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Sequoia Financial Group Ltd. (AU:SEQ)
ASX:SEQ
Australian Market

Sequoia Financial Group Ltd. (SEQ) AI Stock Analysis

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AU

Sequoia Financial Group Ltd.

(Sydney:SEQ)

59Neutral
Sequoia Financial Group Ltd. presents a mixed investment case with positives in revenue growth and equity stability. However, operational challenges reflected in negative cash flows and a negative EBIT margin weigh on its overall prospects. Technical and valuation indicators suggest caution, limiting the stock's appeal despite its high dividend yield.

Sequoia Financial Group Ltd. (SEQ) vs. S&P 500 (SPY)

Sequoia Financial Group Ltd. Business Overview & Revenue Model

Company DescriptionSequoia Financial Group Ltd. (SEQ) is a diversified financial services company based in Australia. It operates across several sectors, including wealth management, corporate advisory, and financial planning. The company offers a range of services such as investment advice, superannuation, insurance, and taxation solutions tailored to meet the needs of individual investors, businesses, and institutions.
How the Company Makes MoneySequoia 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
75
Positive
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
70
Positive
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
60
Neutral
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
117.36M122.35M98.50M110.37M116.46M84.50M
Gross Profit
72.76M120.28M23.64M29.19M31.01M20.06M
EBIT
8.21M2.88M1.02M6.40M8.32M3.01M
EBITDA
1.08M2.43M4.61M9.78M11.20M4.66M
Net Income Common Stockholders
133.85M23.99M-2.63M5.71M5.55M1.93M
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.89M16.83M9.39M36.61M34.64M22.96M
Total Assets
75.76M79.39M135.74M135.85M142.41M101.28M
Total Debt
4.89M704.64K4.18M2.93M3.30M4.29M
Net Debt
-5.99M-16.13M-5.21M-33.68M-31.35M-18.67M
Total Liabilities
24.26M22.71M92.69M87.48M101.29M68.04M
Stockholders Equity
51.50M56.68M43.04M48.38M41.12M33.24M
Cash FlowFree Cash Flow
5.23M-5.29M-6.02M9.17M14.03M6.59M
Operating Cash Flow
6.52M-4.82M-5.59M9.54M16.73M8.00M
Investing Cash Flow
1.25M5.16M3.35M-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
Negative
Last Price0.35
Price Trends
50DMA
0.35
Negative
100DMA
0.37
Negative
200DMA
0.36
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
46.35
Neutral
STOCH
26.67
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 0.35 is below the 20-day moving average (MA) of 0.35, above 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 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUMFG
76
Outperform
€1.46B6.6623.27%8.05%-9.29%12.94%
AUHUB
76
Outperform
€6.51B110.8211.42%0.58%22.81%32.47%
64
Neutral
$12.82B9.877.67%17000.34%12.39%-5.85%
AUSEQ
59
Neutral
AU$42.64M-1.84%13.43%22.21%41.18%
AUPPT
55
Neutral
€2.03B-24.47%6.95%5.36%-846.00%
AUIFL
54
Neutral
$2.26B-7.21%2.37%-8.26%-259.91%
AUAMP
51
Neutral
$3.34B18.764.84%2.32%19.36%1261.54%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SEQ
Sequoia Financial Group Ltd.
0.35
-0.09
-20.45%
AU:MFG
Magellan Financial Group Ltd
8.50
0.46
5.75%
AU:HUB
HUB24 Limited
81.54
39.56
94.25%
AU:AMP
AMP
1.33
0.28
27.28%
AU:IFL
Insignia Financial Ltd
3.36
1.12
50.00%
AU:PPT
Perpetual Limited
17.91
-3.04
-14.49%

Sequoia Financial Group Ltd. Corporate Events

Sequoia Financial Group Announces Change in Substantial Holder’s Voting Power
May 13, 2025

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
Apr 14, 2025

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
Apr 14, 2025

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
Apr 9, 2025

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
Apr 9, 2025

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
Apr 8, 2025

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
Apr 7, 2025

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
Apr 7, 2025

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.

Sequoia Financial Group Releases 1HFY25 Financial Results
Feb 27, 2025

Sequoia Financial Group Ltd. has released its half-year financial results for the period ending December 31, 2024. The report, which was lodged with the Australian Securities Exchange, provides a general overview of the company’s financial performance, though it does not include specific recommendations or investment advice. The presentation emphasizes that the information is intended for general purposes and should be considered alongside the detailed half-year report.

Sequoia Financial Group Reports Strong Net Profit Growth Amid Restructuring
Feb 27, 2025

Sequoia Financial Group Ltd reported its first half FY25 financial results, highlighting a revenue of $60.6 million, which is a 3.5% decrease from the previous corresponding period. Despite this, the company achieved a significant 136.8% increase in net profit after tax to $3.6 million. The company has undergone restructuring, divesting non-core operations and reducing headcount by over 10%, leading to cost efficiencies and a stronger focus on core businesses. The Legal and Administration Services Division showed substantial growth, contributing to improved operating cash flow. The board declared an interim fully franked dividend of 2.0 cents per share and plans to maintain a payout ratio of 40-60% in the coming years, reflecting confidence in future profitability. The company is optimistic about its future, expecting strong performance in the remainder of FY25 as it continues to execute strategic initiatives.

Sequoia Financial Group Announces Dividend Distribution
Feb 27, 2025

Sequoia Financial Group Ltd has announced a dividend distribution of AUD 0.02 per ordinary fully paid share, relating to the six-month period ending December 31, 2024. The ex-dividend date is set for March 4, 2025, with a record date of March 5, 2025, and payment scheduled for March 18, 2025. This announcement reflects the company’s ongoing commitment to delivering value to its shareholders and may impact its market positioning by reinforcing investor confidence.

Sequoia Financial Group Faces Declining Profits Amid Strategic Divestments
Feb 27, 2025

Sequoia Financial Group Limited reported a significant decline in its financial performance for the half-year ending December 31, 2024, with revenues dropping by 10.3% and profits plummeting by 87.1% compared to the previous year. The company also declared a reduced interim dividend for 2025, reflecting the challenging market conditions and strategic divestments, including the loss of control over several subsidiary entities, which impacted its overall profitability.

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.