Afg.Ax
Australian Finance Group (AFG.AX) provides consumer lending services, primarily through its banking operations, generating revenue from interest income and fees on loans.
Business. Australian Finance Group (AFG.AX) provides consumer lending services, primarily through its banking operations, generating revenue from interest income and fees on loans.
Analyst recommendations
3 analysts · consensus HoldAt a glance
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- Company
- EarningsQ3 2026 earnings (expected)2026-10-28 · estimated
- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
Australian Finance Group (AFG.AX) provides consumer lending services, primarily through its banking operations, generating revenue from interest income and fees on loans.
AFG.AX has a highly leveraged capital structure, with a debt-to-equity ratio of 25.29, indicating a significant reliance on debt financing. The company's liquidity position is constrained, as it holds no cash and equivalents, and its free cash flow of 18.9 million AUD is insufficient to cover its long-term debt of 561.71 million AUD. The return on equity of 15.76% is strong, but the return on assets of 0.5% is weak, suggesting that the company is not efficiently utilizing its asset base to generate returns.
In terms of profitability, AFG.AX's operating margin is 4.47% (42.6 million operating income on 952.6 million revenue), which is below the median for the Consumer Lending industry. The net profit margin of 3.67% (35 million net income on 952.6 million revenue) is also below the industry median, indicating that the company is underperforming its peers in converting revenue into profit.
AFG.AX operates as a single business segment, with all revenue derived from its consumer lending operations. The company does not disclose geographic revenue breakdowns, but as an Australian-based lender, it is likely concentrated in the domestic market. This lack of diversification increases exposure to local economic and regulatory risks.
The company's revenue growth is not disclosed in the latest financials, but the operating cash flow of 35.9 million AUD and free cash flow of 18.9 million AUD suggest some level of operational stability. However, the capital expenditure of -5.8 million AUD indicates a reduction in investment, which may signal a defensive posture or a focus on deleveraging.
The risk assessment highlights liquidity as a medium concern, with the company's cash position being zero and its debt-to-equity ratio at 25.29. The dilution risk is low, but the negative net cash position after subtracting total debt is a key flag. The company's reliance on debt financing and lack of cash reserves could limit its ability to respond to unexpected challenges.
Recent events include analyst price targets ranging from 2.40 to 3.05 AUD, with a mean of 2.78 AUD and a median of 2.90 AUD. The mean recommendation is 2.67, indicating a cautious outlook, with no strong buy ratings and only one buy rating among analysts.
- AFG.AX is highly leveraged, with a debt-to-equity ratio of 25.29, indicating a significant reliance on debt financing.
- The company's return on equity is strong at 15.76%, but its return on assets is weak at 0.5%, suggesting inefficient asset utilization.
- AFG.AX operates as a single business segment with no geographic diversification, increasing exposure to local economic and regulatory risks.
- Analysts have a cautious outlook, with a mean recommendation of 2.67 and price targets ranging from 2.40 to 3.05 AUD.
- The company's liquidity position is constrained, with no cash and equivalents and a negative net cash position after subtracting total debt.
Bull / Bear case
analysis pipelineIn focus — financials by report
Valuation
Revenue by segment
Business relationships
Supply chain
Peer comparison
Market position
Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 0,17 |
| Revenue | —no estimate | —no estimate | 1,5B AUD |
| Operating income | —no estimate | —no estimate | 61,3M AUD |
Options
Short squeeze
Earnings-call key lines
Consensus distribution
sell-side coverageEstimate revisions
consensus EPS · 26-week trendSell-side observations
Themes
ESG
Risk factors
- Net cash is negative after subtracting total debt.
Benchmarks vs cohort
Corporate actions / M&A
FX exposure
Comparable transactions
Derivatives & instruments
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- Market data
- Market data cache
- Issuer disclosures
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- Consensus estimates
- ESG data
- Dilution Ratio(shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
- Net Cashcash_and_equivalents + short_term_investments - short_term_debt - long_term_debt
- Capex To Revenuecapital_expenditure / revenue
- Return On Equitynet_income / total_equity
- Debt To Equity(short_term_debt + long_term_debt) / total_equity
- Cash Conversion Ratiooperating_cash_flow / net_income
- AFG.AX Market data — financials · 2026-05-27
- Australian Finance Group Ltd Market data — analyst estimates · 2026-05-27
Ownership & reference
Insider activity
Short positioning
Geographic breakdown
Intel & risk
Evidence & claims
From filings & derived data- Net margin (FY 2025-12-31): 10.3%Derived (calculated)
- Revenue (YoY) (2025-12-31 vs 2024-12-31): -1.8%Derived (calculated)
- Operating income (YoY) (2025-12-31 vs 2024-12-31): -4.5%Derived (calculated)
- Shareholders' equity (YoY) (2025-12-31 vs 2024-12-31): 7.9%Derived (calculated)
- Debt-to-equity (FY 2025-12-31): 5.77xDerived (calculated)
- Net income (YoY) (2025-12-31 vs 2024-12-31): -5.1%Derived (calculated)
- Total liabilities (YoY) (2025-12-31 vs 2024-12-31): 5.5%Derived (calculated)
- Operating cash flow (YoY) (2025-12-31 vs 2024-12-31): 33.1%Derived (calculated)
- Return on assets (FY 2025-12-31): 2.6%Derived (calculated)
- Total assets (YoY) (2025-12-31 vs 2024-12-31): 5.9%Derived (calculated)
- Cash & equivalents (YoY) (2025-12-31 vs 2024-12-31): 22.8%Derived (calculated)
- EPS (basic) (YoY) (2025-12-31 vs 2024-12-31): -4.6%Derived (calculated)
- Return on equity (FY 2025-12-31): 17.5%Derived (calculated)
- Long-term debt (YoY) (2025-12-31 vs 2024-12-31): 23.4%Derived (calculated)
- EPS (diluted) (YoY) (2025-12-31 vs 2024-12-31): -4.6%Derived (calculated)
- Net income (annual): USD 842MSEC XBRL filing
- Long-term debt (annual): USD 1.82BSEC XBRL filing
- Total assets (annual): USD 32.64BSEC XBRL filing
- EPS (basic) (annual): USD-PER-SHARES 10SEC XBRL filing
- Interest expense (annual): USD 80MSEC XBRL filing
- Operating cash flow (annual): USD 1.53BSEC XBRL filing
- Revenue (annual): USD 8.17BSEC XBRL filing
- Cash & equivalents (annual): USD 1.73BSEC XBRL filing
- Shareholders' equity (annual): USD 4.82BSEC XBRL filing