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Australian Finance Group Ltd.
(Sydney:AFG)
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Rating:55Neutral
Price Target:
AU$1.50
▼(-6.25% Downside)
Action:Reiterated
Date:09/19/26
The score is held back mainly by elevated financial risk from extremely high and rising leverage and a limited cash-flow cushion versus debt, despite improving revenue and strong operating margins. Technicals add near-term pressure as the stock trades below all major moving averages with negative MACD. Valuation is a key offset, supported by a low P/E and high dividend yield.
Positive Factors
Revenue and operating performance
Reaccelerating revenue alongside strong operating and EBITDA margins indicates that AFG’s core platform is converting loan-distribution activity into meaningful operating profit. If maintained, this combination supports reinvestment in broker services and technology while strengthening earnings capacity over the next several quarters.
Negative Factors
Extremely high and rising leverage
The sharp increase in leverage leaves AFG highly sensitive to funding costs, asset-quality changes, and shocks to mortgage volumes. Small changes in operating conditions can therefore have an amplified effect on equity outcomes, while the relatively small equity base limits flexibility for absorbing stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and operating performance
Reaccelerating revenue alongside strong operating and EBITDA margins indicates that AFG’s core platform is converting loan-distribution activity into meaningful operating profit. If maintained, this combination supports reinvestment in broker services and technology while strengthening earnings capacity over the next several quarters.
Read all positive factors
Australian Finance Group Ltd. (AFG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$389.01M
Dividend Yield6.44%
Average Volume (3M)1.59M
Price to Earnings (P/E)8.3
Beta (1Y)1.14
Revenue Growth13.83%
EPS Growth38.85%
CountryAU
Employees370
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.18
Shares Outstanding263,733,600
10 Day Avg. Volume840,177
30 Day Avg. Volume1,590,800
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)1.78
Price to Sales (P/S)0.30
P/FCF Ratio7.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.00Price Target Upside25.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.2
Revenue Forecast (FY)AU$1.28B
Australian Finance Group Ltd. Business Overview & Revenue Model
Company Description
Operating within Australia, Australian Finance Group Limited (AFG) and its affiliated entities are primarily engaged in the mortgage brokering sector. The company's operations are divided into two distinct segments: Aggregation and AFG Home Loans....
How the Company Makes Money
AFG primarily makes money through (1) aggregation and distribution economics tied to the flow of loans it helps originate, and (2) earnings generated from loans it holds in its own loan portfolio.
1) Aggregation / broker network income (capital-l...
Australian Finance Group Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
34
Negative
Cash Flow
58
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.43B | 403.90M | 1.10B | 1.02B | 949.34M |
| Gross Profit | 450.30M | 116.40M | 363.15M | 338.54M | 204.19M |
| EBITDA | 398.10M | 59.20M | 291.82M | 262.17M | 141.19M |
| Net Income | 48.50M | 35.00M | 28.98M | 37.31M | 38.78M |
Balance Sheet | |||||
| Total Assets | 8.80B | 7.07B | 5.98B | 6.32B | 6.68B |
| Cash, Cash Equivalents and Short-Term Investments | 245.40M | 223.80M | 67.40M | 222.24M | 268.58M |
| Total Debt | 7.25B | 5.62B | 4.57B | 4.60B | 4.98B |
| Total Liabilities | 8.56B | 6.85B | 5.77B | 6.12B | 6.47B |
| Stockholders Equity | 242.30M | 222.10M | 194.42M | 179.06M | 184.32M |
Cash Flow | |||||
| Free Cash Flow | 58.50M | 30.10M | 20.94M | 51.23M | 40.01M |
| Operating Cash Flow | 59.50M | 35.90M | 38.78M | 58.26M | 52.68M |
| Investing Cash Flow | -1.63B | -1.05B | 13.19M | 303.47M | -1.46B |
| Financing Cash Flow | 1.60B | 1.02B | -52.59M | -408.07M | 1.45B |
Australian Finance Group Ltd. Technical Analysis
Positive
1.60
Price Trends
1.39
Positive
1.48
Positive
1.64
Negative
Market Momentum
0.02
Negative
65.04
Neutral
89.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AFG, the sentiment is Positive. The current price of 1.6 is above the 20-day moving average (MA) of 1.34, above the 50-day MA of 1.39, and below the 200-day MA of 1.64, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 89.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AFG.
