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AFI

Australian Foundation InvestmentASX:AFI Stock Report

Last Price

AU$8.85

Market Cap

AU$10.9b

7D

3.3%

1Y

17.7%

Updated

17 Jan, 2022

Data

Company Financials
AFI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance1/6
Financial Health5/6
Dividends3/6

AFI Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Australian Foundation Investment
Historical stock prices
Current Share PriceAU$8.85
52 Week HighAU$8.92
52 Week LowAU$7.02
Beta0.52
1 Month Change7.14%
3 Month Change8.46%
1 Year Change17.69%
3 Year Change42.28%
5 Year Change51.02%
Change since IPO430.12%

Recent News & Updates

Shareholder Returns

AFIAU Capital MarketsAU Market
7D3.3%0.8%0.5%
1Y17.7%23.7%10.3%

Return vs Industry: AFI underperformed the Australian Capital Markets industry which returned 24.2% over the past year.

Return vs Market: AFI exceeded the Australian Market which returned 10.4% over the past year.

Price Volatility

Is AFI's price volatile compared to industry and market?
AFI volatility
AFI Average Weekly Movement1.5%
Capital Markets Industry Average Movement4.6%
Market Average Movement8.4%
10% most volatile stocks in AU Market15.2%
10% least volatile stocks in AU Market3.6%

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.

About the Company

FoundedEmployeesCEOWebsite
1928n/aRobert Freemanhttps://www.afi.com.au

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.

Australian Foundation Investment Fundamentals Summary

How do Australian Foundation Investment's earnings and revenue compare to its market cap?
AFI fundamental statistics
Market CapAU$10.85b
Earnings (TTM)AU$234.65m
Revenue (TTM)AU$262.82m

46.2x

P/E Ratio

41.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFI income statement (TTM)
RevenueAU$262.82m
Cost of RevenueAU$0
Gross ProfitAU$262.82m
ExpensesAU$28.17m
EarningsAU$234.65m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Jan 24, 2022

Earnings per share (EPS)0.19
Gross Margin100.00%
Net Profit Margin89.28%
Debt/Equity Ratio0.0%

How did AFI perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

124%

Payout Ratio

Valuation

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

46.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AFI (A$8.85) is trading above our estimate of fair value (A$2.46)

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 (46.2x) compared to the Australian Capital Markets industry average (15.5x).

PE vs Market: AFI is poor value based on its PE Ratio (46.2x) compared to the Australian market (19.3x).


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 (1.4x) is in line with the AU Capital Markets industry average.


Future Growth

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

8.0%

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.


Past Performance

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

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFI has high quality earnings.

Growing Profit Margin: AFI's current net profit margins (89.3%) are lower than last year (90.8%).


Past Earnings Growth Analysis

Earnings Trend: AFI's earnings have declined by 1.1% 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 (-2.2%) over the past year, making it difficult to compare to the Capital Markets industry average (25.8%).


Return on Equity

High ROE: AFI's Return on Equity (3.1%) is considered low.


Financial Health

How is Australian Foundation Investment's financial position?


Financial Position Analysis

Short Term Liabilities: AFI's short term assets (A$141.9M) exceed its short term liabilities (A$18.9M).

Long Term Liabilities: AFI's short term assets (A$141.9M) do not cover its long term liabilities (A$1.5B).


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


Dividend

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

2.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFI's dividend (2.71%) is higher than the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: AFI's dividend (2.71%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


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 (124.5%), 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?

5.5yrs

Average management tenure


CEO

Robert Freeman

4yrs

Tenure

AU$1,456,122

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 ($USD1.05M) is below average for companies of similar size in the Australian market ($USD2.36M).

Compensation vs Earnings: Robert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: AFI's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: AFI's board of directors are considered experienced (8.2 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 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
  • Implied Market Cap: AU$10.850b
  • Shares outstanding: 1.23b
  • Website: https://www.afi.com.au

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 16:15
End of Day Share Price2022/01/17 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.