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OFX Group

ASX:OFX
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OFX
ASX
A$294M
Market Cap
  1. Home
  2. AU
  3. Diversified Financials
Company description

OFX Group Limited provides online international payments and foreign exchange services for consumer and business clients in Australia, New Zealand, Europe, North America, Asia, and internationally. The last earnings update was 147 days ago. More info.


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  • OFX Group has significant price volatility in the past 3 months.
OFX Share Price and Events
7 Day Returns
-2.5%
ASX:OFX
-4.7%
AU Diversified Financial
5.1%
AU Market
1 Year Returns
-27.8%
ASX:OFX
-39.7%
AU Diversified Financial
-19.1%
AU Market
OFX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
OFX Group (OFX) -2.5% -2.5% -16.1% -27.8% -22.5% -49.8%
AU Diversified Financial -4.7% -22.4% -35.4% -39.7% -72.1% -77.7%
AU Market 5.1% -18.7% -25.7% -19.1% -16.6% -17.3%
1 Year Return vs Industry and Market
  • OFX outperformed the Diversified Financial industry which returned -39.7% over the past year.
  • OFX underperformed the Market in Australia which returned -19.1% over the past year.
Price Volatility
OFX
Industry
5yr Volatility vs Market

OFX Value

 Is OFX Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of OFX Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for OFX Group.

ASX:OFX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= A$0.26 * 29.7%
A$0.08
Book Value of Equity per Share Median Book Value from the past 5 years. A$0.26
Discount Rate (Cost of Equity) See below 5.6%
Perpetual Growth Rate 10-Year AU Government Bond Rate 1.1%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:OFX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 1.1%
Equity Risk Premium S&P Global 5.4%
Diversified Financial Unlevered Beta Simply Wall St/ S&P Global 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.711 (1 + (1- 30%) (5.49%))
0.825
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.08% + (0.825 * 5.44%)
5.57%

Discounted Cash Flow Calculation for ASX:OFX using Excess Returns Model Model

The calculations below outline how an intrinsic value for OFX Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:OFX Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (29.7% – 5.57%) * A$0.26)
A$0.06
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.06 / (5.57% - 1.08%)
A$1.41
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$0.26 + A$1.41
A$1.67
ASX:OFX Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$1.67
Current discount Discount to share price of A$1.17
= -1 x (A$1.17 - A$1.67) / A$1.67
30%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price OFX Group is available for.
Intrinsic value
30%
Share price is A$1.17 vs Future cash flow value of A$1.67
Current Discount Checks
For OFX Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • OFX Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • OFX Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for OFX Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are OFX Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:OFX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in AUD A$0.07
ASX:OFX Share Price ** ASX (2020-04-06) in AUD A$1.17
Global Diversified Financial Industry PE Ratio Median Figure of 308 Publicly-Listed Diversified Financial Companies 9x
Australia Market PE Ratio Median Figure of 515 Publicly-Listed Companies 12.97x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of OFX Group.

ASX:OFX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:OFX Share Price ÷ EPS (both in AUD)

= 1.17 ÷ 0.07

16.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OFX Group is overvalued based on earnings compared to the Global Diversified Financial industry average.
  • OFX Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does OFX Group's expected growth come at a high price?
Raw Data
ASX:OFX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
18.6%per year
Global Diversified Financial Industry PEG Ratio Median Figure of 55 Publicly-Listed Diversified Financial Companies 0.46x
Australia Market PEG Ratio Median Figure of 337 Publicly-Listed Companies 1x

*Line of best fit is calculated by linear regression .

