Australia Stock Alert


Morning Alert: Australian Foundation Investment hits 52-week high eleventh time in one month July 27, 2017 11:00:00 AEST


Australian Foundation Investment Company Limited (ASX:AFI) hit a 52-week high of $A6.10 today for the 11th time in the past one month and last traded at $A6.09.

SECTION 1: The past week

Current indications of bullish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Australian Foundation Investment accelerates rise: up 3.7% in 2 weeks July 26, 2017 16:00 AEST

Australian Foundation Investment Company Limited (ASX:AFI), has increased 22.0c (or 3.7%) over the past two weeks, after rising 2.2% in the past week and 1.5% in the week prior to that to close at $A6.10. Compared with the All Ordinaries Index which rose 105.6 points (or 1.8%) in the two weeks, this represented a relative price increase of 1.9%. The volume was 0.8 times average trading per week of 1.9 million shares. In the past week the market cap has risen $A152.9 million.

1.2 5-day Recap

Australian Foundation Investment outperformed the All Ordinaries index in 3 out of 5 days.

DayHeadlineClose price [AUD]Price change %Relative change %Comment
WednesdayAustralian Foundation Investment hits year-high 10th time in one month6.11.00.01
TuesdayAustralian Foundation Investment hits year-high 11th time in three months6.040.3-0.3
MondayAustralian Foundation Investment hits year-high 8th time in one month6.02-0.50.1Steepest Fall
FridayAustralian Foundation Investment hits year-high 9th time in three months6.051.21.8Top Rise
ThursdayAustralian Foundation Investment hits year-high 6th time in one month5.980.2-0.3

SECTION 2: Technical indicators


The positive 0.07 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are rising - another bullish signal. In the past week, the stock's MACD has been positive every day, a reinforcing bullish signal.

In the last one month the stock has hit a new 52-week high eleven times and in the last three months thirteen times, pointing to a significant uptrend.

The present value of AUD1,000 invested one year ago is $A1,116 [vs $A1,039 for the All Ordinaries Index], including a capital gain of $A71 and dividend reinvested of $A45. The total return to shareholders for 1 year is 11.6%.


The stock is at a discount of 0.1% to the 12-month high of $A6.10 on 27 Jul, 2017. It is also at a premium of 11.9% to the 12-month low of $A5.45 on 21 Sep, 2016.

The stock has outperformed 59% of the Australian market over the past 6 months.

SECTION 3: Ranking

DescriptionValueRank In Market
Today's Volatility %0.3In Top 4%
MCap $US billion5.7In Top 7%
Price/MAP2001.06In Top Quartile
52-week Range (in $A)5.4-6.1
1-month Range (in $A)5.8-6.1

SECTION 4: Earnings

Annual Report: Australian Foundation Investment Net Profit down 9.5%

Australian Foundation Investment (ASX:AFI) reported net profit for the year-ended 30 June 2016 of $A266m, down 9.5% from $A294m in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Retained earnings to total assets up from 8.7% to 9.9%

- Total Liabilities to Operating Cash Flow of 4.4 compares favourably with the Joseph Piotroski benchmark of less than 4. However, it has deteriorated by 6.7% from the previous year's ratio of 4.2.

Unfavourable Changes:

- Net profit down 9.5% from $A293.5m ($US225.4m) to $A265.6m ($US197.4m)

- EPS down 11.1% from 27.0c (US20.73c) to 24.0c (US17.84c)

- EBIT to total assets down from 4.6% to 4.3%

- Administration expenses to Sales up from 4.5% to 4.8%

- Current ratio down 81.6% from 4.8 to 0.9

- Total current assets to Total Assets down from 3.2% to 3.1%

- Cash to Total Assets down from 2.5% to 2.4%

- Net tangible assets per share down 4% from $A5.05 ($US3.9) to $A4.85 ($US3.6)


- EBIT Margin steady at 90.7%

- Profit before tax to Sales down from 90.8% to 90.7%

- Tax expenses to Sales up from 3% to 3.8%

- Total liabilities to Total assets steady at 0.2

- Long-term investments to Total Assets up from 96.8% to 96.9%

- Total non-current assets to Total Assets up from 96.8% to 96.9%

- Current Debtors to Total Assets steady at 0.7%

SECTION 5: Recent News of Australian Foundation Investment

July 24: Australian Foundation Investment announces dividend

Australian Foundation Investment today announced a final dividend of 14.0c per share. The ex dividend date is Tuesday, August 08, 2017 and the record date is Wednesday, August 09, 2017 and it is payable on Wednesday, August 30.

July 24: Australian Foundation Investment: Preliminary Full Year Result - 30 June 2017

The reporting period is the year ended 30 June 2017 with the prior corresponding period being the year ended 30 June 2016.

Source: Australian Securities Exchange

June 09: Australian Foundation Investment: Key Dates

The Company advises the following proposed dates for the second half of 2017. Please note that the dates may be subject to change and the dividend payment is subject to Board approval:

Source: Australian Securities Exchange

June 07: Australian Foundation Investment announces NTA of $A5.05

Australian Foundation Investment (AFI.AU) has announced its net tangible asset backing per share (NTA) was $A5.05 as on Wednesday, May 31. The shares closed at $A5.69 and represent a premium to NTA of 12.7%.

Australian Foundation Investment Company Limited (AU:AFI; ASX:AFI; AX:AFI)

ISIN: AU000000AFI5

PermID: 4295857195