Australian Finance Group Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | AU$863.92M | 15.36 | 7.49% | 4.85% | 26.81% | 25.38% | |
60 Neutral | AU$777.43M | 7.29 | 12.29% | 8.67% | -0.65% | 8.02% | |
58 Neutral | AU$140.14M | 9.44 | 20.23% | ― | 20.39% | -42.91% | |
56 Neutral | AU$995.81M | 7.11 | 12.12% | 15.01% | -3.49% | 7.16% | |
55 Neutral | AU$389.01M | 8.34 | 20.48% | 6.44% | 13.83% | 38.85% | |
50 Neutral | AU$847.38M | 7.76 | 8.74% | 12.88% | 4.20% | 85.51% |
* Financial Sector Average
AU:AFG
Australian Finance Group Ltd.
1.48
-0.71
-32.46%
AU:PLT
Plenti Group Ltd.
0.76
-0.69
-47.59%
AU:PPM
Pepper Money Ltd
1.73
-0.33
-16.22%
AU:LFS
Latitude Group Holdings Ltd.
0.82
-0.20
-20.02%
AU:LFG
Liberty Financial Group Ltd
3.28
-0.23
-6.55%
AU:MYS
Mystate Limited
5.05
0.84
20.01%
Australian Finance Group Ltd. Corporate Events
AFG Updates Market on Director David Flynn’s Indirect Shareholding Changes
Oct 22, 2026
Australian Finance Group Ltd has notified the ASX of a change in director David Flynn’s relevant interests in the company’s ordinary fully paid shares, reflecting updates to his indirect holdings through two investment entities. The di...
Australian Finance Group Issues New Performance Rights Under Employee Incentive Scheme
Oct 21, 2026
Australian Finance Group Ltd. has notified the market of the issue of 1,956,378 unquoted performance rights under its employee incentive scheme, effective 22 October 2026. The new performance rights, which are not intended to be quoted on the ASX,...
AFG Files Final Director’s Interest Notice for Brett McKeon
Oct 19, 2026
Australian Finance Group Ltd. has lodged a Final Director’s Interest Notice with the ASX confirming that Brett Murray McKeon ceased to be a director on 16 October 2026. The filing notes that McKeon holds no relevant interests in the company&...
AFG Publishes Q1 FY27 Mortgage Index to Update Market on Lending Trends
Oct 12, 2026
Australian Finance Group has released its AFG Mortgage Index for the first quarter of the 2027 financial year, providing updated data on national mortgage activity. The index publication signals ongoing transparency around lending trends and posit...
Australian Finance Group Continues On‑Market Share Buy‑Back
Sep 24, 2026
Australian Finance Group Ltd. has issued an updated notification confirming the continuation of its on‑market share buy‑back program for its ordinary fully paid securities. The latest daily disclosure, dated 25 September 2026, reports ...
AFG Reports Daily Progress on Ongoing On-Market Share Buy-Back
Sep 22, 2026
Australian Finance Group Ltd., an ASX-listed financial services company, is actively managing its ordinary fully paid shares through on-market transactions. Its listed equity, traded under the AFG ticker, reflects its role in Australia’s cap...
Australian Finance Group Updates Market on Ongoing Share Buy‑Back
Sep 20, 2026
Australian Finance Group Ltd, a listed financial services provider on the ASX, has ordinary fully paid shares on issue and operates within the Australian finance industry, including mortgage and related services. Its securities trade under the tic...
AFG Secures Strong Demand for A$1.2bn Prime RMBS Issue
Sep 17, 2026
Australian Finance Group Ltd. has priced a A$1.2 billion Prime Residential Mortgage-Backed Securities transaction through its AFG Securities unit, mirroring the record-sized deal it completed in February 2026. The issuance attracted robust demand ...
Australian Finance Group Continues On‑Market Share Buy‑Back Program
Sep 14, 2026
Australian Finance Group Ltd., a key player in Australia’s mortgage and finance broking industry, provides lending and related services through a broad network and is listed on the ASX under the ticker AFG. The company’s ordinary fully...
Australian Finance Group Updates Market on Ongoing Share Buy-Back
Sep 13, 2026
Australian Finance Group Ltd., listed on the ASX under ticker AFG, operates in the mortgage and finance broking sector, offering lending and financial products via an extensive broker network across Australia. Its ordinary fully paid shares are ac...