ASX:OFX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.78x ÷ 18.6%

0.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OFX Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on OFX Group's assets?
Raw Data
ASX:OFX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in AUD A$0.29
ASX:OFX Share Price * ASX (2020-04-06) in AUD A$1.17
Australia Diversified Financial Industry PB Ratio Median Figure of 13 Publicly-Listed Diversified Financial Companies 0.81x
Australia Market PB Ratio Median Figure of 1,613 Publicly-Listed Companies 1.24x
ASX:OFX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:OFX Share Price ÷ Book Value per Share (both in AUD)

= 1.17 ÷ 0.29

4.1x

* Primary Listing of OFX Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OFX Group is overvalued based on assets compared to the AU Diversified Financial industry average.
X
Value checks
We assess OFX Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Diversified Financial industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Diversified Financial industry average (and greater than 0)? (1 check)
  5. OFX Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

OFX Future Performance

 How is OFX Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is OFX Group expected to grow at an attractive rate?
  • OFX Group's earnings growth is expected to exceed the low risk savings rate of 1.1%.
Growth vs Market Checks
  • OFX Group's earnings growth is expected to exceed the Australia market average.
  • OFX Group's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:OFX Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:OFX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 18.6%
ASX:OFX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 7.1%
Australia Diversified Financial Industry Earnings Growth Rate Market Cap Weighted Average 98.7%
Australia Diversified Financial Industry Revenue Growth Rate Market Cap Weighted Average -79.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:OFX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:OFX Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2025-03-31 186 1
2024-03-31 172 1
2023-03-31 160 1
2022-03-31 148 39 28 1
2021-03-31 135 28 19 2
2020-04-06
2020-03-31 129 34 18 2
ASX:OFX Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-09-30 130 8 17
2019-06-30 130 14 17
2019-03-31 130 19 18
2018-12-31 129 28 18
2018-09-30 128 37 19
2018-06-30 124 34 19
2018-03-31 121 32 19
2017-12-31 118 33 18
2017-09-30 115 34 18
2017-06-30 115 28 19
2017-03-31 115 23 20
2016-12-31 114 14 20

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • OFX Group's earnings are expected to grow by 18.6% yearly, however this is not considered high growth (20% yearly).
  • OFX Group's revenue is expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:OFX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from OFX Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:OFX Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2025-03-31
2024-03-31
2023-03-31
2022-03-31 0.11 0.11 0.11 1.00
2021-03-31 0.08 0.10 0.06 2.00
2020-04-06
2020-03-31 0.08 0.09 0.06 2.00
ASX:OFX Past Financials Data
Date (Data in AUD Millions) EPS *
2019-09-30 0.07
2019-06-30 0.07
2019-03-31 0.07
2018-12-31 0.08
2018-09-30 0.08
2018-06-30 0.08
2018-03-31 0.08
2017-12-31 0.08
2017-09-30 0.08
2017-06-30 0.08
2017-03-31 0.08
2016-12-31 0.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if OFX Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess OFX Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
OFX Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

OFX Past Performance

  How has OFX Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare OFX Group's growth in the last year to its industry (Diversified Financial).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • OFX Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • OFX Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • OFX Group's 1-year earnings growth is negative, it can't be compared to the Global Diversified Financial industry average.
Earnings and Revenue History
OFX Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from OFX Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:OFX Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 130.49 16.92 70.25
2019-06-30 130.36 17.26 71.28
2019-03-31 130.23 17.61 72.31
2018-12-31 128.88 18.37 72.59
2018-09-30 127.53 19.45 72.05
2018-06-30 124.06 19.07 69.15
2018-03-31 120.59 18.69 66.25
2017-12-31 117.93 18.45 64.39
2017-09-30 115.27 18.20 62.53
2017-06-30 115.25 18.90 62.85
2017-03-31 115.23 19.60 63.17
2016-12-31 114.32 19.93 62.49
2016-09-30 113.41 20.26 61.82
2016-06-30 113.16 21.04 59.98
2016-03-31 112.91 21.81 58.14
2015-12-31 111.83 22.66 56.97
2015-09-30 110.76 23.51 55.79
2015-06-30 104.08 23.89 51.13
2015-03-31 97.40 24.27 46.46
2014-12-31 91.30 21.34 46.38
2014-09-30 85.19 18.42 46.31
2014-06-30 81.72 17.19 45.34
2014-03-31 78.25 15.97 44.37
2013-12-31 72.62 17.11 38.14
2013-09-30 66.98 18.25 31.92
2013-06-30 61.36 17.69 28.34

