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Wisetech Global

ASX:WTC
Snowflake Description

Exceptional growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WTC
ASX
A$7B
Market Cap
  1. Home
  2. AU
  3. Software
Company description

WiseTech Global Limited provides cloud-based software solutions to the logistics industry worldwide. The last earnings update was 34 days ago. More info.


Add to Portfolio Compare Print
  • Wisetech Global has significant price volatility in the past 3 months.
WTC Share Price and Events
7 Day Returns
-3.9%
ASX:WTC
1.8%
AU Software
0.4%
AU Market
1 Year Returns
115.3%
ASX:WTC
35%
AU Software
4.5%
AU Market
WTC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wisetech Global (WTC) -3.9% 17% 42.4% 115.3% - -
AU Software 1.8% 7.2% 30.3% 35% 60.7% 81.2%
AU Market 0.4% 0.4% 12.2% 4.5% 20.7% 5.7%
1 Year Return vs Industry and Market
  • WTC outperformed the Software industry which returned 35% over the past year.
  • WTC outperformed the Market in Australia which returned 4.5% over the past year.
Price Volatility
WTC
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Wisetech Global undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wisetech Global to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wisetech Global.

ASX:WTC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:WTC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.135 (1 + (1- 30%) (0.44%))
1.092
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.092 * 5.96%)
8.82%

Discounted Cash Flow Calculation for ASX:WTC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Wisetech Global is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:WTC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.82%)
2019 39.00 Analyst x1 35.84
2020 57.00 Analyst x2 48.13
2021 84.00 Analyst x2 65.18
2022 78.39 Analyst x1 55.89
2023 75.14 Est @ -4.15% 49.23
2024 73.48 Est @ -2.21% 44.24
2025 72.85 Est @ -0.85% 40.31
2026 72.92 Est @ 0.1% 37.07
2027 73.47 Est @ 0.76% 34.33
2028 74.38 Est @ 1.23% 31.93
Present value of next 10 years cash flows A$442.16
ASX:WTC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$74.38 × (1 + 2.31%) ÷ (8.82% – 2.31%)
A$1,168.70
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1,168.70 ÷ (1 + 8.82%)10
A$501.76
ASX:WTC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$442.16 + A$501.76
A$943.91
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$943.91 / 300.04
A$3.15
ASX:WTC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$3.15
Current discount Discount to share price of A$22.28
= -1 x (A$22.28 - A$3.15) / A$3.15
-608.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Wisetech Global is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Wisetech Global's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wisetech Global's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:WTC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.16
ASX:WTC Share Price ** ASX (2019-03-25) in AUD A$22.28
Australia Software Industry PE Ratio Median Figure of 19 Publicly-Listed Software Companies 34.8x
Australia Market PE Ratio Median Figure of 544 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wisetech Global.

ASX:WTC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:WTC Share Price ÷ EPS (both in AUD)

= 22.28 ÷ 0.16

137.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wisetech Global is overvalued based on earnings compared to the AU Software industry average.
  • Wisetech Global is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Wisetech Global's expected growth come at a high price?
Raw Data
ASX:WTC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 137.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
33.1%per year
Australia Software Industry PEG Ratio Median Figure of 14 Publicly-Listed Software Companies 2.77x
Australia Market PEG Ratio Median Figure of 362 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

ASX:WTC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 137.63x ÷ 33.1%

4.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wisetech Global is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Wisetech Global's assets?
Raw Data
ASX:WTC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.28
ASX:WTC Share Price * ASX (2019-03-25) in AUD A$22.28
Australia Software Industry PB Ratio Median Figure of 100 Publicly-Listed Software Companies 3.6x
Australia Market PB Ratio Median Figure of 1,669 Publicly-Listed Companies 1.69x
ASX:WTC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:WTC Share Price ÷ Book Value per Share (both in AUD)

