Prime Financial Group Limited (PFG) AI Stock Analysis

• Market Cap: AU$59.81M
• Dividend Yield: 6.48%
• Average Volume (3M): 71.99K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.47
• Revenue Growth: 26.27%
• EPS Growth: 32.82%
• Country: AU
• Employees: 200
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): <0.01
• Shares Outstanding: 258,648,350
• 10 Day Avg. Volume: 86,267
• 30 Day Avg. Volume: 71,993
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

Prime Financial Group Limited's stock score is driven primarily by its strong financial performance and attractive valuation. The company's robust revenue and cash flow growth, along with a solid balance sheet, contribute significantly to the score. Despite this, technical indicators show a neutral to slightly bearish sentiment, which slightly offsets the positive financial and valuation aspects. The lack of recent earnings call data and notable corporate events means these factors did not influence the score.

Prime Financial Group Limited Business Overview & Revenue Model

Company Description

Prime Financial Group Limited (PFG) is an Australia-based integrated financial services company that provides a range of financial advisory services, including wealth management, self-managed superannuation funds (SMSFs) administration, estate planning, and accounting and business advisory services. The company primarily caters to individuals, families, and small to medium-sized enterprises (SMEs) seeking comprehensive financial solutions tailored to their specific needs.

How the Company Makes Money

Prime Financial Group Limited generates revenue through a diversified business model that includes advisory fees, commissions, and service fees from its wealth management and financial advisory services. The company earns advisory fees by providing personalized financial planning and investment management services to its clients. Additionally, PFG receives commissions from financial products, such as insurance and investment products, that it recommends and sells to its customers. Revenue is also generated from accounting and business advisory services, where the company offers tax, compliance, and business consulting services to SMEs. Partnerships with financial institutions and product providers enhance PFG's service offerings and contribute to its revenue streams.

Prime Financial Group Limited Financial Statement Overview

Summary

Prime Financial Group Limited exhibits strong financial performance with robust revenue and cash flow growth. The company's efficient cost management and operational efficiency are reflected in healthy profit margins. However, the slight decrease in net profit margin and increasing debt levels require careful monitoring.

Income Statement

Prime Financial Group Limited has demonstrated robust revenue growth, with a significant increase of 20.8% from the previous year. The gross profit margin stands at a healthy 45.5%, reflecting efficient cost management. However, the net profit margin decreased slightly to 7.0%, indicating increased expenses or other financial pressures. The EBIT and EBITDA margins are strong, at 15.3% and 20.5%, respectively, showing operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.28, suggesting a conservative leverage approach. The return on equity (ROE) is 5.5%, indicating a reasonable return for shareholders. The equity ratio is 63.5%, which reflects a solid equity base and financial stability. However, the increasing debt levels over recent years could pose potential risks if revenue growth slows.

Cash Flow

Operating cash flow has grown, supporting a positive free cash flow growth rate of 112.9%. The operating cash flow to net income ratio is 2.01, indicating strong cash generation relative to reported income. Free cash flow to net income is 1.85, reinforcing the company's ability to generate cash beyond operational needs. Despite the positive cash flow metrics, future capital expenditures and debt servicing should be monitored closely.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	40.77M	33.74M	26.33M	22.32M	21.55M
Gross Profit	18.54M	31.98M	24.73M	20.53M	9.71M
EBITDA	8.34M	8.76M	8.35M	7.13M	6.21M
Net Income	2.85M	4.41M	3.81M	3.07M	2.13M
Balance Sheet
Total Assets	82.12M	67.14M	59.77M	58.29M	58.90M
Cash, Cash Equivalents and Short-Term Investments	507.86K	1.04M	128.70K	65.72K	93.49K
Total Debt	14.73M	11.30M	7.15M	9.92M	13.54M
Total Liabilities	29.38M	17.80M	13.12M	14.63M	17.73M
Stockholders Equity	52.12M	48.70M	46.03M	42.86M	39.96M
Cash Flow
Free Cash Flow	5.27M	2.47M	5.86M	5.32M	3.42M
Operating Cash Flow	5.74M	4.22M	6.14M	5.54M	3.74M
Investing Cash Flow	-2.99M	-3.94M	-974.21K	-811.25K	-2.87M
Financing Cash Flow	-3.29M	637.73K	-5.11M	-4.76M	-984.05K

Prime Financial Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PFG, the sentiment is Positive. The current price of 0.25 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.23, and above the 200-day MA of 0.22, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 70.28 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PFG.

Prime Financial Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAM	77 Outperform	AU$77.08M	10.87	34.01%	6.17%	53.03%	18.82%
WTL	74 Outperform	AU$51.33M	13.51	13.04%	1.38%	33.80%	-8.26%
PFG	69 Neutral	AU$59.81M	13.79	7.76%	6.48%	26.27%	32.82%
Sector *	62 Neutral	AU$10.47B	10.10	12.99%	5.01%	32.20%	46.78%
CIW	51 Neutral	AU$30.11M	―	-9.28%	0.64%	-13.78%	50.00%
TIP	50 Neutral	AU$51.10M	25.13	2.40%	1.58%	-5.10%	―

Prime Financial Group Limited Corporate Events

Prime Financial Group Announces Director’s Share Acquisition

Prime Financial Group Limited has announced a change in the director’s interest, specifically involving Mr. Simon Madder. The company reported that Mr. Madder acquired 1,100,000 fully paid ordinary shares through an off-market trade, valued at $253,000 at a price of $0.23 per share. This change increases the total number of shares held indirectly by Mr. Madder, potentially impacting the company’s governance and shareholder structure.

Prime Financial Group Announces Director’s Share Disposal

Prime Financial Group Limited has announced a change in the director’s interest, specifically concerning Mr. Timothy Bennett. Mr. Bennett disposed of 550,000 fully paid ordinary shares in an on-market sale to cover personal income tax obligations arising from the exercise of performance rights. This transaction reflects a strategic financial decision by the director, which may influence stakeholders’ perceptions of the company’s financial management and governance practices.

Prime Financial Group Announces Director’s Share Disposal

Prime Financial Group Limited has announced a change in the director’s interest, specifically concerning Mr. Matthew Murphy. The change involves the disposal of 1,250,000 fully paid ordinary shares valued at $275,000. This adjustment in shareholding reflects Mr. Murphy’s indirect interests through Ascension Business Investments Pty Ltd and the Murphy Superannuation Fund. The transaction impacts the number of shares held by Mr. Murphy, indicating a strategic financial decision within the company’s leadership.

Prime Financial Group Announces Director Shareholding Changes

Prime Financial Group Limited announced changes in the shareholdings of its directors. Managing Director & Chairman Simon Madder acquired 1,100,000 shares indirectly, while Directors Timothy Bennett and Matthew Murphy sold 550,000 and 1,250,000 shares respectively to meet personal income tax obligations. These transactions reflect internal financial adjustments by the directors and may influence stakeholder perceptions of the company’s financial health.

Prime Financial Group Completes Acquisition of Lincoln Indicators

Prime Financial Group has successfully completed the acquisition of Lincoln Indicators Pty Ltd, securing full ownership. This strategic move is expected to enhance Prime’s market position and expand its service offerings, potentially benefiting stakeholders by strengthening its operational capabilities in the financial advisory sector.

Prime Financial Group Announces Resignation of Joint Company Secretary

Prime Financial Group Ltd announced the resignation of Ms. Priyamvada (Pia) Rasal as the Joint Company Secretary, effective immediately. Mrs. Alicia Sanders will continue as the Company Secretary and Group General Manager, and will be the primary contact for communications with the ASX, ensuring continuity in the company’s operations and compliance.