AFC Group Holdings Limited (AFC) AI Stock Analysis

AFC Group Holdings Limited

(NZX:AFC)

Select Model

Rating:42Neutral

Action:initiatedcoverage

Date:10/05/26

The score is driven primarily by weak financial performance: steep revenue decline, a shift to gross loss, very large net losses, and ongoing cash burn. Conservative leverage provides some balance-sheet support, but limited technical and valuation data (and a loss-making negative P/E) restricts positive offset.

Positive Factors

Manageable LeverageRelatively low leverage reduces fixed financial obligations and gives AFC more balance-sheet flexibility than during its FY2021 peak. This cushioning may help the company manage operating volatility and preserve capacity to address strategic or funding needs over the coming months.

Negative Factors

Going-Concern RiskThe regulator’s challenge to the going-concern basis is a serious structural concern for AFC’s solvency outlook and financial reporting credibility. Reliance on uncertain future project inflows and shareholder support increases the risk of further accounting, funding, or operational disruption.

AFC Group Holdings Limited Business Overview & Revenue Model

Company Description

AFC Group Holdings Limited, along with its associated companies, is involved in the sourcing, manufacturing, and distribution of a diverse range of food, health, and cosmetic products. These items are supplied to markets across Australia, China, and...

AFC Group Holdings Limited Financial Statement Overview

Summary

Overall fundamentals are weak. The income statement shows a sharp deterioration with a large FY2026 revenue decline (~-78% YoY), a swing to a gross loss (gross margin ~-47%), and very deep losses (FY2026 net margin ~-309%). Cash flow is also pressured with mostly negative operating and free cash flow (cash burn) in FY2024–FY2026, despite a better FY2023. The main offset is comparatively conservative leverage (low debt-to-equity in recent years), which helps limit near-term balance-sheet risk.

Income Statement

14Very Negative

Balance Sheet

56Neutral

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	128.23K	161.28K	741.09K	1.32M	1.07M	415.02K
Gross Profit	-18.27K	-75.00K	377.20K	969.32K	752.84K	31.05K
EBITDA	-354.78K	-641.47K	-56.82K	180.36K	-60.27K	-450.47K
Net Income	-260.52K	-497.85K	-164.00K	-7,485	-145.00K	-410.00K
Balance Sheet
Total Assets	2.02M	2.02M	2.13M	2.00M	1.88M	1.87M
Cash, Cash Equivalents and Short-Term Investments	39.44K	39.44K	23.98K	26.18K	4,963	14.45K
Total Debt	169.36K	169.36K	226.64K	117.02K	173.98K	53.40K
Total Liabilities	1.81M	1.81M	1.89M	1.57M	1.51M	1.31M
Stockholders Equity	1.29M	1.29M	1.00M	1.17M	1.17M	1.32M
Cash Flow
Free Cash Flow	-303.25K	-580.40K	-278.87K	-100.80K	58.54K	-130.23K
Operating Cash Flow	-293.09K	-570.24K	-275.70K	-97.25K	61.66K	-125.83K
Investing Cash Flow	-10.15K	-10.15K	-23.40K	-3,549	-3,120	-4,403
Financing Cash Flow	303.61K	578.93K	285.36K	124.79K	-60.07K	147.44K

AFC Group Holdings Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

NZ:AFC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
NZ:BRW	48Neutral	NZD 44.91M	-3.95	―	―	20.79%	-160.65%
NZ:AOF	43Neutral	NZD 26.44M	-8.36	―	―	-12.39%	8.33%
NZ:WCO	43Neutral	NZD 9.21M	-0.63	―	―	24.48%	-3.70%
NZ:AFC	42Neutral	NZD 3.66M	-10.00	―	―	-78.24%	―
NZ:STU	39Underperform	NZD 53.88M	-0.86	―	―	13.88%	-133.17%

* General Sector Average

Performance Comparison

NZ:AFC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NZ:WCO	WasteCo Group Limited	0.01	-0.01	-50.00%
NZ:BRW	Bremworth Limited	0.65	-0.24	-27.12%
NZ:LOC	Locate Technologies Limited	0.04	-0.04	-50.00%
NZ:AOF	AoFrio Limited	0.05	-0.05	-52.58%
NZ:STU	Steel & Tube Holdings Limited	0.30	-0.42	-58.62%

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: Oct 05, 2026

AFC Group Holdings Limited AI Stock Analysis