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AF Legal Group Limited (AU:AFL)
ASX:AFL
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AF Legal Group Limited (AFL) AI Stock Analysis

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AU:AFL

AF Legal Group Limited

(Sydney:AFL)

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Neutral 57 (OpenAI - 5.2)
Rating:57Neutral
Price Target:
AU$0.15
▼(-19.44% Downside)
Action:Reiterated
Date:07/01/26
The score is primarily supported by strong revenue and especially free cash flow growth alongside a stable balance sheet, but it is capped by very weak profitability/ROE. The technical setup is bearish with the price below all major moving averages, and valuation looks stretched with a high P/E and no dividend yield provided.
Positive Factors
Free cash flow growth
Sustained FCF growth (183.8%) signals durable cash generation that can fund operations, capex, working capital and opportunistic investments without reliance on external financing. Strong cash conversion also improves resilience to cyclicality and supports strategic optionality long term.
Negative Factors
Very low net profit margin
A net margin near zero (0.37%) indicates the business struggles to convert sales into retained earnings, leaving little buffer for cost shocks, investment or shareholder returns. Persistently thin margins constrain reinvestment capacity and make long-term earnings growth highly sensitive to expense volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow growth
Sustained FCF growth (183.8%) signals durable cash generation that can fund operations, capex, working capital and opportunistic investments without reliance on external financing. Strong cash conversion also improves resilience to cyclicality and supports strategic optionality long term.
Read all positive factors

AF Legal Group Limited (AFL) vs. iShares MSCI Australia ETF (EWA)

AF Legal Group Limited Business Overview & Revenue Model

Company Description
AF Legal Group Limited is an Australian legal practice specializing in family and relationship law. The firm offers a wide range of family legal services, including assistance with separations, divorces, child custody arrangements, child support, ...
How the Company Makes Money
null...

AF Legal Group Limited Financial Statement Overview

Summary
Strong top-line and cash-flow momentum support the score: revenue grew 15.7% and free cash flow growth was 183.8% with healthy cash conversion. Offsetting this, profitability is very weak (net profit margin 0.37%) and return on equity is low, limiting overall quality despite a manageable leverage profile.
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
BreakdownTTMJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue32.72M35.53M27.60M21.66M18.83M16.91M
Gross Profit20.50M10.36M27.57M21.65M18.91M3.81M
EBITDA4.63M4.79M3.27M3.34M-5.35M2.08M
Net Income313.00K463.00K102.00K962.00K-8.10M-407.00K
Balance Sheet
Total Assets28.31M30.95M27.86M23.71M18.05M23.44M
Cash, Cash Equivalents and Short-Term Investments2.80M1.03M2.21M2.32M2.05M3.75M
Total Debt9.85M9.19M9.67M6.91M3.70M1.63M
Total Liabilities17.75M20.25M18.06M13.73M11.00M8.54M
Stockholders Equity9.88M9.84M9.27M9.12M6.38M14.40M
Cash Flow
Free Cash Flow1.93M1.37M2.37M161.00K300.00K595.00K
Operating Cash Flow2.23M1.66M2.86M545.00K1.06M1.04M
Investing Cash Flow-387.00K-433.00K-3.60M-4.12M-1.20M-955.00K
Financing Cash Flow-2.36M-2.41M637.00K3.84M-1.56M-994.00K

AF Legal Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.18
Price Trends
50DMA
0.13
Positive
100DMA
0.14
Positive
200DMA
0.15
Negative
Market Momentum
MACD
<0.01
Negative
RSI
62.29
Neutral
STOCH
73.81
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 0.18 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.29 is Neutral, neither overbought nor oversold. The STOCH value of 73.81 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
AU$105.02M10.843.65%8.47%2.32%1630.30%
57
Neutral
AU$13.91M29.004.70%28.73%354.55%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AFL
AF Legal Group Limited
0.15
0.02
15.38%
AU:SHJ
Shine Justice Ltd.
0.63
-0.03
-4.83%

AF Legal Group Limited Corporate Events

AF Legal Group Director Peter Johns Increases Indirect Shareholding
Jun 23, 2026
AF Legal Group has disclosed a change in director Peter Johns&#8217; indirect shareholding following an on-market trade. Through Westferry Operations Pty Ltd acting for The Westferry Fund, Johns acquired 800,000 fully paid ordinary shares in the c...
AF Legal Group Issues Over 1.3 Million Unquoted Performance Rights
Jun 23, 2026
AF Legal Group Ltd has issued 1,347,055 unquoted performance rights under its employee incentive scheme, reinforcing its strategy of using equity-based compensation to reward and retain staff. The move underscores the company&#8217;s reliance on l...
AF Legal Group appoints new auditor after PKF restructuring
Jun 18, 2026
AF Legal Group Ltd has announced a change in its external audit arrangements, appointing PKF Brisbane Audit Pty Ltd as the company&#8217;s new auditor. The move follows the resignation of PKF Brisbane Audit, a separate legal entity, and reflects a...
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.Date of analysis: Jul 01, 2026