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • OFX Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • OFX Group used its assets more efficiently than the Global Diversified Financial industry average last year based on Return on Assets.
  • OFX Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess OFX Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Diversified Financial industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
OFX Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

OFX Health

 How is OFX Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up OFX Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • OFX Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • OFX Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of OFX Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • OFX Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from OFX Group Company Filings, last reported 6 months ago.

ASX:OFX Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 69.30 0.00 51.52
2019-06-30 69.30 0.00 51.52
2019-03-31 71.36 0.00 58.57
2018-12-31 71.36 0.00 58.57
2018-09-30 70.65 0.00 66.57
2018-06-30 70.65 0.00 66.57
2018-03-31 62.99 0.00 57.44
2017-12-31 62.99 0.00 57.44
2017-09-30 59.07 0.00 167.57
2017-06-30 59.07 0.00 167.57
2017-03-31 57.47 0.00 42.65
2016-12-31 57.47 0.00 42.65
2016-09-30 55.44 0.00 129.41
2016-06-30 55.44 0.00 129.41
2016-03-31 53.23 0.00 162.89
2015-12-31 53.23 0.00 162.89
2015-09-30 51.06 0.00 172.98
2015-06-30 51.06 0.00 172.98
2015-03-31 47.63 0.00 168.80
2014-12-31 47.63 0.00 168.80
2014-09-30 42.74 0.00 167.22
2014-06-30 42.74 0.00 167.22
2014-03-31 36.00 0.00 148.56
2013-12-31 36.00 0.00 148.56
2013-09-30 30.48 0.00 136.55
2013-06-30 30.48 0.00 136.55
  • OFX Group has no debt.
  • OFX Group has not taken on any debt in the past 5 years.
  • OFX Group has no debt, it does not need to be covered by operating cash flow.
  • OFX Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess OFX Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. OFX Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

OFX Dividends

 What is OFX Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.81%
Current annual income from OFX Group dividends. Estimated to be 5.99% next year.
If you bought A$2,000 of OFX Group shares you are expected to receive A$96 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • OFX Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (3.17%).
  • OFX Group's dividend is below the markets top 25% of dividend payers in Australia (8.12%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:OFX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Global Diversified Financial Industry Average Dividend Yield Market Cap Weighted Average of 162 Stocks 4.8%
Australia Market Average Dividend Yield Market Cap Weighted Average of 368 Stocks 5.5%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.7%
Australia Bottom 25% Dividend Yield 25th Percentile 3.2%
Australia Top 25% Dividend Yield 75th Percentile 8.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:OFX Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2025-03-31
2024-03-31
2023-03-31
2022-03-31 0.09 1.00
2021-03-31 0.06 2.00
2020-04-06
2020-03-31 0.06 2.00
ASX:OFX Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-11-11 0.056 4.232
2019-05-20 0.059 4.123
2018-11-19 0.056 3.328
2018-05-21 0.054 2.756
2017-11-14 0.053 3.533
2017-05-22 0.057 3.538
2016-11-14 0.059 3.929
2016-05-16 0.067 3.209
2015-11-09 0.072 2.966
2015-05-25 0.071 2.911
2014-11-24 0.059 2.364
2014-05-26 0.124 4.967

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OFX Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • OFX Group has only been paying a dividend for 6 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of OFX Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess OFX Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can OFX Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. OFX Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

OFX Management

 What is the CEO of OFX Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Skander Malcolm
COMPENSATION A$787,781
AGE 50
TENURE AS CEO 3.2 years
CEO Bio

