFX Group Ltd. demonstrates strong revenue growth and profitability, with solid margins indicating efficient operations. The balance sheet is robust, with low leverage and high return on equity. However, cash flow challenges are notable, with negative free cash flow and deteriorating cash conversion ratios. The company should prioritize improving cash management practices to ensure sustainable growth and financial stability.
Income Statement
82
Very Positive
OFX Group Ltd. shows strong revenue growth, with a 6.05% increase from the previous year. The company maintains robust profitability with a gross profit margin of 93.72% and a net profit margin of 12.89%. EBIT and EBITDA margins are also healthy at 30.26% and 26.60% respectively, showcasing efficient cost management. However, there was a slight dip in net income compared to the previous year, indicating potential areas for improvement in cost control or revenue maximization.
Balance Sheet
78
Positive
The balance sheet reflects a sound financial position with a debt-to-equity ratio of 0.33, indicating low leverage and financial stability. The return on equity is strong at 18.45%, suggesting effective use of equity financing. However, the equity ratio stands at 29.79%, which could be improved to enhance financial resilience. Overall, the company maintains a solid balance sheet with manageable liabilities.
Cash Flow
60
Neutral
The cash flow statement shows a concerning decline in free cash flow from previous periods, reflecting a significant decrease in operating cash flow, resulting in negative free cash flow. The operating cash flow to net income ratio is negative, indicating challenges in converting earnings into cash flow. Further, the free cash flow to net income ratio is negative, suggesting potential liquidity issues. The company needs to focus on improving cash conversion efficiency to bolster cash reserves.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
239.26M242.74M228.86M158.42M134.69M138.34M
Gross Profit
223.53M227.51M200.92M137.06M106.82M114.63M
EBIT
72.43M29.97M49.26M34.53M17.96M26.41M
EBITDA
43.23M64.56M62.43M44.50M29.07M36.94M
Net Income Common Stockholders
26.23M31.30M31.41M24.46M12.78M20.33M
Balance SheetCash, Cash Equivalents and Short-Term Investments
61.05M88.01M462.47M327.01M302.38M61.05M
Total Assets
358.33M569.50M680.85M408.70M378.04M358.33M
Total Debt
21.14M56.38M79.14M8.35M17.30M21.14M
Net Debt
-7.63M-11.70M-357.72M-293.52M-257.96M-7.63M
Total Liabilities
282.34M399.86M536.74M304.80M297.75M282.34M
Stockholders Equity
75.99M169.64M144.11M103.89M80.29M75.99M
Cash FlowFree Cash Flow
42.59M-43.23M152.05M37.08M52.23M20.22M
Operating Cash Flow
43.62M-20.78M172.92M48.55M61.35M30.50M
Investing Cash Flow
-32.45M-16.76M-94.96M-15.66M-3.96M-10.10M
Financing Cash Flow
-41.90M-43.26M58.03M-6.17M-12.77M-17.69M

OFX Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.69
Price Trends
50DMA
1.01
Negative
100DMA
1.16
Negative
200DMA
1.42
Negative
Market Momentum
MACD
-0.11
Positive
RSI
31.34
Neutral
STOCH
8.35
Positive
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 0.69 is below the 20-day moving average (MA) of 0.87, below the 50-day MA of 1.01, and below the 200-day MA of 1.42, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 31.34 is Neutral, neither overbought nor oversold. The STOCH value of 8.35 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUOFX
65
Neutral
AU$160.85M6.5914.15%0.12%-16.79%
64
Neutral
$12.86B9.797.78%16985.65%12.28%-7.82%
$284.94M34.657.22%
$61.67M-3.57%
AUXYZ
76
Outperform
AU$61.37B15.6012.61%5.46%425.12%
AUTYR
75
Outperform
AU$464.95M14.9715.36%7.50%204.66%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:OFX
OFX Group Ltd.
0.69
-1.43
-67.45%
EMCHF
EML Payments
0.70
0.08
12.90%
FLNCF
Freelancer
0.11
0.04
57.14%
AU:TYR
Tyro Payments Ltd.
0.88
0.10
12.82%
AU:XYZ
Block, Inc. Shs Chess Depository Interests Repr 1 Sh
98.23
0.62
0.64%

OFX Group Ltd. Corporate Events

OFX Group Announces Registry Office Relocation
Apr 10, 2025

OFX Group Limited has announced a change in the address of its registry office, effective from April 14, 2025. The registry, managed by MUFG Corporate Markets (AU) Limited, will move to a new location at Liberty Place, Level 41, 161 Castlereagh St, Sydney NSW 2000. This relocation is part of the company’s ongoing operational adjustments and does not affect telephone numbers or postal addresses, ensuring continuity for stakeholders.

OFX Group Ltd. Announces Quotation of New Securities on ASX
Apr 1, 2025

OFX Group Ltd. has announced the application for the quotation of 219,853 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its market presence and provide liquidity options for its stakeholders, reflecting a positive step in its growth and operational expansion.

OFX Group Ltd. Updates on Buy-Back Program
Mar 13, 2025

OFX Group Ltd. has announced an update regarding its ongoing on-market buy-back program, with a total of 17,578,515 securities bought back before the previous day and an additional 208,915 securities acquired on the previous day. This buy-back initiative reflects the company’s strategic efforts to manage its capital structure and potentially enhance shareholder value, indicating a proactive approach to optimizing financial performance.

OFX Group Ltd. Updates on Share Buy-Back Progress
Mar 12, 2025

OFX Group Ltd. has announced an update regarding its ongoing share buy-back program, revealing that a total of 196,042 ordinary fully paid securities were bought back on the previous day, adding to the cumulative total of 17,382,473 securities repurchased. This buy-back initiative is part of the company’s strategy to optimize its capital structure and enhance shareholder value, reflecting its commitment to returning capital to its investors.

