Sequoia Financial Group Ltd. (SEQ) AI Stock Analysis

• Market Cap: AU$45.11M
• Dividend Yield: 11.27%
• Average Volume (3M): 164.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 22.21%
• EPS Growth: 41.18%
• Country: AU
• Employees: 17
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Conglomerates
• EPS (TTM): 0.03
• Shares Outstanding: 123,596,900
• 10 Day Avg. Volume: 203,996
• 30 Day Avg. Volume: 164,752
• PEG Ratio: 0.19
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.04
• 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: 60 Neutral
• Price Target: AU$0.50 ▲(38.89%Upside)

The most significant factor in Sequoia Financial Group Ltd.'s stock score is its financial performance, which shows a strong recovery trajectory in profitability and revenue growth despite negative operating cash flows. Technical analysis indicates moderate bullish momentum. Valuation concerns arise from a negative P/E ratio, suggesting earnings challenges despite a high dividend yield.

Sequoia Financial Group Ltd. Business Overview & Revenue Model

Company Description

Sequoia Financial Group Limited, an integrated financial services company, provides financial products and services to retail and wholesale clients, and third-party professional service firms primarily in Australia. It operates through Sequoia Licensees Services Group, Sequoia Professional Services Group, Sequoia Equity Markets Group, and Sequoia Direct Investment Group segments. The company provides licensing and support services, and merger and acquisitions corporate advice to accountants, financial planners, mortgage brokers, insurance advisers, equity market advisers, investment professionals, and corporate advisory business units; and offers compliance, marketing, coaching, education, research, and technical support services. It also provides self-managed super fund administration, general insurance broking, legal document establishment, and company secretarial services to financial planners, licensed advisers, accountants, and lawyers. In addition, the company offers stockbroking and specialized investment solutions to third party institutional and adviser networks. Further, it provides a range of media services, and research and general advice to investors; and news, research, and data on managed funds, direct shares and bonds. The company was formerly known as MDS Financial Group Limited and changed its name to Sequoia Financial Group Limited in December 2015. Sequoia Financial Group Limited is headquartered in Sydney, Australia.

How the Company Makes Money

Sequoia Financial Group Ltd. generates its revenue through a variety of streams primarily centered around financial services. The company earns money by providing advisory and management services, charging fees for investment and superannuation products, and earning commissions from insurance and financial planning services. Significant partnerships with financial institutions and a broad client base also contribute to its income, allowing it to offer bundled services and leverage scale for better pricing and profitability.

Sequoia Financial Group Ltd. Financial Statement Overview

Summary

Sequoia Financial Group Ltd. shows a strong recovery trajectory in profitability and revenue growth. Despite negative operating cash flows, financial stability is reinforced by a robust equity position and minimal debt usage. Future focus on operational cash flow improvements will be crucial for sustainable growth.

Income Statement

The company shows solid revenue growth with a 24.20% increase from 2023 to 2024, driven by effective gross profit expansion from 24% to 98%. However, the EBIT margin turned negative in 2024, indicating operating challenges. Net profit margin improvement from negative to 19.6% reflects better bottom-line management, suggesting potential recovery from past losses.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 71.4% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.01, suggesting minimal leverage risks. However, a reduction in total assets over the years may signal potential concerns about asset management or strategic divestments.

Cash Flow

Operating cash flow remains negative, indicating potential operational challenges despite reductions in free cash flow deficits by 12.1% from 2023 to 2024. The free cash flow to net income ratio remains negative, highlighting cash flow pressures despite profitability improvements.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
117.36M	122.35M	98.50M	110.37M	116.46M	84.50M
	Gross Profit
72.76M	120.28M	23.64M	29.19M	31.01M	20.06M
	EBIT
8.21M	2.88M	1.02M	6.40M	8.32M	3.01M
	EBITDA
1.08M	2.43M	4.61M	9.78M	11.20M	4.66M
	Net Income Common Stockholders
133.85M	23.99M	-2.63M	5.71M	5.55M	1.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.89M	16.83M	9.39M	36.61M	34.64M	22.96M
	Total Assets
75.76M	79.39M	135.74M	135.85M	142.41M	101.28M
	Total Debt
4.89M	704.64K	4.18M	2.93M	3.30M	4.29M
	Net Debt
-5.99M	-16.13M	-5.21M	-33.68M	-31.35M	-18.67M
	Total Liabilities
24.26M	22.71M	92.69M	87.48M	101.29M	68.04M
	Stockholders Equity
51.50M	56.68M	43.04M	48.38M	41.12M	33.24M
Cash Flow		Free Cash Flow
5.23M	-5.29M	-6.02M	9.17M	14.03M	6.59M
	Operating Cash Flow
6.52M	-4.82M	-5.59M	9.54M	16.73M	8.00M
	Investing Cash Flow
1.25M	5.16M	3.35M	-5.94M	-3.41M	-2.42M
	Financing Cash Flow
-13.05M	-13.69M	-2.08M	-1.64M	-1.63M	-1.47M

Sequoia Financial Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SEQ, the sentiment is Positive. The current price of 0.36 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.34, and below the 200-day MA of 0.36, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.02 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SEQ.

