Executive Summary
Australian Finance Group Limited, together with its subsidiaries, provides mortgage broking services in Australia. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record second-rate dividend payer.
Similar Companies
Share Price & News
How has Australian Finance Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AFG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: AFG's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-2.5%
AFG
-0.7%
AU Mortgage
2.2%
AU Market
1 Year Return
85.2%
AFG
32.1%
AU Mortgage
36.3%
AU Market
Return vs Industry: AFG exceeded the Australian Mortgage industry which returned 32.1% over the past year.
Return vs Market: AFG exceeded the Australian Market which returned 36.3% over the past year.
Shareholder returns
| AFG | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.5% | -0.7% | 2.2% |
| 30 Day | 3.8% | 2.2% | 3.2% |
| 90 Day | 2.6% | 3.9% | 4.6% |
| 1 Year | 99.6%85.2% | 34.3%32.1% | 40.5%36.3% |
| 3 Year | 137.0%95.0% | 27.8%3.8% | 34.3%18.2% |
| 5 Year | 307.9%175.0% | 51.8%-3.3% | 64.5%32.5% |
Long-Term Price Volatility Vs. Market
How volatile is Australian Finance Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Here's What You Should Know About Australian Finance Group Limited's (ASX:AFG) 4.1% Dividend Yield1 month ago | Simply Wall St
Should You Take Comfort From Insider Transactions At Australian Finance Group Limited (ASX:AFG)?2 months ago | Simply Wall St
What Kind Of Investors Own Most Of Australian Finance Group Limited (ASX:AFG)?Valuation
Is Australian Finance Group undervalued compared to its fair value and its price relative to the market?
15.18x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AFG (A$2.75) is trading above our estimate of fair value (A$2.21)
Significantly Below Fair Value: AFG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AFG is poor value based on its PE Ratio (15.2x) compared to the AU Mortgage industry average (13x).
PE vs Market: AFG is good value based on its PE Ratio (15.2x) compared to the Australian market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: AFG is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: AFG is overvalued based on its PB Ratio (3.9x) 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?
4.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AFG's forecast earnings growth (4.6% per year) is above the savings rate (2%).
Earnings vs Market: AFG's earnings (4.6% per year) are forecast to grow slower than the Australian market (16.3% per year).
High Growth Earnings: AFG's earnings are forecast to grow, but not significantly.
Revenue vs Market: AFG's revenue (4% per year) is forecast to grow slower than the Australian market (6.1% per year).
High Growth Revenue: AFG's revenue (4% 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 (23.8%)
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 (6.2%) are higher than last year (5.3%).
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 (28.8%) exceeds its 5-year average (9.6% per year).
Earnings vs Industry: AFG earnings growth over the past year (28.8%) exceeded the Mortgage industry 15.2%.
Return on Equity
High ROE: Whilst AFG's Return on Equity (23.41%) 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 (22x) 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?
3.85%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AFG's dividend (3.85%) is higher than the bottom 25% of dividend payers in the Australian market (1.98%).
High Dividend: AFG's dividend (3.85%) is low compared to the top 25% of dividend payers in the Australian market (5.3%).
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 (58.5%), 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 (68.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
David Bailey
3.83yrs
Tenure
AU$1,180,616
Compensation
Mr. David Bailey has been Chief Executive Officer at Australian Finance Group Ltd. since June 16, 2017 and served as its Chief Operating Officer since October 2015 and also served as its Chief Financial Of...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD900.07K) is above average for companies of similar size in the Australian market ($USD690.63K).
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 (2.3 years average tenure).
Board Members
Experienced Board: AFG's board of directors are considered experienced (9.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.5%.
Top Shareholders
Company Information
Australian Finance Group Limited's company bio, 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
- Market Cap: AU$740.735m
- Shares outstanding: 268.38m
- 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
Biography
Australian Finance Group Limited, together with its subsidiaries, provides mortgage broking services in Australia. The company operates in two segments, AFG Wholesale Mortgage Broking and AFG Home Loans. I...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/13 08:17 |
| End of Day Share Price | 2021/04/13 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.