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AFG

Australian Finance GroupASX:AFG Stock Report

Last Price

AU$2.48

Market Cap

AU$667.4m

7D

-4.6%

1Y

-11.7%

Updated

21 Jan, 2022

Data

Company Financials +
AFG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance5/6
Financial Health0/6
Dividends3/6

AFG Stock Overview

Australian Finance Group Limited, together with its subsidiaries, engages in the mortgage broking business in Australia.

Australian Finance Group Competitors

Liberty Financial Group

ASX:LFG

AU$1.6b

Genworth Mortgage Insurance Australia

ASX:GMA

AU$955.1m

Pepper Money

ASX:PPM

AU$914.2m

Resimac Group

ASX:RMC

AU$750.1m

Price History & Performance

Summary of all time highs, changes and price drops for Australian Finance Group
Historical stock prices
Current Share PriceAU$2.48
52 Week HighAU$3.16
52 Week LowAU$2.30
Beta0.95
1 Month Change-4.61%
3 Month Change-7.46%
1 Year Change-11.74%
3 Year Change98.40%
5 Year Change77.14%
Change since IPO105.81%

Recent News & Updates

Nov 19
Here's Why We Think Australian Finance Group Limited's (ASX:AFG) CEO Compensation Looks Fair for the time being

Here's Why We Think Australian Finance Group Limited's (ASX:AFG) CEO Compensation Looks Fair for the time being

Performance at Australian Finance Group Limited ( ASX:AFG ) has been reasonably good and CEO David Bailey has done a...

Sep 03
Australian Finance Group (ASX:AFG) Is Increasing Its Dividend To AU$0.074

Australian Finance Group (ASX:AFG) Is Increasing Its Dividend To AU$0.074

Australian Finance Group Limited's ( ASX:AFG ) dividend will be increasing to AU$0.074 on 23rd of September. This will...

Shareholder Returns

AFGAU MortgageAU Market
7D-4.6%-1.5%-0.5%
1Y-11.7%-2.6%8.4%

Return vs Industry: AFG underperformed the Australian Mortgage industry which returned -2.6% over the past year.

Return vs Market: AFG underperformed the Australian Market which returned 8.4% over the past year.

Price Volatility

Is AFG's price volatile compared to industry and market?
AFG volatility
AFG Average Weekly Movement5.0%
Mortgage Industry Average Movement3.9%
Market Average Movement8.6%
10% most volatile stocks in AU Market15.5%
10% least volatile stocks in AU Market3.6%

Stable Share Price: AFG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AFG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1994238David Baileyhttps://www.afgonline.com.au

Australian Finance Group Limited, together with its subsidiaries, engages in the mortgage broking business in Australia. It operates in two segments, AFG Wholesale Mortgage Broking and AFG Home Loans. The company is involved in the mortgage origination and management of home and commercial loans; and distribution of own branded home loan products.

Australian Finance Group Fundamentals Summary

How do Australian Finance Group's earnings and revenue compare to its market cap?
AFG fundamental statistics
Market CapAU$667.44m
Earnings (TTM)AU$51.30m
Revenue (TTM)AU$746.86m

13.0x

P/E Ratio

3.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFG income statement (TTM)
RevenueAU$746.86m
Cost of RevenueAU$644.63m
Gross ProfitAU$102.23m
ExpensesAU$50.92m
EarningsAU$51.30m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.19
Gross Margin13.69%
Net Profit Margin6.87%
Debt/Equity Ratio1,703.5%

How did AFG perform over the long term?

See historical performance and comparison

Dividends

5.4%

Current Dividend Yield

70%

Payout Ratio

Valuation

Is Australian Finance Group undervalued compared to its fair value and its price relative to the market?

16.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AFG (A$2.48) is trading below our estimate of fair value (A$2.98)

Significantly Below Fair Value: AFG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AFG is poor value based on its PE Ratio (13x) compared to the Global Mortgage industry average (12.3x).

PE vs Market: AFG is good value based on its PE Ratio (13x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: AFG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AFG is overvalued based on its PB Ratio (3.3x) compared to the AU Mortgage industry average (1x).


Future Growth

How is Australian Finance Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFG's forecast earnings growth (15.3% per year) is above the savings rate (1.9%).

Earnings vs Market: AFG's earnings (15.3% per year) are forecast to grow faster than the Australian market (11.1% per year).

High Growth Earnings: AFG's earnings are forecast to grow, but not significantly.

Revenue vs Market: AFG's revenue (0.7% per year) is forecast to grow slower than the Australian market (4.8% per year).

High Growth Revenue: AFG's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AFG's Return on Equity is forecast to be high in 3 years time (28.9%)


Past Performance

How has Australian Finance Group performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFG has high quality earnings.

Growing Profit Margin: AFG's current net profit margins (6.9%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: AFG's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: AFG's earnings growth over the past year (34.7%) exceeds its 5-year average (9.6% per year).

Earnings vs Industry: AFG earnings growth over the past year (34.7%) exceeded the Mortgage industry 28.2%.


Return on Equity

High ROE: Whilst AFG's Return on Equity (25.28%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Australian Finance Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: AFG's Assets to Equity ratio (23.4x) is very high.

Allowance for Bad Loans: Insufficient data to determine if AFG has a sufficient allowance for bad loans.

Low Risk Liabilities: AFG reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if AFG has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: AFG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if AFG has an appropriate level of bad loans.


Dividend

What is Australian Finance Group current dividend yield, its reliability and sustainability?

5.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFG's dividend (5.36%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: AFG's dividend (5.36%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


Stability and Growth of Payments

Stable Dividend: AFG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AFG's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.6%), AFG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AFG's dividends in 3 years are forecast to be covered by earnings (75.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

David Bailey

4.58yrs

Tenure

AU$1,385,573

Compensation

Mr. David Bailey has been Chief Executive Officer at Australian Finance Group Ltd. since June 16, 2017 and served as its Chief Operating Officer since October 2015 and also served as its Chief Financial Of...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.01M) is above average for companies of similar size in the Australian market ($USD742.62K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AFG's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: AFG's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AFG insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Australian Finance Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Australian Finance Group Limited
  • Ticker: AFG
  • Exchange: ASX
  • Founded: 1994
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Implied Market Cap: AU$667.440m
  • Shares outstanding: 269.13m
  • Website: https://www.afgonline.com.au

Number of Employees


Location

  • Australian Finance Group Limited
  • 100 Havelock Street
  • Level 4
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 15:44
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.