Sequoia Financial Group Ltd. (SEQ) AI Stock Analysis

• Market Cap: AU$27.58M
• Dividend Yield: 14.29%
• Average Volume (3M): 217.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -0.40%
• EPS Growth: N/A
• Country: AU
• Employees: 17
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): >-0.01
• Shares Outstanding: 122,596,900
• 10 Day Avg. Volume: 148,507
• 30 Day Avg. Volume: 217,131
• PEG Ratio: -0.06
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 10.93
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: AU$0.25 ▼(-11.43% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven mainly by mixed financial performance: low leverage and solid revenue retention are outweighed by sharply lower profitability, reduced ROE, and weaker cash flow. Technicals add pressure with the stock trading below key moving averages and a negative MACD. Valuation is offsetting but mixed, with a negative P/E and an unusually high dividend yield that may be difficult to maintain.

Positive Factors

Gross margin strength

A reported 100% gross profit margin indicates the business retains nearly all top-line revenue before overhead, reflecting low direct costs or strong pricing power. This durable gross margin supports fixed-cost coverage and gives structural room to restore net margins as operating efficiency improves over months.

Conservative leverage

A debt-to-equity ratio of ~0.09 shows conservative leverage, providing financial flexibility to weather shocks or fund strategic initiatives without heavy refinancing risk. Low leverage is a lasting strength that supports capital allocation, dividend capacity and resilience over a multi-month horizon.

Scalable adviser-distribution model

Sequoia’s adviser- and dealer-group distribution model is fee-oriented and scalable, allowing revenue expansion without proportional increases in headcount or fixed costs. With a small employee base, the platform can leverage third-party advisers and systems to grow fees sustainably if adviser inflows and product adoption hold.

Negative Factors

Profitability deterioration

A sharp net margin decline and steep ROE drop indicate materially reduced profitability and capital efficiency. This is a structural concern: it limits retained earnings for reinvestment, weakens returns to shareholders, and signals underlying operational or mix pressures that must be addressed to restore sustainable profitability.

Weak cash conversion

A 22.7% fall in free cash flow and an operating cash flow to net income ratio of zero show poor conversion of earnings into cash. Persistent weak cash generation constrains investments in adviser support, product development and distributions, increasing reliance on earnings recovery or external funding to sustain operations.

Slowing revenue momentum

Revenue growth slowing to low single digits after stronger periods reduces the platform’s ability to leverage fixed costs and improve margins. For a fee-driven advisory business, this persistent slowdown makes margin recovery harder and raises the bar for operational improvements to meaningfully restore profitability over the coming months.

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 generates revenue through multiple channels, primarily through fees for its financial advisory and asset management services. The company earns management fees from the assets it manages on behalf of clients, as well as performance fees based on the investment returns generated. Additionally, Sequoia derives income from financial planning services, where clients pay for personalized financial advice and strategies. The company also benefits from strategic partnerships with financial institutions and product providers, allowing it to offer a broader range of investment products and services, which further contributes to its revenue. Other revenue streams may include commissions from the sale of financial products and ongoing service fees related to superannuation and investment accounts.

Sequoia Financial Group Ltd. Financial Statement Overview

Summary

Mixed fundamentals: strong gross margin and low leverage, but profitability fell sharply (net margin down to 2.71% from 19.26%), ROE dropped to 6.66%, and cash generation weakened (free cash flow growth -22.71% with poor income-to-cash conversion).

Income Statement

Sequoia Financial Group Ltd. has shown a mixed performance in its income statement. The company achieved a high gross profit margin of 100% in 2025, indicating strong revenue retention. However, the net profit margin decreased significantly from 19.26% in 2024 to 2.71% in 2025, reflecting reduced profitability. Revenue growth was positive at 1.40% in 2025, but this is a decline from previous years, indicating slowing growth momentum. The EBIT and EBITDA margins improved in 2025, suggesting better operational efficiency, but they remain relatively low.

Balance Sheet

The balance sheet of Sequoia Financial Group Ltd. is relatively stable. The debt-to-equity ratio is low at 0.0946 in 2025, indicating conservative leverage. However, the return on equity has decreased from 42.33% in 2024 to 6.66% in 2025, showing reduced efficiency in generating returns on equity. The equity ratio is not explicitly calculated, but the company maintains a healthy equity base relative to its assets.

