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OFX Group Ltd.
(Sydney:OFX)
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Rating:62Neutral
Price Target:
AU$0.67
â–²(34.60% Upside)
Action:Reiterated
Date:09/25/26
The score is primarily supported by solid balance-sheet flexibility and strong recent cash generation, plus constructive (but not risk-free) FY27 recovery guidance from management. It is held back by deteriorating profitability and revenue trends and a weak technical picture with negative momentum, while valuation is difficult to support due to loss-making earnings and no dividend yield data.
Positive Factors
Balance-sheet flexibility and cash generation
OFX combines manageable leverage with strong recent cash conversion, giving it flexibility to fund technology, product development and customer growth without relying heavily on additional debt. This financial capacity strengthens resilience while management works to restore operating leverage.
Negative Factors
Revenue and profitability deterioration
The decline in NOI and steep reduction in underlying EBITDA show that recent platform investment and weaker trading activity have materially reduced earnings power. Near-breakeven or negative profit leaves less internal funding for growth and raises questions about the durability of prior margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet flexibility and cash generation
OFX combines manageable leverage with strong recent cash conversion, giving it flexibility to fund technology, product development and customer growth without relying heavily on additional debt. This financial capacity strengthens resilience while management works to restore operating leverage.
Read all positive factors
OFX Group Ltd. (OFX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$137.32M
Dividend Yield4.06%
Average Volume (3M)684.88K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth-7.93%
EPS Growth-101.72%
CountryAU
Employees702
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding232,753,110
10 Day Avg. Volume820,746
30 Day Avg. Volume684,875
Financial Highlights & Ratios
PEG Ratio3.09
Price to Book (P/B)0.71
Price to Sales (P/S)0.58
P/FCF Ratio0.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)<0.01
Revenue Forecast (FY)AU$216.04M
OFX Group Ltd. Business Overview & Revenue Model
Company Description
OFX Group Limited operates as a global provider specializing in international payment solutions and foreign currency exchange. The company enables direct bank-to-bank currency transfers for both businesses and individual consumers. Their comprehen...
How the Company Makes Money
OFX primarily makes money from foreign exchange-related revenue earned when customers convert one currency to another to complete an international transfer or payment. Instead of charging only an explicit transaction fee, OFX commonly earns a marg...
OFX Group Ltd. Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong operational and strategic progress with the OFX 2.0 platform migration, clear signs of product traction (multiproduct adoption, rising NTCs), improved technology delivery, growing non-FX revenue and a solid cash position. These positives are offset by a notable decline in top-line trading revenues, a severe reduction in underlying EBITDA versus the prior year, weaker consumer and corporate transaction activity driven by macro uncertainty and a meaningful increase in certain operating costs and bad debts. Management outlines a path to recovery but timing is dependent on market conditions.Positive Updates
Major OFX 2.0 Migration Largely Complete, On Time and On Budget
Completed migration of over 90% of corporate clients and major markets to the new client platform (NCP); launched in Canada, EMEA, Australia upgrades, U.S. launch with partner bank and New Zealand launch; management states migrations executed within budget and time frames.
Negative Updates
Revenue and NOI Decline
Fee and trading income down 8.1% to $203.9m; Net Operating Income (NOI) $196.6m, down 8.5% year-over-year; management cited macro uncertainty, lower volumes and mix shift to lower-margin same-currency transactions and spots.
Read all updates
Q4-2026 Updates
Positive
Negative
Major OFX 2.0 Migration Largely Complete, On Time and On Budget
Completed migration of over 90% of corporate clients and major markets to the new client platform (NCP); launched in Canada, EMEA, Australia upgrades, U.S. launch with partner bank and New Zealand launch; management states migrations executed within budget and time frames.
