Netwealth Group Limited
Netwealth Group Limited Fundamental Analysis
Netwealth Group Limited (NWL.AX) shows moderate financial fundamentals with a PE ratio of 111.39, profit margin of 16.01%, and ROE of 32.56%. The company generates $0.4B in annual revenue with strong year-over-year growth of 22.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NWL.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNWL.AX demonstrates superior asset utilization.
Valuation Score
ModerateNWL.AX shows balanced valuation metrics.
Growth Score
ExcellentNWL.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNWL.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentNWL.AX achieves industry-leading margins.
Key Financial Metrics
Is NWL.AX Expensive or Cheap?
P/E Ratio
NWL.AX trades at 111.39 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NWL.AX's PEG of -2.14 indicates potential undervaluation.
Price to Book
The market values Netwealth Group Limited at 42.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 85.44 times EBITDA. This signals the market has high growth expectations.
How Well Does NWL.AX Make Money?
Net Profit Margin
For every $100 in sales, Netwealth Group Limited keeps $16.01 as profit after all expenses.
Operating Margin
Core operations generate 18.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.56 in profit for every $100 of shareholder equity.
ROA
Netwealth Group Limited generates $18.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Netwealth Group Limited generates strong operating cash flow of $141.34M, reflecting robust business health.
Free Cash Flow
Netwealth Group Limited generates strong free cash flow of $139.69M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.57 in free cash annually.
FCF Yield
NWL.AX converts 2.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
111.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
42.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
17.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.40
vs 25 benchmark
How NWL.AX Stacks Against Its Sector Peers
| Metric | NWL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 111.39 | 18.94 | Worse (Expensive) |
| ROE | 32.56% | 846.00% | Weak |
| Net Margin | 16.01% | 4054.00% | Weak |
| Debt/Equity | 0.15 | 0.89 | Strong (Low Leverage) |
| Current Ratio | 1.77 | 660.05 | Neutral |
| ROA | 18.52% | -24865.00% (disorted) | Strong |
NWL.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Netwealth Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
150.04%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
159.28%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
107.43%
Industry Style: Value, Dividend, Cyclical
High Growth