= 22.28 ÷ 1.28

17.34x

* Primary Listing of Wisetech Global.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wisetech Global is overvalued based on assets compared to the AU Software industry average.
X
Value checks
We assess Wisetech Global's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Wisetech Global has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Wisetech Global expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wisetech Global expected to grow at an attractive rate?
  • Wisetech Global's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Wisetech Global's earnings growth is expected to exceed the Australia market average.
  • Wisetech Global's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:WTC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:WTC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 33.1%
ASX:WTC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 24.2%
Australia Software Industry Earnings Growth Rate Market Cap Weighted Average 33.2%
Australia Software Industry Revenue Growth Rate Market Cap Weighted Average 17.9%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:WTC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:WTC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 693 165 1
2021-06-30 557 149 113 5
2020-06-30 444 112 79 6
2019-06-30 339 93 57 6
ASX:WTC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 285 89 48
2018-09-30 253 81 45
2018-06-30 222 74 41
2018-03-31 199 66 37
2017-12-31 176 59 33
2017-09-30 165 57 32
2017-06-30 154 55 32
2017-03-31 140 45 23
2016-12-31 125 35 13
2016-09-30 114 28 8
2016-06-30 103 21 2
2016-03-31 95 22 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wisetech Global's earnings are expected to grow significantly at over 20% yearly.
  • Wisetech Global's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:WTC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Wisetech Global Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:WTC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.55 0.55 0.55 1.00
2021-06-30 0.37 0.39 0.35 4.00
2020-06-30 0.26 0.29 0.22 5.00
2019-06-30 0.19 0.22 0.17 5.00
ASX:WTC Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.16
2018-09-30 0.15
2018-06-30 0.14
2018-03-31 0.13
2017-12-31 0.11
2017-09-30 0.11
2017-06-30 0.11
2017-03-31 0.08
2016-12-31 0.05
2016-09-30 0.03
2016-06-30 0.01
2016-03-31 0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Wisetech Global is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Wisetech Global's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wisetech Global has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Wisetech Global performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wisetech Global's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wisetech Global has delivered over 20% year on year earnings growth in the past 5 years.
  • Wisetech Global's 1-year earnings growth is less than its 5-year average (46% vs 48.4%)
  • Wisetech Global's earnings growth has exceeded the AU Software industry average in the past year (46% vs 7.8%).
Earnings and Revenue History
Wisetech Global's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wisetech Global Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:WTC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 284.92 48.27 85.41 69.92
2018-09-30 253.26 44.54 75.66 61.64
2018-06-30 221.60 40.80 65.92 53.37
2018-03-31 198.80 36.94 61.61 46.93
2017-12-31 176.01 33.07 57.31 40.50
2017-09-30 164.88 32.47 53.19 38.05
2017-06-30 153.76 31.86 49.08 35.61
2017-03-31 139.54 22.64 44.86 34.90
2016-12-31 125.32 13.42 40.64 34.20
2016-09-30 114.06 7.80 39.34 32.31
2016-06-30 102.81 2.17 38.04 30.43
2016-03-31 94.59 5.24 36.33 27.47
2015-12-31 86.38 8.32 34.62 24.52
2015-09-30 78.19 9.24 29.37 22.05
2015-06-30 70.00 10.16 24.13 19.59
2014-06-30 56.66 10.01 17.13 17.08
2013-06-30 43.02 3.65 14.20 15.95

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Wisetech Global has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Wisetech Global used its assets less efficiently than the AU Software industry average last year based on Return on Assets.
  • Wisetech Global has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Wisetech Global's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Wisetech Global has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Wisetech Global's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Wisetech Global's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wisetech Global's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Wisetech Global's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Wisetech Global's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Wisetech Global Company Filings, last reported 2 months ago.

