Prime Financial Group Limited (PFG) AI Stock Analysis

• Market Cap: AU$59.24M
• Dividend Yield: 6.42%
• Average Volume (3M): 72.43K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.25
• Revenue Growth: 26.27%
• EPS Growth: 32.82%
• Country: AU
• Employees: 200
• Sector: Financial
• Sector Strength: 74
• Industry: Asset Management
• EPS (TTM): <0.01
• Shares Outstanding: 256,247,770
• 10 Day Avg. Volume: 32,424
• 30 Day Avg. Volume: 72,426
• PEG Ratio: 0.60
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: AU$0.50 ▲(108.33%Upside)

Prime Financial Group Limited's overall stock score reflects its strong financial performance and attractive valuation. The main strengths are robust revenue and cash flow growth, alongside a compelling dividend yield. The technical analysis indicates a neutral market sentiment. However, the absence of earnings call data and the need to monitor increasing debt levels slightly temper the overall score.

Prime Financial Group Limited Business Overview & Revenue Model

Company Description

Prime Financial Group Limited (PFG) is an Australian-based financial services company that offers a range of integrated wealth management solutions. The company operates across several sectors, including accounting and business advisory, wealth management, and self-managed superannuation fund (SMSF) services. PFG's core services aim to assist clients in achieving their financial goals through strategic planning, investment management, and comprehensive financial advice.

How the Company Makes Money

Prime Financial Group Limited generates revenue primarily through the provision of financial advisory and wealth management services. The company earns fees for offering strategic financial planning, investment advice, and portfolio management to individual and corporate clients. Additionally, PFG derives income from accounting and business advisory services, providing tailored solutions to enhance business performance and compliance. The company's SMSF services also contribute to its revenue streams, as it assists clients in setting up and managing their self-managed superannuation funds. Key partnerships with financial institutions and investment platforms augment PFG's ability to offer diversified financial products, thereby enhancing its service offerings and expanding its client base.

Prime Financial Group Limited Financial Statement Overview

Summary

Prime Financial Group Limited shows strong financial performance with robust revenue and cash flow growth. The income statement reflects efficient cost management, although net profit margin slightly decreased. The balance sheet indicates a solid equity base with moderate leverage, but rising debt levels should be monitored. Cash flow metrics are positive, supporting operational and capital needs.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
45.43M	40.77M	33.74M	26.33M	22.32M	21.55M
	Gross Profit
21.21M	18.54M	31.98M	24.73M	20.53M	19.46M
	EBIT
11.49M	6.26M	6.99M	6.76M	5.34M	4.13M
	EBITDA
10.23M	8.34M	8.76M	8.35M	7.13M	6.22M
	Net Income Common Stockholders
3.98M	2.85M	4.41M	3.81M	3.07M	2.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
463.60K	507.86K	1.04M	128.70K	65.72K	93.49K
	Total Assets
82.71M	82.12M	67.14M	59.77M	58.29M	58.90M
	Total Debt
14.18M	14.73M	11.30M	7.15M	9.92M	13.54M
	Net Debt
13.71M	14.22M	10.25M	7.02M	9.86M	13.44M
	Total Liabilities
27.46M	29.38M	17.80M	13.12M	14.63M	17.73M
	Stockholders Equity
54.93M	52.12M	48.70M	46.03M	42.86M	39.96M
Cash Flow		Free Cash Flow
5.11M	5.27M	2.47M	5.86M	5.32M	3.42M
	Operating Cash Flow
5.48M	5.74M	4.22M	6.14M	5.54M	3.74M
	Investing Cash Flow
-2.16M	-2.99M	-3.94M	-974.21K	-811.25K	-2.87M
	Financing Cash Flow
-3.87M	-3.29M	637.73K	-5.11M	-4.76M	-984.05K

Prime Financial Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 0.24 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 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 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
MFG	76 Outperform	€1.44B	6.63	23.27%	6.28%	-9.29%	12.94%
PFG	68 Neutral	AU$59.24M	13.79	7.76%	6.42%	26.27%	32.82%
AFI	68 Neutral		30.73	3.68%	3.26%	1.81%	0.50%
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%
CGF	61 Neutral	$5.35B	36.56	3.85%	3.73%	17.95%	-34.24%
PPT	57 Neutral	€2.01B	―	-24.47%	6.92%	5.36%	-846.00%
AMP	51 Neutral	AU$3.07B	17.14	4.84%	1.65%	19.36%	1261.54%

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.

Prime Financial Group Announces Proposed Securities Issue

Prime Financial Group Limited has announced a proposed issue of 16,125,000 ordinary fully paid securities, with the issue date set for April 29, 2025. This strategic move is expected to bolster the company’s financial position and enhance its market presence, potentially benefiting stakeholders by increasing liquidity and supporting future growth initiatives.

Prime Financial Group Expands Wealth Offering with Lincoln Indicators Acquisition

Prime Financial Group Limited has announced its acquisition of Lincoln Indicators, a prominent Australian investment research, portfolio, platform, and funds management business. This strategic move is set to significantly enhance Prime’s wealth offering and distribution footprint, increasing access to high-net-worth investors by tenfold. The acquisition aligns with Prime’s growth strategy through complementary and EPS-accretive acquisitions, aiming to diversify customers and boost recurring revenue. The deal, valued at up to $17.9 million, will be funded through a mix of cash and shares over three years, with additional payments tied to performance targets. The integration of Lincoln’s services and client base is expected to provide substantial cross-selling opportunities and strengthen Prime’s position in the high-net-worth and wholesale investor market.