Sequoia Financial Group Ltd. (SEQ) AI Stock Analysis

• Market Cap: AU$29.66M
• Dividend Yield: 18.75%
• Average Volume (3M): 431.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 22.21%
• EPS Growth: 41.18%
• Country: AU
• Employees: 17
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Conglomerates
• EPS (TTM): 0.03
• Shares Outstanding: 123,596,900
• 10 Day Avg. Volume: 700,744
• 30 Day Avg. Volume: 431,289
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: AU$0.50
• Price Target Upside: 108.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: AU$0.50 ▲(108.33%Upside)

Sequoia Financial Group Ltd. is facing significant technical challenges with bearish momentum and oversold conditions. While the company shows strong financial stability with improved profitability and minimal debt, the negative operating cash flows and valuation challenges due to a negative P/E ratio weigh heavily on its prospects. The high dividend yield provides some compensation, but operational improvements are necessary for a better outlook.

Sequoia Financial Group Ltd. Business Overview & Revenue Model

Company Description

Sequoia Financial Group Ltd. (SEQ) is a diversified financial services company based in Australia, offering a broad range of services across various sectors including wealth management, stockbroking, professional services, and corporate advisory. The company provides solutions tailored to meet the needs of individual investors, financial planners, and corporate clients, leveraging its expertise in financial markets and investment management to deliver comprehensive financial advice and support.

How the Company Makes Money

Sequoia Financial Group Ltd. generates revenue through multiple streams including commissions and fees from wealth management and stockbroking services, advisory and consultancy fees from corporate clients, and management fees from investment products. The company also earns income by providing financial planning and administration services to independent financial advisors and their clients. Strategic partnerships with financial institutions and a diversified product offering enhance its ability to capitalize on various market opportunities, contributing to its revenue growth.

Sequoia Financial Group Ltd. Financial Statement Overview

Summary

The company shows strong revenue growth and improved net profit margins, indicating recovery from past losses. However, negative operating cash flows and a negative EBIT margin present operational challenges.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Sequoia Financial Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SEQ, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.35, and below the 200-day MA of 0.36, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 13.51 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
CAF	76 Outperform	AU$83.53M	11.17	22.42%	7.14%	10.88%	-9.18%
WTL	76 Outperform	AU$42.77M	11.26	13.04%	1.60%	33.80%	-8.26%
PFG	71 Outperform	AU$56.77M	13.22	7.76%	7.04%	26.27%	32.82%
Sector *	68 Neutral	$17.09B	11.26	9.71%	3.70%	11.16%	-4.08%
SEQ	54 Neutral	AU$29.66M	―	-1.84%	18.75%	22.21%	41.18%
CVW	54 Neutral	AU$291.19M	28.48	4.19%	10.45%	51.13%	217.31%
CIW	50 Neutral	AU$29.31M	―	-9.28%	0.66%	-13.78%	50.00%

Sequoia Financial Group Ltd. Corporate Events

Sequoia Financial Group Announces Change in Substantial Holder’s Interests

Sequoia Financial Group Ltd has announced a change in the interests of a substantial holder, The Australian Wealth Advisors Group Limited, which now holds a reduced voting power in the company. The voting power has decreased from 18.02% to 15.23%, indicating a significant divestment in the company’s ordinary shares. This change in voting power could impact Sequoia Financial Group’s shareholder dynamics and influence within the company, potentially affecting its strategic decisions and stakeholder relationships.

JM Financial Group Acquires Substantial Stake in Sequoia Financial Group

Sequoia Financial Group Ltd. has announced that JM Financial Group Limited has become a substantial holder in the company, acquiring a 6.2% voting power through 7,659,859 ordinary shares. This acquisition, managed through client discretionary investment accounts, positions JM Financial Group as a significant stakeholder, potentially influencing future company decisions and strategies.

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.