NOT FOR DISTRIBUTION
Header cover image

Australian Finance Group

Market Cap

AU$740.7m

Last Updated

2021/04/13 08:17 UTC

Data Sources

Company Financials +

Executive Summary

Australian Finance Group Limited, together with its subsidiaries, provides mortgage broking services in Australia. More Details


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

AFGIndustryMarket
7 Day-2.5%-0.7%2.2%
30 Day3.8%2.2%3.2%
90 Day2.6%3.9%4.6%
1 Year99.6%85.2%34.3%32.1%40.5%36.3%
3 Year137.0%95.0%27.8%3.8%34.3%18.2%
5 Year307.9%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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/13 08:17
End of Day Share Price2021/04/13 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.