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Market Cap

AU$302.4m

Last Updated

2021/05/11 08:20 UTC

Data Sources

Company Financials +

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

Rewards

Trading at 26.4% below our estimate of its fair value

Earnings are forecast to grow 11.34% per year

Risk Analysis

No risks detected for OFX from our risk checks.


Snowflake Analysis

Flawless balance sheet and fair value.


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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: OFX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

OFX

0.05%

AU Diversified Financial

1.7%

AU Market


1 Year Return

-6.9%

OFX

-7.4%

AU Diversified Financial

36.6%

AU Market

Return vs Industry: OFX matched the Australian Diversified Financial industry which returned -7.4% over the past year.

Return vs Market: OFX underperformed the Australian Market which returned 36.6% over the past year.


Shareholder returns

OFXIndustryMarket
7 Day0.8%0.05%1.7%
30 Day6.1%-16.7%2.2%
90 Day-5.8%-20.3%4.6%
1 Year-4.8%-6.9%-3.5%-7.4%40.6%36.6%
3 Year-28.8%-35.1%-59.1%-63.0%32.0%16.3%
5 Year-35.7%-45.2%-60.1%-67.3%64.1%33.2%

Long-Term 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?

26.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OFX (A$1.21) is trading below our estimate of fair value (A$1.64)

Significantly Below Fair Value: OFX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OFX is poor value based on its PE Ratio (19.8x) compared to the Australian Diversified Financial industry average (18.7x).

PE vs Market: OFX is good value based on its PE Ratio (19.8x) compared to the Australian market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: OFX is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: OFX is overvalued based on its PB Ratio (4x) compared to the AU Diversified Financial industry average (1.1x).


Future Growth

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

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OFX's forecast earnings growth (11.3% per year) is above the savings rate (1.9%).

Earnings vs Market: OFX's earnings (11.3% per year) are forecast to grow slower than the Australian market (13.6% per year).

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

Revenue vs Market: OFX's revenue (4.6% per year) is forecast to grow slower than the Australian market (5% per year).

High Growth Revenue: OFX's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OFX's Return on Equity is forecast to be low in 3 years time (17.6%).


Past Performance

How has OFX Group performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OFX has high quality earnings.

Growing Profit Margin: OFX's current net profit margins (11.1%) are lower than last year (12.6%).


Past Earnings Growth Analysis

Earnings Trend: OFX's earnings have declined by 5.7% 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 (-9.5%) over the past year, making it difficult to compare to the Diversified Financial industry average (-3.9%).


Return on Equity

High ROE: OFX's Return on Equity (20%) is considered high.


Financial Health

How is OFX Group's financial position?


Financial Position Analysis

Short Term Liabilities: OFX's short term assets (A$271.1M) exceed its short term liabilities (A$206.3M).

Long Term Liabilities: OFX's short term assets (A$271.1M) exceed its long term liabilities (A$24.9M).


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


Dividend

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

1.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OFX's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: OFX's dividend (1.34%) is low compared to the top 25% of dividend payers in the Australian market (5.21%).


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 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.7%), OFX's dividend 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 (61.3% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Skander Malcolm (51 yo)

4.25yrs

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 ($USD893.42K) is above average for companies of similar size in the Australian market ($USD510.60K).

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


Leadership Team

Experienced Management: OFX's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: OFX's board of directors are considered experienced (4.4 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

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$302.401m
  • 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


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 Analysis2021/05/11 08:20
End of Day Share Price2021/05/11 00:00
Earnings2020/09/30
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.