Australian Finance Group Limited, together with its subsidiaries, provides mortgage broking services in Australia.
Second-rate dividend payer with questionable track record.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: AFG exceeded the Australian Mortgage industry which returned 31.6% over the past year.
Return vs Market: AFG exceeded the Australian Market which returned 15.5% over the past year.
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
23 hours ago | Simply Wall StDo Directors Own Australian Finance Group Limited (ASX:AFG) Shares?
3 weeks ago | Simply Wall StInvestors Who Bought Australian Finance Group (ASX:AFG) Shares A Year Ago Are Now Up 116%
1 month ago | Simply Wall StKey Things To Watch Out For If You Are After Australian Finance Group Limited's (ASX:AFG) 3.7% Dividend
Is Australian Finance Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AFG (A$3.04) is trading below our estimate of fair value (A$3.43)
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 (19.8x) compared to the Mortgage industry average (13.3x).
PE vs Market: AFG is poor value based on its PE Ratio (19.8x) compared to the Australian market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: AFG is poor value based on its PEG Ratio (19.9x)
Price to Book Ratio
PB vs Industry: AFG is overvalued based on its PB Ratio (6.2x) compared to the AU Mortgage industry average (1.1x).
How is Australian Finance Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AFG's forecast earnings growth (1% per year) is below the savings rate (1.1%).
Earnings vs Market: AFG's earnings (1% per year) are forecast to grow slower than the Australian market (9.3% per year).
High Growth Earnings: AFG's earnings are forecast to grow, but not significantly.
Revenue vs Market: AFG's revenue (6.2% per year) is forecast to grow faster than the Australian market (4.1% per year).
High Growth Revenue: AFG's revenue (6.2% 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 (31.4%)
How has Australian Finance Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AFG has high quality earnings.
Growing Profit Margin: AFG's current net profit margins (5.1%) are lower than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: AFG's earnings have grown by 17.2% per year over the past 5 years.
Accelerating Growth: AFG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AFG had negative earnings growth (-0.9%) over the past year, making it difficult to compare to the Mortgage industry average (10.3%).
Return on Equity
High ROE: Whilst AFG's Return on Equity (31.51%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
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
Inventory Level: AFG has a low level of unsold assets or inventory.
Debt Coverage by Assets: AFG's debt is not covered by short term assets (assets are 0.7x debt).
Financial Institutions Analysis
Asset Level: AFG's level of assets compared to its equity 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, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if AFG has an acceptable proportion of non-loan assets held.
Low Risk Deposits: AFG has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if AFG has an appropriate level of bad loans.
What is Australian Finance Group's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AFG's dividend (3.49%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).
High Dividend: AFG's dividend (3.49%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).
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 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (68.9%), 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 (61.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Bailey 0
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 ($USD681.96K) is about average for companies of similar size in the Australian market ($USD689.90K).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
|Chief Executive Officer||2.7yrs||AU$1.03m||0.49% A$3.2m|
|Chief Financial Officer||4.2yrs||AU$426.24k||no data|
|Chief Operating Officer||1.9yrs||AU$454.51k||0.016% A$106.4k|
|Company Secretary||19.1yrs||AU$436.53k||7.53% A$49.4m|
|Chief Information Officer||0yrs||no data||no data|
|General Counsel||1.1yrs||no data||no data|
|Head of Corporate Communications||0yrs||no data||no data|
|Head of Sales & Distribution||0.7yrs||no data||no data|
|Head of Risk||1.1yrs||no data||no data|
Experienced Management: AFG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
|Co-Founder & Non-Executive Director||23.7yrs||AU$272.92k||7.15% A$46.9m|
|Independent Non Executive Chairman||11.5yrs||AU$150.00k||0.52% A$3.4m|
|Independent Non-Executive Director||4.9yrs||AU$90.00k||0.23% A$1.5m|
|Independent Non-Executive Director||3.9yrs||AU$90.00k||0.031% A$204.2k|
|Independent Non-Executive Director||3.9yrs||AU$90.00k||0.030% A$197.6k|
Experienced Board: AFG's board of directors are considered experienced (8.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AFG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Australian Finance Group Limited's company bio, employee growth, exchange listings and data sources
- Name: Australian Finance Group Limited
- Ticker: AFG
- Exchange: ASX
- Founded: 1994
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: AU$655.326m
- Shares outstanding: 215.57m
- Website: https://www.afgonline.com.au
Number of Employees
- Australian Finance Group Limited
- 100 Havelock Street
- Level 4
- West Perth
- Western Australia
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AFG||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||May 2015|
|AFG||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||May 2015|
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. It offers residential mortgages; home loans; business loans, such as commercial real estate, equipment and vehicle, inventory, working capital, and start-up finance, as well as franchisee loans and invoice finance/accounts receivable; and insurance products. The company was formerly known as Australian Finance Group Pty Ltd. Australian Finance Group Limited was founded in 1994 and is headquartered in West Perth, Australia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/21 10:50|
|End of Day Share Price||2020/02/21 00:00|
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.