Australian Finance Group Updates Investors on Ongoing On‑Market Share Buy‑Back
Sep 10, 2026
Australian Finance Group Ltd., a publicly listed Australian financial services firm, continues to actively manage its capital base through an on‑market buy‑back of its ordinary fully paid shares. The company’s securities trade un...
AFG co-founder Brett McKeon to retire after 32 years of service
Sep 10, 2026
Australian Finance Group Ltd., a leading diversified financial services and mortgage broking aggregator founded in Perth in 1994, has built a national footprint by supporting thousands of broking businesses and operating its own lending arm to enh...
AFG Updates Market on Director David Flynn’s Indirect Shareholdings
Sep 8, 2026
Australian Finance Group Ltd. has lodged a Change of Director’s Interest Notice with the ASX regarding indirect holdings of director David Flynn, in line with listing rule 3.19A.2 and Corporations Act requirements. The notice details that Fl...
AFG Updates Market on Progress of On‑Market Share Buy‑Back
Sep 8, 2026
Australian Finance Group Ltd., a listed financial services company trading under ASX code AFG, continues to actively manage its capital structure through transactions in its ordinary fully paid shares. The group’s use of on-market buy-backs ...
AFG Director Craig Carter Increases Indirect Shareholding
Sep 8, 2026
Australian Finance Group Ltd has lodged an Appendix 3Y with the ASX detailing a change in director Craig Gillen Carter’s indirect interest in the company’s securities. Carter, through Goldjazz Pty Ltd and existing superannuation trust ...
AFG Director Annette King Increases Indirect Shareholding
Sep 7, 2026
Australian Finance Group Ltd. has lodged an Appendix 3Y notice with the ASX detailing a change in director Annette King’s relevant interests in company securities. Through an indirect holding via Red Dragon Pty Ltd as trustee for the Yin Yan...
S&P Dow Jones Unveils September Rebalance of S&P/ASX Indices
Sep 4, 2026
SP Dow Jones Indices has announced its September 2026 quarterly rebalance of the SP/ASX indices, with changes effective before trading opens on September 21. The SP/ASX 20 will remain unchanged, while Mineral Resources and NEXTDC join the SP/ASX 5...
AFG Cancels Shares Following On-Market Buy-Back
Sep 3, 2026
Australian Finance Group Ltd. has reported a reduction in its issued capital following the cessation of a parcel of ordinary fully paid shares. The change relates to the company’s listed securities on the ASX and reflects adjustments in its ...
Australian Finance Group Updates On-Market Share Buy-Back Totals
Sep 2, 2026
Australian Finance Group Ltd. has issued an updated notification regarding its ongoing on-market share buy-back program for its ordinary fully paid securities. The update, dated 3 September 2026, reports that a cumulative 3,053,620 shares had been...
Australian Finance Group Director Increases Indirect Shareholding
Sep 1, 2026
Australian Finance Group Ltd has reported a change in the indirect shareholdings of director Jane Mary Muirsmith, as disclosed in an Appendix 3Y lodged with the ASX. The notice records that through entities Lenox Hill Pty Ltd and Sandy Crab (WA) P...
Australian Finance Group Updates Daily Progress of On-Market Share Buy-Back
Aug 31, 2026
Australian Finance Group Ltd. has updated the market on its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that a total of 2,707,203 shares had been repurchased prior to the latest trading day, wi...
Australian Finance Group Updates Daily On-Market Share Buy-Back
Aug 30, 2026
Australian Finance Group Ltd. has provided an updated notification to the ASX on its ongoing on-market share buy-back programme for ordinary fully paid shares. The filing confirms the latest daily activity in the buy-back, including cumulative sec...
Australian Finance Group Updates Market on Progress of On‑Market Share Buy‑Back
Aug 27, 2026
Australian Finance Group Ltd. has provided an updated notification to the ASX regarding its ongoing on‑market share buy‑back of ordinary fully paid shares under code AFG. The company reported that it had repurchased a cumulative 2,276,...
AFG Reports Lapse of 90,274 Performance Rights on ASX
Aug 27, 2026
Australian Finance Group Ltd., a listed mortgage and financial services provider in Australia, operates through a broad broker network and lending partnerships to deliver home loan and finance solutions across the country. Its ASX-listed capital s...
