Top broker expects this ASX All Ords financial share to surge 26%. Here's why

A leading broker expects outsized gains from this dividend-paying ASX financial company.

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ASX All Ords financial share Humm Group Ltd (ASX: HUM) has been in fine form since closing at one-year lows of 43.0 cents a share on 23 June.

In afternoon trade today, shares in the diversified financial services company are flat, trading for 64.5 cents apiece.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.7% at this same time.

That puts the Humm share price up 50.0% in just three months.

Taking a step back, Humm shares remain down 19.4% since this time last year. Though that doesn't include the 2.1 cents a share in fully franked dividends the ASX All Ords financial share has paid out over this time.

At the current share price, that sees Humm stock trading on a fully franked trailing dividend yield of 3.3%.

Looking to the year ahead, Ord Minnett expects Humm to outperform.

Here's why.

ASX All Ords financial share looks 'cheap'

Humm reported its FY 2025 earnings results on 28 August.

Investors responded by sending the Humm Group share price to close up 3.3% on the day.

Commenting on the ASX All Ords financial share's FY 2025 performance, Ord Minnett said:

HUM's recent financial result was highlighted by ~10% growth in assets under management over the 12 months, a relatively strong performance given the challenges in the SME [small and medium enterprises] and consumer sectors.

2H25 volumes were down ~5% vs 1H25 and NIM [net interest margin] in 2H25 was down 10bps to ~5.4%, however further cost optimisation was achieved in 2H25 (CTI [cost to income ratio] decreased to 51%, from 52.4% in 1H25).

The broker concluded, "The stock is trading on a 5.6x Cash EPS [earnings per share] FY26 and ~0.64x P/Book [price to book] and remains cheap, in our view."

Ord Minnett has a buy recommendation on the ASX All Ords financial share with a target price of 81.0 cents a share. That represents a potential upside of 25.6% from current levels. And it doesn't include those upcoming dividends.

A word from Humm's CEO

Commenting on Humm's FY 2025 results on the day those were released, CEO Angelo Demasi said, "Our focus through FY25 on customers, brokers and merchants, profitable growth, and technology transformation has delivered a full year cash profit after tax … of $52.9 million."

He added that the ASX All Ords financial share's FY 2025 performance "was underpinned by 10% growth in assets under management to a record $5.5 billion and a stable Net Interest Margin of 5.4%, down just 10bps on the prior period."

On the cost front, Demasi said, "Operating expenses were down 6% reflecting management's ongoing commitment to cost reduction."

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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