View of Bell Financial Group Ltd (BFG)
Hi Team, What is your view of Bell Financial Group (ASX:BFG) as a growth + income stock? Roger
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Answer
Hi Roger,
Bell Financial Group is an Australian-based financial services company offering a broad range of offerings including stockbroking, investment, corporate finance, and financial advisory services to private, institutional, and corporate clients. It’s traditional broking operation made up ~75% of revenue last year which makes it vulnerable to a weak/slow market, remembering we are around all-time highs today.
In 1H 25, weaker broking revenues, caused by difficult market conditions (Liberation Day Panic) resulted in significantly lower half-year profit and dividend. However, the recurring revenue streams continued to grow, remaining the key earnings drivers moving forward.
The stock’s not expensive trading on 11.7x Est P/E for FY25 while forecast to yield~5.5% over the next 12-months. One of our largest concerns with the stock is its liquidity. Over the last four weeks, it traded an average of 135,000 shares a day or ~$150k in value… hence any bad news could see the stock punished with limited chance for an easy exit – it looks ok, but it’s too hard for us.