Read all positive updates
Company Guidance
Guidance from the call was that OFX expects to return to positive operating leverage in FY27 with a medium‑term target of ~15% NOI growth and underlying EBITDA margins of around 30%; near‑term expectations include growth in corporate active clients (after >90% of corporate clients migrated to the NCP and 23,000+ active corporate clients on the platform, up ~70% vs H1), steady cross‑currency ATVs (down just over 4% in FY26), stabilization of consumer revenue, and continued mid‑teens growth in enterprise, while controlling costs (operating expenses to be broadly flat in FY27 with absolute cost growth limited to inflation and a slight increase for rebased incentives). Key FY26 baselines cited were fee & trading income $203.9m, NOI $196.6m, underlying EBITDA $25.2m (operating cash flow $26.7m; operating cash conversion >100%), operating expenses $171.5m (up 9.1%), net cash held $71.6m (net available cash $49.6m, debt $18m), non‑FX revenue $1.8m (non‑FX almost tripled over four quarters, Q4 interest from balances ≈$1m), wallet balances ≈$233m, new trading clients +8% FY26 (April +20% YoY), multiproduct adoption 8.4% in Q4 (from 4.5% in Q3), forward book down ~15%, turnover down 6.4% and total revenue down just under 10% (consumer revenue down 13.8%).OFX Group Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
80
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 213.01M | 8.34M | 242.74M | 228.86M | 158.42M |
| Gross Profit | 149.48M | 3.64M | 227.51M | 200.92M | 137.06M |
| EBITDA | 23.54M | 55.48M | 64.56M | 62.43M | 44.50M |
| Net Income | -391.00K | 24.86M | 31.30M | 31.41M | 24.46M |
Balance Sheet | |||||
| Total Assets | 689.89M | 566.91M | 569.50M | 680.85M | 408.70M |
| Cash, Cash Equivalents and Short-Term Investments | 109.28M | 360.59M | 88.01M | 93.80M | 327.01M |
| Total Debt | 35.01M | 32.93M | 56.38M | 79.14M | 8.35M |
| Total Liabilities | 514.38M | 385.08M | 399.86M | 536.74M | 304.80M |
| Stockholders Equity | 175.51M | 181.82M | 169.64M | 144.11M | 103.89M |
Cash Flow | |||||
| Free Cash Flow | 140.25M | 52.41M | -43.23M | 152.05M | 37.08M |
| Operating Cash Flow | 141.13M | 72.53M | -18.64M | 172.92M | 48.55M |
| Investing Cash Flow | -18.11M | -45.10M | -16.76M | -94.96M | -15.66M |
| Financing Cash Flow | -11.28M | -43.66M | -43.26M | 58.03M | -6.17M |
OFX Group Ltd. Technical Analysis
Negative
0.50
Price Trends
0.75
Negative
0.67
Negative
0.61
Negative
Market Momentum
-0.05
Positive
29.94
Positive
44.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OFX, the sentiment is Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.75, and below the 200-day MA of 0.61, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 29.94 is Positive, neither overbought nor oversold. The STOCH value of 44.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:OFX.
OFX Group Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$112.01B | 18.78 | 8.30% | 4.46% | -5.34% | -13.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | AU$117.14B | 18.84 | 9.88% | 4.51% | -8.10% | -10.70% | |
62 Neutral | AU$137.32M | -327.78 | -0.22% | 4.06% | -7.93% | -101.72% | |
62 Neutral | AU$91.40B | 19.43 | 13.72% | 2.82% | 4.80% | 30.56% | |
55 Neutral | AU$115.19B | 16.45 | 9.77% | 4.57% | -3.87% | 1.20% | |
54 Neutral | AU$249.58B | 22.97 | 13.94% | 3.38% | 0.78% | 7.41% |
* Financial Sector Average
AU:OFX
OFX Group Ltd.
0.57
-0.32
-35.80%
AU:ANZ
ANZ Group Holdings
37.91
3.46
10.06%
AU:MQG
Macquarie Group Limited
253.46
47.91
23.31%
AU:NAB
National Australia Bank Limited
38.53
-2.93
-7.07%
AU:WBC
Westpac Banking
34.63
-2.72
-7.28%
AU:CBA
Commonwealth Bank of Australia
151.00
-9.30
-5.80%
OFX Group Ltd. Corporate Events
Selector Funds Management Ends Substantial Holding in OFX Group
Sep 25, 2026
Selector Funds Management Limited has filed a notice stating it has ceased to be a substantial holder in OFX Group Ltd., indicating its voting interest has fallen below the relevant regulatory threshold. The change in its holding, detailed in an a...
OFX reaffirms $247m takeover talks with Equals as FY27 growth outlook softens
Sep 23, 2026
OFX Group has provided an update on its proposed acquisition by Alakazam Holdings Bidco Limited, owner of UK-based Equals Group, confirming that Equals has substantially completed confirmatory due diligence and is progressing debt financing, with ...
OFX says no undisclosed news as takeover talks with Equals progress
Sep 23, 2026
OFX Group has responded to an ASX price query by stating it is not aware of any undisclosed information that could explain recent trading in its shares, while pointing back to its previously announced proposed all-cash acquisition by Alakazam Hold...
Mitsubishi UFJ exits substantial holder position in OFX Group
Aug 6, 2026
Mitsubishi UFJ Financial Group has filed a notice stating it has ceased to be a substantial shareholder in OFX Group, following a series of transactions in late July involving fully paid ordinary shares. The change reflects multiple small-scale pu...
OFX shareholders back board, pay plan and CEO incentives at 2026 AGM
Aug 5, 2026
OFX Group Ltd. reported that all ordinary resolutions proposed at its Annual General Meeting on 5 August 2026 were passed by poll, reflecting strong shareholder support. The meeting covered key governance items including the re‑election of d...
Mitsubishi UFJ and First Sentier Exit Substantial Holding in OFX Group
Aug 5, 2026
Mitsubishi UFJ Financial Group and a wide network of related First Sentier Investors entities have lodged a notice that they have ceased to be substantial holders in OFX Group Ltd as of 3 August 2026. The filing indicates that this investor group ...
OFX Pushes Ahead With Platform Transition Amid Tough FX Trading Conditions
Aug 4, 2026
OFX Group reported a challenging FY26, with net operating income of $196.6 million and underlying EBITDA of $25.2 million, as lower business confidence, reduced volatility and fewer cross‑currency and forward transactions weighed on FX reven...
OFX publishes 2026 AGM notice and investor materials
Jul 5, 2026
OFX Group Limited, the Sydney-headquartered money transfer and financial operations provider, has built a global footprint over more than 25 years, offering real-time financial control, 24/7 human support and ISO-certified services to clients in m...
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.