AF Legal Group Limited (AFL) AI Stock Analysis

• Market Cap: €11.89M
• Dividend Yield: N/A
• Average Volume (3M): 61.59K
• Price to Earnings (P/E): 118.2
• Beta (1Y): 0.57
• Revenue Growth: 27.43%
• EPS Growth: -90.52%
• Country: AU
• Employees: 3
• Sector: Financial
• Sector Strength: 70
• Industry: Personal Products & Services
• EPS (TTM): >-0.01
• Shares Outstanding: 91,435,570
• 10 Day Avg. Volume: 29,982
• 30 Day Avg. Volume: 61,587
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

The overall stock score is primarily driven by financial performance, which highlights strong revenue growth and improved profitability, though tempered by cash flow challenges. Technical analysis presents a neutral view with no strong directional trends. Valuation indicates a reasonable pricing relative to earnings, although the lack of a dividend yield may deter some investors.

AF Legal Group Limited Business Overview & Revenue Model

Company Description

AF Legal Group Limited operates as a family and relationship law firm in Australia. It offers family law services, such as separation, divorce, child custody, child support, spousal maintenance, property settlement, asset protect, and prenuptial agreement services. The company was formerly known as Navigator Resources Limited and changed its name to AF Legal Group Limited in May 2019. AF Legal Group Limited was incorporated in 1994 and is headquartered in Melbourne, Australia.

How the Company Makes Money

AF Legal Group Limited generates revenue primarily through the provision of legal services. The company's key revenue streams include fees charged for legal consultations, representation in court, preparation of legal documents, and other related services. AFL may also earn income through retainers from clients who require ongoing legal support. The company's earnings are influenced by the volume of cases handled, the complexity of the legal issues addressed, and the rates charged for different types of legal services. AFL's reputation and successful track record in family law contribute significantly to attracting and retaining clients, thereby supporting its financial performance.

AF Legal Group Limited Financial Statement Overview

Summary

AF Legal Group Limited demonstrates strong revenue growth and cash flow generation, but profitability remains a challenge. The balance sheet is stable with manageable leverage, but returns on equity are low. Overall, the company is on a positive growth trajectory but needs to focus on improving profitability and returns.

Income Statement

AF Legal Group Limited has shown a strong revenue growth rate of 15.7% in the latest year, indicating positive sales momentum. However, the net profit margin is low at 0.37%, suggesting limited profitability. The gross profit margin is high, but the EBIT and EBITDA margins are moderate, indicating room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has increased, reflecting higher leverage, but it remains at a manageable level. The return on equity is low, indicating limited returns on shareholder investments. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

The free cash flow growth rate is impressive at 183.8%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, showing efficient cash conversion. The free cash flow to net income ratio is also strong, reflecting good cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.60M	27.60M	21.66M	18.83M	16.91M	11.01M
Gross Profit	27.57M	27.57M	21.65M	18.91M	3.81M	3.66M
EBITDA	3.29M	3.27M	3.34M	-5.35M	2.08M	771.09K
Net Income	102.00K	102.00K	962.00K	-8.10M	-407.00K	-482.00K
Balance Sheet
Total Assets	27.86M	27.86M	23.71M	18.05M	23.44M	20.69M
Cash, Cash Equivalents and Short-Term Investments	2.21M	2.21M	2.32M	2.05M	3.75M	4.66M
Total Debt	9.67M	9.67M	6.91M	3.70M	1.63M	1.06M
Total Liabilities	18.06M	18.06M	13.73M	11.00M	8.54M	7.39M
Stockholders Equity	9.27M	9.27M	9.12M	6.38M	14.40M	13.29M
Cash Flow
Free Cash Flow	2.45M	2.37M	161.00K	300.00K	595.00K	694.21K
Operating Cash Flow	2.86M	2.86M	545.00K	1.06M	1.04M	1.15M
Investing Cash Flow	-3.60M	-3.60M	-4.12M	-1.20M	-955.00K	-2.54M
Financing Cash Flow	637.00K	637.00K	3.84M	-1.56M	-994.00K	4.49M

AF Legal Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AFL, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 58.17 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AFL.

AF Legal Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPC	65 Neutral	AU$9.31M	50.43	―	4.00%	-50.00%	-52.07%
SHJ	63 Neutral	AU$115.19M	206.06	―	7.35%	4.44%	-90.57%
N1H	63 Neutral	AU$8.81M	10.31	―	3.30%	8.15%	-21.14%
BPH	58 Neutral	AU$11.59M	1.75	―	―	―	29.55%
AFL	56 Neutral	€11.89M	118.18	―	―	27.43%	-90.52%
KBC	43 Neutral	AU$9.72M	1.40	―	―	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

AF Legal Group Limited Corporate Events

AF Legal Group Seeks ASX Quotation for New Securities

AF Legal Group Limited has announced the application for the quotation of 136,364 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its market presence and potentially increase its shareholder base, reflecting a proactive approach in leveraging financial instruments to support its growth objectives.

AF Legal Group Ltd Announces Director’s Share Acquisition

AF Legal Group Ltd has announced a change in the director’s interest in securities, specifically involving Peter Johns. Mr. Johns, who holds indirect interests through Westferry Operations Pty Ltd, acquired 125,217 fully paid ordinary shares at $0.096 per share on May 20, 2025. This acquisition was conducted through an on-market trade, increasing his holdings in The Westferry Fund to 5,026,739 shares. The announcement reflects a strategic move in the company’s management and could influence stakeholder perceptions regarding its governance and financial strategies.

AF Legal Group Settles Legal Claim and Faces Regulatory Investigation

AF Legal Group Limited has settled a legal claim related to the hiring of a senior lawyer in 2022, resulting in an estimated expense of $550k-$600k for the second half of FY25. Additionally, the company is dealing with a regulatory investigation involving one lawyer, which is expected to incur further legal expenses of $100k. Despite these challenges, the company reports strong underlying performance and remains confident in achieving higher normalized NPBT for the second half of FY25 compared to the first half.