ASX:OFX

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


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

Stable Share Price: OFX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

OFX

-2.1%

AU Diversified Financial

-1.4%

AU Market


1 Year Return

-13.0%

OFX

-27.7%

AU Diversified Financial

-7.1%

AU Market

Return vs Industry: OFX exceeded the Australian Diversified Financial industry which returned -28.2% over the past year.

Return vs Market: OFX underperformed the Australian Market which returned -6.9% over the past year.


Shareholder returns

OFXIndustryMarket
7 Day0.4%-2.1%-1.4%
30 Day5.9%8.5%3.4%
90 Day-6.4%-10.9%3.8%
1 Year-10.0%-13.0%-24.6%-27.7%-3.7%-7.1%
3 Year-5.8%-15.2%-61.8%-66.0%16.9%2.1%
5 Year-50.2%-57.8%-56.8%-65.2%46.0%15.6%

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?

15.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OFX (A$1.17) is trading below our estimate of fair value (A$1.38)

Significantly Below Fair Value: 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 (14x) compared to the AU Diversified Financial industry average (18.1x).

PE vs Market: OFX is good value based on its PE Ratio (14x) compared to the Australian market (21.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OFX is overvalued based on its PB Ratio (3.7x) compared to the AU Diversified Financial industry average (1.2x).


Next Steps

Future Growth

How is OFX Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.6%

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 OFX Group 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 OFX Group performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OFX has high quality earnings.

Growing Profit Margin: OFX's current net profit margins (14.7%) are higher than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: OFX's earnings have declined by 6% per year over the past 5 years.

Accelerating Growth: OFX's earnings growth over the past year (19%) exceeds its 5-year average (-6% per year).

Earnings vs Industry: OFX earnings growth over the past year (19%) exceeded the Diversified Financial industry -3.5%.


Return on Equity

High ROE: OFX's Return on Equity (26.8%) is considered high.


Next Steps

Financial Health

How is OFX Group's financial position?


Financial Position Analysis

Short Term Liabilities: OFX's short term assets (A$317.4M) exceed its short term liabilities (A$258.8M).

Long Term Liabilities: OFX's short term assets (A$317.4M) exceed its long term liabilities (A$19.1M).


Debt to Equity History and Analysis

Debt Level: OFX is debt free.

Reducing Debt: OFX has not had any debt for past 5 years.

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

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


Balance Sheet


Next Steps

Dividend

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

4.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OFX's dividend (4.02%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: OFX's dividend (4.02%) is low compared to the top 25% of dividend payers in the Australian market (5.45%).


Stability and Growth of Payments

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 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.1%), OFX's dividend payments are 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?

1.7yrs

Average management tenure


CEO

Skander Malcolm (51 yo)

3.67yrs

Tenure

AU$1,134,998

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 ($USD807.20K) is above average for companies of similar size in the Australian market ($USD507.36K).

Compensation vs Earnings: Skander's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Malcolm
CEO, MD & Executive Director3.67yrsAU$1.13m1.3%
A$ 3.7m
Selena Verth
Chief Financial Officer3yrsAU$526.70kno data
Mark Shaw
Chief Operating Officer1.58yrsAU$505.00kno data
Wendy Glasgow
Chief Technology Officer2.67yrsAU$417.33kno data
Matthew Gregorowski
Investor Relationsno datano datano data
Elisabeth Ellis
Chief Legal Officer & Company Secretary1.08yrsno datano data
Elaine Herlihy
Chief Marketing Officer1.42yrsno datano data
Jill Rezsdovics
Chief People & Culture Officer2yrsno datano data
Sarah Webb
President of UK & Europe1.83yrsno datano data
Yung Ngo
President of Asia Pacific1.58yrsno datano data
Alfred Nader
President of North America1.08yrsno datano data

1.7yrs

Average Tenure

Experienced Management: OFX's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Malcolm
CEO, MD & Executive Director3.67yrsAU$1.13m1.3%
A$ 3.7m
Steven Sargent
Independent Chairman of the Board3.92yrsAU$230.00k0.041%
A$ 118.5k
Constance Carnabuci
Non-Executive Independent Director1.5yrsAU$115.00k0.0079%
A$ 22.9k
Douglas Snedden
Non-Executive Independent Director5.58yrsAU$140.00k0.041%
A$ 118.5k
Grant Murdoch
Non-Executive Independent Director7.08yrsAU$125.00k0.14%
A$ 408.8k

3.9yrs

Average Tenure

60yo

Average Age

Experienced Board: OFX's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OFX 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

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$288.989m
  • Shares outstanding: 243.87m
  • 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 Analysis2020/10/26 10:36
End of Day Share Price2020/10/26 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.