Cash Flow

The cash flow statement reveals some challenges for Sequoia Financial Group Ltd. Free cash flow growth was negative at -22.71% in 2025, indicating a decline in cash generation. The operating cash flow to net income ratio was zero, suggesting inefficiencies in converting income into cash flow. The free cash flow to net income ratio was 65.79% in 2025, showing some ability to generate cash relative to net income, but this is a decrease from previous years.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	124.27M	119.00M	124.55M	98.50M	110.37M	116.46M
Gross Profit	72.89M	119.00M	26.21M	98.54M	29.19M	31.01M
EBITDA	9.27M	9.89M	2.43M	4.61M	9.78M	11.20M
Net Income	-623.08K	3.23M	23.99M	-2.63M	5.71M	5.55M
Balance Sheet
Total Assets	66.82M	73.04M	79.39M	135.74M	135.85M	142.41M
Cash, Cash Equivalents and Short-Term Investments	2.49M	4.35M	21.97M	10.89M	38.20M	34.64M
Total Debt	5.02M	4.59M	704.64K	4.18M	2.93M	16.37M
Total Liabilities	21.27M	24.55M	22.71M	92.69M	87.48M	101.29M
Stockholders Equity	45.55M	48.49M	56.68M	43.04M	48.38M	41.12M
Cash Flow
Free Cash Flow	3.03M	4.05M	-5.29M	-6.02M	9.17M	14.03M
Operating Cash Flow	4.57M	6.15M	-4.82M	-5.59M	9.54M	16.73M
Investing Cash Flow	-8.98M	-9.31M	5.16M	3.35M	-5.94M	-3.41M
Financing Cash Flow	-6.08M	-11.42M	-13.69M	-2.08M	-1.64M	-1.63M

Sequoia Financial Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.28 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.27, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 7.72 is Positive, 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WTL	61 Neutral	AU$47.91M	5.00	15.13%	5.00%	16.64%	19.30%
CAF	60 Neutral	AU$74.32M	5.60	15.40%	7.14%	13.65%	-33.93%
SEQ	57 Neutral	AU$27.58M	-35.94	6.14%	14.29%	-0.40%	―
CVW	56 Neutral	AU$368.76M	10.16	4.50%	―	0.63%	―
PFG	55 Neutral	AU$56.52M	4.79	8.35%	7.22%	21.16%	47.24%
CIW	53 Neutral	AU$28.88M	46.88	2.42%	2.03%	18.17%	―

Sequoia Financial Group Ltd. Corporate Events

Sequoia Financial Group to Withdraw Revocation Deed Agreed with ASIC

Sequoia Financial Group Ltd. has reached an agreement with ASIC to withdraw the Revocation Deed it entered into on 12 September 2025, which had previously been disclosed in its interim report for the half-year ended 31 December 2025. The company plans to lodge a Form 106 to formalize the withdrawal of this deed and will update the market once the filing is complete, signalling a resolution of this specific regulatory arrangement and reducing related uncertainty for stakeholders.

The most recent analyst rating on (AU:SEQ) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Sequoia Financial Group Ltd. stock, see the AU:SEQ Stock Forecast page.

Sequoia lifts underlying profit but trims dividend amid InterPrac headwinds

Sequoia Financial Group reported first-half FY26 revenue of $63.4 million, up 4.6% on the prior corresponding period, with operating profit surging 75.9% to $4.8 million. However, a $0.9 million settlement tied to a legacy Libertas Financial Planning matter and a $2.1 million loss on the sale of two underperforming insurance broking subsidiaries tipped the group into a modest $0.25 million net loss.

The board maintained a cautious stance amid a tougher environment for its InterPrac licensee business, cutting the fully franked interim dividend to 1 cent per share to preserve flexibility while it conducts a comprehensive review of the InterPrac model. Management is shifting earnings towards higher-control, higher-margin activities in salaried advice, corporate finance and legal and administration services, where technology investments, scale benefits and Docscentre’s rising market share are lifting margins and underpinning the group’s longer-term profitability profile.

The most recent analyst rating on (AU:SEQ) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Sequoia Financial Group Ltd. stock, see the AU:SEQ Stock Forecast page.