Australian Finance Group Reports Expiry of Performance Rights
Aug 26, 2026
Australian Finance Group Ltd. has announced the cessation of 534,610 performance rights, identified under ASX code AFGAJ, following their expiry without being exercised or converted on 20 August 2026. The lapse of these rights reduces the company&...
AFG Seeks ASX Quotation for New Employee Incentive Shares
Aug 25, 2026
Australian Finance Group Ltd., an ASX-listed financial services company focused on lending and mortgage aggregation, continues to use equity-based employee incentives within its broader capital management framework.The company has applied for quot...
AFG Discloses Substantial Increase in Director David Flynn’s Shareholding
Aug 25, 2026
Australian Finance Group Ltd has reported a change in the indirect shareholding of director David Flynn in accordance with ASX listing rule 3.19A.2. Flynn’s interests are held via the Spitsbergen Fishing Superannuation Fund, for which he is ...
Australian Finance Group Updates Daily On-Market Share Buy-Back
Aug 24, 2026
Australian Finance Group Ltd. has issued an updated notification to the ASX confirming the continuation of its on-market share buy-back program involving its ordinary fully paid shares. The latest daily report shows that a total of 2,120,235 share...
AFG Updates Market on Progress of On‑Market Share Buy‑Back
Aug 23, 2026
Australian Finance Group Ltd. has provided an updated notification on its ongoing on‑market share buy‑back of ordinary fully paid shares. The latest daily filing shows that 159,975 shares were repurchased on the previous day, bringing ...
AFG Reaffirms Strong Governance and Values in 2026 Statement
Aug 19, 2026
Australian Finance Group Ltd. (AFG) operates in the financial services sector, supporting mortgage brokers and customers with a focus on competition, sustainable partnerships, and quality financial experiences. Its stakeholder base spans brokers, ...
AFG lifts FY26 profit 39% as scaled broker network and lending growth deepen earnings base
Aug 19, 2026
Australian Finance Group reported FY26 net profit after tax of $49 million, up 39 per cent, with underlying NPATA rising 33 per cent to $54 million as both its Distribution and Manufacturing segments delivered earnings growth. Operating efficiency...
AFG strengthens role in Australia’s mortgage market with broader earnings base
Aug 19, 2026
Australian Finance Group Ltd. operates as a key intermediary in Australia’s lending market, connecting more than 4,300 mortgage and finance brokers with over 80 lenders. Through this extensive broker network, AFG helps originate roughly one ...
Australian Finance Group Declares Interim Dividend for June Half-Year
Aug 19, 2026
Australian Finance Group Ltd. has declared a fully franked interim dividend of AUD 0.048 per ordinary share for the six‑month period ended 30 June 2026, reinforcing its commitment to shareholder returns. The distribution will be paid on 1 Oc...
Australian Finance Group Names New Director, Reports No Initial Shareholding
Aug 5, 2026
Australian Finance Group Ltd. has notified the ASX of the appointment of David Flynn as a director, effective 4 August 2026, and lodged an Initial Director’s Interest Notice in accordance with listing rule 3.19A.1. The filing confirms that F...
CBA Withdraws as Substantial Shareholder in Australian Finance Group
Aug 4, 2026
Commonwealth Bank of Australia and its related entities have filed a notice stating they have ceased to be a substantial holder in Australian Finance Group Ltd. The change in voting interests, detailed in accompanying annexures, indicates that CBA...
AFG Adds Capital Markets Veteran David Flynn to Board
Aug 3, 2026
Australian Finance Group Ltd. has appointed veteran investment and corporate advisory executive David Flynn as an independent non-executive director, effective 4 August 2026. Flynn brings more than 20 years of experience in mergers and acquisition...
KKR Entities Exit Substantial Holding in Australian Finance Group
Aug 3, 2026
Private equity investor KKR, through its related Comet Asia and KKR Asia III entities, has notified Australian Finance Group Ltd. that it has ceased to be a substantial holder as of 31 July 2026. The change in relevant interests in AFG’s vot...
AFG Discloses Exit of Substantial Shareholder Group
Aug 3, 2026
Australian Finance Group Ltd. has disclosed that Superannuation and Investments HoldCo Pty Ltd and its related entities have ceased to be substantial holders in the company as of 31 July 2026. The change reflects adjustments in relevant interests ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.