Mr. John Alexander Malcolm, also known as Skander, serves as Chief Executive Officer and Managing Director at OFX Group Limited since February 01, 2017. Mr. Malcolm served as the Chief Executive Officer at GE Capital Commercial Equipment Financing. He leads GE Healthcare's operations in Russia & CIS, Turkey & Central Asia, Middle East and Africa. He has over 20 years experience in the financial services sector in roles covering the United Kingdom, United States and Australia. He served as the Chief Executive Officer and President of Eastern & Africa Growth Markets at GE Healthcare Ltd., until January 22, 2016. He served as the Chief Financial Officer of GE Capital (NZ) Limited. He served as the Chief Executive of GE Capital Australia and New Zealand at General Electric Capital Corporation since February 2010. Mr. Malcolm joined GE in 2003 as Client Director of MasterCard, where he led the regulatory project to obtain a Specialist Credit Card Issuer License from APRA. He served as Managing Director, Card Solutions of GE Money since 2004 and Managing Director, Retailer Solutions since 2007. He has been a Director at OFX Group Limited since February 1, 2017. He served with Household International in the US and UK and with Westpac Banking Corporation. He previously worked with Household Finance in Britain. Mr. Malcolm is a graduate of the University of Sydney with a Bachelor of Economics degree.

CEO Compensation
  • Skander's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Skander's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the OFX Group management team in years:

1.3
Average Tenure
  • The average tenure for the OFX Group management team is less than 2 years, this suggests a new team.
Management Team

Skander Malcolm

TITLE
CEO, MD & Director
COMPENSATION
A$788K
AGE
50
TENURE
3.2 yrs

Selena Verth

TITLE
Chief Financial Officer
COMPENSATION
A$470K
TENURE
2.5 yrs

Mark Shaw

TITLE
Chief Operating Officer
COMPENSATION
A$38K
TENURE
1.1 yrs

Wendy Glasgow

TITLE
Chief Technology Officer
COMPENSATION
A$417K
TENURE
2.2 yrs

Matthew Gregorowski

TITLE
Investor Relations

Elaine Herlihy

TITLE
Chief Marketing Officer
TENURE
0.9 yrs

Jill Rezsdovics

TITLE
Chief People & Culture Officer
TENURE
1.5 yrs

Sarah Webb

TITLE
President of UK & Europe
TENURE
1.3 yrs

Alfred Nader

TITLE
President of North America
TENURE
0.6 yrs

Yung Ngo

TITLE
President of Asia Pacific
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the OFX Group board of directors in years:

3.3
Average Tenure
57
Average Age
  • The tenure for the OFX Group board of directors is about average.
Board of Directors

Steve Sargent

TITLE
Independent Chairman of the Board
COMPENSATION
A$230K
AGE
59
TENURE
3.4 yrs

Skander Malcolm

TITLE
CEO, MD & Director
COMPENSATION
A$788K
AGE
50
TENURE
3.2 yrs

Doug Snedden

TITLE
Non-Executive Independent Director
COMPENSATION
A$135K
AGE
61
TENURE
5.1 yrs

