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WISE

Wise LSE:WISE Stock Report

Last Price

UK£3.69

Market Cap

UK£3.7b

7D

8.8%

1Y

n/a

Updated

20 May, 2022

Data

Company Financials +
WISE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends0/6

WISE Stock Overview

Wise plc provides cross-border money transfer services for personal and business customers in Europe, the United Kingdom, the Asia-Pacific, North America, and internationally.

Wise Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wise
Historical stock prices
Current Share PriceUK£3.69
52 Week HighUK£11.77
52 Week LowUK£2.99
Beta0
1 Month Change-15.85%
3 Month Change-33.87%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-58.07%

Recent News & Updates

Feb 16
The Key Drivers in Wise plc's (LON:WISE) Current Valuation and Business Model

The Key Drivers in Wise plc's (LON:WISE) Current Valuation and Business Model

Wise plc (LON:WISE) started trading on the London Stock Exchange through a direct listing in London on 7 July 2021. The company has adopted a sustainable and profitable model, with an emphasis on cutting costs for customers that seek to transfer funds and hold an international low-cost account. Today, we will go over their business, and estimate what investors can expect going forward from the stock.

Shareholder Returns

WISEGB ITGB Market
7D8.8%0.6%-0.4%
1Yn/a-18.9%-3.9%

Return vs Industry: Insufficient data to determine how WISE performed against the UK IT industry.

Return vs Market: Insufficient data to determine how WISE performed against the UK Market.

Price Volatility

Is WISE's price volatile compared to industry and market?
WISE volatility
WISE Average Weekly Movement8.2%
IT Industry Average Movement6.8%
Market Average Movement6.2%
10% most volatile stocks in GB Market11.6%
10% least volatile stocks in GB Market3.2%

Stable Share Price: WISE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: WISE's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20102,400Kristo Kaarmannhttps://www.wise.com

Wise plc provides cross-border money transfer services for personal and business customers in Europe, the United Kingdom, the Asia-Pacific, North America, and internationally. The company’s payments infrastructure comprise various products, including Wise Transfer to send money abroad; Wise Account to meet multi-currency banking needs for people; Wise Business, an account that provides business customers with international banking features; and Wise Platform that allows banks, including credit unions and financial institutions, and enterprise partners to integrate its payments network into their own mobile applications or online banking. It also offers online currency exchange services.

Wise Fundamentals Summary

How do Wise's earnings and revenue compare to its market cap?
WISE fundamental statistics
Market CapUK£3.67b
Earnings (TTM)UK£29.00m
Revenue (TTM)UK£485.10m

126.6x

P/E Ratio

7.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WISE income statement (TTM)
RevenueUK£485.10m
Cost of RevenueUK£161.10m
Gross ProfitUK£324.00m
Other ExpensesUK£295.00m
EarningsUK£29.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jun 28, 2022

Earnings per share (EPS)0.029
Gross Margin66.79%
Net Profit Margin5.98%
Debt/Equity Ratio23.1%

How did WISE perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: WISE (£3.69) is trading below our estimate of fair value (£57.68)

Significantly Below Fair Value: WISE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WISE is poor value based on its PE Ratio (126.6x) compared to the UK IT industry average (32.5x).

PE vs Market: WISE is poor value based on its PE Ratio (126.6x) compared to the UK market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: WISE is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: WISE is overvalued based on its PB Ratio (10.8x) compared to the GB IT industry average (3.7x).


Future Growth

How is Wise forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


44.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WISE's forecast earnings growth (44% per year) is above the savings rate (0.9%).

Earnings vs Market: WISE's earnings (44% per year) are forecast to grow faster than the UK market (11.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WISE's revenue (19.7% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: WISE's revenue (19.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WISE's Return on Equity is forecast to be low in 3 years time (17.6%).


Past Performance

How has Wise performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


33.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WISE has a large one-off loss of £12.9M impacting its September 30 2021 financial results.

Growing Profit Margin: WISE's current net profit margins (6%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: WISE has become profitable over the past 5 years, growing earnings by 33.8% per year.

Accelerating Growth: WISE's earnings growth over the past year (26.2%) is below its 5-year average (33.8% per year).

Earnings vs Industry: WISE earnings growth over the past year (26.2%) underperformed the IT industry 26.7%.


Return on Equity

High ROE: WISE's Return on Equity (8.6%) is considered low.


Financial Health

How is Wise's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WISE's short term assets (£5.5B) exceed its short term liabilities (£5.2B).

Long Term Liabilities: WISE's short term assets (£5.5B) exceed its long term liabilities (£132.5M).


Debt to Equity History and Analysis

Debt Level: WISE has more cash than its total debt.

Reducing Debt: WISE's debt to equity ratio has increased from 13.2% to 23.1% over the past 5 years.

Debt Coverage: WISE's debt is well covered by operating cash flow (2963.6%).

Interest Coverage: WISE's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Dividend

What is Wise current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate WISE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WISE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WISE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WISE's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WISE has not reported any payouts.


Discover strong dividend paying companies

Management

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

0.3yrs

Average management tenure


CEO

Kristo Kaarmann (40 yo)

12.33yrs

Tenure

Mr. Kristo Kaarmann founded Wise plc in 2010 and serves as its Chief Executive Officer and Director. Mr. Kaarmann is in charge of all operations activities, technology, development, compliance and regulato...


Leadership Team

Experienced Management: WISE's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: WISE's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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: WISE only recently listed within the past 12 months.


Top Shareholders

Company Information

Wise plc's employee growth, exchange listings and data sources


Key Information

  • Name: Wise plc
  • Ticker: WISE
  • Exchange: LSE
  • Founded: 2010
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: UK£3.670b
  • Shares outstanding: 994.59m
  • Website: https://www.wise.com

Number of Employees


Location

  • Wise plc
  • Tea Building
  • 6th Floor
  • London
  • Greater London
  • E1 6JJ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/20 00:00
End of Day Share Price2022/05/20 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.