Australian Foundation Investment
Market Cap
AU$8.8b
Last Updated
2021/03/02 07:04 UTC
Data Sources
Company Financials
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
| AFI | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.1% | -0.5% | -0.3% |
| 30 Day | -2.3% | 2.7% | 2.7% |
| 90 Day | 3.1% | -1.4% | 4.4% |
| 1 Year | 12.8%8.9% | 9.6%6.3% | 14.7%11.2% |
| 3 Year | 36.6%20.9% | 43.0%26.7% | 30.8%15.1% |
| 5 Year | 60.1%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
1 day ago | Simply Wall St
How Should Investors Feel About Australian Foundation Investment's (ASX:AFI) CEO Remuneration?3 weeks ago | Simply Wall St
It Might Not Be A Great Idea To Buy Australian Foundation Investment Company Limited (ASX:AFI) For Its Next Dividend1 month ago | Simply Wall St
Did You Participate In Any Of Australian Foundation Investment's (ASX:AFI) Respectable 60% Return?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
- Examine Australian Foundation Investment's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Australian Foundation Investment competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Diversified Financials industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 3.17yrs | AU$1.12m | 0.013% A$ 1.1m | |
| CFO & Company Secretary | 16.17yrs | AU$792.16k | 0.014% A$ 1.2m | |
| General Manager of Business Development & Investor Relations | no data | AU$651.02k | 0.011% A$ 1.0m | |
| Company Secretary | 4.67yrs | AU$360.19k | 0.00031% A$ 27.2k | |
| Senior Portfolio Manager | no data | no data | no data | |
| Investment Analyst | no data | no data | no data |
4.7yrs
Average Tenure
Experienced Management: AFI's management team is considered experienced (4.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 3.17yrs | AU$1.12m | 0.013% A$ 1.1m | |
| Independent Non-Executive Director | 18.58yrs | AU$97.50k | 0.030% A$ 2.6m | |
| Non Executive Director | 19.5yrs | AU$97.50k | 0.075% A$ 6.6m | |
| Independent Non-Executive Director | 8.75yrs | AU$97.50k | 0.043% A$ 3.8m | |
| Independent Non-Executive Director | 11.08yrs | AU$97.50k | 0.0041% A$ 358.1k | |
| Independent Chairman of the Board | 2.42yrs | AU$195.00k | 0.026% A$ 2.3m | |
| External Non-Board Endorsed Director | 1.25yrs | no data | no data | |
| Independent Non-Executive Director | 1.83yrs | AU$97.50k | 0.0012% A$ 103.6k | |
| Independent Non-Executive Director | 7.33yrs | AU$97.50k | 0.0027% A$ 234.4k | |
| Non-Executive Director | no data | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AFI | NZSE (New Zealand Stock Exchange) | Yes | Ordinary Shares | NZ | NZD | Jan 1992 |
| AFI | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| AFOV.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| AFI | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/02 07:04 |
| End of Day Share Price | 2021/03/02 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.