Sequoia Financial Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.87B	9.76	7.85%	78.04%	12.07%	-7.94%
SEQ	60 Neutral	AU$45.11M	―	-1.84%	11.27%	22.21%	41.18%
AMLTF		$2.01B	17.03	4.84%	1.57%	―	―
IOOFF		$1.52B	―	-7.21%	2.69%	―	―
NNA		€818.25M	6.00	23.27%	8.19%	―	―
PVQ		€1.16B	―	-24.47%	6.95%	―	―
FSB		€3.72B	102.62	11.42%	0.58%	―	―

Sequoia Financial Group Ltd. Corporate Events

Sequoia Financial Group Ltd. Announces Change in Substantial Holding Status

Sequoia Financial Group Ltd. has announced a significant change in its substantial holding status, as Acorn Capital Limited has ceased to be a substantial holder in the company. This change occurred due to a series of sales of ordinary shares by Acorn Capital Limited, totaling over 2.7 million shares, which significantly reduced its voting interest in Sequoia Financial Group Ltd. This development may impact the company’s shareholder structure and could have implications for its market positioning and stakeholder interests.

Sequoia Financial Group Completes Share Buy-Back Program

Sequoia Financial Group Ltd has announced the final notification of its share buy-back program, which began in 2022. Over the last 12 months, the company repurchased 8,510,890 shares, culminating in a total of 14,089,743 shares bought back at a consideration of AUD 6,425,128.15. This buy-back is part of Sequoia’s strategy to enhance shareholder value and optimize its capital structure.

Sequoia Financial Group Announces Change in Substantial Holder’s Voting Power

Sequoia Financial Group Ltd has announced a change in the relevant interests of a substantial holder, Acorn Capital Limited, in its voting securities. The change reflects an increase in voting power from 6.49% to 7.66%, indicating a significant shift in the company’s shareholder structure. This adjustment in voting power could have implications for the company’s governance and decision-making processes, potentially affecting its strategic direction and stakeholder engagement.

Sequoia Financial Group Updates on Share Buy-Back Progress

Sequoia Financial Group Ltd has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities. As of the latest update, the company has repurchased a total of 10,655,103 shares, with 58,893 shares bought back on the previous day alone. This buy-back initiative is part of Sequoia’s strategy to optimize its capital structure and potentially enhance shareholder value.

Sequoia Financial Group Updates on Share Buy-Back Program

Sequoia Financial Group Ltd has announced an update regarding its ongoing share buy-back program. The company has repurchased a total of 10,579,390 ordinary fully paid securities, with an additional 16,820 securities bought back on the previous day. This buy-back initiative is part of Sequoia’s strategy to manage its capital structure and potentially enhance shareholder value.

Sequoia Financial Group Announces Cessation of Securities

Sequoia Financial Group Ltd announced the cessation of 16,820 ordinary fully paid securities as part of an on-market buy-back program. This move is likely to impact the company’s capital structure and could be seen as an effort to optimize shareholder value, reflecting a strategic decision to manage its equity base.

Sequoia Financial Group Updates on Buy-Back Program

Sequoia Financial Group Ltd has announced an update regarding its ongoing on-market buy-back program. As of April 9, 2025, the company has bought back a total of 10,579,390 ordinary fully paid securities, including 350,000 securities purchased the previous day. This buy-back initiative reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Sequoia Financial Group Announces Cessation of Securities

Sequoia Financial Group Ltd announced the cessation of 49,092 ordinary fully paid securities due to an on-market buy-back, effective April 7, 2025. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting a proactive approach to optimizing its financial operations.

Sequoia Financial Group’s Subsidiary Under ASIC Investigation

Sequoia Financial Group Ltd’s subsidiary, Interprac Financial Planning Pty Ltd, is under investigation by ASIC concerning potential contraventions related to the Shield Master Fund and the First Guardian Master Fund. ASIC has initiated proceedings against Mr. Ferras Merhi, an authorised representative of Interprac, and obtained interim freezing orders. Interprac is actively cooperating with ASIC, reviewing its obligations and operations, and ensuring compliance and efficiency in its systems.

Sequoia Financial Group Updates on Share Buy-Back Progress

Sequoia Financial Group Ltd has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities. As of the latest update, the company has bought back a total of 10,180,298 securities, with 50,908 purchased on the previous day. This buy-back initiative is part of Sequoia’s strategy to manage its capital structure and potentially enhance shareholder value.