AIM:AFHP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record with high growth potential.

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


Market Performance


7 Day Return

0%

AFHP

-0.5%

GB Capital Markets

0.2%

GB Market


1 Year Return

-28.6%

AFHP

17.6%

GB Capital Markets

1.7%

GB Market

Return vs Industry: AFHP underperformed the UK Capital Markets industry which returned 17.6% over the past year.

Return vs Market: AFHP underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

AFHPIndustryMarket
7 Day0%-0.5%0.2%
30 Day-5.8%-3.6%-1.7%
90 Day-22.1%2.8%-3.1%
1 Year-27.3%-28.6%20.5%17.6%6.7%1.7%
3 Year76.0%68.2%76.8%64.3%17.7%3.1%
5 Year95.8%82.7%148.5%119.0%36.1%5.5%

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?

13.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AFHP (£2.75) is trading above our estimate of fair value (£1.63)

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 (13.8x) compared to the Capital Markets industry average (19.3x).

PE vs Market: AFHP is good value based on its PE Ratio (13.8x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: AFHP is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: AFHP is overvalued based on its PB Ratio (1.6x) compared to the GB Capital Markets industry average (1.3x).


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?

25.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFHP's forecast earnings growth (25.6% per year) is above the savings rate (1.2%).

Earnings vs Market: AFHP's earnings (25.6% per year) are forecast to grow faster than the UK market (12.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AFHP's revenue (13.5% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: AFHP's revenue (13.5% 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 high in 3 years time (20.1%)


Next Steps

Past Performance

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

49.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AFHP's earnings have grown significantly by 49.8% per year over the past 5 years.

Accelerating Growth: AFHP's earnings growth over the past year (72.8%) exceeds its 5-year average (49.8% per year).

Earnings vs Industry: AFHP earnings growth over the past year (72.8%) exceeded the Capital Markets industry 4.6%.


Return on Equity

High ROE: AFHP's Return on Equity (10.8%) is considered low.


Return on Assets

ROA vs Industry: AFHP has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: AFHP has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is AFH Financial 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: AFHP has a low level of unsold assets or inventory.

Debt Coverage by Assets: AFHP's debt is covered by short term assets (assets are 30.757210x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.18%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.0%markettop25%5.4%industryaverage2.2%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AFHP's dividend (2.18%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: AFHP's dividend (2.18%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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 (30.2%), 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 (28.7% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Alan Hudson (59yo)

0yrs

Tenure

UK£658,890

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 ($USD855.17K) is about average for companies of similar size in the UK market ($USD318.91K).

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


Management Age and Tenure

4.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: AFHP's management team is considered experienced (4 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: AFHP's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: AFHP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£24,99824 Sep 19
Mark Chambers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares8,620
Max PriceUK£2.90
BuyUK£50,00009 Aug 19
Mark Chambers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares15,625
Max PriceUK£3.20

Ownership Breakdown


Management Team

  • Paul Wright (62yo)

    CFO & Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£295.10k
  • Alan Hudson (59yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£658.89k
  • Anne-Marie Brown

    Company Secretary

    • Tenure: 0yrs
  • Alexis Larvin (37yo)

    Group Head of Risk & Executive Director

    • Tenure: 4yrs
    • Compensation: UK£194.00k
  • Austin Broad (56yo)

    Group Head of Advice & Executive Director

    • Tenure: 4yrs
    • Compensation: UK£183.00k

Board Members

  • Paul Wright (62yo)

    CFO & Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£295.10k
  • John Wheatley (67yo)

    Non-Executive Chairman

    • Tenure: 5.7yrs
    • Compensation: UK£51.32k
  • Susan Lewis

    Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£40.88k
  • Alan Hudson (59yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£658.89k
  • Mark Chambers (65yo)

    Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: UK£40.88k
  • Alexis Larvin (37yo)

    Group Head of Risk & Executive Director

    • Tenure: 4yrs
    • Compensation: UK£194.00k
  • Austin Broad (56yo)

    Group Head of Advice & Executive Director

    • Tenure: 4yrs
    • Compensation: UK£183.00k

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£115.357m
  • Shares outstanding: 42.72m
  • 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. The company offers wealth management and financial planning se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:24
End of Day Share Price2019/10/21 00:00
Earnings2019/04/30
Annual Earnings2018/10/31


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.