ASX:WTC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 387.83 30.58 42.20
2018-09-30 387.83 30.58 42.20
2018-06-30 352.16 2.49 122.72
2018-03-31 352.16 2.49 122.72
2017-12-31 226.26 2.50 60.25
2017-09-30 226.26 2.50 60.25
2017-06-30 213.76 3.85 102.09
2017-03-31 213.76 3.85 102.09
2016-12-31 213.26 5.91 114.72
2016-09-30 213.26 5.91 114.72
2016-06-30 196.18 6.32 110.01
2016-03-31 196.18 6.32 110.01
2015-12-31 72.08 34.56 22.03
2015-09-30 72.08 34.56 22.03
2015-06-30 73.01 30.46 43.45
2014-06-30 28.46 6.68 3.95
2013-06-30 17.39 7.19 0.83
  • Wisetech Global's level of debt (7.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (30.1% vs 7.9% today).
  • Debt is well covered by operating cash flow (290.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.7x coverage).
X
Financial health checks
We assess Wisetech Global's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wisetech Global has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Wisetech Global's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.14%
Current annual income from Wisetech Global dividends. Estimated to be 0.25% next year.
If you bought A$2,000 of Wisetech Global shares you are expected to receive A$3 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wisetech Global's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.63%).
  • Wisetech Global's dividend is below the markets top 25% of dividend payers in Australia (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:WTC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Australia Software Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:WTC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.11 1.00
2021-06-30 0.07 6.00
2020-06-30 0.05 7.00
2019-06-30 0.04 7.00
ASX:WTC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-19 0.032 0.151
2018-08-21 0.027 0.145
2018-02-20 0.023 0.174
2017-08-22 0.024 0.216
2017-02-21 0.020 0.313
2016-09-30 0.000 0.000
2016-08-23 0.000 0.000
2016-04-11 0.012 0.263

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wisetech Global is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • Wisetech Global is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Wisetech Global's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Wisetech Global's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • No need to calculate the sustainability of Wisetech Global's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Wisetech Global's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wisetech Global afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wisetech Global has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Wisetech Global's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard White
COMPENSATION A$1,147,254
TENURE AS CEO 25.2 years
CEO Bio

Mr. Richard John White founded Wisetech Global Limited in 1994 and has been its Chief Executive Officer and Executive Director since 1994. Mr. White is the Founder and Chief Executive Officer of CargoWise, Inc. He served as the Managing Director of Real Tech Systems Integration. He served as the Chief Executive Officer of Clear Group. He has a unique 10-year skills of understanding of industry combined with 25 years in both software development and business management. Mr. White has over 30 years of experience in software development, embedded systems and business management and also has over 20 years of freight / logistics industry experience. He has a deep technical understanding of Electronic Data Interchange standards (EDIFACT, ANSI, XML etc) and e-Commerce and combines this with a strong commercial grip on industry issues. He works to assist the industry in a number of voluntary forums. He consults voluntarily to the Industry associations and attends the many Australian Customs Service sponsored technical forums that are required in order to develop business and systems processes to suit the Australian regulatory environment. He is keenly and actively involved in commercial and non-commercial activities that develop the capabilities of the International supply chain and the providers that work within it. Mr. White completed a Masters of Business Administration in Information Technology (MBIT) at the University of Technology, Sydney.

CEO Compensation
  • Richard's compensation has been consistent with company performance over the past year.
  • Richard's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Wisetech Global management team in years:

3.5
Average Tenure
  • The tenure for the Wisetech Global management team is about average.
Management Team

Richard White

TITLE
Founder
COMPENSATION
A$1M
TENURE
25.2 yrs

Maree Isaacs

TITLE
Executive Director
COMPENSATION
A$559K

Andrew Cartledge

TITLE
Chief Financial Officer
COMPENSATION
A$1M
TENURE
3.5 yrs

Brett Shearer

TITLE
Chief Technology Officer
COMPENSATION
A$428K
TENURE
0.9 yrs

James Powell

TITLE
Chief Productivity Officer
COMPENSATION
A$531K
TENURE
5.2 yrs

Natasha Davidson

TITLE
General Counsel
TENURE
2.8 yrs

Gail Williamson

TITLE
Chief Growth Officer

David Rippon

TITLE
Corporate Governance Executive & Company Secretary
TENURE
1.4 yrs

Brett Wilton

TITLE
Managing Director of NZ
TENURE
19.2 yrs
Board of Directors Tenure

Average tenure of the Wisetech Global board of directors in years:

