AIM:AFHP

Stock Analysis Report

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Executive Summary

AFH Financial Group Plc provides independent financial advisory and investment management services to the retail market in the United Kingdom.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AFHP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

AFHP

-0.6%

GB Capital Markets

-0.7%

GB Market


1 Year Return

-10.5%

AFHP

10.1%

GB Capital Markets

-15.7%

GB Market

Return vs Industry: AFHP underperformed the UK Capital Markets industry which returned 12.7% over the past year.

Return vs Market: AFHP exceeded the UK Market which returned -14.9% over the past year.


Shareholder returns

AFHPIndustryMarket
7 Day-5.6%-0.6%-0.7%
30 Day-2.5%2.7%0.6%
90 Day22.7%15.7%11.3%
1 Year-9.0%-10.5%12.6%10.1%-11.7%-15.7%
3 Year30.5%24.8%56.3%45.1%-4.3%-16.1%
5 Year141.9%124.3%120.7%96.6%13.5%-11.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AFHP (£3.28) is trading above our estimate of fair value (£2.08)

Significantly Below Fair Value: AFHP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AFHP is good value based on its PE Ratio (12.9x) compared to the GB Capital Markets industry average (17.9x).

PE vs Market: AFHP is good value based on its PE Ratio (12.9x) compared to the UK market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: AFHP is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: AFHP's PB Ratio (1.7x) is in line with the GB Capital Markets industry average.


Next Steps

Future Growth

How is AFH Financial Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFHP's forecast earnings growth (17.6% per year) is above the savings rate (1.2%).

Earnings vs Market: AFHP's earnings (17.6% per year) are forecast to grow slower than the UK market (21.6% per year).

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

Revenue vs Market: AFHP's revenue (11.2% per year) is forecast to grow faster than the UK market (3.1% per year).

High Growth Revenue: AFHP's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AFHP's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has AFH Financial Group performed over the past 5 years?

49.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFHP has high quality earnings.

Growing Profit Margin: AFHP's current net profit margins (14.3%) are higher than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: AFHP's earnings have grown significantly by 49.3% per year over the past 5 years.

Accelerating Growth: AFHP's earnings growth over the past year (35.5%) is below its 5-year average (49.3% per year).

Earnings vs Industry: AFHP earnings growth over the past year (35.5%) exceeded the Capital Markets industry 16.6%.


Return on Equity

High ROE: AFHP's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is AFH Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: AFHP's short term assets (£35.5M) exceed its short term liabilities (£30.0M).

Long Term Liabilities: AFHP's short term assets (£35.5M) exceed its long term liabilities (£29.1M).


Debt to Equity History and Analysis

Debt Level: AFHP's debt to equity ratio (22.2%) is considered satisfactory.

Reducing Debt: AFHP's debt to equity ratio has reduced from 25.7% to 22.2% over the past 5 years.

Debt Coverage: AFHP's debt is well covered by operating cash flow (49.5%).

Interest Coverage: AFHP's interest payments on its debt are well covered by EBIT (26x coverage).


Balance Sheet


Next Steps

Dividend

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

2.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFHP's dividend (2.44%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: AFHP's dividend (2.44%) is low compared to the top 25% of dividend payers in the UK market (5.47%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AFHP has been paying a dividend for less than 10 years.

Growing Dividend: AFHP's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.4%), AFHP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AFHP's dividends in 3 years are forecast to be well covered by earnings (30.1% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Alan Hudson (60yo)

no data

Tenure

UK£709,567

Compensation

Mr. Alan Hudson serves as the Chief Executive Officer at AFH Financial Group PLC and served as its Chairman until February 2014. Mr. Hudson is a qualified chartered financial planner and has considerable f ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD894.93K) is above average for companies of similar size in the UK market ($USD670.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alan Hudson
CEO & Executive Directorno dataUK£709.57k13.87% £19.5m
Paul Wright
CFO & Executive Director6.42yrsUK£320.78k0.081% £114.6k
Alexis Larvin
Group Head of Risk & Executive Director4.75yrsUK£210.35kno data
Austin Broad
Group Head of Advice & Executive Director4.75yrsUK£201.20k0.035% £49.1k
Anne-Marie Brown
Company Secretaryno datano datano data

4.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: AFHP's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan Hudson
CEO & Executive Directorno dataUK£709.57k13.87% £19.5m
Paul Wright
CFO & Executive Director6.42yrsUK£320.78k0.081% £114.6k
Alexis Larvin
Group Head of Risk & Executive Director4.75yrsUK£210.35kno data
Austin Broad
Group Head of Advice & Executive Director4.75yrsUK£201.20k0.035% £49.1k
John Wheatley
Non-Executive Chairman6.42yrsUK£55.32k0.54% £763.5k
Sue Lewis
Non-Executive Director6.42yrsUK£44.21kno data
Mark Chambers
Non-Executive Director5.92yrsUK£44.21k0.18% £255.9k

6.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: AFHP's board of directors are considered experienced (6.4 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

AFH Financial Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AFH Financial Group Plc
  • Ticker: AFHP
  • Exchange: AIM
  • Founded: 1990
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£140.659m
  • Shares outstanding: 42.95m
  • Website: https://www.afhwm.co.uk

Number of Employees


Location

  • AFH Financial Group Plc
  • AFH House
  • Buntsford Drive
  • Bromsgrove
  • Worcestershire
  • B60 4JE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFHPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2011
AFHF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2011

Biography

AFH Financial Group Plc provides independent financial advisory and investment management services to the retail market in the United Kingdom. It offers investment and portfolio management; and financial planning services, including retirement, protection, tax, and mortgage planning, as well as private wealth management and inheritance tax services. The company also provides business solutions, such as business protection insurance comprising shareholder, partnership, key person protection, and professional indemnity insurance; and corporate pension, employee benefit, and tax mitigation advisory and exit strategy services. It serves mass affluent and high net worth private clients, as well as various companies. The company was founded in 1990 and is headquartered in Bromsgrove, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:01
End of Day Share Price2020/07/14 00:00
Earnings2020/04/30
Annual Earnings2019/10/31


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.