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Australian Finance Group Ltd.
(Sydney:AFG)
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Rating:54Neutral
Price Target:
AU$1.50
▼(-6.25% Downside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by elevated financial risk from extremely high and rising leverage, alongside weak technical momentum and a broader downtrend. These are partially offset by improving revenue growth and a supportive valuation profile (low P/E and high dividend yield).
Positive Factors
Revenue Reacceleration
Renewed top-line growth supports AFG’s aggregation and lending model by indicating improving loan-flow activity and platform demand. If sustained, higher volumes can expand upfront commissions, trail income and related service revenue over the medium term.
Negative Factors
Extremely High Leverage
Very high and rising leverage materially reduces financial flexibility and increases sensitivity to funding costs, loan performance and mortgage-market volumes. In a lending-focused business, adverse credit or funding conditions could therefore have an outsized effect on equity stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Reacceleration
Renewed top-line growth supports AFG’s aggregation and lending model by indicating improving loan-flow activity and platform demand. If sustained, higher volumes can expand upfront commissions, trail income and related service revenue over the medium term.
Read all positive factors
Australian Finance Group Ltd. (AFG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$413.49M
Dividend Yield6.21%
Average Volume (3M)841.71K
Price to Earnings (P/E)8.5
Beta (1Y)1.00
Revenue Growth13.83%
EPS Growth38.85%
CountryAU
Employees370
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.18
Shares Outstanding270,252,380
10 Day Avg. Volume1,252,717
30 Day Avg. Volume841,710
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$2.06Price Target Upside28.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.2
Revenue Forecast (FY)AU$1.36B
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. 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$845.35M | 15.03 | 7.49% | 4.94% | 26.81% | 25.38% | |
60 Neutral | AU$876.30M | 8.13 | 12.29% | 13.22% | -0.65% | 8.02% | |
58 Neutral | AU$143.83M | 9.75 | 20.23% | ― | 20.39% | -42.91% | |
56 Neutral | AU$1.08B | 7.55 | 12.12% | 13.87% | -3.49% | 7.16% | |
54 Neutral | AU$413.49M | 8.53 | 20.48% | 6.21% | 13.83% | 38.85% | |
50 Neutral | AU$966.95M | 8.86 | 8.74% | 10.75% | 4.20% | 85.51% |
* Financial Sector Average
AU:AFG
Australian Finance Group Ltd.
1.50
-0.98
-39.44%
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0.78
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AU:PPM
Pepper Money Ltd
1.98
-0.17
-7.74%
AU:LFS
Latitude Group Holdings Ltd.
0.94
-0.11
-10.90%
AU:LFG
Liberty Financial Group Ltd
3.55
0.05
1.43%
AU:MYS
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4.94
0.92
22.95%
Australian Finance Group Ltd. Corporate Events
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 ...
KKR Entities Exit as Substantial Holders in Australian Finance Group
Jul 12, 2026
KKR-related entities Comet Asia Holdings I and II, KKR Asia III Fund Investments, and KKR Asian Fund III L.P. have ceased to be substantial shareholders in Australian Finance Group Ltd as of 9 July 2026. The change, linked to transactions referenc...
Major Investor Ceases Substantial Holding in Australian Finance Group
Jul 10, 2026
Superannuation and Investments HoldCo Pty Ltd and its related bodies corporate have notified Australian Finance Group Ltd that they have ceased to be a substantial holder in the company as of 9 July 2026. The change in holding, detailed in annexur...
AFG Sets Date for FY2026 Results and Investor Call
Jul 10, 2026
Australian Finance Group Ltd. has scheduled the release of its full-year 2026 financial results for 20 August 2026. The company will brief analysts and investors on the figures through a conference call hosted the same day by Chief Executive Offic...
CBA Drops Below Substantial Holder Threshold in Australian Finance Group
Jul 10, 2026
Australian Finance Group Ltd.’s shareholder register has shifted, with Commonwealth Bank of Australia and its related entities notifying that they have ceased to be a substantial holder as of 9 July 2026. The move follows a prior notice lodg...
AFG Cancels Nearly 2 Million Shares in On‑Market Buy‑Back
Jul 3, 2026
Australian Finance Group Ltd., a key player in Australia’s mortgage aggregation and broader financial services market, operates through a network of brokers and offers various lending products to retail and commercial customers. Its ordinary...
Australian Finance Group Updates Daily On-Market Share Buy-Back
Jun 24, 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 the code AFG. The update confirms the company is continuing its capital management pro...
Australian Finance Group Steps Up On-Market Share Buy-Back
Jun 23, 2026
Australian Finance Group Ltd. has continued its on-market share buy-back program, repurchasing a cumulative total of 1,264,499 ordinary fully paid shares prior to the latest trading day, with an additional 100,867 shares bought back on the previou...
Australian Finance Group Updates Daily On‑Market Share Buy‑Back Totals
Jun 21, 2026
Australian Finance Group Ltd. has provided an updated notification to the ASX confirming continued execution of its on‑market share buy‑back for ordinary fully paid shares under code AFG. The update, dated 22 June 2026, records cumulat...
Australian Finance Group Continues On‑Market Share Buy‑Back Program
Jun 16, 2026
Australian Finance Group Ltd. has provided an updated notification to the ASX confirming the ongoing execution of its on‑market share buy‑back program for its ordinary fully paid shares under code AFG. The latest daily disclosure shows...
Australian Finance Group Announces On‑Market Share Buy‑Back
Jun 2, 2026
Australian Finance Group Ltd. has announced a new on‑market share buy‑back of its ordinary fully paid shares, notifying investors through an Appendix 3C filing dated 2 June 2026. The initiative signals an active approach to capital man...
AFG launches $15m on‑market buyback to bolster capital strategy
Jun 2, 2026
Australian Finance Group has launched an on‑market share buyback of up to $15 million, representing about 3.5% of its issued capital, as part of its broader capital management strategy. The program, to run from 16 June to 15 December 2026 un...
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.