13.2
Average Tenure
  • The average tenure for the Wisetech Global board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Andrew Harrison

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$119K
TENURE
0.5 yrs

Richard White

TITLE
Founder
COMPENSATION
A$1M
TENURE
25.2 yrs

Maree Isaacs

TITLE
Executive Director
COMPENSATION
A$559K
TENURE
25.2 yrs

Mike Gregg

TITLE
Independent Non-Executive Director
COMPENSATION
A$104K
TENURE
13.2 yrs

Teresa Engelhard

TITLE
Lead Independent & Non-Executive Director
COMPENSATION
A$33K
TENURE
1.2 yrs

Charles Gibbon

TITLE
Non-Executive Director
COMPENSATION
A$153K
AGE
69
TENURE
13.2 yrs

Christine Holman

TITLE
Independent Non-Executive Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
20. Dec 18 Sell Charles Gibbon Individual 13. Dec 18 13. Dec 18 -100,000 A$18.36 A$-1,835,900
X
Management checks
We assess Wisetech Global's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wisetech Global has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Has Wisetech Global Limited (ASX:WTC) Improved Earnings Growth In Recent Times?

After looking at Wisetech Global Limited's (ASX:WTC) latest earnings update (30 June 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … Were WTC's earnings stronger than its past performances and the industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 44%, indicating the rate at which WTC is growing has slowed down

Simply Wall St -

Based On Its ROE, Is Wisetech Global Limited (ASX:WTC) A High Quality Stock?

By way of learning-by-doing, we'll look at ROE to gain a better understanding Wisetech Global Limited (ASX:WTC). … That means that for every A$1 worth of shareholders' equity, it generated A$0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Wisetech Global Limited (ASX:WTC) Delivered An Inferior ROE Compared To The Industry

and want a simplistic look at the return on Wisetech Global Limited (ASX:WTC) stock. … Wisetech Global Limited’s (ASX:WTC) most recent return on equity was a substandard 14.70% relative to its industry performance of 20.59% over the past year. … Though WTC's recent performance is underwhelming, it is useful to understand what ROE is made up of and how it should be interpreted.

Simply Wall St -

Does Wisetech Global Limited's (ASX:WTC) April Stock Price Reflect Its Future Growth?

Wisetech Global is available at price-to-earnings ratio of 87.26x, showing us it is overvalued based on current earnings compared to the software industry average of 28.28x , and overvalued compared to the AU market average ratio of 16.87x. … But, to be able to properly assess the value of a high-growth stock such as Wisetech Global, we must incorporate its earnings growth in our valuation. … This means that, when we account for Wisetech Global's growth, the stock can be viewed as overvalued , based on fundamental analysis.

Simply Wall St -

How Do Analysts See Wisetech Global Limited's (ASX:WTC) Margin Performing In The Years Ahead?

See our latest analysis for Wisetech Global A closer look at WTC's profit margin Attractive margins generally indicate a desirable ability to translate sales revenue in to earnings, and return for shareholders. … Margin Calculation for WTC Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 33.07 Million ÷ 176.01 Million = 18.79% The past five years have seen Wisetech Global's margin expand, due to 43.04% in average net income growth surpassing a 28.64% average growth in revenue, which suggests that the company has been able to convert a larger percentage of revenue into net income whilst grow their top line at the same time. … Using Wisetech Global's margin expectations as a way to understand projections for the future Forward looking projections suggest margins will keep on expanding, with annual revenue growth tipped at 23.22% and a forecasted 31.01% in annual net income growth.

Simply Wall St -

Does Wisetech Global Limited's (ASX:WTC) Recent Track Record Look Strong?

