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NWL

Netwealth GroupASX:NWL Stock Report

Market Cap

AU$3.8b

7D

-7.6%

1Y

-4.8%

Updated

27 Nov, 2021

Data

Company Financials +
NWL fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends2/6

NWL Stock Overview

Netwealth Group Limited, a financial services company, engages in the wealth management business in Australia.

Netwealth Group Competitors

Commonwealth Bank of Australia

ASX:CBA

AU$161.6b

Westpac Banking

ASX:WBC

AU$77.2b

Iress

ASX:IRE

AU$2.2b

Price History & Performance

Summary of all time highs, changes and price drops for Netwealth Group
Historical stock prices
Current Share PriceAU$15.52
52 Week HighAU$18.71
52 Week LowAU$12.54
Beta0.25
1 Month Change-11.62%
3 Month Change-0.13%
1 Year Change-4.78%
3 Year Change82.37%
5 Year Changen/a
Change since IPO191.73%

Recent News & Updates

Oct 14
Is Now The Time To Put Netwealth Group (ASX:NWL) On Your Watchlist?

Is Now The Time To Put Netwealth Group (ASX:NWL) On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Jul 08
Here's Why I Think Netwealth Group (ASX:NWL) Is An Interesting Stock

Here's Why I Think Netwealth Group (ASX:NWL) Is An Interesting Stock

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Apr 01
Three Things You Should Check Before Buying Netwealth Group Limited (ASX:NWL) For Its Dividend

Three Things You Should Check Before Buying Netwealth Group Limited (ASX:NWL) For Its Dividend

Is Netwealth Group Limited ( ASX:NWL ) a good dividend stock? How can we tell? Dividend paying companies with growing...

Shareholder Returns

NWLAU Capital MarketsAU Market
7D-7.6%-4.7%-1.6%
1Y-4.8%20.0%11.7%

Return vs Industry: NWL underperformed the Australian Capital Markets industry which returned 20% over the past year.

Return vs Market: NWL underperformed the Australian Market which returned 11.7% over the past year.

Price Volatility

Is NWL's price volatile compared to industry and market?
NWL volatility
NWL Average Weekly Movement6.2%
Capital Markets Industry Average Movement4.6%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.8%
10% least volatile stocks in AU Market3.7%

Stable Share Price: NWL is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NWL's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999n/aMichael Heinehttps://www.netwealth.com.au

Netwealth Group Limited, a financial services company, engages in the wealth management business in Australia. It offers superannuation products, including accumulation and retirement income products; managed accounts; and managed funds, as well as investor directed portfolio services for self-managed super and non-super investments. The company also provides investment wrap products for self-managed super fund (SMSF) clients; investment options, such as listed and international securities, managed account models, managed funds, term deposits, premium services, and investor rewards; insurance products; forms and documents; and resources and tools, as well as advisory, licensee, and private wealth solutions.

Netwealth Group Fundamentals Summary

How do Netwealth Group's earnings and revenue compare to its market cap?
NWL fundamental statistics
Market CapAU$3.78b
Earnings (TTM)AU$54.10m
Revenue (TTM)AU$144.88m

69.9x

P/E Ratio

26.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWL income statement (TTM)
RevenueAU$144.88m
Cost of RevenueAU$50.50m
Gross ProfitAU$94.38m
ExpensesAU$40.28m
EarningsAU$54.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.22
Gross Margin65.14%
Net Profit Margin37.34%
Debt/Equity Ratio0%

How did NWL perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

82%

Payout Ratio

Valuation

Is Netwealth Group undervalued compared to its fair value and its price relative to the market?

69.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NWL (A$15.52) is trading above our estimate of fair value (A$8.55)

Significantly Below Fair Value: NWL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NWL is poor value based on its PE Ratio (69.9x) compared to the Australian Capital Markets industry average (15.7x).

PE vs Market: NWL is poor value based on its PE Ratio (69.9x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: NWL is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: NWL is overvalued based on its PB Ratio (40.6x) compared to the AU Capital Markets industry average (1.4x).


Future Growth

How is Netwealth Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWL's forecast earnings growth (14.7% per year) is above the savings rate (1.9%).

Earnings vs Market: NWL's earnings (14.7% per year) are forecast to grow faster than the Australian market (11.6% per year).

High Growth Earnings: NWL's earnings are forecast to grow, but not significantly.

Revenue vs Market: NWL's revenue (14.9% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: NWL's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWL's Return on Equity is forecast to be very high in 3 years time (68%).


Past Performance

How has Netwealth Group performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWL has high quality earnings.

Growing Profit Margin: NWL's current net profit margins (37.3%) are higher than last year (35.2%).


Past Earnings Growth Analysis

Earnings Trend: NWL's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: NWL's earnings growth over the past year (23.9%) is below its 5-year average (29.2% per year).

Earnings vs Industry: NWL earnings growth over the past year (23.9%) underperformed the Capital Markets industry 23.9%.


Return on Equity

High ROE: NWL's Return on Equity (58.1%) is considered outstanding.


Financial Health

How is Netwealth Group's financial position?


Financial Position Analysis

Short Term Liabilities: NWL's short term assets (A$107.5M) exceed its short term liabilities (A$21.8M).

Long Term Liabilities: NWL's short term assets (A$107.5M) exceed its long term liabilities (A$16.2M).


Debt to Equity History and Analysis

Debt Level: NWL is debt free.

Reducing Debt: NWL has not had any debt for past 5 years.

Debt Coverage: NWL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NWL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Netwealth Group current dividend yield, its reliability and sustainability?

1.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWL's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.33%).

High Dividend: NWL's dividend (1.22%) is low compared to the top 25% of dividend payers in the Australian market (5.55%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NWL has been paying a dividend for less than 10 years.

Growing Dividend: NWL's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.3%), NWL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWL's dividends in 3 years are forecast to be covered by earnings (80.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Michael Heine

6.83yrs

Tenure

AU$234,415

Compensation

Mr. Michael Max Heine has been a Joint Managing Director and Director of Netwealth Group Limited since January 2015 and 1999 respectively. Mr. Heine was instrumental in the establishment of Netwealth in 19...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD166.86K) is below average for companies of similar size in the Australian market ($USD1.71M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NWL's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: NWL's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

Netwealth Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Netwealth Group Limited
  • Ticker: NWL
  • Exchange: ASX
  • Founded: 1999
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: AU$3.784b
  • Shares outstanding: 243.81m
  • Website: https://www.netwealth.com.au

Location

  • Netwealth Group Limited
  • 180 Flinders Street
  • Level 6
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 07:01
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.