Sequoia Financial Group Declares Interim Dividend for Half-Year to December 2025

Sequoia Financial Group Ltd has declared an interim dividend of AUD 0.01 per ordinary fully paid share for the six-month period ending 31 December 2025. The company has set 30 March 2026 as the ex-dividend date, 31 March 2026 as the record date, and 7 April 2026 as the payment date, giving shareholders clear timelines for eligibility and cash distribution.

The announcement underscores Sequoia Financial Group’s practice of returning capital to shareholders through dividends tied to its half-year financial performance. This scheduled payout may signal management’s confidence in the company’s earnings stability and provides income-focused investors with defined expectations for the upcoming distribution cycle.

The most recent analyst rating on (AU:SEQ) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Sequoia Financial Group Ltd. stock, see the AU:SEQ Stock Forecast page.

Sequoia posts higher revenue but swings to small loss while maintaining dividends

Sequoia Financial Group Limited reported a 4.6% increase in revenue to $63.4 million for the half-year ended 31 December 2025, but shifted from a prior-period profit to a small after-tax loss of $248,815. Net tangible assets per share edged up to 24.95 cents despite a reduction in total net assets and a modest decrease in shares on issue, indicating a relatively stable underlying balance sheet.

The board maintained its capital management stance by paying a fully franked final dividend of 2.0 cents per share in September 2025 and declaring a fully franked interim dividend of 1.0 cent per share for April 2026. This continued dividend stream, even in a loss-making half, signals management’s confidence in the group’s cash generation and ongoing operations, offering some reassurance to income-focused shareholders.

The most recent analyst rating on (AU:SEQ) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Sequoia Financial Group Ltd. stock, see the AU:SEQ Stock Forecast page.

Sequoia Financial Group Announces Departure of Director Kevin Pattison and Details Final Shareholdings

Sequoia Financial Group Ltd has announced that director Kevin James Pattison has ceased to be a director of the company effective 31 January 2026. According to the final director’s interest notice lodged with the ASX, Pattison holds no Sequoia shares directly but has an indirect interest in 815,702 fully paid ordinary shares through the Kev and Maz Superannuation Fund, where he is both a trustee and beneficiary, signalling a change in board composition while outlining his remaining indirect equity exposure to the company for investors’ awareness.

The most recent analyst rating on (AU:SEQ) stock is a Buy with a A$0.34 price target. To see the full list of analyst forecasts on Sequoia Financial Group Ltd. stock, see the AU:SEQ Stock Forecast page.

Sequoia Financial Group announces board reshuffle as long‑serving director retires

Sequoia Financial Group has announced the resignation of Non-Executive Director Kevin Pattison, effective 31 January 2026, after seven years on the board during which he chaired the Remuneration Committee and drove initiatives to strengthen staff wellbeing, remuneration governance and organisational culture, including the establishment of a dedicated Head of HR and People role. The board has begun a process to appoint up to two new Non-Executive Directors and expects to announce at least one appointment before Pattison’s departure, signalling a planned refresh of its governance structure while publicly acknowledging his longstanding contribution as the company continues to support its expanding workforce.

The most recent analyst rating on (AU:SEQ) stock is a Hold with a A$0.24 price target. To see the full list of analyst forecasts on Sequoia Financial Group Ltd. stock, see the AU:SEQ Stock Forecast page.

Sequoia Financial Group Reports Strong EBITDA Growth Amid Strategic Adjustments

Sequoia Financial Group Ltd has reported a 15% increase in EBITDA year-to-date November, despite challenging conditions in its Licensee and Adviser Services Division. The company has settled a legacy claim related to its acquisition of Libertas Financial Planning and is implementing enhanced risk management measures. Sequoia anticipates recognizing several non-cash impairments and provisions in the first half of FY26, including those related to external investment products and intangible assets. The sale of its General Insurance business will also result in a non-cash impairment, with final payments expected to be below the maximum consideration. The company’s APAC expansion strategy is showing promise, particularly in corporate finance and salary advice, positioning it for long-term growth despite domestic challenges.

The most recent analyst rating on (AU:SEQ) stock is a Hold with a A$0.24 price target. To see the full list of analyst forecasts on Sequoia Financial Group Ltd. stock, see the AU:SEQ Stock Forecast page.