Grant Murdoch

TITLE
Non-Executive Director
COMPENSATION
A$125K
AGE
67
TENURE
6.6 yrs

Lisa Frazier

TITLE
Non-Executive Independent Director
COMPENSATION
A$123K
AGE
50
TENURE
2 yrs

Connie Carnabuci

TITLE
Non-Executive Independent Director
AGE
55
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by OFX Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
03. Apr 20 Sell Pendal Group Limited Company 31. Jan 20 01. Apr 20 -2,686,905 A$1.60 A$-3,493,703
03. Apr 20 Buy Pendal Group Limited Company 17. Feb 20 03. Mar 20 14,344 A$1.47 A$18,416
17. Mar 20 Buy Matthew Gilmour Individual 12. Mar 20 13. Mar 20 302,018 A$1.02 A$299,434
19. Dec 19 Sell Pendal Group Limited Company 05. Mar 18 17. Dec 19 -3,365,769 A$1.46 A$-4,821,182
19. Dec 19 Buy Pendal Group Limited Company 29. Oct 18 09. Dec 19 705,359 A$1.90 A$1,330,792
19. Nov 19 Sell Ellerston Capital Limited Company 02. Sep 19 10. Oct 19 -157,285 A$2.08 A$-264,792
19. Nov 19 Buy Ellerston Capital Limited Company 15. Nov 19 19. Nov 19 4,091,308 A$1.36 A$5,550,339
19. Nov 19 Sell Health Employees Superannuation Trust Australia Company 15. Oct 19 24. Oct 19 -572,348 A$1.38 A$-766,866
19. Nov 19 Buy Health Employees Superannuation Trust Australia Company 13. Nov 19 15. Nov 19 3,098,909 A$1.37 A$4,223,601
15. Nov 19 Sell Renaissance Smaller Companies Pty Ltd Company 08. Jun 19 13. Nov 19 -1,835,440 A$1.56 A$-2,863,284
15. Nov 19 Buy Renaissance Smaller Companies Pty Ltd Company 08. Jun 19 13. Nov 19 4,496,696 A$1.46 A$6,558,825
16. Oct 19 Sell Health Employees Superannuation Trust Australia Company 01. Oct 19 14. Oct 19 -2,301,575 A$1.38 A$-3,173,120
16. Oct 19 Buy Health Employees Superannuation Trust Australia Company 27. May 19 09. Oct 19 1,656,049 A$1.50 A$2,491,210
28. May 19 Buy Health Employees Superannuation Trust Australia Company 04. Mar 19 24. May 19 674,547 A$1.50 A$1,008,955
12. Jun 19 Buy Renaissance Smaller Companies Pty Ltd Company 04. May 19 07. Jun 19 3,965,584 A$1.53 A$6,077,159
07. May 19 Sell Renaissance Smaller Companies Pty Ltd Company 20. May 17 03. May 19 -2,298,364 A$2.16 A$-4,964,105
07. May 19 Buy Renaissance Smaller Companies Pty Ltd Company 20. May 17 03. May 19 5,024,502 A$1.60 A$8,033,983
X
Management checks
We assess OFX Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. OFX Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

OFX News

Simply Wall St News

Should You Be Tempted To Sell OFX Group Limited (ASX:OFX) Because Of Its P/E Ratio?

Check out our latest analysis for OFX Group How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for OFX Group: P/E of 18.54 = A$1.35 ÷ A$0.073 (Based on the year to March 2019.) Is A High P/E Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

Should You Worry About OFX Group Limited's (ASX:OFX) CEO Pay Cheque?

Check out our latest analysis for OFX Group How Does Skander Malcolm's Compensation Compare With Similar Sized Companies? … Our data indicates that OFX Group Limited is worth AU$367m, and total annual CEO compensation is AU$788k. … Since shareholders would have lost about 33% over three years, some OFX Group Limited shareholders would surely be feeling negative emotions.

Simply Wall St -

OFX Group Limited (ASX:OFX): Can Growth Justify Its August Share Price?

OFX Group Limited (ASX:OFX) is considered a high-growth stock, but its last closing price of A$1.335 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … OFX Group is available at price-to-earnings ratio of 18.33x, showing us it is overvalued based on current earnings compared to the Diversified Financial industry average of 15.31x , and overvalued compared to the AU market average ratio of 16.22x. … But, to be able to properly assess the value of a high-growth stock such as OFX Group, we must incorporate its earnings growth in our valuation.

Simply Wall St -

OFX Group Limited's (ASX:OFX) Earnings Dropped -5.8%, How Did It Fare Against The Industry?

After reading OFX Group Limited's (ASX:OFX) most recent earnings announcement (31 March 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Furthermore, its return on assets (ROA) of 7.1% exceeds the AU Diversified Financial industry of 5.5%, indicating OFX Group has used its assets more efficiently. … I recommend you continue to research OFX Group to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for OFX’s future growth?

