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Latitude Group (LFS) Fair Value & Analysis

Financial Services · AU · Market cap A$936M

LG Latitude Group LFS · AU
PriceA$0.9000
Fair ValueA$1.18
Upside+31.1%
Quality44/100
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Weak Growth
Solidly profitable · 17.4% net margin
High debt · negative free cash flow
10.00% dividend yield
Mixed vs. peers (6/13)
Moderate moat 56/100
Evidence: High Range A$0.8800 – A$1.47 Share as image

Fair value as of: Jul 16, 2026

From 8 valuation models · updated 25 days ago

Share price −1.6% over the past month.

Below-average quality, screening 31% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (44/100). That raises the risk this is a value trap rather than a bargain.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

A$1.89 A$0.8293 Fair Value A$1.18 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range A$0.8293 – A$1.89 · fair‑value band A$0.8800 – A$1.47 · the A$0.9000 price screens below the A$1.18 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Latitude Group (LFS) currently trades at A$0.9000, while our model-based Fair Value estimate is A$1.18, implying the stock looks roughly 31.1% undervalued today. The Quality Score stands at 44/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Latitude Group generated revenue of A$539M at a net margin of 17.4%. Revenue grew 1.9% year over year. It earns a return on equity of 7.7%. Net debt stands at A$6.3B. Fundamentals as of Jul 16, 2026

Our scenario range runs from A$0.8800 (bear case) to A$1.47 (bull case); at A$0.9000, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 18% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -41% fair-value upside, at 31%, LFS screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income A$0.9200 A$0.9700 A$1.01 76
Gordon GGM A$0.6400 A$1.15 A$1.59 70
P/E Multiple A$0.8800 A$1.18 A$1.47 63
All 8 models by family
Earnings-Based
Graham-Dodd A$0.6100 A$2.48 A$3.38 54
Lynch FV A$0.6200 A$0.8900 A$1.15 50
Dividend Discount
Gordon GGM A$0.6400 A$1.15 A$1.59 70
DDM Multi-Stage A$0.6400 A$1.05 A$1.23 61
Multiples
P/E Multiple A$0.8800 A$1.18 A$1.47 63
P/B Multiple A$1.15 A$1.54 A$1.92 55
Asset-Based
NCAV (Graham) A$0.5900 A$0.7800 A$1.17 50
Economic Profit
Residual Income A$0.9200 A$0.9700 A$1.01 76

Widest divergence: Multiples (A$1.18) versus Asset-Based (A$0.7800). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) A$539M
Revenue growth (YoY) +1.9%
Net margin 17.4%
Return on equity 7.7%
Free cash flow −A$325M FY2025
P/E ratio 11.3
More key figures
Operating margin 27.5%
EPS (TTM) A$0.0800
Dividend yield 10.0%
EPS growth (YoY) +189%
Net debt A$6.3B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 36 · Market factors (momentum, volatility) 45

Profitability 25
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 12
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 23
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Latitude Group Holdings Limited engages in sales finance and consumer lending businesses in Australia and New Zealand. The company operates through Australia and New Zealand Pay (A&NZ Pay) and Australia and New Zealand Money (A&NZ Money). It provides various lending products comprising personal and motor loans, as well as credit cards.

Full company description

Latitude Group Holdings Limited engages in sales finance and consumer lending businesses in Australia and New Zealand. The company operates through Australia and New Zealand Pay (A&NZ Pay) and Australia and New Zealand Money (A&NZ Money). It provides various lending products comprising personal and motor loans, as well as credit cards. The company offers debt consolidation, car, home improvement, holiday and travel, boat, caravan purchase, medical, and solar and battery purchase loans, as well as insurance services. In addition, it provides factoring/BNPL lending, trust managers, and intellectual property services, as well as securitization of receivables. Latitude Group Holdings Limited was founded in 1925 and is based in Melbourne, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Latitude Group reported revenue of A$1.2B in FY2025 versus A$957M in FY2021, a compound +6.1%/yr. Reported net income was A$94.0M in FY2025, compounding −12.6%/yr from FY2021.

Growth Quality 33/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
A$1.2B
Latest YoY
+154.5%
Avg. growth/yr (3Y)
+9.4%
Avg. growth/yr (5Y)
+1.4%
Avg. growth/yr (8Y)
+0.0%
Revenue +6.1%/yr
FY21 A$957M
FY22 A$928M
FY23 A$407M
FY24 A$477M
FY25 A$1.2B
Net income −12.6%/yr
FY21 A$161M
FY22 A$37.7M
FY23 −A$159M
FY24 A$21.6M
FY25 A$94.0M

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Cite: Fair Value Calculator (2026). "Latitude Group Fair Value". https://www.fairvalue-calculator.com/stock/LFS

Peer Group

Credit Services · 333 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 45 · Below median
Fair Value upside +31% · Above median
Return on equity (TTM) 8% · Below median
Return on assets 1% · Below median
Net margin (TTM) 17% · Below median
Operating margin (TTM) 27% · Below median
Revenue growth 2% · Below median
Dividend yield (TTM) 10.0% · Top 25%
Debt / equity 4.29× · Higher than 75% of peers

Valuation Multiples vs Credit Services median · lower = cheaper

P/E (TTM) 11.3× · Cheaper than median
P/B 0.54× · Cheaper than median
P/S (TTM) 1.23× · Cheaper than median
EV/EBITDA 10.3× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 75 · sector 35
FUTURE 10 · sector 39
PAST 31 · sector 32
HEALTH 0 · sector 59
DIVIDEND 100 · sector 51

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Visa Inc V $348.97 $204.19 -41%
Mastercard Incorporated MA $537.70 $221.87 -59%
American Express Company AXP $358.44 $206.40 -42%
Bajaj Finance Limited BAJFINANCE ₹1,056 ₹397.61 -62%
Shriram Finance Limited SHRIRAMFIN ₹1,024 ₹553.83 -46%
Cholamandalam Investment and Finance Company CHOLAFIN ₹1,808 ₹796.52 -56%
Tata Capital Limited TATACAP ₹360.60 ₹229.85 -36%
Power Finance Corporation PFC ₹405.10 ₹810.20 +100%
Muthoot Finance Limited MUTHOOTFIN ₹3,129 ₹3,463 +11%
Indian Railway Finance Corporation IRFC ₹88.41 ₹69.72 -21%

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Frequently asked questions

Is Latitude Group (LFS) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of A$1.18 versus a price of A$0.9000, about +31% (undervalued).
What is the fair value of LFS?
Our model-based fair value for Latitude Group is A$1.18 (as of Jul 16, 2026), built from audited fundamentals. The current price is A$0.9000.
What is the quality score of LFS?
Latitude Group has a Quality Score of 44/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Latitude Group (LFS)?
Latitude Group reported trailing-twelve-month revenue of about A$539M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of LFS?
The net profit margin of Latitude Group is about 17.4%, meaning it keeps roughly 17.4% of revenue as net income. Based on the latest reported figures.
Does Latitude Group pay a dividend?
Latitude Group currently shows a dividend yield of about 9.94% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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