ASX:OFX

Stock Analysis Report

Executive Summary

OFX Group Limited provides online international payments and foreign exchange services for consumer and business clients in Australia, New Zealand, Europe, North America, Asia, and internationally.

Snowflake

Fundamentals

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has OFX Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.7%

OFX

5.3%

AU Diversified Financial

0.4%

AU Market


1 Year Return

-36.6%

OFX

-41.2%

AU Diversified Financial

9.8%

AU Market

Return vs Industry: OFX exceeded the Australian Diversified Financial industry which returned -41.2% over the past year.

Return vs Market: OFX underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

OFXIndustryMarket
7 Day4.7%5.3%0.4%
30 Day-15.9%-6.6%-1.1%
90 Day-1.8%-2.5%-0.6%
1 Year-34.3%-36.6%-40.2%-41.2%16.1%9.8%
3 Year-10.8%-19.6%-56.3%-61.3%36.1%17.9%
5 Year-37.2%-46.4%-54.1%-63.0%49.4%15.7%

Price Volatility Vs. Market

How volatile is OFX Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is OFX Group undervalued compared to its fair value and its price relative to the market?

12.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OFX (A$1.35) is trading below our estimate of fair value (A$1.54)

Significantly Undervalued: OFX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OFX is good value based on its PE Ratio (18.5x) compared to the Diversified Financial industry average (18.5x).

PE vs Market: OFX is poor value based on its PE Ratio (18.5x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: OFX is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: OFX is overvalued based on its PB Ratio (4.6x) compared to the AU Diversified Financial industry average (2.1x).


Next Steps

Future Growth

How is OFX Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OFX's forecast earnings growth (13.6% per year) is above the savings rate (2.3%).

Earnings vs Market: OFX's earnings (13.6% per year) are forecast to grow faster than the Australian market (10.3% per year).

High Growth Earnings: OFX's earnings are forecast to grow, but not significantly.

Revenue vs Market: OFX's revenue (5.6% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: OFX's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: OFX's Return on Equity is forecast to be high in 3 years time (25.2%)


Next Steps

Past Performance

How has OFX Group performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OFX's earnings have declined by -1.9% per year over the past 5 years.

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

Earnings vs Industry: OFX had negative earnings growth (-5.8%) over the past year, making it difficult to compare to the Diversified Financial industry average (8.6%).


Return on Equity

High ROE: OFX's Return on Equity (24.7%) is considered high.


Return on Assets

ROA vs Industry: OFX has a higher Return on Assets than the Diversified Financial industry average last year.


Return on Capital Employed

ROCE Improving: OFX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is OFX 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

Inventory Level: OFX has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if OFX's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: OFX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if OFX has a sufficient allowance for bad loans.

Low Risk Liabilities: OFX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if OFX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OFX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if OFX has an appropriate level of bad loans.


Next Steps

Dividend

What is OFX Group's current dividend yield, its reliability and sustainability?

4.39%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.4%markettop25%5.6%industryaverage3.3%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OFX's dividend (4.39%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: OFX's dividend (4.39%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

Stable Dividend: OFX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OFX has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.3%), OFX's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OFX's dividends in 3 years are forecast to be covered by earnings (86.9% payout ratio).


Next Steps

Management

What is the CEO of OFX Group's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Skander Malcolm (50yo)

2.7yrs

Tenure

AU$787,781

Compensation

Mr. John Alexander Malcolm, also known as Skander, serves as Chief Executive Officer and Managing Director at OFX Group Limited since February 01, 2017. Mr. Malcolm served as the Chief Executive Officer at ...


CEO Compensation Analysis

Compensation vs. Market: Skander's total compensation ($USD539.32K) is about average for companies of similar size in the Australian market ($USD464.93K).

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


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: OFX's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

59yo

Average Age

Experienced Board: OFX's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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SellAU$4,964,10507 May 19
Renaissance Smaller Companies Pty Ltd
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Shares2,298,364
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BuyAU$49,55605 Dec 18
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EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares28,240
Max PriceAU$1.75
BuyAU$6,016,01330 Oct 18
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Ownership Breakdown


Management Team

  • Skander Malcolm (50yo)

    CEO, MD & Director

    • Tenure: 2.7yrs
    • Compensation: AU$787.78k
  • Wendy Glasgow

    Chief Technology Officer

    • Tenure: 1.7yrs
    • Compensation: AU$417.33k
  • Freya Smith

    Chief Legal Officer & Company Secretary

    • Tenure: 4.1yrs
  • Selena Verth

    Chief Financial Officer

    • Tenure: 2yrs
    • Compensation: AU$470.40k
  • Matthew Gregorowski

    Investor Relations

    • Tenure: 0yrs
  • Mark Shaw

    Chief Operating Officer

    • Tenure: 0.6yrs
    • Compensation: AU$38.34k
  • Sarah Webb

    President of UK & Europe

    • Tenure: 0.8yrs
  • Jill Rezsdovics

    Chief People & Culture Officer

    • Tenure: 1yrs
  • Yung Ngo

    President of Asia Pacific

    • Tenure: 0.6yrs
  • Elaine Herlihy

    Chief Marketing Officer

    • Tenure: 0.4yrs

Board Members

  • Steve Sargent (59yo)

    Independent Chairman of the Board

    • Tenure: 2.9yrs
    • Compensation: AU$230.00k
  • Connie Carnabuci (55yo)

    Non-Executive Independent Director

    • Tenure: 0.5yrs
  • Doug Snedden (61yo)

    Non-Executive Independent Director

    • Tenure: 4.6yrs
    • Compensation: AU$135.00k
  • Skander Malcolm (50yo)

    CEO, MD & Director

    • Tenure: 2.7yrs
    • Compensation: AU$787.78k
  • Lisa Frazier (50yo)

    Non-Executive Independent Director

    • Tenure: 1.5yrs
    • Compensation: AU$122.50k
  • Grant Murdoch (67yo)

    Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: AU$125.00k
  • Grant Murdoch (67yo)

    Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: AU$125.00k

Company Information

OFX Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OFX Group Limited
  • Ticker: OFX
  • Exchange: ASX
  • Founded: 1998
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: AU$335.202m
  • Shares outstanding: 248.30m
  • Website: https://www.ofx.com

Number of Employees


Location

  • OFX Group Limited
  • 60 Margaret Street
  • Level 19
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OFXASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDOct 2013
OFZDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEUROct 2013
OFXCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDOct 2013
OZFR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDAug 2014

Biography

OFX Group Limited provides online international payments and foreign exchange services for consumer and business clients in Australia, New Zealand, Europe, North America, Asia, and internationally. It oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:36
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.