Simply Wall St -

Those Who Purchased OFX Group (ASX:OFX) Shares Five Years Ago Have A 47% Loss To Show For It

While the share price declined over five years, OFX Group actually managed to increase EPS by an average of 1.3% per year. … Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. … Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround.

Simply Wall St -

What Kind Of Shareholder Appears On The OFX Group Limited's (ASX:OFX) Shareholder Register?

See our latest analysis for OFX Group ASX:OFX Ownership Summary, June 30th 2019 What Does The Institutional Ownership Tell Us About OFX Group? … We can see that OFX Group does have institutional investors; and they hold 52% of the stock. … Insider Ownership Of OFX Group While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

What Are Analysts Saying About The Future Of OFX Group Limited's (ASX:OFX)?

Based on OFX Group Limited's (ASX:OFX) earnings update on 31 March 2019, analysts seem cautiously optimistic, with earnings expected to grow by 19% in the upcoming year compared with the past 5-year average growth rate of -1.9%. … To get an idea of the overall earnings growth trend for OFX, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … ASX:OFX Past and Future Earnings, June 18th 2019 By 2022, OFX's earnings should reach AU$22m, from current levels of AU$18m, resulting in an annual growth rate of 7.6%.

Simply Wall St -

Is It Worth Considering OFX Group Limited (ASX:OFX) For Its Upcoming Dividend?

Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. … We'd take that over an earnings decline any day, but in the long run, the best dividend stocks all grow their earnings per share. … See what the three analysts we track are forecasting , with this visualisation of its historical and future estimated earnings and cash flow If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

Simply Wall St -

Why Fundamental Investors Might Love OFX Group Limited (ASX:OFX)

ASX:OFX Income Statement, May 21st 2019 Next Steps: For OFX Group, I've put together three key factors you should look at: Future Outlook: What are well-informed industry analysts predicting for OFX’s future growth? … Take a look at our free research report of analyst consensus for OFX’s outlook. … The intrinsic value infographic in our free research report helps visualize whether OFX is currently mispriced by the market.

Simply Wall St -

What To Know Before Buying OFX Group Limited (ASX:OFX) For Its Dividend

Dividend paying stocks like OFX Group Limited (ASX:OFX) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … In this case, OFX Group likely looks attractive to dividend investors, given its 3.7% dividend yield and six-year payment history.

Simply Wall St -

OFX Company Info

Description

OFX Group Limited provides online international payments and foreign exchange services for consumer and business clients in Australia, New Zealand, Europe, North America, Asia, and internationally. It operates through two segments, International Payment Services and International Payment Solutions. The International Payment Services segment offers bank to bank currency transfer services to businesses and consumers. The International Payment Solutions segment provides OFX IT platform; client service; compliance sophistication; banking relationships; and payments services. The company was formerly known as OzForex Group Limited and changed its name to OFX Group Limited in September 2016. OFX Group Limited was founded in 1998 and is headquartered in Sydney, Australia.

Details
Name: OFX Group Limited
OFX
Exchange: ASX
Founded: 1998
A$293,504,535
248,732,657
Website: http://www.ofx.com
Address: OFX Group Limited
60 Margaret Street,
Level 19,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX OFX New Ordinary Shares Australian Securities Exchange AU AUD 11. Oct 2013
DB OFZ New Ordinary Shares Deutsche Boerse AG DE EUR 11. Oct 2013
CHIA OFX New Ordinary Shares Chi-X Australia AU AUD 11. Oct 2013
OTCPK OZFR.Y UNSPONSORD ADR Pink Sheets LLC US USD 01. Aug 2014
Number of employees
Current staff
Staff numbers
360
OFX Group employees.
Industry
Specialized Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 10:48
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2019/11/11
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.