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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Australian Foundation Investment Co has the Financial Strength Rank of 6.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Australian Foundation Investment Co's interest coverage with the available data.
Australian Foundation Investment Co's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.00.
Altman Z-Score does not apply to banks and insurance companies.
Australian Foundation Investment Co (ASX:AFI) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Australian Foundation Investment Co has the Financial Strength Rank of 6.
Australian Foundation Investment Co Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Australian Foundation Investment Co (ASX:AFI) has a Financial Strength of 6 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Australian Foundation Investment Co and its competitors. This is near median its historical median of 6.00. Over the past decade, Australian Foundation Investment Co's Financial Strength has ranged from 5.00 to 8.00.
Is Australian Foundation Investment Co's Financial Strength too high?
Australian Foundation Investment Co's current Financial Strength of 6 is near median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 8.00. Overall, Australian Foundation Investment Co has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Australian Foundation Investment Co's Financial Strength compare to BLK and BX?
Australian Foundation Investment Co's Financial Strength of 6 can be compared against companies in the Asset Management industry. Historically, Australian Foundation Investment Co's own Financial Strength has ranged from 5.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Asset Management company?
A good Financial Strength depends on the Asset Management industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Australian Foundation Investment Co and its competitors. Australian Foundation Investment Co's current Financial Strength is 6, which is near median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Foundation Investment Co stock overvalued right now?
Based on GuruFocus' analysis, Australian Foundation Investment Co (ASX:AFI) is currently considered Fairly Valued. The stock's GF Value™ is A$7.20, compared to a current price of A$6.77 — trading 6% below its estimated fair value. The current Financial Strength is 6, which is near median its 10-year median of 6.00. Australian Foundation Investment Co's overall GF Score™ is 63/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Australian Foundation Investment Co (ASX:AFI), the current Financial Strength is 6 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Australian Foundation Investment Co (ASX:AFI) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Foundation Investment Co stock appears to be undervalued.
The current stock price of A$6.77 is trading 6% below its estimated GF Value™ of A$7.20.
GuruFocus considers Australian Foundation Investment Co to be Fairly Valued.
Key valuation signals for ASX:AFI:
Financial Strength: 6 (near median its 10-year median of 6.00)
GF Value™: A$7.20 vs. price of A$6.77 (6% below fair value)
No single metric tells the full story. See the ASX:AFI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Foundation Investment Co Ltd is an asset management company which invests in Australian and New Zealand equities. It aims to provide shareholders with attractive investment returns through access to a growing stream of fully franked dividends and enhancement of capital invested. Its investment goals are to pay dividends, which, over time, grow faster than the rate of inflation, and to provide attractive total returns over the medium to long term.
63GF Score
Get the complete analysis for ASX:AFI
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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