AF Legal Group Limited
AF Legal Group Limited Fundamental Analysis
AF Legal Group Limited (AFL.AX) shows weak financial fundamentals with a PE ratio of 47.40, profit margin of 0.96%, and ROE of 3.27%. The company generates $0.0B in annual revenue with strong year-over-year growth of 27.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AFL.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakAFL.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateAFL.AX shows balanced valuation metrics.
Growth Score
ModerateAFL.AX shows steady but slowing expansion.
Financial Health Score
ExcellentAFL.AX maintains a strong and stable balance sheet.
Profitability Score
WeakAFL.AX struggles to sustain strong margins.
Key Financial Metrics
Is AFL.AX Expensive or Cheap?
P/E Ratio
AFL.AX trades at 47.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AFL.AX's PEG of -0.84 indicates potential undervaluation.
Price to Book
The market values AF Legal Group Limited at 1.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.68 times EBITDA. This is generally considered low.
How Well Does AFL.AX Make Money?
Net Profit Margin
For every $100 in sales, AF Legal Group Limited keeps $0.96 as profit after all expenses.
Operating Margin
Core operations generate 18.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.27 in profit for every $100 of shareholder equity.
ROA
AF Legal Group Limited generates $1.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AF Legal Group Limited generates limited operating cash flow of $2.23M, signaling weaker underlying cash strength.
Free Cash Flow
AF Legal Group Limited produces free cash flow of $1.93M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
AFL.AX converts 13.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.31
vs 25 benchmark
How AFL.AX Stacks Against Its Sector Peers
| Metric | AFL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.40 | 23.94 | Worse (Expensive) |
| ROE | 3.27% | 1167.00% | Weak |
| Net Margin | 0.96% | 1403.00% | Weak |
| Debt/Equity | 1.00 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.84 | 2.46 | Neutral |
| ROA | 1.11% | -8304.00% (disorted) | Weak |
AFL.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AF Legal Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
181.13%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-83.07%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
21.87%
Industry Style: Cyclical, Growth, Discretionary
High Growth