ASX:AFI

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Australian Foundation Investment

Executive Summary

Australian Foundation Investment Company Limited is a publicly owned investment manager. More Details


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.

Share Price & News

How has Australian Foundation Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AFI is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: AFI's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

4.1%

AFI

-0.5%

AU Capital Markets

-0.3%

AU Market


1 Year Return

8.9%

AFI

6.3%

AU Capital Markets

11.2%

AU Market

Return vs Industry: AFI exceeded the Australian Capital Markets industry which returned 6.3% over the past year.

Return vs Market: AFI underperformed the Australian Market which returned 11.2% over the past year.


Shareholder returns

AFIIndustryMarket
7 Day4.1%-0.5%-0.3%
30 Day-2.3%2.7%2.7%
90 Day3.1%-1.4%4.4%
1 Year12.8%8.9%9.6%6.3%14.7%11.2%
3 Year36.6%20.9%43.0%26.7%30.8%15.1%
5 Year60.1%30.8%84.5%51.4%62.3%30.7%

Long-Term Price Volatility Vs. Market

How volatile is Australian Foundation Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Australian Foundation Investment undervalued compared to its fair value and its price relative to the market?

50.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AFI (A$7.35) is trading above our estimate of fair value (A$2.07)

Significantly Below Fair Value: AFI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AFI is poor value based on its PE Ratio (50.1x) compared to the AU Capital Markets industry average (21.8x).

PE vs Market: AFI is poor value based on its PE Ratio (50.1x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AFI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AFI's PB Ratio (1.3x) is in line with the AU Capital Markets industry average.


Next Steps

Future Growth

How is Australian Foundation Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.8%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Australian Foundation Investment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Australian Foundation Investment performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFI has high quality earnings.

Growing Profit Margin: AFI's current net profit margins (87.6%) are lower than last year (89.6%).


Past Earnings Growth Analysis

Earnings Trend: AFI's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: AFI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AFI had negative earnings growth (-43%) over the past year, making it difficult to compare to the Capital Markets industry average (-5%).


Return on Equity

High ROE: AFI's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Australian Foundation Investment's financial position?


Financial Position Analysis

Short Term Liabilities: AFI's short term assets (A$115.7M) exceed its short term liabilities (A$4.8M).

Long Term Liabilities: AFI's short term assets (A$115.7M) do not cover its long term liabilities (A$1.3B).


Debt to Equity History and Analysis

Debt Level: AFI is debt free.

Reducing Debt: AFI has no debt compared to 5 years ago when its debt to equity ratio was 3.5%.

Debt Coverage: AFI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AFI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Australian Foundation Investment current dividend yield, its reliability and sustainability?

3.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFI's dividend (3.27%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: AFI's dividend (3.27%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).


Stability and Growth of Payments

Stable Dividend: AFI's dividends per share have been stable in the past 10 years.

Growing Dividend: AFI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (163.5%), AFI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Robert Freeman

3.17yrs

Tenure

AU$1,116,390

Compensation

Mr. Robert Mark Freeman, BE, MBA, Grad Dip App Fin (Sec Inst), AMP (INSEAD), serves as Managing Director of Djerriwarrh Investments Limited, AMCIL Limited and Mirrabooka Investments Limited. Mr. Freeman se...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD868.18K) is below average for companies of similar size in the Australian market ($USD2.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Freeman
MD, CEO & Director3.17yrsAU$1.12m0.013%
A$ 1.1m
Andrew J. Porter
CFO & Company Secretary16.17yrsAU$792.16k0.014%
A$ 1.2m
Geoffrey Driver
General Manager of Business Development & Investor Relationsno dataAU$651.02k0.011%
A$ 1.0m
Matthew Rowe
Company Secretary4.67yrsAU$360.19k0.00031%
A$ 27.2k
David Grace
Senior Portfolio Managerno datano datano data
Kieran Kennedy
Investment Analystno datano datano data

4.7yrs

Average Tenure

Experienced Management: AFI's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Freeman
MD, CEO & Director3.17yrsAU$1.12m0.013%
A$ 1.1m
Catherine Walter
Independent Non-Executive Director18.58yrsAU$97.50k0.030%
A$ 2.6m
Ross Barker
Non Executive Director19.5yrsAU$97.50k0.075%
A$ 6.6m
Graeme Liebelt
Independent Non-Executive Director8.75yrsAU$97.50k0.043%
A$ 3.8m
Peter Williams
Independent Non-Executive Director11.08yrsAU$97.50k0.0041%
A$ 358.1k
John Paterson
Independent Chairman of the Board2.42yrsAU$195.00k0.026%
A$ 2.3m
Stephen Mayne
External Non-Board Endorsed Director1.25yrsno datano data
Rebecca Dee-Bradbury
Independent Non-Executive Director1.83yrsAU$97.50k0.0012%
A$ 103.6k
David Peever
Independent Non-Executive Director7.33yrsAU$97.50k0.0027%
A$ 234.4k
Graham Goldsmith
Non-Executive Directorno datano datano data

7.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: AFI's board of directors are considered experienced (7.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Australian Foundation Investment Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Australian Foundation Investment Company Limited
  • Ticker: AFI
  • Exchange: ASX
  • Founded: 1928
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: AU$8.778b
  • Shares outstanding: 1.22b
  • Website: https://www.afi.com.au

Number of Employees


Location

  • Australian Foundation Investment Company Limited
  • 101 Collins Street
  • Level 21
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFINZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
AFIASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
AFOV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
AFICHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Australian Foundation Investment Company Limited is a publicly owned investment manager. The firm invests in the public equity markets of Australia and New Zealand. It invests in value stocks of companies....


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/02 07:04
End of Day Share Price2021/03/02 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.