OFX Group Ltd. Updates on Share Buy-Back Program
Mar 12, 2025

OFX Group Ltd. has announced an update regarding its ongoing share buy-back program, with a total of 17,211,019 ordinary fully paid securities bought back before the previous day and an additional 171,454 securities acquired on the previous day. This buy-back initiative is part of OFX’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting the company’s commitment to optimizing its financial operations and market presence.

OFX Group Ltd. Updates on Share Buy-Back Program
Mar 5, 2025

OFX Group Ltd. has announced an update regarding its ongoing share buy-back program, revealing that a total of 16,848,585 ordinary fully paid securities have been bought back before the previous day, with an additional 117,191 securities acquired on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting a proactive approach to optimizing financial performance and market positioning.

OFX Group Ltd. Updates on Ongoing Share Buy-Back Program
Mar 4, 2025

OFX Group Ltd. has announced an update on its ongoing on-market buy-back program, revealing that a total of 16,663,686 ordinary fully paid securities have been bought back before the previous day, with an additional 184,899 securities purchased on the previous day. This buy-back program is part of OFX’s strategy to enhance shareholder value and optimize its capital structure, potentially impacting the company’s financial standing and market perception positively.

OFX Group Ltd. Announces Quotation of New Securities on ASX
Mar 4, 2025

OFX Group Ltd. has announced the application for the quotation of 188,098 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move indicates the company’s ongoing efforts to enhance its market presence and liquidity, potentially benefiting stakeholders by increasing the availability of its shares for trading.

OFX Group Ltd. Updates on Share Buy-Back Progress
Mar 3, 2025

OFX Group Ltd. has announced an update regarding its ongoing share buy-back program, revealing that a total of 173,554 ordinary fully paid securities were bought back on the previous day, adding to the cumulative total of 16,490,132 securities repurchased. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value, reflecting its commitment to returning value to its investors.

Perennial Value Management Becomes Substantial Shareholder in OFX Group
Mar 3, 2025

Perennial Value Management Limited has become a substantial shareholder in OFX Group Ltd., acquiring a 5.01% voting power with 11,786,308 ordinary shares. This acquisition signifies a notable increase in Perennial’s investment in OFX, potentially impacting OFX’s market positioning and shareholder dynamics.

OFX Group Ltd. Updates on Market Buy-Back Progress
Feb 21, 2025

OFX Group Ltd. announced an update on its ongoing on-market buy-back program, confirming the repurchase of 113,213 ordinary fully paid securities on the previous day, adding to a total of 16,376,919 securities bought back so far. This buy-back is a strategic move to enhance shareholder value and signifies the company’s confidence in its financial health and future growth prospects.

OFX Group Ltd. Updates on Share Buy-Back Progress
Feb 17, 2025

OFX Group Ltd. has announced an update on its ongoing on-market share buy-back program, where they repurchased 150,133 ordinary fully paid securities on the previous day. This buy-back initiative, which began on May 23, 2023, reflects the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

OFX Group Ltd. Updates Buy-Back Notification with Corrected Dates
Feb 17, 2025

OFX Group Ltd. has announced a correction to a previous notification regarding its ongoing on-market buy-back of ordinary fully paid securities. The update corrects the date of a previous daily buy-back notification from February 13 to February 14, 2025. This buy-back initiative reflects OFX’s strategic approach to managing its capital structure and returning value to shareholders.

OFX Group Ltd. Updates on Continued Securities Buy-Back Program
Feb 16, 2025

OFX Group Ltd. has announced an update on its ongoing on-market buy-back program, revealing that a total of 16,134,075 securities have been bought back before the previous day, with an additional 92,711 securities acquired on the last trading day. This move is part of OFX’s strategy to manage its capital structure and enhance shareholder value, reflecting its commitment to maintaining a strong market position in the financial services sector.

OFX Group Enhances Shareholder Value through Ongoing Buy-Back Program
Feb 12, 2025

OFX Group Ltd. has announced a daily update on its ongoing share buy-back program, revealing that it has repurchased a total of 78,900 ordinary fully paid securities on the previous day, adding to the cumulative total of 16,055,175 shares bought back since the program’s initiation. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value, reflecting OFX Group’s confidence in its financial position and future prospects.

OFX Group Ltd. Announces Cessation of Securities in Strategic Buy-Back
Feb 10, 2025

OFX Group Ltd. announced the cessation of 1,330,643 ordinary fully paid securities due to an on-market buy-back, effective February 10, 2025. This move is part of the company’s capital management strategy and may impact its market positioning by potentially increasing shareholder value through a reduced share base.

OFX Group Issues Performance Rights to Bolster Workforce
Feb 6, 2025

OFX Group Ltd. has announced the issuance of 36,376 performance rights as part of its employee incentive scheme. This issuance, which is not intended to be quoted on the ASX, reflects the company’s ongoing efforts to incentivize and retain talent, suggesting a strategic focus on strengthening its workforce to support its operations and competitive positioning in the financial services sector.

OFX Group Ltd. Updates on Market Buy-Back Program
Feb 5, 2025

OFX Group Ltd. has announced an update on its ongoing on-market buy-back program, detailing that a total of 15,693,909 securities were bought back before the previous day, with an additional 85,042 securities repurchased on the prior trading day. This move is part of the company’s strategic financial management to potentially enhance shareholder value by reducing the number of outstanding shares, which may positively impact the company’s earnings per share and market perception.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.