Check out our latest analysis for Wisetech Global How WTC fared against its long-term earnings performance and its industry I prefer to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … For Wisetech Global, its latest trailing-twelve-month earnings is AU$33.07M, which, in comparison to the previous year's level, has increased by more than double. … Given that these values are relatively myopic, I have determined an annualized five-year figure for Wisetech Global's net income, which stands at AU$14.62M This shows that, on average, Wisetech Global has been able to consistently improve its earnings over the past few years as well.

Simply Wall St -

Should You Be Tempted To Sell Wisetech Global Limited (ASX:WTC) Because Of Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for WTC Price per share = A$10.13 Earnings per share = A$0.113 ∴ Price-Earnings Ratio = A$10.13 ÷ A$0.113 = 89.6x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … WTC’s P/E of 89.6x is higher than its industry peers (30.5x), which implies that each dollar of WTC’s earnings is being overvalued by investors. … For example, if you are inadvertently comparing riskier firms with WTC, then WTC’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

Simply Wall St -

Why Wisetech Global Limited (ASX:WTC) May Not Be As Efficient As Its Industry

See our latest analysis for Wisetech Global What you must know about ROE Return on Equity (ROE) weighs Wisetech Global’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Wisetech Global’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity ASX:WTC Last Perf Feb 8th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

What Is Driving Wisetech Global Limited's (ASX:WTC) Expected Earnings In The Next Few Years?

Knowing the portion of top line revenue that is turned into net income helps to assess this ability whilst spotting profit drivers, and can be found by calculating WTC's profit margin. … Margin Calculation for WTC Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 31.86 Million ÷ 153.76 Million = 20.72% There has been an expansion in Wisetech Global's margin over the past five years, with a 36.91% average growth in net income outstripping a 28.22% average growth in revenue, indicating that that the previous revenue growth has been acompanied by a growing portion translated in to earnings. … Using Wisetech Global's margin expectations as a way to understand projections for the future Forward looking projections suggest margins will expand further, with an expectation of 21.87% in annual revenue growth and a forecasted 26.35% in annual net income growth.

Simply Wall St -

Wisetech Global Limited (ASX:WTC): Is It A Good Long Term Opportunity?

Investors may find it useful to understand how market analysts predict Wisetech Global's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … View our latest analysis for Wisetech Global Analysts' outlook for the upcoming year seems positive, with earnings expanding by a robust 35.71%. … This means, we can assume Wisetech Global will grow its earnings by 25.43% every year for the next couple of years.

Simply Wall St -

Company Info

Description

WiseTech Global Limited provides cloud-based software solutions to the logistics industry worldwide. The company develops, sells, and implements software solutions that enable logistics service providers to facilitate the movement and storage of goods and information. It primarily offers CargoWise One, a single-platform software solution to enhance the productivity and integration, automation, and communication with the supply chain. The company’s CargoWise One platform offers solutions for freight forwarding, customs clearance, liner and agency, container freight station, warehousing, land transport, track and trace, and geo compliance, as well as for enterprise capabilities, including accounting, integration, customer relationship management, human resources management, workflow, and document management. It serves multinational companies, and small and mid-sized regional and domestic enterprises. WiseTech Global Limited was founded in 1994 and is based in Alexandria, Australia.

Details
Name: Wisetech Global Limited
WTC
Exchange: ASX
Founded: 1994
A$6,996,925,057
300,039,668
Website: http://www.wisetechglobal.com
Address: Wisetech Global Limited
72 O’Riordan Street,
Unit 3a,
Alexandria,
New South Wales, 2015,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX WTC Ordinary Shares Australian Securities Exchange AU AUD 11. Apr 2016
OTCPK WTCH.F Ordinary Shares Pink Sheets LLC US USD 11. Apr 2016
DB 17W Ordinary Shares Deutsche Boerse AG DE EUR 11. Apr 2016
OTCPK WIGB.Y UNSPONSRED ADS Pink Sheets LLC US USD 18. Mar 2019
Number of employees
Current staff
Staff numbers
1,500
Wisetech Global employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/25 10:35
End of day share price update: 2019/03/25 00:00
Last estimates confirmation: 2019/03/20
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.